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Denmark to review development programme with Ghana

The Danish government plans to cut down on its development assistance programme to Ghana and opt for a more robust economic co-operation.

The Danish have consequently launched a new initiative dubbed: ‘Opportunity Africa’ that combines the traditional foreign policy as well as trade and investment.

Deputy Head of the Africa Department of the Danish Foreign Ministry, Mr Nicolaj Hejberg, said this in an interaction with some journalists from selected African countries who were on a study tour of the Danish model of green growth.

The new initiative, which is expected to boost Denmark’s presence in Africa, highlights the synergies between the Danish support to regional integration and sustainable economic growth in Africa; Danish development co-operation in Africa and Danish bilateral trade with African countries

Despite the positive economic development in Africa, the continent still faces risks and challenges that could undermine or even reverse their achievements. These risks include extreme poverty, inequality, fragile states and defining the right type of governance to ensure sustainable exploitation of natural resources.

But Mr Hejberg was full of praise for Ghana’s economic and democratic credentials which he said had recorded ‘tremendous growth,’ pledging his country’s continued partnership.

The European country is now intensifying an economic diplomacy at the intergovernmental level in Ghana and the rest of Africa to promote reforms which support inclusive and green growth on the continent.

“Denmark sees that Ghana and our other partners in Africa have more needs for a new kind of co-operation and less need for development co-operation,” Mr Herjberg said.

Among the areas of economic co-operation between Ghana and Denmark would be to decrease barriers to trade in order to speed up trade among African countries and strengthen bilateral relations between Africa and Denmark.

Other priority areas of co-operation are in the areas of water and sanitation, health, renewable energy and green growth.  

“There is a huge demand in Africa for sustainable investments in order to boost inclusive and green economic growth in the region. I think regional economic integration and commercial engagement must go hand in hand often in order to make this happen,” says Mr Herjberg.

The Danish government wants a closer co-operation with partners in Africa to work for inclusive growth, job creation and entrepreneurship on the continent.

The European country is therefore intensifying an economic diplomacy at the intergovernmental level to promote reforms which support inclusive and green growth on the continent.

Denmark has for many decades been a world front runner in supporting good governance as well as economic development in Africa with its development co-operation. It is one of the few countries in the world that meets the UN target of giving at least 0.7 per cent of the country’s Gross National Income in foreign aid.

“We want to provide better support to the Danish companies in order to pass the threshold to the African markets, so they can contribute in meeting local development needs and create more green growth and employment. In 2013 and 2014, Denmark would pledge approximately 3.8 billion Danish Kroner for inclusive and green growth in Africa, mainly through bilateral development co-operation with priority countries, where we spend 3 billion kroner,” Mr Herjberg said.

 “In 2013/2014, our development co-operation will include pledges of approximately 840 million Danish Kroner in support through regional and sub-regional African institutions which have an important role to play in the scramble to seize the current momentum for growth in Africa,” he added.

The total Danish export in goods with African countries, which Denmark has prioritised development co-operation with, amounted to 782.5 million DKK in 2012. However, in light of the high average GDP growth in African countries, the figure is expected to increase in the coming years. 

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