Dr Mohammed Amin Adam (2nd from left), Finance Minister, and Cho Tae-Yeol, Foreign Minister, South Korea, signing the agreement
Dr Mohammed Amin Adam (2nd from left), Finance Minister, and Cho Tae-Yeol, Foreign Minister, South Korea, signing the agreement
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Ghana, Korea sign $2bn deal - To drive devt agenda

Ghana has signed a concessionary $2 billion support agreement with South Korea, a major financial boost for its development aspirations for the country.

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The funds are made up of 66 per cent grant, with the rest being highly concessionary with a long-term repayment period and a longer grace period before repayments begin. The Minister of Finance, Dr Mohammed Amin Adam, signed the framework arrangement with South Korea's Economic Development Cooperation Fund (EDCF), a five-year assistance programme, to help finance the country’s infrastructure and other real sectors of the economy.

The Foreign Minister for Korea, Cho Tae-Yeol, signed for the Republic of Korea. Present at the signing ceremony were the Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, and other dignitaries from both countries.

President Nana Addo Dankwa Akufo-Addo led Ghana’s delegation to Seoul, South Korea, for the Africa-Korea Summit. Aside from the Ministers of Finance and Foreign Affairs, the delegation also included the Minister of Trade and Industry, K. T. Hammond; the Minister of Communications and Digitalisation, Ursula Owusu-Ekuful, and the Minister of Health, Dr Bernard Okoe Boye.

The 2024-2028 Framework Arrangement, signed yesterday at the two-day 2024 Korea-Africa Summit, will bolster the implementation of Ghana's key priority programmes spanning infrastructure, agriculture, health, education, energy, roads and transport, as well as information and communications technology (ICT) between this year and 2028.

Strategic importance

The signing also marked a significant milestone in the two nations' long-standing economic development partnership. "The signing of the 2024-2028 Framework Arrangement represents a renewed commitment to our shared vision of sustainable development and prosperity," Dr Amin Adam stated, underscoring the strategic importance of the deal.

He said although the $2 billion is for the five-year period, the framework agreement covered a much longer period within which all the focus areas would be adequately funded.

On behalf of President Akufo-Addo and the people of Ghana, the Finance Minister expressed gratitude to the Korean government, saying, “I want to express our sincere gratitude to the Korean government and the EDCF for their continued partnership and commitment to our development journey."

The Finance Minister stated that the $2 billion financing facility was poised to catalyse transformative projects across multiple sectors, propelling Ghana's development ambitions to new heights. 

Dr Amin Adam highlighted the deal's potential impact, stating, "with the provision of $2 billion from EDCF, we will embark on transformative projects that are set to redefine our nation's infrastructure landscape. High-speed railways, highways and sustainable energy systems are on our agenda."

“Furthermore, the framework arrangement will bolster Ghana's efforts to enhance healthcare facilities, disease prevention, and health and education initiatives,” the minister explained.

"A healthy population is the bedrock of progress," Dr Amin Adam said, and underscored the government's commitment to improving the well-being of its citizens. The Finance Minister said education remained a top priority, with plans to expand access to quality learning opportunities, vocational training and digital literacy programmes.

"Our commitment to quality education remains unwavering," Dr Amin Adam stated, and drew attention to the pivotal role of an educated workforce in driving societal advancement.

Dr Amin Adam said transparency and accountability were at the forefront of the government's approach, while assuring of efficient project management and effective monitoring to maximise the impact of the investment.

"We remain committed to ensuring efficient utilisation of the EDCF resources through effective project management to maximise the impact of this investment," he stated. Dr Amin Adam seized the opportunity to highlight Ghana's recent economic rebound, driven by prudent policies and robust growth.

"Ghana has made notable strides in its macroeconomic landscape, underpinned by resilient and robust growth and substantial progress in key performance indicators," he said, citing GDP growth exceeding expectations, declining inflation and improvements in gross international reserves.

The minister also said the successful implementation of Ghana's International Monetary Fund (IMF) supported-Post-COVID-19 Programme for Economic Growth (PC-PEG) had been central to the achievements, with the second review in April 2024 leading to a staff-level agreement set to trigger an additional $360 million disbursement soon to bring total disbursements to $1.56 billion.

Strong bonds

For his part, Mr Tae-Yeol expressed excitement about the strong relations that existed between both countries. “The strong relations between the two countries have been underpinned by high-level engagements and effective communication between the leadership of the two countries.

The great friendship between the two heads of state undergirds what we are witnessing today,” he said.  With Ghana and Korea on the verge of signing cooperation agreements in the areas of trade and investment, climate financing, defence and defence industry, Mr Tae-Yeol expressed optimism that the bilateral relations would continue to deepen for the mutual benefit of the two countries.

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