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2. THE VISION: A TRANSFORMED GHANA– A NEW STRATEGIC PARTNERSHIP

Ghana is in the midst of a transition, marked by growth and democratic consolidation. That is the backbone for a major shift in the bilateral relations between Ghana and Denmark towards a new strategic partnership focused on politicaln and commercial cooperation. This shift reflects Denmark’s strategic and multifaceted approach to the African continent. It entails a comprehensive approach incorporating all Danish foreign policy instruments from development cooperation to foreign and security policy instruments as well as commercial relations with the aim of reaching common strategic ends.

The strategic objectives of the new strategic partnership will be
1. strengthened political cooperation based on shared values,
2. promotion of inclusive and green growth,
3. economic diplomacy and increased commercial cooperation, and
4. consolidation of results in development programmes.

A range of instruments will come into play under each strategic objective, and synergy between instruments will be pursued when relevant. The scope and content of the objectives are in line with the forthcoming Ghana Shared Growth and Development Agenda, 2014- 2017 and the Government of Ghana – Development Partners Compact 2012- 2022 “Leveraging Partnership for Shared Growth and Development”. Investments and other financial flows may soon outpace development aid in Ghana. This is why a change is called for to go beyond traditional aid. In this new setting it is the shared vision of the Government of Ghana and the Government of Denmark that Ghana will gradually become less dependent on aid. The Danish cooperation with Ghana will be adjusted to respond to this situation. In a transition period, the development cooperation between Ghana and Denmark will be reduced and gradually taken over by a new strategic partnership focusing on political and commercial cooperation. An exit programme is foreseen to be launched in 2017.

At the same time we will forge a partnership where Ghana and Denmark will pursue joint political agendas internationally and regionally; a partnership that will broaden the scope and use of instruments and competences beyond those traditionally associated with development assistance, and build on the knowledge and experience gained via the cooperation over the past 50 years. A joint evaluation of the cooperation from 1990 to 2006 concluded that as a whole Denmark’s contribution to issues driving social and economic development had been substantial at all levels, relevant and was well appreciated. The opportunities are many but challenges also remain. The macroeconomic situation has to be kept under control to make it sustainable. Growth has not been accompanied by formal job creation, poverty gaps remain, and inequalities based
on income, access to service delivery and economic opportunities, education, gender and geography persist.

The country faces huge environmental challenges. The economy’s reliance on
the three commodities – gold, cocoa and oil – makes it vulnerable in terms
of trade shocks. Growth constraints will need to be tackled and production must be diversified towards higher value added agriculture and manufacturing. These are all challenges Ghana has to wrestle with and overcome in the years ahead in order to ensure change. Denmark’s engagement in Ghana will evolve into a more comprehensive
approach. Denmark will continue to apply a Human Rights Based Approach to development, coupled with an increased focus on economic diplomacy, export and investments.

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Danida

Ministry of Foreign Affairs of Denmark
Danida
Asiatisk Plads 2 
DK-1448 Copenhagen K
Tel. +45 33 92 00 00
Fax +45 32 54 05 33
um@um.dk