Sam George
The World Bank has slapped Ghana with a suspension of two of its funded projects in the country following the government’s recent mass layoffs in key sectors.
The affected projects are the $200 million Tree Crops Diversification Project and the $200 million Ghana Digital Acceleration Project (GDAP).
According to the Bretton Woods institution, the dismissals were improper and violated fair labour practices.
The suspension of these projects, which were aimed at strengthening Ghana’s infrastructure and economic resilience, adds further strain to the country’s already fragile financial situation.
The High Street Journal quoted sources at the World Bank as stating that in the case of GDAP, Minister of Communication, Digital Technology, and Innovations, Samuel Nartey George, was warned against making personnel changes without following due process. However, the dismissals proceeded regardless.
The minister recently announced a review of nearly 600 personnel recruited into the ministry and its agencies after the December 7, 2024 elections, with nearly 100 employees already dismissed.
He justified the move as a necessary step to streamline operations, reduce excess staff, and enhance efficiency.
The GDAP initiative is designed to expand broadband access, improve digital public services, and strengthen the country’s digital innovation ecosystem to drive job creation and economic growth.
The Tree Crops Diversification Project, on the other hand, aims to enhance economic, climate, and social resilience in the cocoa, coconut, cashew, and rubber value chains.
Sources indicated that the terminations were carried out without adherence to World Bank protocols, raising concerns about the future of these initiatives.
Experts familiar with World Bank operations stress that Ghana must quickly rectify these procedural breaches by ensuring proper contract terminations and following an open, competitive recruitment process before the projects can resume.
The report also warned that a similar issue may arise at Development Bank Ghana (DBG), which is also under scrutiny.
The appointment of a new CEO was reportedly made without following the World Bank’s required competitive selection process.
The World Bank, African Development Bank, and other multinational donors are supporting DBG, making adherence to proper protocols crucial.
The High Street Journal further reported that experts believe these dismissals, along with others across government institutions, could lead to the suspension of additional World Bank-supported projects, which will put more critical initiatives at risk if laid-down procedures continue to be ignored.
Given Ghana’s current financial strain and limited access to international capital markets, the loss of such crucial funding could severely impact the government’s economic and developmental agenda, the report concluded.
A Daily Guide Report