Ghana, Korea sign $2bn deal to drive development agenda

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Ghana, Korea sign $2bn deal to drive development agenda

Ghana has secured a major financial boost for its development aspirations, inking a $2 billion framework arrangement with South Korea's Economic Development Cooperation Fund (EDCF).

The deal, signed on the margins of the 2024 Korea-Africa Summit, will bolster the implementation of Ghana's key priority programs spanning infrastructure, agriculture, health, education, energy, roads and transport as well as ICT over the next five years.

The signing ceremony marks a significant milestone in the two nations' long-standing bilateral economic development partnership. The Minister for Finance, Dr. Mohammed Amin Adam signed on behalf of the Government of the Republic of Ghana while the Foreign Minister for Korea, Mr. Cho Tae-yeol signed for the Government of the Republic of Korea. Present at the signing ceremony were Ghana’s Foreign Minister, Shirley Ayorkor Botchwey and other dignitaries from both countries.

"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.

Expressing profound gratitude to the Korean government, the minister said, "On behalf of His Excellency President Nana Addo Dankwa Akufo Addo and the good people of Ghana, 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 $2 billion financing facility is poised to catalyze 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. "A healthy population is the bedrock of progress," the minister emphasized, underscoring the government's commitment to improving the well-being of its citizens.

Education remains a top priority, with plans to expand access to quality learning opportunities, vocational training, and digital literacy programs. "Our commitment to quality education remains unwavering," Dr. Amin Adam affirmed, recognizing the pivotal role of an educated workforce in driving societal advancement.

Transparency and accountability are at the forefront of the government's approach, with the minister assuring 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 to maximize the impact of this investment," he stated.

Dr. Amin Adam also 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.

On his part, Mr. Cho Tae-yeol, expressed his happiness about the strong relations that existed between our two countries noting: “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”. With Ghana and Korea on the verge of signing cooperation agreements in the areas of trade and investment, climate financing, defense and defense industry, he expressed his optimism that our bilateral relations will undoubtedly continue to deepen and broaden for the mutual benefit of our peoples. Ghana and Africa

The successful implementation of Ghana's IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG) has been central to these achievements, with the second review in April 2024 leading to a staff-level agreement that is expected to trigger an additional $360 million disbursement, upon the IMF Board approval shortly and bringing total disbursements to $1.56 billion.

Ghana’s delegation to Korea for the Africa-Korea Summit was led by President Nana Addo Danquah Akufo-Addo and included Minister for Finance, Dr Mohammed Amin Adam, Minister for Trade and Industry, Hon. K. T.Hammond, Minister for Foreign Affairs, Shirley Ayokor Botchwey, and Minister for Health, Hon. Bernard Oko Boye and Minister for Communication and Digitalisation, Hon. Ursula Owusu-Ekuful.