Ghana is a middle-income country that used to harbour one of the strongest economies in Africa. However, for the past few years external shocks such as falling commodity prices have sent Ghana’s economy into decline.

Despite efforts by the government public debt and inflation remain high, and along with fiscal consolidation the finance ministry have issued Eurobonds to refinance the nation’s debts.

Jacob Mukete, director of the AfDB’s Governance, Economic and Financial Management Department, said that the programme works towards “strengthening fiscal consolidation, deepening public financial management reform and improving the efficiency and competitiveness of the economy”.

These changes are “likely to benefit women and vulnerable groups” as more fiscal space creates room for increased pro-poor spending and better social services delivery, he said.

Similarly, aspects of the programme focused on private-sector competitiveness will drive inclusive growth in the country, he added.

The programmes and loan are the first stage of a $100m two-year scheme that will be implemented in 2015 and 2016.