Netherlands/ US support Vision 2020

Accra, 14th Aug. 1999 - Ghana and Netherlands on Friday signed a memorandum of understanding that will create a framework for collaboration between the private sectors in both countries.

The document also contains provisions on how the Dutch Co-operation Programme for Emerging Markets (PSOM)) will be implemented in Ghana. Mr Kwame Peprah, Minister of Finance, signed for Ghana while Mr Alexander Heldring, Netherlands Ambassador, signed for his country.

Mr Heldring said the PSOM will be implemented over a period of two years. The PSOM aims at promoting private investments in Ghana as well as support initiatives by the Dutch business community in setting up innovative pilot projects in specific sectors, making use of Dutch know-how, goods and services. He noted that, within the framework of PSOM, projects should be developed in agriculture, transport, infrastructure, environment and sustainable energy. He said Ghana, based on her improved economic standing as an emerging market, has been included in the list of countries that will receive structural development assistance from the Netherlands in the coming years. Ghana and Cote d'Ivoire are the only countries in Africa that qualify for this facility. "Possible expansion of the assistance programme will be thoroughly discussed between the Netherlands and Ghana in the course of next year where 'ownership' of the recipient country will be the guiding principle". Mr Peprah said he was happy with the signing of the memorandum, adding that government's policy of developing Ghana into a middle-level income country focuses on the private sector. Any effort to promote the sector will, therefore, receive the necessary support. At another ceremony, the US government, through the USAID, has provided 24.8 million dollars development assistance to Ghana to support her drive to achieve targets set out in Vision 2020. Mrs Katherine Dee Robinson, US Ambassador to Ghana who signed the agreement for her country, noted that the assistance is under the US Mission Strategic Plan that has been running since 1997. She said 13.2 million dollars will be used to promote participatory policy change, strengthen financial inter-mediation, increase private sector production and marketing, and strengthen private sector business associations and tourism. She said 7.6 million dollars would go to the improvement of the primary education system and expand the programme into the three northern regions of Ghana.

A further 2.6 million dollars will seek to improve family health and enhance access to quality services. The ambassador said 1.5 million cedis would be used to promote greater civic input into the public policy process.

"The US government has sought to assist Ghana in consolidating her gains to date and in meeting the ambitious goals set by the government". Mr Victor Selormey, Deputy Minister of Finance, said assistance from the USAID not only reinforces Ghana's ability in meeting her socio-economic needs but also enables her to make a stronger bid in improving them.