EU Alerts Ghana

- Less Aid In Future By Samuel Boadi Ghana should be preparing to single-handedly champion her development projects in the near future. This is because the level of development assistance it enjoys from European Union (EU) countries will soon begin to dwindle, the head of the EU Delegation to Ghana, Claude Maerten, has said. In an interview with BUSINESS GUIDE recently in Accra, Mr Maerten asserted that “the level of external assistance will decrease because the crisis is not one which affects just Europe but one that affects the growth rates of all countries of the world - the USA, South East Asia and all countries.” In order to counteract the effects of the current economic crisis unfolding in Europe, the head of delegation said Ghana should pursue more investment and trade. “Ghana’s growth rate projected for this year, compared with the growth rates of some countries in Europe, is very high. In some EU states, there is no growth rate at all while in some countries, there is a decline of the GDP. A few countries in Europe had positive GDP.” He revealed that EU countries have an agreement with the Government of Ghana that stipulates that from 2020, Ghana will be less aid dependent. “We know that Ghana has a lot of natural resources, mines and also oil, which will flow more and more. There is also the gas infrastructure which will develop the energy sector and bring jobs to the youth. “Ghana is very positive. So it is so clear that when we look at such situation in the world, we have to put in place a system of assistance for countries which badly need support. This being said, the relationship with Ghana will be quite high because Ghana is the most politically democratic country in the sub-region.” The foregoing not withstanding, Europe still remains a major trading partner of Ghana. But Ghana could also look at trading with countries in South-East Asia and Latin America. “It will affect external trade and exports but at the same time Ghana exports more raw materials with gold and aluminium. These products are in high demand and also the price of the products will be high in future. Ghana has been so much resilient in the competitiveness of these prices.” Additionally, Mr Maerten said there might also be an impact on the level of remittances because if there are less jobs in Europe or any part of the world where the Ghanaian reside, then it will be difficult for them to send money home. “That might also affect balance of payment of Ghana.” Asked when the crisis would end, he said: “Nobody knows how long it will take. Recently the economic and financial ministers met and launched the European Stability Mechanism to lend support to affected countries. This comes with an amount of 500 billion Euros seed money. Ghana-EU partnership has existed for about 35 years ago and has witnessed the investment of about GH¢3 billion in Ghana. Between 2008 and 2015, the EU has earmarked GH¢1.2 billion for development in Ghana. So far, 40 percent has been spent.