Germany pledges EUR 82 million to support key areas of the Ghanaian economy

On November 28 and 29, 2022, in Berlin, the governments of Ghana and Germany concluded bilateral talks on development cooperation.

Ken Ofori-Atta, the minister of finance of Ghana, served as the mission’s leader. Other members of the trip included the ambassador of Ghana to Germany, Mrs. Gina Ama Blay, as well as MPs Osei Bonsu Amoah, Andrew Egyapa Mercer, Gifty Twum Ampofo, and Gifty Twum Ampofo.

The German Federal Ministry for Economic Cooperation and Development (BMZ), with the assistance of associated organizations including the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) and KFW Development Bank, held the two-day negotiations.

At the conclusion of the negotiations, the Government of Germany announced new and additional grant commitments totaling EUR 82 million for key areas of the Ghanaian economy, including the development of renewable energy, the strengthening of the financial sector, the development of education and skills (TVET), the digital transformation of governance, the assurance of food security, the empowerment of women, and MSME support.

Dr. Bärbel Kofler, Parliamentary State Secretary of the German Federal Ministry of Economic Cooperation and Development, was praised by the minister of finance in his concluding remarks.

Given Ghana’s ongoing discussions with the International Monetary Fund, he said that the grants were opportune (IMF or the Fund).

Mr. Ofori-Atta emphasized the importance of Development Bank Ghana (DBG) by saying, “the support given us to set up what will be a real game changer in Ghana’s financial architecture, the Development Bank Ghana, is very commendable.”

According to him, DBG is well-positioned to perform a countercyclical role in assuring access to long-term, inexpensive finance during difficult economic times, much like KFW did during Germany’s post-World War II reconstruction.

He gave the assurance that DBG will follow the best corporate governance practices in order to maximize shareholder value.

Ghana will continue to be a “privilege partner” with Germany, according to Mr. Christoph Rauf, the Director for Africa at BMZ, who was speaking on behalf of Dr. Bärbel Kofler. This will result in the creation of a Special Partnership Arrangement with Ghana.

Additionally, he said that Germany was committed to assisting Ghana’s IMF agreements.

The next inter-governmental negotiations will take place in Accra in June 2023.

Source: Ghanatodayonline.com