Today, the European Union has mobilised €86.5 million in emergency budget support to help Ghana in tackling the consequences of the coronavirus pandemic. As part of Team Europe global response to the COVID-19, this funding will support Ghana to relieve some of the macroeconomic and financial pressure it is facing, including urgent fiscal and balance of payments needs. These funds follow the budget support agreement that the European Commission and Ghana signed on 30 September 2020 and which will be disbursed in one single shot.
Commissioner for International Partnerships, Jutta Urpilainen, said: “Our Team Europe response to COVID-19 is offering immediate support to our partner in responding to the crisis. It is also about building a long-term recovery, a greener, fairer, and more sustainable world for future generations. I am delighted that our support to Ghana covers both of these crucial aims.”
This emergency funding will give Ghana the fiscal space to address the coronavirus pandemic and to continue financing basic public services such as healthcare and education, strengthening its resilience. The EU budget support is designed to complement the actions undertaken by Member states and other donors, as well as Ghana government's efforts to minimise the economic vulnerability to external shocks and foster long-term recovery post-COVID-19.
By providing a sizeable grant contribution directly to the national budget, it will enable the pursuit of critical actions to mitigate the devastating health and socio-economic impact of the COVID-19 crisis. It will also support macroeconomic stability by providing necessary funds to help fill a large financing gap created by this crisis, induced by the combined fiscal impact of additional expenditure and a shortfall in revenues.
The European Union and Ghana share a long-standing partnership. Through the 11th European Development Fund (2014-2020), the European Commission has allocated a total of €323 million in support to Ghana. This funding is designed to:
-generate wealth from sustainable agriculture in the country's six savannah ecological zones;
-create decent job opportunities for vulnerable groups (young people, women and minorities) and improve social protection services;
-and promote good governance, the rule of law and accountability.
These three areas of action are of strategic importance to Ghana for its development and for its role as a beacon of stability in West Africa.
The total Team Europe global response to COVID-19 stands at almost €37 billion, combining resources from the EU, its Member States, the European Investment Bank and the European Bank for Reconstruction and Development. At least €7.8 billion are supporting countries in Africa. Additionally, a considerable part of the overall Team Europe guarantees of €2.9 billion will also benefit Africa.
This support focuses on:
-addressing the immediate health crisis and the resulting humanitarian needs;
-strengthening partner countries' health, nutrition, water and sanitation systems;
-research, preparedness and response capacities;
-and supporting partner countries in alleviating the social and economic consequences of the crisis.
For More Information