The government has been urged to explore additional diplomatic financing options beyond the United States and consider utilizing funds from the Ghana Stabilisation Fund (GSF) to address funding gaps, particularly in the health sector. This comes in response to a $78.2 million shortfall caused by the withdrawal of the United States Agency for International Development (USAID) support.
In an exclusive interview with the Ghana News Agency, Professor John Gatsi, Dean of the University of Cape Coast Business School, emphasized the need for proactive financial strategies to mitigate the impact on critical sectors like healthcare. He highlighted that President John Dramani Mahama had already directed Finance Minister Dr. Cassiel Ato Forson to take immediate action to close the funding gap.
Prof. Gatsi stressed the importance of broadening Ghana’s scope of diplomatic engagement to secure financial support from other countries, such as Norway, the UK, and even countries that have not previously supported Ghana. “This is the time to be aggressive in contacting them to see how they can scale up their support to Ghana,” he said.
He also called for a collaborative effort between the Ministry of Finance and the Ministry of Foreign Affairs to achieve these goals.
Although a leaked international memo indicated a possible restoration of USAID support to some “strategic countries,” it remains unclear whether Ghana is included. In the meantime, Prof. Gatsi suggested that the government could draw from the Ghana Stabilisation Fund, which receives 30 percent of the country’s petroleum revenue.
As of the end of 2023, the Reconciliation Report on the Petroleum Holding Fund presented to Parliament showed that the Stabilisation Fund had a closing balance of $190.38 million. Prof. Gatsi recommended that some of this money be used to alleviate the current financial strain caused by the USAID funding shortfall, stating, “We should be targeting to get some money to support the economy regarding this shortfall.”
