Ghana’s Ministry of Finance has advised the president against endorsing a contentious anti-LGBT bill recently passed by parliament. The ministry cautions that the nation stands to forfeit a total of $3.8 billion (£3 billion) in World Bank funding over the next five to six years if the bill becomes law.
The legislation stipulates a three-year jail term for individuals identifying as LGBT+ and five years for those promoting LGBT+ activities. This development comes amid Ghana’s significant economic challenges, with the country receiving financial assistance from the International Monetary Fund (IMF) last year.
There are apprehensions that a reduction in funding from the World Bank and other donors could impede the ongoing economic recovery efforts. In an unusual move, the finance ministry’s warning was leaked to various media outlets, including the BBC.
The ministry recommends that President Nana Akufo-Addo refrain from signing the bill until the Supreme Court determines its constitutionality. Human rights groups have already initiated legal action against the bill, although it may take some time before the Supreme Court addresses the matter.
President Akufo-Addo has seven days to decide on the bill’s enactment upon receipt and an additional 14 days to provide reasons for his decision. Despite parliament passing the Proper Human Sexual Rights and Ghanaian Family Values bill last Thursday, it has yet to reach the president for approval.
Reports suggest that President Akufo-Addo is engaging in consultations with key ministries and donors to evaluate the bill’s potential impact. The United States, United Kingdom, and human rights organizations have condemned the bill, which received support from both of Ghana’s main political parties.
Last year, the World Bank halted new loans to Uganda following the introduction of stricter anti-LGBT legislation than that passed in Ghana. While the IMF refrains from commenting on unsigned bills, it emphasizes the importance of diversity and inclusion.
This year alone, Ghana could face a loss of approximately $850 million (£670 million) in support, exacerbating existing economic challenges, depleting foreign reserves, and impacting exchange rate stability.
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