- The African Development Bank has advised African countries to channel borrowed funds to proper use
- This, it noted, would help reduce fiscal challenges that would further sink the countries into more debt
- The bank noted that the outbreak of the coronavirus could create more debts for countries if care is not taken
Our Manifesto: This is what YEN.com.gh believes in
African countries have been cautioned against the misuse of funds borrowed from the international community.
The African Development Bank (AfDB) noted that several African countries are likely to be plunged into distress if corrective measures are not adopted with regard to the use of funds.
It stated that countries that access such funds need to channel them into developmental projects that would yield returns.
READ ALSO: World Bank gives MSMEs and others $250,000
This, the AfDB noted, is because the outbreak of the coronavirus is likely to force some countries into distressful situations if corrective measures are not taken.
A report by thebftonline.com shows that the need to confront the challenges that came with the outbreak of COVID-19 forced some countries to run to bodies such as the International Monetary Fund (IMF), the World Bank, and the AfDB.
The need to halt the spread of the pandemic compelled countries to resource health systems, motivate health staff, provide food for the poor, and enforce border closures.
This eventually led to a pause in revenue generation and a widening of fiscal gaps as some expenditures were not budgeted for.
YEN.com.gh understands that Ghana went to the IMF and the World Bank for emergency funding to close its fiscal gap.
The finance minister, Ken Ofori-Atta, earlier indicated that the gap is likely to increase to 7.8% from an earlier 4.7%.
This translates to an increase from GHc18.9 billion to GHc30.2 billion, with the variance equal to an estimated 2.9% of the gross domestic product (GDP).
In other news, Ghana has acknowledged receipt of $315 million from the World Bank to create jobs, develop skills, and transform digital systems.
The support was approved by the Board of Executive Directors of the World Bank and will be sourced from the International Development Association (IDA).
The support is composed of two parts; $200 would be used for the Ghana Jobs and Skills Project and $115 million for the eTransform Ghana Project.
READ ALSO: Report shows Africa is eliminating tax evasion and money laundering
Enjoyed reading our story? Download YEN's news app on Google Playstore now and stay up-to-date with major Ghana news!
Star Gist: The impact of COVID-19 on the fitness industry in Ghana | #Yencomgh
Do you have a hot story or scandal you would like us to publish on YEN.com.gh? Please contact us on Facebook or Instagram now!