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European Union provides €92.9 million budget support to Ghana

Ghana and the European Union (EU) have signed two financing agreements totalling €92.9 million for emergency budgetary support in response to the COVID-19 situation in the country and to prevent electoral violence in the northern border regions.

Per the agreement, €87 million is in response to the COVID-19 situation in Ghana while the remaining €5.9 million will go towards preventing electoral and communal violence in the northern border regions of Ghana.

It also noted that this special emergency budget support is a single disbursement to Ghana.

Speaking at the signing ceremony in Accra, Minister of Finance, Mr Ken Ofori-Atta, who signed on behalf of the Government of Ghana said the budget support would help to address the economic and fiscal impact arising from the COVID-19 pandemic.

He said the support took cognizance of the shortfalls in government revenue and the unanticipated increases in public expenditure.

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

He also said that the successful framing of these interventions demonstrated the responsiveness and flexibility of the unique relationship with the EU.

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

He further noted that the intervention will help to improve the private sector environment and provide support to Ghanaian enterprises in targeted sectors to accelerate competitive import substitution and export expansion in light manufacturing.

Madam Diana Acconcia, EU Ambassador to Ghana said the support was part of the EU’s Team Europe package to Member States and EU financial institutions.

“This action shows the EU’s continued commitment to our partnership with Ghana, especially during these challenging times. It is our common objective to help Ghana respond effectively to the socio-economic impact of the COVID-19 crisis and put in place mitigating measures,” she said.

She said the EU, as a global actor and major contributor to the international development cooperation system, promoted a coordinated multilateral response, in partnership with the United Nations, International Financial Institutions, as well as the G7 and the G20.

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

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