Ghana is a priority country of SECO’s economic cooperation and development. While Ghana represents a positive example in terms of democracy, rule of law, stability and relative development success on the continent, it still faces a variety of challenges. Therefore, SECO promotes attractive economic framework conditions for sustainable growth and unlocks more and better jobs and income opportunities.
Despite the fact that Ghana reached middle-income status in 2010, large parts of Ghana’s rapidly growing population remain vulnerable. Inequality is increasing and poverty reduction has been stagnating lately.
Dependency on commodities persists
Ghana has achieved little progress in diversifying the economy. While the country was on a path of recovery from the last economic crisis in 2014 and started to rebuild some buffers, the economic shock of the COVID-19 pandemic is expected to bring low growth, weaken Ghana’s still fragile financial position and it risks reversing decade-long progress in poverty reduction and human development.
Ghana will need sustained growth to push along its path towards becoming a resilient, self-dependent and prosperous middle-income economy that creates enough decent income and job opportunities for the country’s youthful and rapidly growing population.
What are SECO’s strategic priorities?
Switzerland’s main goal is to contribute to a resilient and self-dependent Ghana. In order to transform and diversify its economy, and use financial and natural resources more sustainably, Ghana needs attractive framework conditions for sustainable growth and decent income opportunities for the population. SECO thus focusses on the following two strategic priorities:
- Promoting attractive framework conditions for sustainable growth
Reliable framework conditions are essential for a resilient economic system that allows the private sector to emerge as a driving force of development. Therefore, SECO supports transparent and accountable institutions, balanced economic and fiscal policies, and business and trade friendly regulations. SECO fosters decentralisation of public services and more effective infrastructure spending. This is to provide the basis for economic diversification and income generation at the local level and to manage the development of urban growth poles.
- Unlocking more and better jobs and decent income opportunities
SECO fosters market-oriented skills and entrepreneurship in those sectors that provide the most potential for diversification and innovation. With a strong and diversified private sector, Ghana will be able to sustain its comparative advantages in traditional sectors such as cocoa, while at the same time taking advantage of the benefits of diversifying economic activities, for instance in the area of digitalisation, beyond the traditional commodities.
From 2021 to 2024, a total of around CHF 65 million is foreseen for SECO’s economic development cooperation with Ghana.