August 10, 2022

The Parliament of Ghana has approved a loan facility agreement between the Ghana government and African Export-Import Bank (Afreximbank) for an amount of $750 million to finance capital growth-related expenditures in the 2022 budget.

The $750 million facility for budget support comprises two tranches – tranche A is made up of €200 million and $101 million while tranche B is made up of $350 million.

The financing terms of the loan facilities include three years grace period for each of the stated amounts, whereas the repayment period for both the €200 million and the $101 million is four each, while that of the $350 million in seven years.

The interest rates for the €200 million, the $101 million, and the $350 million are 5.57 percent per annum, 8.81 percent per annum, and 8.81 percent per annum respectively.

Proceeds from the loan would be used to finance critical infrastructure related to sectors such as roads, energy, railways, and health as captured in the 2022 budget. The list of projects to be financed from the $750 million loan facility is listed above.