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The recent passage of the anti-LGBT+ bill in Ghana’s Parliament has ignited a fierce debate within the country and beyond. The bill, which criminalizes same-sex relations and LGBTQ+ advocacy, has raised concerns about human rights violations and discrimination against marginalized communities.
As pressure mounts on President Nana Akufo-Addo to assent to the bill, Ghana finds itself at a crossroads where social justice intersects with economic considerations, particularly in light of the country’s efforts to secure aid from the International Monetary Fund (IMF).
Ghana’s decision on the LGBT+ bill is not made in isolation but within a broader context that includes international human rights standards, domestic cultural norms, and economic realities. The debate surrounding the bill reflects a clash between traditional values and modern human rights principles, highlighting the complexity of addressing social issues in a rapidly changing world.
On one hand, proponents of the bill argue that it upholds Ghanaian cultural values and traditions, safeguarding what they perceive as moral standards within society. They contend that criminalizing same-sex relationships is necessary to preserve traditional family structures and societal cohesion. However, critics of the bill emphasize the importance of protecting the rights and dignity of all individuals, including LGBTQ+ communities, in line with universal human rights principles.
Amidst this debate, Ghana’s pursuit of financial assistance from the IMF adds another layer of complexity to the situation. The IMF aid is crucial for Ghana’s economic stability and development initiatives, offering much-needed financial support to address pressing economic challenges. However, accepting IMF aid may come with conditions that could impact Ghana’s policy decisions, including those related to human rights and social issues like the LGBT+ bill.
President Akufo-Addo faces a delicate balancing act as he navigates these intertwined issues. The decision to assent to the LGBT+ bill will not only shape Ghana’s stance on human rights but also influence its international reputation and relationships. At the same time, the imperative to secure IMF aid underscores the importance of maintaining economic stability and addressing fiscal concerns for the country’s development.
Ghana stands at a critical juncture where it must reconcile its commitment to human rights with its economic imperatives. As the pressure mounts on President Akufo-Addo to make a decision on the LGBT+ bill, it is essential for Ghana to uphold its international obligations while fostering an inclusive society that respects the rights of all individuals. Striking a balance between social justice and economic progress will be essential for Ghana’s sustainable development and standing in the global community.
IMF Reaction after Bill Passage
The International Monetary Fund (IMF) has stated its vigilance regarding recent developments in Ghana after the country’s lawmakers approved a bill proposing up to three years of imprisonment for individuals identifying as LGBTQ.
In a statement issued from its headquarters in Washington, the IMF underscored its commitment to values of diversity and inclusion, stating that such principles are embraced within the institution.
The lender said its internal policies against discrimination based on personal characteristics, including gender, gender expression, or sexual orientation, stressing that diverse and inclusive economies tend to thrive.
“Diversity and inclusion are values that the IMF embraces,” the Washington-based lender said in a statement copied to Bloomberg. “Our internal policies prohibit discrimination based on personal characteristics, including but not limited to gender, gender expression, or sexual orientation. Like institutions, diverse and inclusive economies flourish.”
The legislation, passed by Ghana’s lawmakers on Wednesday with support from both the ruling party and the opposition, not only criminalizes the identification as LGBTQ but also targets the financing of LGBTQ groups and sanctions discrimination against them. President Nana Akufo-Addo, who is expected to step down after the upcoming elections on December 7, must endorse the bill for it to become law.
Acknowledging the importance of the situation, the IMF noted its close observation of events in Ghana, refraining from commenting on the bill until it is signed into law and its economic and financial implications are thoroughly assessed.
Ghana’s financial stability is closely linked to IMF assistance, particularly as the nation navigates its debt default and restructuring process, relying on the fund for crucial access to foreign exchange.
Earlier this year, on January 19, the IMF agreed to release a second tranche of $600 million to Ghana as part of the country’s three-year emergency program. Additionally, the World Bank has allocated $900 million in development-policy financing to aid Ghana’s economic recovery efforts.
Following the news of Ghana’s anti-LGBTQ legislation, the country’s dollar bonds experienced a decline, ranking as the second-worst performers in a Bloomberg index monitoring emerging-market sovereign hard-currency debt on Thursday.
