Ghana-Denmark in $80m budget accord

Deputy Finance Minister Seth Tekper

The governments of Ghana and Denmark have signed an $80-million budget support agreement, under the Support to Private Sector Development (SPSD) programme, to boost the development of the private sector in Ghana.

The beneficiary agencies include the Ministry of Trade and Industry (MoTI) and BUSAC, which will use its allocation to finance the Private Sector Development Support II (PSDS II).

The others are C OVET for its Enterprise Growth and Job Creation Programme, the Alliance for a Green Revolution in Africa (AGRA) in its skills development and agriculture value chain activities and the Apex Bank to enhance rural financing.

The occasion also saw the signing of a GH¢522,000 grant between the Ministry of Employment and Social Welfare and the Danish International Development Agency (DAN IDA) to facilitate the second phase of the elimination of the worst forms of child labour in cocoa growing communities.

Signing the agreement, a Deputy Minister of Finance, Mr Seth Tekper, said the support was critical for the government, particularly against the background for which the 2009/2010 budget was prepared.

He indicated the government's preparedness to return the economy to a more stable footing, adding that the support of the Danish government would go a long way towards pushing the agenda.

The Head of the Department for Africa at the Danish Ministry of Foreign Affairs, Mrs Mette Knudsen, commended Ghana's achievement in the democratisation process and urged the country to consolidate the gains made so far through the strengthening of democratic institutions.

The Danish Ambassador to Ghana, Mr Stig Barlyng, for his part, said the agreement was consistent with issues of youth employment and training and the creation of a framework for private sector development.

The Minister Of Trade and Industry, Ms Hannah Tetteh, said DANIDA had been consistent in its support of the development of the private sector by focusing on areas that would have maximum benefit for the greater majority of Ghanaians, adding that without the promotion of growth among small and medium enterprises, private sector growth would not be feasible.