hana has signed a concessionary $2 billion support agreement with South Korea, a major financial boost for its development aspirations for the country.
The funds are made up of 66 per cent grant, with the rest being highly concessionary with a long-term repayment period and a longer grace period before repayments begin. The Minister of Finance, Dr Mohammed Amin Adam, signed the framework arrangement with South Korea’s Economic Development Cooperation Fund (EDCF), a five-year assistance programme, to help finance the country’s infrastructure and other real sectors of the economy.
The Foreign Minister for Korea, Cho Tae-Yeol, signed for the Republic of Korea. Present at the signing ceremony were the Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, and other dignitaries from both countries.
President Nana Addo Dankwa Akufo-Addo led Ghana’s delegation to Seoul, South Korea, for the Africa-Korea Summit. Aside from the Ministers of Finance and Foreign Affairs, the delegation also included the Minister of Trade and Industry, K. T. Hammond; the Minister of Communications and Digitalisation, Ursula Owusu-Ekuful, and the Minister of Health, Dr Bernard Okoe Boye
The 2024-2028 Framework Arrangement, signed yesterday at the two-day 2024 Korea-Africa Summit, will bolster the implementation of Ghana’s key priority programmes spanning infrastructure, agriculture, health, education, energy, roads and transport, as well as information and communications technology (ICT) between this year and 2028.
Strategic importance
The signing also marked a significant milestone in the two nations’ long-standing economic development partnership. “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, underscoring the strategic importance of the deal.
He said although the $2 billion is for the five-year period, the framework agreement covered a much longer period within which all the focus areas would be adequately funded.
On behalf of President Akufo-Addo and the people of Ghana, the Finance Minister expressed gratitude to the Korean government, saying, “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 Finance Minister stated that the $2 billion financing facility was poised to catalyse transformative projects across multiple sectors, propelling Ghana’s development ambitions to new heights.
Dr Amin Adam highlighted the deal’s potential impact, stating, “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.”
“Furthermore, the framework arrangement will bolster Ghana’s efforts to enhance healthcare facilities, disease prevention, and health and education initiatives,” the minister explained.
“A healthy population is the bedrock of progress,” Dr Amin Adam said, and underscored the government’s commitment to improving the well-being of its citizens. The Finance Minister said education remained a top priority, with plans to expand access to quality learning opportunities, vocational training and digital literacy programmes.
