The United States (US) government has announced that its Department of Treasury’s Office of Technical Assistance (OTA) will deploy a full-time resident advisor to assist the Ministry of Finance to help address economic challenges.
The advisor is expected to develop and execute medium-to-long-term reforms needed to improve debt sustainability and support a competitive, dynamic government debt market.
This was announced after the arrival of the Vice President of the USA, Kamala Harris, in Ghana on Sunday, March 26.
According to the US, the project will complement and build on the Government of Ghana’s debt restructuring efforts.
This project is part of OTA’s ongoing engagement to strengthen public financial management and financial sector oversight across sub-Saharan Africa.
Further, the US Vice-President, Kamala Harris announced a $100 million package to support conflict prevention and stabilization efforts in coastal West Africa as Jihadists’ activities spread from the Sahel to the coast.
Speaking at a joint press conference with President Nana Akufo-Addo at the Jubilee House in Accra yesterday the US vice president praised the Ghanaian leader for the instrumental role he is playing to ensure stability in the region.
“We appreciate your leadership and response to recent democratic backsliding in West Africa and standing up for democratic principles around the world,” Harris said in reference to Nana Akufo-Addo. “We also recognise Ghana’s significant contribution in the Sahel.”
“To help address the threat of violent extremism and instability, today I am pleased to announce US$100 million in support of Benin, Ghana, Guinea, Cote d’Ivoire, and Togo,” she added.
The plan is intended to address regional threats of violent extremism and instability in Coastal West Africa and enable the U.S. government to work with Congress to marshal additional assistance to support efforts in the region over the coming years, she said.
The amount includes at least US$86 million in funding over three years specifically dedicated to the implementation of the new 10-year plan of the US government.
Aid package for Ghana
The US has also announced a US$139 million aid package for Ghana for next year.
Washington will also deploy an advisor to Ghana from its Office of Technical Assistance to help the country improve its “debt sustainability and support a competitive, dynamic government debt market,” Harris’s office said.
Ghana defaulted on most of its US$29 billion external debt last year, as interest payments and inflation soared, and it still needs to negotiate a resolution with its private international bondholders and bilateral creditors.
China is Ghana’s biggest bilateral creditor with about US$1.9 billion of debt. Ghana’s finance ministry said last week it expected to secure financing assurances “very soon”, following meetings in China.
