The French Development Agency (AFD) has granted a US$85million 10-year debt facility to the Ghana Infrastructure Investment Fund (GIIF).
The AFD is also providing a technical assistance (TA) subsidy of 400,000 euro. The loan will provide an on-lending facility to qualifying climate and social projects financed by GIIF.
The technical assistance will support GIIF’s capacities regarding environmental, social and gender issues, as well as the development of its climate strategy in order to make it a leader in the sustainable development field and contribute more actively in Ghana’s commitments to the Paris Climate Agreement.
The country’s sustainable development hinges on building a robust infrastructure network that will assist economic development and improve the quality of people’s lives. However, a huge infrastructure deficit exists that cannot be funded by the government of Ghana alone, and will require unlocking additional sources of funding and expertise from the private sector and other sources.
A huge gap remains between Ghana’s current resources and what it needs to be able to live up to its goal: in 2016 this was estimated at US$6billion per year over the next decade.
GIIF’s CEO, Solomon Asamoah, explained that: “GIIF focuses on economic infrastructure sectors such as power, transport, telecommunication, agribusiness, industries, tourism etc.; as well as the social infrastructure sectors such as health, education and social housing. Our mission is to mobilise, manage, coordinate and provide financing for these infrastructure projects for national development, and so this financing package from AFD is very welcome and will enable us to further increase our capacities and expertise to deploy our financial instruments in the most climate-friendly manner possible.
“Ghana deserves a robust and reliable infrastructure network on which economy and employment will flourish. France is happy to support GIIF, the public institution dedicated to financing economic and social infrastructures.
“Ambitions are high: hospitals, schools, power networks and generation, water and sanitation. The French financing facilities will support projects that boost sustainable development in Ghana. I am proud of this perfect example of France and Ghana moving forward together,” said Anne Sophie, Ambassador of France to Ghana.