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Development Cooperation

Bilateral Investment and Reform Partnership

The Minister of Finance, Hon. Ken Ofori-Atta, and the German Deputy Minister for Economic Cooperation and Development, Friedrich Kitschelt, signing the reform partnership and H.E Steinmeier and Akufo Addo looking on., © Bundespresseamt/Jesco Denzel

29.01.2018 - Article

Development cooperation is an important pillar of the German-Ghanaian bilateral relations. The goal of the German-Ghanaian development cooperation is to consolidate Ghana's status as a lower middle-income country by promoting sustainable, poverty-oriented, and inclusive economic growth.

The German-Ghanaian bilateral development cooperation uses instruments such as concessionary loans and grants, capacity building and technical assistance, as well as development partnerships with private actors (PPPs). The bilateral development cooperation is being implemented in Ghana by the Gesellschaft für Internationale Zusammenarbeit (GIZ), the Kreditanstalt für Wiederaufbau (KfW Development Bank) and the Physikalisch-Technische Bundesanstalt (PTB), in collaboration with the Ghanaian partners.

Ghana is also supported by multilateral institutions (World Bank, African Development Bank), which are also funded by the German Federal Government. Also, funds from the German Federal Government are channeled through the European Union into development cooperation with Ghana.

The major framework for cooperation with Ghana is the United Nations Sustainable Development Goals (SDGs). In addition, the Ghanaian Shared Growth and Development Agenda (GSGDA) provides the basis for our cooperation. Germany actively supports the international effectiveness agenda (development effectiveness) and sees itself as part of the aid architecture worldwide and in Ghana.

Ghana is one of the partner countries for development cooperation, with which Germany works closely together on the basis of intergovernmental agreements. The next intergovernmental negotiations on bilateral development cooperation with Ghana will take place in 2018.

Since the start of bilateral relations with Ghana in 1957, Germany has allocated over € 1.75 billion to sustainable development in the country. From 2018 to 2020, bilateral support for Ghana amounts to € 145.2 million. The next governmental negotiations on bilateral development cooperation with Ghana will take place in 2020.

Due to its reform and private sector orientation, Ghana is currently one of the 12 member countries of the G20 Compact with Africa (CwA) Initiative and, since the end of 2017, also a reform partner country of the BMZ. The reform partnership is intended to flank Ghana's efforts under the CwA and mobilise additional private sector investment in renewable energies and energy efficiency. The additional support will be linked to the implementation of reform steps (e.g. debt relief for the sector, creation of transparency and competition).

Focal areas of the German development cooperation with Ghana

Against the background of Ghana's status as a “lower middle income country” and reform partner country and in line with the priorities of the Ghanaian government, the German bilateral development cooperation focuses on following four priorities:

  • Agriculture: Sustainable increase in the competitiveness and market orientation of the agricultural sector, especially with focus on value chains;
  • Sustainable economic development (including vocational training): supporting the reform of the TVET sector, improving employability and improving access to financial services;
  • Good governance / decentralization: increasing tax revenues and strengthening domestic accountability, promoting participation in local decision-making, improving living conditions through effective local governments.
  • Reform partnership / Renewable energies and energy efficiency: Improving the framework conditions for private investment via green credit lines for KKMU and households, upgrading and expansion of the electricity grid, risk mitigation instruments for the private sector, promotion of vocational training.

In addition, German bilateral development cooperation is also selectively involved in in the field of sustainable management and recycling’s of electronic waste. An important contribution is also made by many German non-state organizations, such as political foundations, churches and non-governmental organizations (NGOs), which are active in the area of non-governmental development cooperation in Ghana. The German Embassy directly supports Ghanaian non-governmental organizations via micro Projects.

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