UK pays multilateral debt and consults on Commission for Africa proposals in Ghana

The British Government is to pay $79.9 million of Ghana multilateral debt between 2005 and 2015. Chief Secretary to the Treasury, Paul Boateng, today confirmed the signing off of the UK share of multilateral debt with the Finance Minister Hon Kwadwo Baah-Wiredu. The meeting took place during Mr Boateng’s visit to West Africa as part of his Commission for Africa consultations with African nations.

Mr Boateng said:

“Britain has strong historical ties, and friendly relations with Ghana – as have I – and I welcome the positive development progress I have seen on this visit. Ghana is a shining example of good governance, and its leadership in NEPAD and the AU is of very real importance. The Commission for Africa and the UK’s joint presidency of the G8 and EU in 2005 will set the context for continuing partnership in tackling the challenges facing Africa and ensuring that Ghana continues to make progress towards the Millennium Development Goals.

“To date, in Ghana, resources from bilateral debt relief have led to more spending on education, with almost 700 classrooms constructed, and has contributed to immunisations rates rising to 69 per cent in 2003 from 62 per cent a year earlier. This new commitment will allow more resources to be spent on poverty reduction”

Focusing international commitment on Africa is a key priority for the UK presidencies of the G7/G8 and also for the Commission for Africa (CfA). The Commission will make recommendations on the further action needed to ensure that Africa shares in the benefits of globalisation, and meets the Millennium Development Goals.

In meeting President Kufour of Ghana, Mr Boateng had the opportunity to discuss priorities for the Commission for Africa in advance of a round table discussion with civil society, enabling consultation with key African stakeholders on the formation of CfA policy and next steps following publication of the Commission’s report in March.

Mr Boateng also had the chance to visit a primary school in Teshie, Accra, an example of a school which could benefit from forthcoming DfID investment of £1.4 billion over the next three years for girls education. This will help remove barriers to education in line with the education focused Millennium Development Goals of universal primary education and gender equality.

Notes for editors

1. The Chief Secretary visited Accra, Ghana on Tuesday 15 and Wednesday 16 February. He visited the Finance Minister, Baah-Wiredu MP and called on President Kufour. He is also visiting a school in Teshie and attending a round table discussion on the Commission for Africa at the Ghana International Press Centre.

2. At the recent G7 summit in London, the UK gained agreement that the G7 nations are willing to provide as much as 100 per cent relief of the debts owed to multilateral institutions – the IMF, the World Bank and the African Development Bank. The UK Government has already stated that it will pay its share of the debt service for the World Bank and African Development Bank, and is taking immediate action on debt relief for an initial 19 countries. Ghana is one of the 19 countries to benefit from the recently announced multilateral debt initiative, which will build on the over £65 million of direct aid provided to Ghana from the UK last year.

3. The Commission for Africa was established to consider the evidence on Africa, and to make recommendations on the further action needed to ensure that Africa shares in the benefits of globalisation, and meets the Millennium Development Goals. The final meeting of the Commission for Africa is on the 24th February and it will publish its final report in March. It’s recommendations will be considered by the G7/8 and EU in 2005. The aim is to produce an overall vision of Africa’s development, and international support for that process, to which all can subscribe.

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