News:
July 21, 2026
Parliament has given the green light to a US$500 million credit facility aimed at improving all-season farm-to-market road connectivity across selected districts in Ghana.
The approval follows a report presented by the Finance Committee, with the facility comprising a US$500 million credit from the International Development Association (IDA) and US$23 million in counterpart funding from the Government of Ghana.
Targeted Investment in Rural Infrastructure
According to the Finance Committee report, the facility is not a general budget-support loan but rather a targeted investment focused on physical connectivity, resilience, maintenance sustainability, and associated institutional reforms.
“The objective of the facility is to improve and sustain all-season farm-to-market road connectivity in selected districts of Ghana,” the document stated.
Concessional Terms
The IDA credit comes with highly favourable terms, including:
· Maturity Period: 30 years
· Grace Period: 5 years
· Interest Charge: 1.5% per annum
· Commitment Charge: 0.5% per annum on the unwithdrawn financing balance
· Repayment Schedule: 1st February and 1st August each year, beginning 1st August 2031 through 1st February 2051
The credit facility is being financed from Ghana’s allocation under the IDA20 replenishment cycle.
Boost for Agricultural Productivity
Road Minister Kwame Agbodza, speaking in support of the report, emphasised that the investment is expected to boost agricultural productivity by linking farming communities to markets year-round.
“It will reduce post-harvest losses and improve rural livelihoods,” Agbodza told the House.
Emergency Response Mechanism
The Finance Committee particularly welcomed the inclusion of a Contingent Emergency Response Component, which provides the Government with flexibility to respond rapidly to eligible emergencies or crises without compromising ongoing project activities.
Members considered this provision particularly relevant given increasing climate-related disasters and other unforeseen events that may require immediate mobilisation of resources.
Committee Recommendation
Having scrutinised the terms, the Committee concluded that the Ghana Market Access and Connectivity Project will significantly improve rural accessibility, strengthen agricultural value chains, reduce transportation costs, improve food security, and contribute to sustainable economic growth.
The Committee further noted the paradigm shift that prioritises allocation of a significant portion of the loan to infrastructure components of the project.
The approval was granted in accordance with Article 181 of the 1992 Constitution and the Standing Orders of the House.
Ghanamps.com