World Bank has suspended two $200 million projects in Ghana due to improper dismissal of personnel, jeopardizing critical development initiatives amid the country’s financial strain.

Two major World Bank-funded projects, a $200 million Tree Crops Diversification Project and another $200 million Ghana Digital Acceleration Project (GDAP), have been suspended following the dismissal of key personnel by the new government. The terminations, carried out without adherence to World Bank protocols, have raised concerns about the future of these initiatives.

The Tree Crops Diversification Project aims to enhance economic, climate, and social resilience in the cocoa, coconut, cashew, and rubber value chains. The GDAP initiative, on the other hand, is designed to expand broadband access, improve digital public services, and strengthen Ghana’s digital innovation ecosystem to drive job creation and economic growth.

Sources close to The High Street Journal indicate that in the case of GDAP, sector Minister Samuel Nartey George was warned against making personnel changes without following due process, yet the dismissals proceeded. A similar situation unfolded with the Tree Crops Diversification Project, leading to its suspension.

Experts familiar with World Bank operations stress that Ghana must remedy these procedural breaches by conducting proper contract terminations and follow an open and competitive recruitment process before the projects can resume. The same situation may arise at the Development Bank Ghana (DBG), which is also under scrutiny, as the appointment of a new CEO was reportedly made without adhering to the World Bank’s required competitive selection process. The World Bank, Africa Development Bank and other multinational donors are supporting the Bank.

The Minister for Communication, Digital Technology, and Innovations, Samuel Nartey George, recently announced a review of nearly 600 personnel recruited into the ministry and its agencies after the December 7, 2024 elections, with nearly 100 already dismissed. He justified the move as a necessary step to streamline operations, reduce excess staff, and enhance efficiency.

However, these dismissals and others across government institutions have now resulted in the suspension of critical World Bank-supported projects, with more at risk if laid-down procedures continue to be ignored. Given Ghana’s current financial strain and restricted access to international capital markets, the loss of such crucial funding could severely impact the government’s economic and developmental agenda.

Source: The High Street Journal

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