AFD STRATEGIES FOR GHANA
AFD will support the economic and social development strategies of the GoG for growth and poverty alleviation and will focus its intervention in both rural and urban areas on projects that contribute to a sustainable growth of the country and improve the living conditions of the poorest.
In line with the Partnership Framework between France and Ghana, AFD will continue to concentrate its intervention on three priority sectors for the period 2008-2010
1. Agriculture and Rural Development
AFD will continue to support the development of competitive agricultural productions, including commodities for export and food for local consumption. The new financing will be concentrated on a small number of commodities, with high economic potential (rubber, palm oil, rice). AFD will also support the Ghana Government to build strategic policies and action plans for these commodities. AFD funded projects will encourage the emergence of farmer based and professional organizations, following the value chain approach. The impact of these interventions should be a significant increase in the global productivity and profitability of the agricultural sub-sectors.
AFD will also continue to support investment in rural infrastructures and the sustainable management of natural resources, in particular forest areas and biodiversity. Following the Country Environmental Analysis (CEA) study which was co-financed by AFD, the World Bank and the Netherlands Embassy, AFD is participating in the preparation of the Natural Resources and Environment Governance Programme. This programme will support the implementation of critical reforms in the forestry, mining and environmental protection sub-sectors through the provision of annual budget supports. These reforms shall help to increase revenues and secure livelihoods in the rural areas while simultaneously improve environmental protection in growth-leading sectors in Ghana. The preservation of natural resources is the basis for a sustainable and profitable agriculture production.
2. Access to Infrastructure and Services, in the context of Decentralization
Towns are centres of economic activity and a driving force for neighbouring regions. AFD will support new urban development programmes, responding to the priorities of the municipalities in the framework of the decentralization process. Enhancing the planning and contract management capacity of local authorities will be one of the key objectives.
In addition, AFD will continue to support urban development through the financing of new projects and programmes focusing on infrastructure and facilities in the major cities of Ghana.
AFD will also give high priority to local development by providing rural areas, particularly the least developed regions of the country, with basic infrastructure (feeder roads, dams and irrigation, social infrastructure…).
These urban and rural infrastructure projects could be financed through the AFD’s contribution to a future “District Development Fund” which is currently being designed by the Ghana Government. They will be implemented under the responsibility of districts. These will be complemented by activities of capacity building and general support to the decentralization process, at the national level.
3. Water and Sanitation
AFD has intervened in the water and sanitation sector since 1989. It remains today one of its main sector of activities.
After the completion in 2007 of a project that enabled 110 000 people to have access to safe water in the Northern Region, AFD will start implementing in 2008 a five-year water and sanitation project in the Brong Ahafo Region. This project will help to provide water and sanitation infrastructures to more than 400 000 people in rural areas, small towns and also in peri-urban areas that are emerging as a critical challenge for the sector. In the framework of the on-going decentralization process, it will also build the capacity of stakeholders at all levels (line ministries, districts, communities) to ensure the sustainable management of the facilities and a long term improvement of the living conditions of the population.
In addition to these three priority sectors, the AFD Group will continue to support the private sector and sustainable economic growth. Through the local banking and financial sector, PROPARCO will continue to encourage the development of small and medium sized Ghanaian companies by improving access to financial services, and playing an active role in structuring the financial market. PROPARCO can also support major private investment initiatives, through a variety of financial products (direct loans, equity, guarantee…). In particular, projects with a social and environmental focus will be key. The areas of microfinance and mesofinance will be explored for new financing. Through the AFD-managed ARIZ guarantee fund, the Group can assist banks as well as microfinance institutions to partially cover the credit risk relating to medium to long-term loans and equity investments in small or medium-sized companies. The group will also try to expand its non sovereign loan to help companies and projects to be more involved in social and environmental responsibility issues.