Ghana and European Union sign €92.9 million financing agreement

Ghana and the European Union (EU) have signed two grant financing agreements, totalling over €92.9 million, to support the budget and prevent electoral violence in the northern border regions. 

Roughly €87 million out of the amount is under the Emergency EU Budget in Response to the COVID situation in Ghana and the remaining €5.9 million will go towards preventing electoral and communal violence in the northern border regions of Ghana.

This European Union special emergency budget support is a single disbursement to Ghana.

Ken Ofori-Atta, Minister for Finance, who signed for the government, said the funding contributed to the country’s crisis response and would help to address the economic and fiscal impact arising from COVID-19.

Revenue shortfalls

The minister said the support took cognisance of the shortfalls in government revenue and unanticipated increases in public expenditure.

“It is our joint expectation that this facility will bolster the ongoing effort of the government to mitigate the effects of the pandemic, by supporting the private sector, households, as well as the most vulnerable,” he said.

Ofori-Atta said the successful framing of these interventions demonstrates the responsiveness and flexibility imbued in the unique relationship between Ghana and the EU which dates back to 1957.

The government’s interest in securing a decent standard of living for the people is obvious, Ofori-Atta said, and this is why Ghana remains watchful of the transition from the Cotonou Partnership Agreement to its successor agreement.

“We look forward to a strengthened partnership that will generate mutual benefits in accordance with our shared values,” he said.

Ghana CARES

The Finance Minister said the government is not only planning for the near and immediate term but has developed the Ghana COVID-19 Alleviation and Revitalisation of Enterprises Support (Ghana CARES) programme.

This aims to mitigate the impact of the pandemic and ensure that the country emerges quickly from the pandemic with a stronger, more resilient economy.

He said the programme envisages strong actions to improve the private sector environment and provide support to Ghanaian enterprises in targeted sectors. This will accelerate competitive import substitution and export expansion in light manufacturing.

To this end, Ofori-Atta said, “We have focused on an enhanced role for the private sector. Our plan for implementing Ghana CARES seeks the attraction and retention of 70% funding from private sector sources.”

Continuous support

The EU’s ambassador to Ghana, Diana Acconcia, said: “This action shows the EU’s continued commitment to our partnership with Ghana, especially during these challenging times.”

She said the support is part of the EU’s Team Europe package, which combines resources from the common EU budget, the member states and EU financial institutions.

Their common objective is to help Ghana respond effectively to the socio-economic impact of the COVID-19 crisis and put in place mitigating measures.

She said Europe has already mobilised almost €36 billion for its global response to the COVID-l9 crisis. The European Union, as a global actor and significant contributor to the international development co-operation system, promoted a co-ordinated multilateral response, in partnership with the United Nations, international financial institutions, the G7 and the G20, she said.

The EU also signed a €6 million facility which focuses on preventing electoral and communal violence as well as providing security to Ghana’s northern border regions.

Its specific objective is to equip key governmental and non-governmental actors better in their joint, co-ordinated efforts to sustain peace, prevent violence, ensure a peaceful electoral process and contain the rise of violent extremism.

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