Ghana, Korea ink $2Bn deal
-To enhance key priority programmes for 5 years
Ghana has secured a $2 billion framework arrangement with South Korea’s Economic Development Cooperation Fund (EDCF).
The deal, formalized during the 2024 Korea-Africa Summit, is set to enhance key priority programmes in infrastructure, agriculture, health, education, energy, roads, transport, and ICT over the next five years.
The agreement was signed by Ghana’s Minister for Finance, Dr. Mohammed Amin Adam, and South Korea’s Foreign Minister, Mr. Cho Tae-yeol.
This milestone underscores the long-standing economic partnership between the two nations and their shared vision for sustainable development.
Dr. Adam emphasized the strategic importance of the deal, stating, “The signing of the 2024-2028 Framework Arrangement represents a renewed commitment to our shared vision of sustainable development and prosperity.”
He expressed heartfelt gratitude on behalf of President Nana Addo Dankwa Akufo-Addo and the people of Ghana to the South Korean government and the EDCF for their ongoing support.
The $2 billion financing facility is expected to propel transformative projects across various sectors, significantly advancing Ghana’s development aspirations.
Highlighting the impact, Dr. Adam mentioned plans for high-speed railways, highways, and sustainable energy systems, which are poised to redefine the nation’s infrastructure landscape.
In addition to infrastructure, the framework arrangement aims to bolster Ghana’s healthcare system.
Enhancements in healthcare facilities, disease prevention, and health education initiatives are on the agenda, with Dr. Adam stating, “A healthy population is the bedrock of progress.”
Education also remains a top priority, with plans to expand access to quality learning opportunities, vocational training, and digital literacy programs.
Dr. Adam affirmed, “Our commitment to quality education remains unwavering,” recognizing the vital role of an educated workforce in driving societal advancement.
Transparency and accountability are key to the government’s approach, with assurances of efficient project management and effective monitoring to maximize the investment’s impact.
“We remain committed to ensuring efficient utilization of the EDCF resources through effective project management,” Dr. Adam stated.
Ghana’s recent economic rebound, driven by prudent policies and robust growth, was also highlighted.
Dr. Adam cited notable strides in the macroeconomic landscape, including Gross Domestic Products (GDP) growth exceeding expectations, declining inflation, and improvements in gross international reserves.
Mr. Tae-yeol expressed his satisfaction with the strong relations between Ghana and South Korea, noting the effective communication and high-level engagements between their leaderships.
He highlighted the ongoing cooperation agreements in trade, investment, climate financing, and defense, expressing optimism about the deepening bilateral relations.
The successful implementation of Ghana’s IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG) has been central to these achievements.
The second review in April 2024 led to a staff-level agreement, anticipated to trigger an additional $360 million disbursement, bringing total disbursements to $1.56 billion.
Ghana’s delegation to the Korea-Africa Summit was led by President Nana Addo Dankwa Akufo-Addo, and included several key ministers, underscoring the importance of this partnership for Ghana’s development trajectory.
