The United Kingdom government has announced that it has reviewed its decision to cut aid to Ghana.
In an exclusive interview with JOYBUSINESS, UK foreign Secretary, Boris Johnson said his government would rather increase financial support to Ghana after a working visit to fresh fruit exporting firm,
The UK High Commissioner to Ghana, Jon Benjamin last year disclosed to JOYBUSNINESS that the UK government has cut budget support to Ghana because of its middle-income status.
According to Benjamin “being classified as a lower middle-income country is no longer a least developed country and Ghana’s economy is still developing.
“Budgetary support to Ghana is no longer on the cards because the government of Ghana is supposed to provide its own basic services,” he said.
However, he said the UK will still provide technical service and support private sector particularly SME’s to grow and develop so they can become the motor of employment creation and growth in the future.
However, Mr. Johnson said the UK government is committed to extending the needed financial support to Ghana adding “as you know, the UK package to Ghana is around GBP130 million and we are determine to keep that going as part of its global vision.”
Some of the country’s donor partners have already hinted at plans to scale down or even cut financial support to Ghana because of country’s new economic status.
Some economic analysts have said that this move to cut aid would put a lot of pressure on government to look for an alternate source of income to finance its budget.