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Ghana – Germany sign Two Financial Cooperation Agreements

Ghana – Germany sign Two Financial Cooperation Agreements

Accra, June 12, 2018 - The Governments of the Republic of Ghana and the Federal Republic of Germany signed two Agreements in relation to a Financial Cooperation Agreement on the Sound Disposal and Recycling of electric and electronic waste (e-waste) and Loan and Financing Agreements for the Establishment of the Ghana Deposit Protection Scheme on 12th June 2018.

The Minister for Finance, Mr Ken Ofori-Atta and the German Ambassador to Ghana, H.E. Mr. Christoph Retzlaff signed the Financial Cooperation Agreement on the e-waste whiles the Loan and Financing Agreement on the Deposit Protection Scheme was signed with the Country Director for the German Development Bank Group, KfW, Mr. Philip von Schwerin.

Under the Financial Cooperation Agreement, the German Government is providing a Grant of €20.0million towards the implementation of the e-waste project in two phases with €10.0million per phase.

The Financing Agreement on the phase 1 of the e-waste project was signed in January 2017. Today’s signing of the Cooperation Agreement would help trigger disbursement under the project. The project is expected to support the Ministry of Environment, Science, Technology and Innovation (MESTI) establish an incentive mechanism for sound disposal and recycling of e-waste, and it is expected to contribute to the development of a sustainable national recycling system in Ghana.

On the Ghana Deposit Protection Scheme, the German Government is providing a total amount of €14.0million comprising a loan of €13.0million to co-finance the establishment of a Deposit Protection Fund and a Grant of €1.0million for the institutional set-up of the Ghana Deposit Protection Corporation (GDPC). The Bank of Ghana is making an own-contribution of €13.0million.

The project is expected to among others: help reduce disruptions in the financial system arising from banking distress and bank failure; contribute to financial stability and financial inclusion; improve confidence and trust in the financial system; provide depositor protection; and help reduce government contingent obligation in the event of bank failure.

The financing terms of the Loan facility are: interest rate, 0.75% p.a.; Grace Period, 10 years; Repayment Period, 30 years.

Hon. Ken Ofori-Atta assured H.E. the German Ambassador of Ghana’s unflinching commitment to the tenets of the bilateral cooperation between Ghana and Germany and reiterated H.E. Nana Addo Dankwa Akufo-Addo, the President of the Republic of Ghana’s resolve to pursuing policies aimed at stabilizing the economy and consolidating the gains made over the last eighteen (18) months under the President’s transformation agenda.

On his part, H.E. Christoph Retzlaff assured of Germany’s commitment to support government on the Ghana Beyond Aid agenda. END


Public Relations Unit, MoF