Ghana, EU sign €42m grant to enhance economic growth
Ghana and the European Union (EU) have signed two financing agreements worth 42 million Euros to promote sustainable development at a ceremony in Accra on Friday.
The grant would also be used to foster economic growth and strengthen key sectors crucial for the EU-Ghana partnership.
Sectors to benefit from the grant include agribusiness, public financial sector management and the private sector.
The Finance Minister, Ken Ofori-Atta, signed on behalf of the Government of Ghana and Mr Irchad Razaaly, the EU Ambassador to Ghana, signed on behalf of the EU.
In his remarks, Mr Ofori-Atta said the two financial agreements marked a significant milestone in the bilateral co-operation and partnership between Ghana and the EU.
He said the EU had been a crucial development partner of Ghana supporting the country in different areas of the economy.
Mr Ofori-Atta said in 2020, EU in the heat of the COVID-19 pandemic, provided about 86.5 million Euros to support the country’s budget.
He said the agribusiness component would support the sustainable development of four value chains such as soya, shea, vegetables and beekeeping and also support sustainable cocoa production and actions to prevent deforestation.
The Finance Minister said the other components recognised the importance of the private sector in the green digital transition.
He said the grant would also support sound public financial management for ensuring stability, transparency, and accountability, adding that the agreement would improve gender and green responsiveness, accountability and transparency of the use of public funds.
Mr Razaaly said the agreement represented a comprehensive approach to sustainable development that would impact not only Ghana but also serve as a catalyst for the implementation of the EU’s Global Gateway strategy.
He said the strategy sought to promote smart, clean and digital investment co-operation with the EU partner countries.
“The financing agreements that we are signing today is a testament to the strong partnership and shared commitment between the European Union and Ghana,” Mr Razaaly stated.
Highlighting on the agribusiness component, the EU Ambassador to Ghana said the component would foster economic growth, promote livelihoods and promote food security.
Mr Razaaly the private and the public financial components would help promote a thriving private sector and promote transparency and accountability in the use of public funds.
The EU Ambassador said the EU was also supporting the Planting for Food and Jobs 2.0 to promote agriculture and food production in the country.