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Key facts: Ghana

  • Population: 22.9 million (World Bank Statistics, 2007).
  • Average life expectancy: 59 years (Human Development Report, Ghana, 2007). UK: 78 years (UN Statistics Division (UNSD), 2007).
  • Average per capita income: US$683 (Annual Progress Report of Ghana Poverty Reduction Strategy II, 2007). UK: US$69,560 (£37,600) (World Bank development data, 2005).
  • Gross national income (GNI): US$12 billion (UNSD, 2006).
  • Average annual growth rate: 6.3% (Ghana Ministry of Finance and Economic Planning, 2007).
  • Percentage of people not meeting daily food needs: 18% (Ghana Living Standards Survey, 2005/06).
  • Women dying in childbirth: 8214 per 100,000 (Demographic and Health Survey, 1998). UK: 13 per 100,000 (UNSD, 2007).
  • Children dying before age 5: 111 per 1,000 live births (Multiple Indicator Cluster Survey, 2006). UK: 6 per 1,000 (UNSD, 2005).
  • Percentage of children receiving primary school education: 83% (net) (Preliminary Education Sector Performance Report, Ghana Ministry of Education, Science and Sports, 2008).
  • Percentage of people aged 15-49 living with HIV/AIDS: 2.6% (Ghana HIV/AIDS Sentinel Survey, 2007).
  • Percentage of people with access to safe, clean water: 53% (rural population) (Ghana Partnership Results Matrix, 2008).

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DFID: Working to reduce poverty in Ghana

Making aid effective | Governance | Health | Education | Water | HIV/AIDS | Private sector/trade/growth | Millennium Development Goals

Making aid effective

The UK is Ghana’s largest bilateral donor, directly providing over £85 million a year, second only to the World Bank in terms of total aid. A new country business plan for Ghana is being developed that will set out how DFID will support the country. This will be linked to the Ghana Joint Assistance Strategy (GJAS), which was signed by 17 of Ghana’s development partners in 2007.

Between 2005 and 2007, we provided more than £205 million in support of Ghana’s poverty reduction plans. From 2008 to 2010, we will give at least £250 million in aid, of which 86% will be in the form of Poverty Reduction Budget Support (PRBS), including around £150 million as Multi-Donor Budget Support (MDBS). PRBS, coupled with growth in domestic revenues, has helped Ghana to increase spending on health and education.

The country continues to receive debt relief under the Heavily Indebted Poor Countries Initiative (HIPC) – $160 million in 2008. It is also benefiting from the Multilateral Debt Relief Initiative (MDRI), through which it will receive $4 billion over 40 years from 2005.

DFID, other donors and the Ghanaian government have produced a Harmonisation Action Plan that sets out targets to improve aid effectiveness by 2010. To this end, we have supported the development of mutual accountability options for Ghana following lessons learned in Tanzania and Zambia. The Ghanaian government has recently produced a draft aid management policy, started the division-of-labour process among its development partners and agreed to pilot mutual accountability in the health sector.

To improve further harmonisation, development partners have agreed to share technical resources and to streamline the policy dialogue with the government in an attempt to reduce their demands on its time.

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Governance

Ghana continues to lead the way in Africa on good governance. It was the first country to submit itself to being reviewed under the Africa Peer Review Mechanism (APRM) in 2005 and has been regularly reviewed since. Currently about £10 million of DFID’s programme is allocated for ‘flanking measures’ -programmes that maximise the impact of funds channelled through government systems. Some of these programmes include:

  • £5 million to support reforms of public financial management systems such as improving procurement processes and strengthening the oversight of Parliament’s Public Accounts Committee. Overall this will help government manage expenditure and improve the allocation of funds in line with the poverty reduction strategy.
  • Supporting civil society and business associations through a number of competitive grant facilities (about £9.4 million for 2004-2010) to help strengthen the voices of ordinary Ghanaians on issues affecting them and their ability to hold government and donors to account. These facilities include: Rights and Voice Initiative (RAVI), Ghana Research and Advocacy Programme (GRAP) and Business Sector Advocacy Challenge Fund (BUSAC)

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Health

In 2007, about 15% of UK funding (in addition to PRBS) was directly used to support Ghana’s health sector, including:

  • £42.5 million to support the Ministry of Health’s four-year programme of work (2008-12), with the overall goal ‘to ensure a healthy and productive population that reproduces itself safely’
  • £6 million in 2006 and £2.7 million in 2007 (through UNICEF) for insecticide-treated bed nets as a response to malaria mortality rates.

