Transcript Harmonization and Donor Coordination in Ghana

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AfDB is a regional multilateral Development finance
institution comprised of African Development Bank
(ADB), the African Development Fund (ADF) and the
Nigerian Trust Fund (NTF).
The Bank Group was established in 1963 to
contribute to the economic and social development
of African Countries.
Members of the Bank include, the 53 African States
(RMC) and 25 non-African Countries in Asia,
Europe, North and South America
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Medium-Term Strategy (2008–2012) focuses
its operations on the four core priority areas:
◦ infrastructure development;
◦ private sector development;
◦ governance;
◦ higher education,
◦ technology and vocational training.
crosscutting themes of gender, environment,
climate change, and knowledge management
A Decade of Progress Interrupted
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A decade of progress in Africa has been interrupted by the global
financial and economic crisis
Crisis leads to
several external
shocks
Reduced
capital flows
Deteriorating
terms of trade
Collapsing
demand
for exports
Lower
remittances
Decline in
tourism
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“One Bank” approach with unified set of strategic priorities and
cross-cutting themes
ADB STRATEGIC
ORIENTATIONS
Strategic Priorities
• Higher Education
• Private Sector
ADF STRATEGIC
ORIENTATIONS
Strategic Priorities
• Infrastructure
• Governance
Cross-cutting
Themes
• Regional
Integration
Strategic Priorities
• Fragile States
• Regional
Integration
Cross-cutting
Themes
• Private Sector
Cross-cutting Themes
• Food Security
• Environment/ Climate Change
• Gender Equality
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Bank Group scaled up assistance and advocacy role for Africa
Approvals increased
by 129% and
disbursements
increased by
119% in 2009
Division of labor
between
Development
Financial
Institutions
reinforced
Global Trade
Liquidity Program
concluded
US$ 1.5 billion Emergency Liquidity Facility (ELF)
US$ 1.0 billion Trade Finance Initiative (TFI)
ADF resources
frontloaded and
accelerated
transfers
Committee of Ten
(C-10) African
Ministers of
Finance and Central
Bank Governors
created
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Ghana’s democratic process has made
impressive gains in the last decade.
Ghana’s economy has been resilient in spite
of the global crisis, and continued to grow, at
an average of 6.3% p.a. since 2005.
Ghana is currently a lower MIC country, with
2009 per capita income estimated at US$
1,105.6
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Ghana has achieved good progress in the MDGs on
income poverty, hunger, primary school completion,
gender parity at school and access to water
However the MDGs for environmental sanitation, child
and maternal mortality is off track
Key challenges for development include:
◦ Modernization of the economy especially agriculture
which employs about 60% of population
◦ Another key challenge is inadequate infrastructure electricity and transport
◦ The transition to petroleum economy
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The thematic areas of the strategy include:
 Ensuring and sustaining macroeconomic stability
 Enhanced competitiveness of Ghana’s private
sector
 Accelerated agriculture modernization and
natural resource management
 Oil and Gas development
 Infrastructure, energy and human settlement
 Human development, employment and
productivity and
 Transparent and Accountable Governance
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The Bank Group started operations in Ghana
in 1973.
To date, the Bank Group has provided loans
and grants to Ghana valued at a total of US $
2.149 billion.
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Bank Group's strategy in Ghana is based on the
following pillars: (i) Improving the Investment
Environment; and (ii) Promoting Pro-poor, Progender Equity Policies.
A new Country Strategy Paper for 2012-2016 is
under preparation; the strategy will be
underpinned by the Ghana’s new development
strategy the GSGDA
The Bank’s regional strategy for West Africa is
focuses on analytical, operational, and partnership
activities in support of regional integration and
development in West Africa
Power, 4% Private , 5%
Water &
Sanitation, 9%
Agriculture,
18%
Multinational ,
16%
Infrastructure,
37%
Social , 11%
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35.00
30.00
25.00
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15.00
10.00
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2008
2009
2010
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The Banks projects support’s Ghana’s strategy
for poverty reduction, articulated in the GPRS II,
GSGDA and the Food and Agriculture Sector
Development Policy (FASDEP), which emphasizes
accelerated economic growth, through
agricultural modernization and development
The Bank’s agriculture portfolio has 10 ongoing
projects covering export crops promotion, rice
production, Livestock Development Project,
Eradication of Tsetse flies and Trypanosomiasis,
Afram Plains District Agriculture Development
Project and Forestry
Cross cutting issues: gender, livelihood
empowerment, health issues; HIV and guinea
worm eradication.
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Key objectives of the Bank funded programs are to
contribute towards improving living standards of the
rural population, providing food security, generation
of rural employment, increase incomes of smallholder
farmers, enhancing food security, increasing export
earnings of non-traditional agricultural products,
especially pineapple, papaya, chilli pepper and the
egg plant amongst others
The projects are located in 7 out of the10 regions in
Ghana and across 80 districts.
4 of the projects are multinational and are
implemented in a number of countries, Togo, Benin,
Nigeria, Burkina Faso promoting regional integration
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Development Aid has provided an important
source of financing for Ghana's
development. Aid accounts for 10% of GDP
in 2009.
Donor assistance is usually in the form of
Budget support, Sector-Wide Approach
Programs (SWAPS), Basket funding, project
funding though grants and concessional
loans
DPs provide over US $650 million annually
Multi-Donor Budget support contributes
30% of annual aid flows to Ghana, 12 DP’s
currently provide aid though this channel.
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Sector Dialogue in the country plays an important
role in communication between DPs and GOG.
Representatives of donors and Ghanaian authorities
have formed 17 sector-specific working groups to
facilitate better coordination of activities .
A spokesperson for Ghana’s government and one for
the donor community co-chair these sector groups.
Donors’ spokespersons are newly elected every year.
Sector working groups help coordinate donors, and
are crucial for successful harmonisation. They help to
make plans compatible, and they raise joint demands
to the Ghanaian partners, both private sector and
GOG ministries.