A financing agreement of €92.9 million has been signed between Ghana and the European Union. This has been identified as a special emergency budget support. It will be a single disbursement to the country.
The Minister of Finance, Mr. Ken Ofori-Atta, at the signing of Ghana and EU’s financing agreement on behalf of the government of Ghana, said the emergency budget support will aid the government address the adverse impact the coronavirus has had on the economy ranging from the decrease in government revenue, to unprecedented increase in expenditure. Ken Ofori Atta further stated that,
“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 also added that the support will go a long way to stimulate the growth of the private sector as well as provide the much-needed support by Ghanaian businesses in specific sectors to increase competitive import substitution and export expansion
The purpose
Ghana and EU’s financing agreement aims to alleviate the adverse impact of the coronavirus on Ghana’s economy. Additionally, to prevent election and community violence particularly in the northern borders of the country.
Disbursement targets
• €87 million is targeted at the COVID-19 situation in Ghana which includes the fight against the virus and its associated impact it has had on the economy.
• €5.9 million is targeted at preventing both communal and electoral violence in the northern border regions of the country.
EU’s Ambassador to Ghana, Diana Acconcia said the support was part of the EU’s package to Member States and EU financial institutions. Diana Acconcia said,
“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,”
According to Diana, the EU promoted a coordinated multilateral response in partnership with the United Nations (UN), international financial institutions, the G7, and the G20 to equip key governmental and non-governmental players in their coordinated effort in ensuring peace, preventing violence, contain the uprising of any form of extremism.
