Ghana and AfDB sign $103m grant agreement

Ghana and the African Development Bank (AfDB) have formalized an ambitious $103 million grant agreement, encompassing projects across Small and Medium Enterprises (SMEs), agriculture, and skills development with a focus on digitalisation. This initiative is part of the broader Indicative Operations Programmes for 2024-2025, marking a significant step in Ghana’s development agenda.

The signing ceremony took place on the sidelines of the AfDB’s 2024 Annual General Meeting in Nairobi, Kenya. Dr. Mohammed Amin Adam, Ghana’s Finance Minister, lauded the AfDB’s unwavering support for African nations’ growth. He underscored the necessity of rigorous monitoring and supervision to ensure optimal utilization of the funds, highlighting persistent delays in fund disbursement as a critical issue. To address this, Dr. Adam committed to implementing monthly reviews of all project loans and disbursements, aiming to identify and resolve execution challenges promptly.

“Ensuring value for money is paramount,” stated Dr. Adam. “We must enhance our oversight mechanisms to avoid any inefficiencies in project implementation.”

Eyerusalem Fasika, AfDB Country Manager, emphasized the inclusive approach adopted in crafting the five-year Country Strategy Document (2024-2029), which outlines the sectors and projects to be supported. This strategy was developed through extensive consultations with a diverse range of stakeholders, including Civil Society Organizations (CSOs), Ministries, Departments and Agencies (MDAs), the National Development Planning Commission (NDPC), and private sector representatives. Fasika stressed that the document reflects the collective vision of the Ghanaian populace, ensuring their voices and expert opinions were integral to the planning process.

“We aimed for an inclusive and comprehensive strategy,” Fasika remarked. “The document is a reflection of the people’s aspirations and expert insights, ensuring that our interventions are well-aligned with Ghana’s development priorities.”

The AfDB’s commitment extends beyond the current grant. Fasika hinted at additional support from the Climate Action Window and other trust funds managed by the Bank. These funds will complement the resources mobilized for the next five years under the African Development Fund, providing a robust financial foundation for Ghana’s development projects.

Present at the ceremony were key figures, including Deputy Finance Minister Dr. Alex Ampaabeng, Ghana’s Ambassador to Kenya Damptey Bediak Asare, and 2nd Deputy Governor of the Bank of Ghana Mrs. Elsie Addo Awadzi, alongside officials from the Ministry of Finance, the Bank of Ghana, and the Ghana Investment and Infrastructure Fund.

The collaborative efforts between Ghana and the AfDB signal a renewed commitment to sustainable development, with a clear focus on enhancing economic resilience through targeted investments in critical sectors. The proactive measures promised by Ghana’s finance ministry aim to streamline project implementation, ensuring timely disbursements and effective use of funds, ultimately driving forward the nation’s economic and social progress.

Source: Norvanreports