DFID also supports a number of health-related initiatives to encourage collaboration between Ghanaian and British research institutes.

A continued investment in the health sector by DFID is vital given that Ghana’s progress in the Millennium Development Goals to do with child and maternal mortality (see below) is off-track.

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Education

Following the UK’s approval of a £105 million grant, Ghana became the first country in Africa to have a 10-year (2006-15) education strategic plan, backed by a long-term funding commitment.

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Water

In 2005-08, DFID committed £7.7 million to Ghana’s water and sanitation sector. Our funding supports water supplies in small towns and villages in the Greater Accra, Volta, Eastern and Upper West regions, some of which are areas in which guinea worm infection is endemic. A proportion of the funding (£1 million) is going towards assisting the Ministry of Water Resources, Works and Housing to become more effective in its role as leader of the sector, and to help the Public Utilities Regulatory Commission regulate the urban water utility.

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HIV/AIDS

Ghana continues to build on existing HIV/AIDS programmes and intensify interventions aimed at preventing new infections, especially among most-at-risk groups and young people. DFID’s contribution of £7.5 million over three years (2006–09) will help expand prevention, treatment and care interventions.

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Private-sector development, trade and growth

Ghana’s economy remains strong, but its annual growth rate of 6.3% in 2007 must increase if the country is to achieve middle-income status by 2015. Concerted action will be needed to improve the business environment, build trade capacity and ensure that growth is equitable and ‘pro-poor’. In 2005-2011, DFID will provide about £13 million to support:

  • the implementation of the Ghanaian government’s Private Sector Development Strategy, to reduce red tape for businesses and improve government services to the private sector
  • financial sector reforms to encourage more access to financial services by more Ghanaians, especially the poor.

DFID is also helping with the development of a support strategy for northern Ghana so that it can achieve greater levels of growth to reduce poverty.

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Progress towards Millennium Development Goals

Ghana is making good progress towards several of the MDGs, but more improvement is needed in other areas.

MDG 1: Eradicate extreme poverty and hunger
The percentage of those living below the national poverty line has fallen from 52% in 1991-92 to 26% in 2005-06.

MDG 2: Achieve universal primary education
The percentage of children of official school age (net enrolment) who are enrolled in primary schools rose from 79% in 2006-07 to 83% in 2007-08. The total number of children enrolled at the primary level irrespective of age (gross enrolment) increased from 94% in 2006-07 to just 95% in 2007-08.

MDG 3: Promote gender equality and empower women
For every 100 boys in primary education, there are 96 girls. 

MDG 4: Reduce child mortality
For every 10 children in Ghana, one dies before his/her fifth birthday.

MDG 5: Improve maternal health
Ghana’s maternal mortality ratio has remained largely unchanged for a decade: for every 100,000 women giving birth, 214 die. However, maternal mortality rates have not been measured since 1998.

MDG 6: Combat HIV/AIDS, malaria and other diseases
The overall HIV prevalence in Ghana is stabilising, with a relatively low rate compared to that of other sub-Saharan African countries. The median HIV prevalence among pregnant women in 2007 was 2.6%, showing a slight decrease from the 2006 rate of 3.2%. As for malaria, UNICEF estimates that the anti-malarial bed net campaign funded by DFID will save as many as 52,000 children’s lives by 2011.

MDG 7: Ensure environmental sustainability
Recent estimates suggest that an equivalent of 9.6% of Ghana’s gross domestic product (GDP) is lost annually through environmental degradation - that is, unsustainable management of the country’s natural resources and health costs related to water supply and sanitation and indoor/outdoor air pollution.

MDG 8: Develop a global partnership for development
Donors are partnering for development, most significantly through GJAS (see ‘Making aid effective’ above). In addition, almost 80% of donor funds are going through government systems.

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