Ghana is set to benefit from a US$500million credit facility aimed at improving and sustaining all-season farm-to-market road connectivity in selected districts across the country following the approval by Parliament on 21st July, 2026..
According to the Finance Committee report presented by Issac Adongo on the floor of parliament, the facility comprises an IDA Credit of US$500 million and Government of Ghana counterpart funding of US$23 million.
Purpose of the Facility
The Ministry said the facility is not a general budget-support loan. Instead, it is a targeted investment facility 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.
Key Terms of the Agreement
The IDA credit has concessional terms with a long repayment window:
– Credit amount: US$500,000,000.00
– Maturity Period: 30 years
– Grace Period: 5 years
– Repayment: Begins 1st August, 2031 and ends 1st February, 2051
– Payment dates: 1st February and 1st August each year
– Interest charge: 1.5% per annum + Basis Adjustment, or 0% per annum following a currency conversion
– Commitment charge: 0.5% per annum on the unwithdrawn financing balance
– Counterpart funding: US$23,000,000 from Government of Ghana
The credit facility is being financed from Ghana’s allocation under the IDA20 replenishment cycle.
In a statement to support the report, the Road Minister, Kwame Agbodza said the investment is expected to boost agricultural productivity by linking farming communities to markets year-round, reduce post-harvest losses, and improve rural livelihoods.
The Committee observed that the inclusion of a Contingent Emergency Response Component provides the Government with flexibility to respond rapidly to eligible emergencies or crises without compromising ongoing project activities. Members considered this provision particularly relevant in light of increasing climate-related disasters and other unforeseen events that may require immediate mobilisation of resources. The emergency response mechanism was therefore viewed as an important feature that enhances the resilience and adaptability of the project.
CONCLUSION AND RECOMMENDATION
Having scrutinized the terms of the Credit Facility Agreement, the Committee takes the considered view that the proposed 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. Additionally, the credit facility is being provided on highly concessional terms.
The Committee further notes the paradigm shift that prioritises allocation of a significant portion of the loan to the implementation of infrastructure components of the project as well as support with the funding amount.
The Committee accordingly recommends to the House to adopt this report and approve the Credit Facility Agreement between the Government of the Republic of Ghana (represented by the Ministry of Finance) and the International Development Association (IDA) of the World Bank Group for an amount of Five Hundred Million United States Dollars (US$500,000,000.00) to finance the Ghana Market Access and Connectivity Project (GMACP) in accordance with Article 181 of the 1992 Constitution and the Standing Orders of the House.
