Students in the metal workshop of a vocational training institution in Accra, Ghana

Ghana Anchor of stability in West Africa

Democracy is well established in Ghana and the country is an important anchor for stability in West Africa. For many decades now Ghana has been successfully pursuing a good neighbours policy and pushing for more regional integration. Its government is engaged internationally and at home in development activities for implementing the 2030 Agenda for Sustainable Development.

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Bulding site in Accra, Ghana
Ghana has been counted as a lower-middle-income country since 2010. A key challenge facing the country is growing social and regional inequality. The northern parts of the country in particular have not shared in the development that has happened in the economically strong coastal region and the cities.

The Ghanaian economy is heavily dependent on export earnings from just a few commodities, such as gold, oil and cocoa. The fluctuating world market prices for these commodities have a considerable impact on the country’s economic situation.

Ghana has been what is referred to as a “reform partner” in German development cooperation since 2017. The Federal Ministry for Economic Cooperation and Development (BMZ) is supporting the Ghanaian government on its path while consistently calling for further reforms to be implemented.

The aim of the BMZ’s development cooperation with Ghana is to create a better environment for private investment, especially in the areas of renewable energy and energy efficiency, foster vocational education and employment, increase domestic revenue, and improve transparency and accountability. Germany is also supporting efforts to establish local vaccine production within the context of the COVID-19 pandemic.

German development cooperation with Ghana

Germany is one of Ghana’s most important development partners. The aim of the development cooperation between the two countries is to promote viable, pro-poor, inclusive economic growth and bolster Ghana’s status as a middle-income country.

At government negotiations in Berlin in November 2022, Germany committed 82.02 million euros in new funding for Ghana, 45 million for Financial and 34 million for Technical Cooperation, along with 3.02 million euros for the special initiative “Decent Work for a Just Transition”.

Ghana and Germany are working together in the context of their development cooperation on the following core areas under the framework of a Reform Partnership:

  • Climate and energy, just transition | Areas of intervention: renewable energy and energy efficiency, sustainable urban development
  • Sustainable economic development, training and employment | Areas of intervention: private sector and financial sector development; technical and vocational education and training | Initiative areas: digital technology and data; migration as an opportunity
  • Peaceful and inclusive societies | Area of intervention: good governance
A young African farmer installs a solar panel on the roof of his house on a cashew farm.

Core area “Climate and energy, just transition” Securing a sustainable energy supply Internal link

Although Ghana has a remarkable level of electrification (85.9 per cent) compared with other countries in the region, high energy costs and frequent power failures constitute a significant development constraint for businesses and private households. In order to increase the country’s energy security, Germany and Ghana are working together in the area of renewable energy and energy efficiency.

The Girls Vocational Training Institute in Accra (Ghana) trains girls in electrical engineering.

Core area “Sustainable economic development, training and employment” Vocational training, private sector and financial sector development Internal link

The aim of German development cooperation in this area of development is to increase the number of jobs in small and medium-sized businesses in particular, and improve their access to financial services.

Employees in the Ministry of Finance in Ghana

Core area “Peaceful and inclusive societies” Decentralisation and improved public financial management Internal link

Compared with other countries in the region, Ghana’s tax-to-GDP ratio (about 13 per cent) is relatively low. This means that considerable funding for the public budget is being lost. Ghana’s government is engaged in efforts to build the capacity and expertise of national, regional and local administrative institutions. These efforts are being supported through German development cooperation.

Current situation

 Ghanaian flags in  Accra, Ghana
Bulding site in Accra, Ghana
Production of fruit juice for export to the European market (Asamankese, Ghana)

As at: 19/01/2023