Barclays Bank Ghana Ltd.

MIGA has issued $3.54 million in guarantees to Société de Promotion et de Participation pour la Coopération Economique of France, covering its nonshareholder loan to Barclays Bank Ghana Ltd. to enable the local bank to provide long-term financing to a company in the tourism industry. The funding will finance the construction of a new hotel (Atlantic Holiday Resort) in Accra. The guarantee is for a period of seven years and covers against the risk of currency transfer restriction.

The hotel is expected to have a number of direct and indirect benefits for the local economy. These include providing higher-quality accommodations at a reasonable price, thereby leading other hotels in the city to improve their standards to remain competitive and attracting more tourists. In addition, the hotel will create an estimated 50 new jobs over the next three years, and is expected to fuel the growth of local businesses involved in transportation, food and hospitality, and tour operation. The tourism industry is the third highest foreign exchange earner in Ghana, with average earnings of over $400 million per year.

Ghana is an IDA-eligible country. MIGA’s participation in the project is aligned with several agency priorities, including supporting the poorest in Africa. MIGA’s guarantee also complements the World Bank Group’s Country Assistance Strategy for Ghana, which aims to eliminate poverty by stimulating private sector development.