Ghanaian Finance Ministry Warns Against Fallout From Anti-LGBTQ Law
The finance ministry of Ghana has cautioned President Nana Akufo-Addo against supporting a controversial anti-LGBTQ bill, emphasizing the potential risk of the economically challenged nation forfeiting billions of dollars in World Bank funding.
Legislators gave their approval last week to a bill that seeks to significantly limit the rights of the LGBTQ community. This move, which garnered significant backing in the conservative West African nation, has been criticized by rights activists.
It prescribes imprisonment ranging from six months to three years for participating in LGBTQ sexual activities, and sentences spanning three to five years for endorsing or supporting LGBTQ initiatives.
A private four-page report from the finance ministry, acquired by AFP, pointed out that the potential economic consequences may interfere with Ghana’s budgetary projections for 2024.
Ghana is recovering from its most severe economic downturn in years and is currently participating in a $3 billion loan initiative provided by the International Monetary Fund.
“In total, Ghana is likely to lose US$3.8bn in World Bank financing over the next five to six years. For 2024, Ghana will lose US$600 mn in budget support and US$250 mn for the Financial Stability Fund,” the leaked document said.
“This will negatively impact Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore up the country’s reserve position.”
It said while “there is no direct conditionality … relating to the passage of the bill… the non-disbursement of the budget support from the World Bank will derail the IMF program.”
“This will, in turn, trigger a market reaction affecting exchange rate stability,” the document addressed to the president’s office stated.
A source from the finance ministry verified the document’s authenticity, although there was no immediate response from the presidency regarding its contents.
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Akufo-Addo is relinquishing his position after serving two terms, and his governing New Patriotic Party (NPP) is in a closely contested competition with the primary opposition, the National Democratic Congress (NDC), in the upcoming presidential election scheduled for December.
Foreign loans, handling of debt, the state of the economy, and its resurgence will be key focal points during the pre-election campaign.
The legislation, often known as the bill against LGBTQ+ rights, has garnered extensive global criticism, with condemnation coming from entities such as the United Nations, as well as the governments of the United States and Britain.
Backed by a coalition that included leaders from Christian, Muslim, and Ghanaian traditional communities, the initiative gained substantial backing from Members of Parliament.
Akufo-Addo has not specified the exact time he will approve the bill, but he has previously stated that same-sex marriage will not be permitted during his tenure as president.
“The president may have to defer assenting to the bill until the court rules on the legal issues tabled by key national stakeholders,” the ministry document said.
In 2022, Ghana faced its most severe economic downturn in years, marked by a significant rise in inflation exceeding 50 percent. This compelled the nation, known for its substantial production of gold, oil, and cocoa, to turn to the International Monetary Fund (IMF) for assistance and undergo a restructuring of its debt.
Ghana experienced an increase in its debt burden and, similar to other sub-Saharan African countries, faced challenges stemming from the economic consequences of both the global pandemic and the conflict between Russia and Ukraine.
Ghanaian Finance Ministry Warns Against Fallout From Anti-LGBTQ Law
