UK Pledges ?40 Million in Aid to Ghana

The United Kingdom (UK) government on Monday raised its total programme aid to Ghana from 40 million pounds sterling to 55 million pounds sterling.

The 15 million pounds sterling increase is the UK government's demonstration of its commitment to providing Ghana with additional funding for the health and educational sectors and to help cushion balance of payment difficulties, Mr Rod Pullen, British High Commissioner who signed an amendment to the Ghana/UK Programme Aid Agreement for 2001, in Accra said. Mr Yaw Osafo-Maafo, Minister of Finance signed for Ghana.

The additional funding is the second of four tranches that are yet to come. The grant agreement was signed between the two countries in September last year.

Under the agreement, the UK promised to provide Ghana with 40 million pounds sterling, the first of 18 million pounds, was disbursed soon after the agreement was signed.

Mr Osafo-Maafo said the timing of the amendment was appropriate since it demonstrates the British governments' faith in the Ghanaian government.

"This is especially so as it comes soon after a hectic debate and public interest in our first budget, especially after our declaration to take advantage of the HIPC initiative," Mr Osafo-Maafo said.

He said the sectors for which the funds have been earmarked are very critical to the country's poverty reduction programme.

"These funds would, therefore, not only provide the much needed support in these sectors but will help in our balance of payment support."

He said, " we also hope this will send a strong signal to our development partners and advocates of the HIPC initiative.

Mr. Pullen said the funding provided by the British Department of International Development (DFID) comes from funds set aside to support developing countries that have been particularly affected by high world oil prices.

He said the amendment increases the value of current UK budgetary support to 55 million pounds, available in four tranches.

"This increase means the second tranche will be worth 22 million pounds instead of seven million pounds. A further 15 million pounds will be available later this year."