The International Monetary Fund (IMF) has stated that regarding Ghana’s recently approved anti-LGBTQ+ bill, it cannot make any remarks on the bill. This is because the bill has not yet been signed into law and the IMF has not yet assessed its economic and financial implications.
According to the IMF, diversity and inclusion are values it embraces. “Our internal policies prohibit discrimination based on personal characteristics, including but not limited to gender, gender expression, or sexual orientation. As institutions, diverse and inclusive economies flourish,” the Washington-based lender added.
“We are watching recent developments in Ghana closely, we cannot comment on a bill that has not yet been signed into law and whose economic and financial implications we have yet to assess.”
The IMF
The IMF’s assistance is crucial to Ghana’s financial stability. The nation, which is now in the process of restructuring its debt, requested a $3 billion bailout after going into default.
Under its three-year emergency program, the International Monetary Fund (IMF) authorized the transfer of a second tranche to Ghana on January 19, amounting to $600 million.
Ghana now joins the ranks of African nations enacting strict anti-LGBTQ legislation.
Uganda implemented a similar measure last year, but even with more severe penalties, including life imprisonment and the death penalty. The country has since faced serious economic sanctions from different quarters.
The World Bank suspended Uganda’s funding over human rights concerns tied to the anti-homosexuality law.
Following suit, the United States expelled Uganda from the Africa Growth and Opportunity Act (AGOA), a specialized trade program established in 2000 to foster economic relations between the U.S. and Africa.
Ghana’s Economists’ Perspective
Meanwhile, Franklin Cudjoe, the Founding President and CEO of IMANI Africa has indicated that it is sad for a sovereign nation that prided itself never to go to the IMF, to beg for crumbs because of a gay bill passed by its Parliament.
“To think that this sovereign nation’s leadership had all the resources in multiple folds than all its predecessors to do good and leave us surplus for a rainy day. Not only did it not do that, but it also through draconian debt exchange programs forcibly took our meagrely famished savings too.”
Franklin Cudjoe, IMANI
Franklin Cudjoe warned about a coming economic crisis due to Ghana’s request for a $4 billion loan from the World Bank. The Loan constitutes nearly 90% of the annual revenue from procurement deals on mega projects.
Franklin Cudjoe highlighted the potential for “crony capitalism” and financial mismanagement of the project.
Professor John Gatsi, an economist and Dean of the University of Cape Coast Business School, has revealed that there is a significant amount of lobbying efforts being made in the final stages of the passage of Ghana’s anti-LGBTQ+ bill. These efforts are aimed at dissuading President Akufo-Addo from signing the bill into law.
“It sounds like there is a heavy dose of lobbying activities going on [in] these last minutes of the process. We knew that the constituents of the world that are not happy with the stand of Ghana on LGBTQ were very clear. All attempts were made to stop the process in parliament that didn’t happen.”
Prof. Gatsi
Prof. Gatsi added that the international community, having seen the signs of a unanimous decision to pass the bill in parliament, has occasioned “the upscale of lobbying activities across the board.”
Prof. Gatsi wondered about the role of the anti-gay bill as far as the conditions for the IMF bailout are concerned.
He emphasized that the anti-gay bill, whether it becomes a law or not, was not part of the conditions for Ghana to receive the IMF board’s approval for the US$3 billion rescue loan.
This situation underscores the complex interplay between domestic policy, international pressure, and the potential impact on Ghana’s economic and financial stability.
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