Ghana has secured a significant financial boost for its development goals, signing a $2 billion framework agreement with South Korea’s Economic Development Cooperation Fund (EDCF).
The deal, inked during the 2024 Korea-Africa Summit, will support key priority programs in Ghana across sectors such as infrastructure, agriculture, health, education, energy, roads, transport, and ICT over the next five years.
The signing ceremony represents a significant milestone in the longstanding bilateral economic partnership between the two nations.
Ghana’s Minister for Finance, Dr. Mohammed Amin Adam, signed on behalf of the Ghanaian government, while South Korea’s Foreign Minister, Mr. Cho Tae-yeol, represented the Korean government.
Ghana’s Foreign Minister, Hon. Shirley Ayorkor Botchwey, and other dignitaries from both countries were also present.
“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, emphasizing the strategic importance of the agreement.
Expressing gratitude to the Korean government, Dr. Amin Adam 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 set to catalyze transformative projects across multiple sectors, significantly advancing Ghana’s development ambitions. Dr. Amin Adam highlighted the potential impact of the deal, noting, “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.”
Additionally, the framework arrangement will bolster efforts to enhance healthcare facilities, disease prevention, and health and education initiatives. “A healthy population is the bedrock of progress,” the minister emphasized, underlining the government’s commitment to improving citizens’ well-being.
Education is also 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 critical role of an educated workforce in driving societal advancement.
Transparency and accountability are central to the government’s approach, with Dr. Amin Adam 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 highlighted 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 satisfaction with the strong relations between the 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 areas such as trade and investment, climate financing, defense, and the defense industry, Mr. Cho Tae-yeol expressed optimism that bilateral relations will continue to deepen and broaden for the mutual benefit of both nations.
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 expected to trigger an additional $360 million disbursement, bringing total disbursements to $1.56 billion.
Ghana’s delegation to Korea for the Africa-Korea Summit was led by President Nana Addo Dankwa Akufo-Addo and included Minister for Finance, Dr. Mohammed Amin Adam, Minister for Trade and Industry, K.T. Hammond, Minister for Foreign Affairs, Shirley Ayorkor Botchwey, Minister for Health, Bernard Oko Boye, and Minister for Communication and Digitalisation, Ursula Owusu-Ekuful.
