UK’s Minister of State for Development and Africa, Andrew Mitchell, expressed happiness about Ghana’s successful review of the International Monetary Fund (IMF) bailout program.
He is pleased with the disbursement of a second tranche of US$600 million, seeing it as a sign of resilience and progress in steering the economy back to a path of growth despite challenges.
During a meeting with Vice President Dr. Mahamudu Bawumia as part of the 9th UK-Ghana Business Council in Accra, Mr. Mitchell praised Ghana’s efforts. He also encouraged the government to closely follow the conditions outlined in the IMF program.
“The UK-GBC is the foundation of our economic trade and investment partnership with Ghana. Since its establishment in 2018, we’ve witnessed a commendable boost in trade, investment and the forging of stronger partnerships, laying a robust foundation for growth,” he said.
Acknowledging the difficulties faced by Ghana’s government in adhering to the conditions of the IMF programme, he conveyed the UK’s support for the programme’s reforms, saying: “We understand it has not been easy, which is why we are backing you to stick with the conditions of the IMF programme this year. By doing so, Ghana can continue to alleviate the economic pressures its citizens face.”.
He mentioned various ways the British government can contribute to economic growth, citing the longstanding partnership between the central banks, tax authorities, and statistical agencies of both countries.
Mr. Mitchell also revealed that the UK is currently developing a new program to aid Ghana’s long-term economic and financial stability. As part of this collaboration, officials from both countries have already been in discussions.
In the UK’s recent roadmap for international development white paper, he highlighted the importance of modern equal partnerships that extend beyond aid to bring about mutual benefits.
“Here in Ghana, with these partnerships and the UK-GBC, I believe we are ahead of others.
“The economic context of our discussions has been challenging over the last few years. But let me assure you that Britain will continue to support Ghana. We will deepen mutual trade and investment opportunities, creating more jobs and prosperity,” he added.
He further said the value of trade between the two countries currently stands at £2.1 billion, representing a £647million increase compared to the previous year.
For his part, Vice President Dr. Bawumia acknowledged the growing cooperation in mutually beneficial areas of trade and investment between Ghana and the UK.
He envisioned that the 9th UK-GBC meeting would further enhance bilateral and economic relations as well as strengthen strategic partnerships in various areas. “A platform such as this aims at boosting economic and commercial relations between our two countries and is most encouraging,” he added.
Given these circumstances, he is optimistic about the future of trade relations between the two countries. He mentioned significant improvements in various areas of cooperation, such as agro-processing, garments and textiles, pharmaceuticals, roads, and airport infrastructure, since the inception of the UK-Ghana Business Council.
Dr. Bawumia acknowledged the support received through UK-GBC in identifying new investment opportunities and assisting the country’s economic recovery plan.
He emphasised that Ghana remains an attractive business destination in Africa for foreign direct investment (FDI). With the African Continental Free Trade Agreement (AfCFTA) now in effect, trade activities are expected to increase, contributing to economic growth, with Ghana serving as the gateway to a population of 1.3 billion Africans.
Despite economic challenges, he stated that Ghana’s positive growth projections can facilitate the expansion of trade and investment activities with strategic partners.
Therefore, he anticipates that UK businesses and the investor community can capitalise on Ghana’s favourable environment and foundation to enhance the momentum of such exchanges.