The World Bank will be supporting government with $200million to empower micro enterprises and enhance skills of entrepreneurs, as part of the economic recovery from covid-19 crisis.

Implementation of the project which the Bretton Wood institution believes will secure the foundations of the economy will begin from the first quarter of next year.

Dubbed “Ghana Jobs and Skills Project”, the project will support entrepreneurs with capital and training.

A Social Protection Specialist at the World Bank, Christabel Ewuradjoa Dadzie, explains that the project will help the economy to recover post covid-19.

“The joint project is being supervised by the Education and Social Protection of Jobs Unit because it covers both skills and jobs. This project will be looking at supporting entrepreneurs with capital and training for micro and small enterprises.”

“We’re also looking at conducting apprenticeship and entrepreneurship training, but really focusing on-the-job training which is important to make sure that these apprentices for example are able to learn on the job. And going one step further is building on certification,” she said.

She further stated that the move will promote sustainable growth and job creation in the recovery of developing countries from the coronavirus pandemic.

World Bank Country Director, Pierre Laporte, for his part said the World Bank will continue to support Ghana and developing countries during this challenging time.

“Globally, our private sector and the international financing company, IFC, is implementing an $8-billion financing facility to keep liquidity flowing to businesses during the crisis especially to MSMEs which are major source of employment in developing countries.”

“The second phase which is a restricting phase focusing on health systems for pandemic readiness, restoring human capital and restructuring debt resolution and recapitalisation of firms and financial institutions,” he said.  

Impact of covid-19 on poverty

The COVID-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the numbers rising to as many as 150 million by 2021.

This will however depend on the severity of the economic contraction.

Extreme poverty, defined as living on less than $1.90 a day, is likely to affect between 9.1% and 9.4% of the world’s population in 2020, according to the biennial Poverty and Shared Prosperity Report.