European Union, UK To Slash Aid To Ghana


The United Kingdom has reached a decision to stop funding government projects and programs in Ghana.

Over the years, the United Kingdom has been one of the biggest donors of development aid and budgetary support to the country.
The disclosure is coming after a similar move by the European Union where its head of delegation said they would prefer to focus on more sector-specific programs.

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UK High Commissioner to Ghana Jon Benjamin said the decision was mainly due to Ghana’s new status as a low middle-income country.

“Being classified as a lower middle-income country is no longer a least developed country and Ghana’s economy is still developing. Budgetary support to Ghana is no longer on the cards because the government of Ghana is supposed to provide its own basic services.”

However, he said the UK will still provide technical service and support private sector particularly SME’s to grow and develop so they can become the motor of employment creation and growth in the future.

According to him:
“That era has come to an end and of course if Ghanaian’s economy under any government continues to grow four or five, six or seven percent, then 10 years from now, it would be such a bigger economy that it shouldn’t be needing a huge amount of aid “

“President Mahama has said himself in New York that what African countries need is not more aid but trade because ultimately, it is the trade that creates the jobs and the spaces “

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The development could put pressure on government to look for alternate ways of funding most of its project outlined in the budget.

This could possibly lead to more taxes or hikes to address this challenge or government has to look at some cuts in its expenditure to help manage the