Ghana to Receive €82 Million German Grant to Support Economy

3 December 2022
Ghanaian Times (Accra)

The Government of Ghana and the Federal Republic of Germany have concluded bilateral negotiations on development cooperation in Berlin between the two countries.

A statement issued by the Ministry of Finance on Thursday and copied to the Ghanaian Times said the discussions on the agreement was held between November 28 and 29, 2022.

It said Ghana's delegation was led by Ken Ofori-Atta, Minister for Finance; and included Osei Bonsu Amoah, Deputy Minister for Local Government and Rural Development; Andrew Egyapa Mercer, Deputy Minister for Energy, Gifty Twum Ampofo, and Deputy Minister for Education; and Ghana's Ambassador to Germany, Ambassador MrsGina AmaBlay.

The statement said the two-day negotiation was hosted by the German Federal Ministry for Economic Cooperation and Development (BMZ) with the support of allied agencies such as the Deutsche GesellschaftfürInternationaleZusammenarbeit GmbH (GIZ) and KFW Development Bank.

"At the end of the negotiations, the Government of Germany made new and additional grant commitments of 82 million euros towards critical sectors of Ghana's economy including renewable energy development, financial sector strengthening, education and skills development (TVET), digital transformation, governance, food security, female empowerment, and Micro, Small and Medium Enterprises support.

The statement said, Mr Ofori-Atta in his closing statement described the grants as timely, given Ghana's ongoing negotiations with the International Monetary Fund.

On the establishment of Development Bank Ghana (DBG), Mr Ofori-Atta stated that, "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."

Mr Ofori-Atta indicated that DBG had been positioned to play a countercyclical role in ensuring access to long term and affordable capital in challenging economic times, similar to KFW's role during the post war reconstruction of Germany.

He assured that DBG would adhere to the highest corporate governance principles in order to ensure optimum shareholder value.

Mr Ofori-Atta thanked Dr Bärbel Kofler, Parliamentary State Secretary of the German Federal Ministry of Economic Cooperation and Development.

Speaking on behalf of Dr Bärbel Kofler, Mr Christoph Rauf, the Director for Africa at BMZ, revealed that Ghana would continue to enjoy a "privilege partner" status with Germany, culminating in the development of a Special Partnership Arrangement with Ghana.

He also stated that Germany was committed to supporting Ghana's arrangements with the IMF.

The statement said the next inter-governmental negotiations would take place in Accra in June 2023.

Read the original article on Ghanaian Times.

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