The AFD in Ghana
AFD began its operations in Ghana in 1985, opening its first representation in an English speaking country. Since 1986, AFD has concentrated its operations on major economic infrastructure development projects in the country, mainly in the telecommunications, transport and energy sectors.
AFD has also intervened to a large extent in agriculture and rural development, particularly in rural water supply, perennial crops sector (rubber, oil palm), as well as food crops (rice).
Ghana became the main beneficiary of AFD Group’s commitments in West Africa since 2004. In 2006 and 2007, the Group’s annual investments to Ghana amounted to € 53 million and € 78 million respectively. On a cumulative basis, total commitments of the Group since 1985 amount to € 613 million. The current portfolio of 14 ongoing projects translates into about € 160 million out of which more than € 25 million had been disbursed in 2007.
Ghana’s realisation of the HIPC completion point in July 2004 has enabled AFD to make new commitments in favour of the Government of Ghana (GoG) towards the implementation of the Growth and Poverty Reduction Strategy. Since the end of 2004, a number of new projects have been presented to AFD Board which focus on Agriculture and Rural Development, Urban Development, Water and Sanitation, and are the main sectors of concentration of AFD activities in the Public Sector in Ghana.
Furthermore, as part of its global effort, France, a Paris Club creditor, decided to give a debt relief for a total amount of 127 million euros in favour of Ghana after this country reached the completion point of the HIPC initiative in July 2004. One half of this debt (64 million) was cancelled, while the other half (63 million) was transformed into grants.
As agreed with the GoG, these grants are used as a contribution to the Global Budget Support (GBS), over a 9-year period, within the framework of the Multi-Donor Budgetary Support (MDBS) which involves 11 multi and bilateral development partners. Furthermore, in June 2006, AFD decided to significantly increase its contribution to the MDBS through a soft loan in favour of the Government of Ghana for an amount of 30 million Euros, to be disbursed over the period 2007-2009. As a result, the annual French contribution to the MDBS amounts to 17 million euros each year from 2007. Thus, AFD has become the 3rd bilateral contributor to the MDBS.
AFD is also an active member of different sector groups (agriculture, water and sanitation, energy, decentralisation …)
AFD in Ghana
613 million euros invested since 1985
Diversified activity sectors
A 78 million euro commitment in 2007
14 active projects
AFD geography
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