The Ministry of Finance is warning of dire consequences Ghana is likely to face should president Nana Addo Dankwa Akufo-Addo assent to the anti-LGBTQ+ bill.
In a 4-page document assessing the implications of the bill awaiting presidential assent, the Ministry said the country is likely to lose a total of US$3.8 billion in World Bank Financing over the next 5 to 6 years should it be approved into law.
For the 2024 fiscal year specifically, it indicated that the country could lose US$600 million in budget support and US$250 million meant for the Financial Stability Fund.
“This will negatively impact on Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore the country’s reserve position,” it stated.
The potential losses, emanating from the passing of the bill into law, the Ministry further said, will create financing gaps in the 2024 budget and derail the ongoing IMF programme and the debt restructuring, which could, in turn affect the stability of the local currency and the economy as a whole.
It is therefore urging the president to defer giving presidential assent to the bill until legal actions against its passage are determined while holding “a structured engagement with local conservative forces such as religious bodies and faith-based organizations to communicate the economic implications of the passage of the ‘Anti LGBTQ’ Bill and to build a stronger coalition and a framework for supporting key development initiative that are likely to be affected”.
It is also urging government to start effective engagement with conservatives countries like the Arabs and China for possible support in the event that the bill is passed into law.
On its own, the Ministry said it will consider “possible expenditure rationalisation to accommodate the shock from the potential withdrawal of resources” as well as take steps to improve domestic revenue mobilization.