All 14 of Ghana’s dollar notes in the gauge saw a drop in value, with the bonds maturing in 2034 experiencing the most significant impact, plummeting to 43.34 cents on the dollar, marking their lowest level since January 12.
Meanwhile ,the Ministry of Finance has urged President Akufo-Addo to refrain from signing the recently passed Anti-LGBTQ+ Bill into law.
In a statement cited on Monday, March 4, the Finance Ministry cautioned that such action could lead to severe repercussions on the country’s financial support from international organisations like the Bretton Woods Institutions.
The statement highlighted concerns that the expected US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support), currently awaiting Parliamentary approval, might not be disbursed if the bill is signed into law.
Additionally, ongoing negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support), amounting to US$300 million, could be suspended.
The Ministry emphasised that these potential outcomes could result in a significant loss of financial resources, leading to a financing gap in the 2024 budget.
To address these challenges, the Ministry called upon the President to engage with religious bodies to discuss the implications of signing the bill and to establish a robust coalition and framework for supporting key development initiatives.
“The Presidency may have a structured engagement with local conservative forces such as religious bodies and faith-based organisations to communicate the economic implications of the passage of the ‘Anti-LGBTQ’ Bill and to build a stronger coalition and a framework for supporting key development initiative that is likely to be affected.”
It also added that “the President may have to defer assenting to the Bill until the court rules on the legal issues tabled by key national stakeholders (CSOs and CHRAJ).”
On February 28, 2024, Parliament approved a bill criminalizing LGBTQ activities and prohibiting their promotion, advocacy, and funding.
Under the legislation, individuals convicted of such acts could be sentenced to 6 months to 3 years in prison, while those promoting or sponsoring such activities could face 3 to 5 years behind bars.
The bill’s passage has sparked criticism from various stakeholders, including Virginia Evelyn Palmer, the Ambassador of the United States to Ghana.
Fear of Losing $3,8Bn From IMF
The Finance Ministry is raising concerns about the implications of President Akufo-Addo’s potential assent to the recently passed Anti-LGBTQ+ bill.
Days after the bill was passed, the Ministry outlined the negative implications of the document on its expenditure, key government plans, and projects.
The office is urging President Akufo-Addo to hold off on signing the bill into law as it may cost the country greatly.
These risks include a potential loss of $850 million in budgetary support from the World Bank this year alone.
In the 5-page document, the Ministry explained that “for 2024 Ghana will lose US$600 million Budget support and US$250 million for the Financial Stability Fund.”
“This will negatively impact Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore the country’s reserve position.
Over the next six years, the Ministry explained that “Ghana is likely to lose US$3.8 billion in World Bank Financing.”
Below is the full text of the World Bank implications projected by the Ministry;
i. The expected US$300 million financing from the First Ghana Resilient Recovery Development Policy (Operation Budget Support) which is currently pending Parliamentary approval might not be disbursed by the Bank when it is approved by Parliament.;
ii. On-going negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support) amounting to US$300 million may be suspended:
iii. On-going negotiations for US$250 million to support the Ghana Financial Stability Fund
may be suspended;
iv. Disbursement of undisbursed amounts totalling US$2.1 billion for ongoing projects will be suspended; and
v. Preparation of pipeline projects and declaration of effectiveness for two projects totalling US$900 million may be suspended. Full details of the World Bank portfolio are attached as Appendix 1 & 2.
vi. In total, Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years. For 2024 Ghana will lose US$600 million in Budget support and US$250 million for the Financial Stability Fund. This will negatively impact Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore up the country’s reserve position.
As it stands ,President Akufo-Addo’s dilemma encapsulates the intricate balance between economic imperatives, the pursuit of IMF aid, and the fundamental principles of human rights. As Ghana navigates these complex challenges, the decisions made will not only shape the country’s economic trajectory but also define its commitment to upholding human rights standards. A careful and thoughtful approach that considers both economic realities and human rights concerns will be essential for Ghana to address its multifaceted dilemma effectively and chart a path forward that aligns with its values and aspirations.
Additional Source : Ministry of Finance Ghana
