EU-Ghana Partnership

A community of people with disability in one of Ghana’s savannah ecological zones benefits from climate-smart agricultural techniques. Climate change adaptation and mitigation are among the EU’s agriculture priorities in the West African country. Photo by: C Peterson / CIAT / CCAFS / CC BY-NC-SA Ghana has exhibited considerable progress across several sectors over the past decade. The West African country attained lower-middle-income status in 2010 thanks to its sustained economic growth, which averaged 6.4 percent since 2000. Further, the International Monetary Fund projects an average annual growth rate of 6.3 percent from fiscal year 2013 through 2018. The country has also seen success in areas of governance, rule of law and human rights. But while the Ghanaian government was able to transition smoothly to a democratic system, several of its development partners have highlighted gaps in the country’s public institutions. Reforms in public finance need to be enacted, as corruption and limited accountability impede on resource mobilization. This in turn limits the scope of delivery of basic public services. Currently, the government is undertaking a constitutional review with the intention of evening out the balance of power between the executive branch and its counterparts. In the agricultural sector, Ghana fails to maximize its resources particularly in its savannah ecological zones. This leaves stark inequalities between the country’s northern and southern areas, with the former suffering from low income and poor nutrition. Further, the International Labor Organization estimates that 84 percent of Ghana’s total labor force works in the informal sector, while World Bank data shows 77 percent working in vulnerable jobs. With the country’s population expected to double from 24 million in 2010 to 49 million in 2050, growing concerns of insufficient job opportunities must be addressed. In its latest partnership strategy for the West African state, the European Union has committed to help Ghana overcome these challenges and solidify its status as a middle-income country. Funding levels and priorities (2014-2020) EU financing for Ghana mainly comes from the 11th European Development Fund and is classified under two types of allocations. The A-allocation, amounting to 323 million euros ($384.85 million), will be used for macroeconomic support and strengthening sectoral policies, programs and projects. Previous allocations for Ghana under the A envelope are detailed below. A B-allocation will also be made available throughout the funding period as a contingency fund for humanitarian assistance, emergency and post-emergency support, debt relief and other unforeseen expenditures. The total budget for this envelope will be determined on an as-needed basis. Both A and B-allocations are subject to midterm and end-of-term reviews which could result in their revision. EU’s overarching objectives for Ghana are to reduce poverty and contribute to the country’s efforts in solidifying its middle-income status. The country strategy will target three main areas to achieve these development goals: - Governance: This component will focus on improving public sector management and increasing levels of accountability. This entails strengthening public finance management and public sector reforms particularly in decentralization. The component will also contribute to economic inclusiveness and sustainability by heightening the rule of law and accountability in state functions. To this end, capacity building will be provided for the parliament, the judiciary, and independent constitutional and nongovernmental institutions that perform oversight functions. - Productive investment in agriculture in the Savannah ecological zones: This component will contribute to poverty reduction and food security by supporting investments in agriculture and scaling up natural resource management and environmental protection. This includes climate change adaptation and mitigation activities. Interventions in this area are also expected to increase household incomes to achieve an inclusive rural economy. - Employment and social protection: This component aims to expand access to employment opportunities for vulnerable groups such as the youth, women and persons with disabilities as well as strengthen social protection systems for the benefit of these marginalized members of the population. Below is a breakdown of indicative sectoral and overarching support allocations for the 2014-2020 partnership period. Devex analysis Ghana and the EU have a tight-knit relationship. On one end, the EU remains the largest trading partner of the West African state with much of its exports — up to 42.9 percent in 2012 — going to the bloc’s 28 member countries. At the same time, the EU also realizes Ghana’s significance as a key regional actor in creating stability in a turbulent West Africa. It is thus mutually advantageous for the EU to engage Ghana as one of its aid beneficiaries. The EU acknowledges several sectoral risks in carrying out its current partnership strategy. In governance, the biggest impediment remains the lack of sufficient political will. Reforms supported under the 10th EDF cycle, including in areas of decentralization and public finance management, continue to progress at a sluggish pace. Pushing these reforms forward will be of high importance during this funding period. In agriculture, the EU foresees challenges associated with the weak capacity of the Savannah Accelerated Development Authority in carrying out necessary interventions. As a countermeasure, the EU will support capacity-building activities for SADA over the course of strategy implementation. Meanwhile, challenges in social protection and job creation stem from a multitude of disjointed programs. The Ministry of Gender, Children and Social Protection currently handles roughly 30 social protection programs, some of which overlap and duplicate efforts with little coordination between the different initiatives. To increase efficiency, maximize results and harmonize existing programs, the EU intends to carry out activities that will strengthen the ministry’s institutional capacity. Both Ghana and the EU, along with several other development partners, are party to the compact entitled Leveraging Partnerships for Shared Growth and Development. The compact’s main objectives include accelerating inclusive economic growth to reduce poverty and ensuring that Ghana receives sufficient development assistance that strategically targets sectors that will prove to be most beneficial for the country. The long-term agreement, signed in 2012, will run until 2022 alongside the current national indicative program — a clear indication of the EU’s desire for continued involvement with Ghana through the next decade. Contact Delegation of the European Union to Ghana Tel: (233-30) 277-4201 Fax: (233-30) 277-4154 Email: