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Ghana secures $490 million World Bank loan

WASHINGTON: The World Bank said on Friday it has approved a $490 million loan for Ghana to help the country tackle its poverty, which affects almost half of its population.

The World Bank committed the loan, which is available to help the country between 2001-2003, after Ghana's government presented its economic and social plans to the bank's board of directors via videoconference last week.

The loan is intended to help the African nation reduce poverty, which affects about 43 percent of the population. Poverty in the country has been reduced from about 51 percent a decade ago but, the bank noted, the improvements have been unevenly spread and poverty may have actually increased in some areas of the country where annual income averages about $390 per person.

The loan backs policies aimed at boosting economic growth, strengthening the agriculture sector, creating new business opportunities and fostering entrepreneurship, improving access to health, sanitation and education as well as building more roads and infrastructure to reduce the isolation of rural communities.

"This is the first time that a government has presented its development strategy directly to our board of directors and this reflects the new way the bank is doing business with our clients," bank country director Peter Harrold said in a statement, adding that Ghana faced "very unfavourable economic circumstances." -Reuters