GERMAN GOVERNMENT PROVIDES €38M TO SUPPORT GOVERNMENT PROGRAMMES

Hon. Minister of Finance and Economic Planning, Kwadwo Baah-Wiredu, and the Ambassador of the Federal Republic of Germany to Ghana, H. E. Dr. Marius Haas have signed a 38 million Euros Financing Cooperation Agreement.

This would go to support the government decentralization programme, agriculture and general budget support.

Mr. Baah-Wiredu said the current focal areas of the bilateral development cooperation between Ghana and Germany are concentrated in decentralization, Agriculture and Sustainable Economic Development.

He stated that the German government has been of immense help to Ghana over the years and that Germany had contributed about one billion Euros for developmental programmes and projects in Ghana since 1957.

He also added that aside the above mentioned area of support, they have also supported the Legal Sector Programme and road sector and (rehabilitation of Tema-Sogakokpe-Akatsi road).

The Minister also took the opportunity to appeal to German companies to established an assembling plant in Ghana for the various German vehicles being used in Ghana, notably Mercedes Benz, BMW and VW.

He also expressed his gratitude to the Out-going Counsellor for Development Co-operation at the German Embassy in Accra, Mr. Joachim Schmitt whose tenure saw Germany’s contribution to Ghana increase from 4.5million Euros in 2005 to 10 million Euros in 2007.

H. E. Dr. Marius Haas on his part noted that his government is willing to discuss with Ghana government to further focus the German bilateral development cooperation to only two focal areas instead of the current three, with MDBS coming is as an additional contribution. “Agreement could be reach by the time of our next negotiations in 2009” this he added.

Dr. Haas said about 60 percent of the newly committed funds were used for general budget support and the new funding arrangement on the sub-national level.

“Germany considers itself as one of Ghana’s important development partners and together they had built a long tradition of friendly and trustful relations” he added..

The signing was witnessed by the outgoing MDBS Co-chairman, Mr. Joachim Schmitt, the Acting Director of KfW Office in Accra and officials from Ministry of Finance and Economic Planning.

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