Home Community Insights European Union, Mauritania and World Bank Parliament approves $300 million loan in Ghana

European Union, Mauritania and World Bank Parliament approves $300 million loan in Ghana

European Union, Mauritania and World Bank Parliament approves $300 million loan in Ghana

The European Union has announced a new deal with Mauritania to support the country’s efforts to prevent irregular migration from its shores to Europe. The agreement, signed on Monday by EU Commissioner for Home Affairs Ylva Johansson and Mauritanian Minister of Interior Mohamed Salem Ould Merzoug, includes a €60 million package of assistance over the next four years.

The deal aims to strengthen Mauritania’s border management and maritime security, as well as to improve the living conditions and protection of migrants and refugees in the country. It also envisages cooperation on return and readmission of migrants who do not qualify for international protection in Europe.

According to the EU, Mauritania is a key partner in the fight against irregular migration and human trafficking in the Western Mediterranean route, which saw more than 23,000 arrivals in Spain last year. The EU praised Mauritania’s role in rescuing migrants at sea and hosting them in its territory, while also acknowledging the challenges it faces as a transit and destination country for migrants from sub-Saharan Africa.

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The EU-Mauritania deal is part of a broader strategy of the bloc to engage with countries of origin and transit of migration in Africa and beyond, in order to address the root causes of migration, enhance legal pathways and cooperation on returns, and prevent deaths and human rights violations along the migratory routes.

$300 million loan to finance first resilient recovery development policy financing.

The World Bank has announced that it has approved a $300 million loan to support Ghana’s first resilient recovery development policy financing. This is a landmark initiative that aims to help the country recover from the impacts of the COVID-19 pandemic and build resilience to future shocks.

The loan will support a series of policy reforms that will strengthen Ghana’s fiscal and debt sustainability, enhance transparency and accountability in public financial management, and promote a green and inclusive recovery. Some of the key reforms include:

Implementing a fiscal responsibility law and a debt management strategy to ensure fiscal discipline and debt sustainability.

Establishing a public investment management system and a fiscal risk unit to improve the efficiency and effectiveness of public spending and mitigate fiscal risks. Enhancing the transparency and oversight of state-owned enterprises and public-private partnerships to reduce contingent liabilities and improve service delivery.

Introducing a carbon tax and a green levy to mobilize domestic resources for climate action and environmental protection. Expanding social protection programs and increasing access to quality health care and education for the poor and vulnerable.

The World Bank’s Country Director for Ghana, Pierre Laporte, said that the loan will help Ghana address the urgent challenges posed by the pandemic and lay the foundations for a more resilient and sustainable future.

“The COVID-19 crisis has exposed the vulnerabilities of Ghana’s economy and society, but it also provides an opportunity to rebuild better. This operation supports the government’s efforts to implement critical reforms that will enable a faster and greener recovery, create more jobs, protect the poor and enhance governance,” he said.

The loan is part of the World Bank’s COVID-19 Crisis Response Window, which provides additional financing to help countries cope with the health, social and economic impacts of the pandemic. The World Bank has committed $12 billion to support African countries in their response to the crisis.

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