Ghana’s energy sector has received a €250 million boost from the Government of the Federal Republic of Germany as part of the European country’s bid to facilitate the upgrade and expansion of the country’s electricity transmission infrastructure.
This is in fulfilment of the Germany Compact with Africa (G20 Compact with Africa) which seeks to make African countries more appealing to investors primarily through regulatory and fiscal policies, thus promoting infrastructure and economic development.
At a Memorandum of Understanding (MoU) signing ceremony on Tuesday, President of German multinational conglomerate company, Siemens AG, Joe Kaeser indicated that the Compact is an honour for Germany and is meant to supply solutions to the Ghana’s energy sector.
“It is about showing them the way and on how to lead, and the first thing in this future in this vision is about electrification. It is about energy. The agreement is not only about supplying grids or products or solutions, but it also is about being a proud, responsible and an honoured partner to Ghana, and to the Ghanaian people, so that we can build this country for the future,” he stated.
The signing of the MoU was held at the Jubilee House in the Presence of President Akufo Addo who noted that the ceremony is necessary for the “retooling and refitting of our transmission and grid system across the country.”
According to the President, the Compact is a “big vote of confidence by the German leadership and Chancellor Merkel and yourself, one of the great German companies, to work in our country.”
He emphasized that as the country moves towards industrialisation, “the €250 million boost will enable Ghana to focus on infrastructural developments as well as big resource developments in our bauxite, manganese, and iron ore industries. All of this is going to have to be focused very much on reliable accessibility to power and the rest.”
Ghana is one of the three countries in Africa to benefit from Germany’s ‘Compact with Africa’ Programme.
The programme is expected to assist the country to improve conditions for sustainable private sector investment, infrastructure, economic participation, and generate employment in the country.
The signing of the MoU has seen Ghana receive a quarter of the €1 billion funds put in place by the German Government to boost the private sector in Compact countries, of which Ghana is one.
Under the agreement, the two companies will work not only to improve Ghana’s electricity grid capacity and stability but also help ensure that the country expands her ability to export power to neighbouring countries in West Africa, such as Burkina Faso, Togo and Benin.
Also present during the signing of the MoU were the CEO of the Ghana Grid Company (GRIDCo) Jonathan Amoako-Baah who represented on behalf of the Government of Ghana, as well as a representative of Siemens Sabine Dall’Omo.