The Republic of Ghana and the African Development Bank (AfDB) have signed a grant worth US$71.25 million to finance the Ghana Women and Youth Employment and Social Cohesion (GWYESCO) Project.
Speaking at the grant agreement signing ceremony for the GWYESCO project, the Minister of Finance, Dr. Cassiel Ato Forson, reaffirmed the government’s strong commitment to deepening collaboration with the African Development Bank, AfDB, as it advances its national transformation agenda.
Dr. Forson emphasized that women and youth represent the backbone of Ghana’s creative and productive potential. Despite this, he noted, they continue to face structural barriers including high unemployment, limited access to finance, and inadequate skills.
“With the support of the African Development Bank, GWYESCO will train young people, empower women entrepreneurs, expand financing opportunities, strengthen micro, small and medium enterprises (MSMEs), and build the capacity of key institutions to advance inclusive development.”
Dr Cassiel Ato Forson, Minister of Finance
He added that the Bank’s support would also bolster resilience in communities affected by climate-related risks and security vulnerabilities.
The ceremony was attended by representatives of the African Development Bank, officials from the Ministry of Finance, and the Social Investment Fund.
Results-Based Financing (RBF) Operation
The initiative marks Ghana’s first Results-Based Financing (RBF) operation supported by the AfDB and represents a major milestone in efforts to enhance the efficiency, impact, and accountability of public investments.
This funding approach is different from the usual traditional input-based spending, which focuses on allocating funds based on specific expense categories (inputs). The RBF links financial rewards to the achievement of pre-agreed and measurable outcomes. Instead of paying for activities like hiring staff or buying equipment, RBF rewards providers for delivering results.
Although the agreement has been signed, AfDB will make payments as a reward only after the achievement of specific, verifiable results on the project. This model incentivizes innovation and efficiency by ensuring funding is tied to tangible impacts and outcomes.
This shift from traditional input-based financing is expected to foster greater transparency, efficiency, and accountability while strengthening national systems for sustainable program delivery. Expected outcomes include increased employment, higher household incomes, expanded business opportunities, and strengthened community resilience.
GWYESCO Project
The GWYESCO Project is a flagship initiative aimed at advancing Ghana’s long-term development priorities by improving resilience, expanding economic opportunities, and strengthening social cohesion.
The program seeks to enhance the living conditions of women and youth in Ghana through job creation, entrepreneurship support, expanded access to finance, strengthening social cohesion, and targeted skills development—particularly within underserved and vulnerable communities.
Led by the African Development Bank Group (AfDB) and coordinated by The Social Investment Fund (SIF), the project will provide skills development (especially in digital and STEM fields), business development services, and access to finance for women- and youth-owned businesses.
The program also aims to build social cohesion, particularly in Northern Ghana, and address issues like unemployment and vulnerability to conflict. The program is scheduled to run for three fiscal years, from 2026 to 2028.
The Country Director for AfDB, Fasika Eyerusalem, commended the Government of Ghana for its leadership, ownership, and professionalism throughout the program’s design and negotiation stages. She urged the government of Ghana to remain focused and steadfast in the management of the Ghanaian economy.
She reaffirmed the Bank’s commitment to providing continued technical and strategic support to ensure that the program not only meets but surpasses its intended objectives and delivers broad-based development impact.
READ ALSO: Ato Forson Opens EBID’s First Regional Office in Abidjan
