Minister Announces New Arrangement For Donor Support

Finance Minister Yaw Osafo-Maafo yesterday stated that the unpredictability of donor support poses serious challenges to the development of the country. According to the minister, the unreliable nature of donor support has become an annual problem in managing the economy.

He lamented that anytime donors fail to honour their pledges, it adversely affects the macro-economic framework of the country.

To solve that problem, the minister hinted that the government, together with its donors is now to determine budgetary support for the country. Mr. Maafo dropped the hint that, in the new agreement, donors do not dictate to beneficiary how such funds should be managed. The minister further stated that currently government has agreed on the guidelines set by the multi-national donor group that predict donor inflows to the country.

He mentioned some of the guidelines as the efficient utilization of resources and proper management of the economy at an acceptable standard, as well as reduction of both inflation and the depreciation of the cedi. Maafo revealed this at the signing of CND$5m (?28 billion) budgetary support memorandum of understanding between Ghana and Canada in Accra.

He noted that Canada has been one of the donors that have shown commitment on the multi-donor budgetary support to Ghana. “We have somebody who understands our problems”, the minister added. The sector minister pledged that his ministry would ensure that the money is managed in a way that would satisfy and at the same time meet the standards set by the donors.

The Minister used the occasion to appeal to all donor partners to emulate Canada’s support. On his part, HE Jean-Pierre Bolduc, the Canadian high commissioner in Ghana, explained that the multi-donor budgetary support has been in the West for a long time, adding that discussions are underway between the government and its partners in terms of defining exactly the parameters within those contexts to enable them release more funds.

He pointed out that the CND$5m budgetary support was just the tip of the iceberg saying, after the final agreement more of such support will flow.