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Ghana Anchor of stability in West Africa
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
As at: 19/01/2023