Ghana is a priority country of SECO’s economic cooperation and development. After two decades of relative economic success, Ghana now faces a variety of challenges. SECO supports public institutions in their efforts to deliver efficient services. It is also supporting Ghana in diversifying its economy and making it more competitive.
Ghana is regarded as a model of democracy and stability among African nations. Over the past 15 years, per capita income has grown by an average of 4% p.a. This resulted from a combination of high commodity prices, good trade conditions, macroeconomic stability and structural reforms.
Austerity measures weaken growth
Even though Ghana’s economy has developed positively for many years and the country joined the list of middle-income countries (MICs) in 2010, it is suffering a macroeconomic crisis. The business environment has deteriorated and public debt have risen substantially. The government was forced to introduce austerity measures, which also affect the private sector negatively. This has led to growth declining in recent years. Businesses have greater difficulties to get loans. Other challenges for the country are the huge regional disparities, rapid urbanisation as well as climate related risks, such as flooding or drought.
What are SECO’s objectives?
Strong institutions for reliable public services
SECO supports Ghana in managing its public finances better. In particular, it is helping national and local authorities to mobilise tax revenues effectively and transparently, and to target their spending towards better value for money. It is also committed to helping cities grow sustainably and guarantee a reliable energy supply for households and businesses.
A more competitive broad-based private sector
SECO supports SMEs to become more competitive internationally. It contributes to improving the investment climate and business environment and to implementing international trade standards. Furthermore, SECO fosters selected value chains. It helps SMEs access the international markets and get the capital they need to grow.
From 2017 to 2020, a total of some CHF 75 million is earmarked for SECO’s economic development cooperation with Ghana.