Shift in EU financing strategy welcomed

Accra, Sept. 28, GNA - The Deputy Minister of Finance, Professor George Gyan-Baffour on Thursday said the gradual shift of the European Union (EU) financing strategy from the programme/project approach to a general Budget Support and Sector Wide approach would ensure effective utilisation of European Development Fund (EDF) resources.

He said the programme approach had often given rise to proliferation of many projects, making implementation difficult and often subjected to delays thereby leading to the slow rate of disbursement of EDF resources.

Prof. Gyan-Baffour was speaking at the opening of a day's consultative workshop on Ghana-EU country strategy paper and National Indicative Programme for the 10th EDF Programming Cycle. The meeting was called to sensitise both State and Non-State Actors, particularly the private sector and civil society, to solicit views and opinions on possible areas of future cooperation under the 10th EDF for 2008 - 2013.

Participants at the workshop would also develop a strategy that would enable the country to utilise EDF resources effectively. The Government of Ghana and EU 9th EDF, which covers the period 2002 - 2007 is aimed at accelerating poverty reduction; equitable economic growth and ensuring the integration of the Ghanaian economy into that of the rest of the world. The overall financial allocation under the programme amounted to 311 million Euros. Prof. Gyan-Baffour said the broad areas to be covered under the 10th EDF were Transport Infrastructure, General Budget Support, Good Governance and Decentralisation. The non-focal areas include governance, trade and Non-State Actors' initiatives.

The EU is committing an amount of 282 million Euros to finance projects under the programme.

The Deputy Minister said an additional incentive tranche was to be allocated to Ghana in view of her commitment to good governance, adding that about half of the European Commission's assistance would be through budgetary support.

Mr Gilberto Ceriani Sebregondi, Head of the Delegation of the European Commission in Ghana, said the EU would continue with its support to rural areas, especially in good governance, through assistance to decentralised departments and agencies. He said high level of accountability was required to ensure that resources were effectively utilised to enhance the welfare of Ghanaians in efforts to attain the Millennium Development Goals.