US$77m Swiss SECO grant to improve local governance, et al

By Ernest Bako WUBONTO

The Switzerland Government, through the Swiss State Secretariat for Economic Affairs (SECO), has announced a 65 million Swiss franc grant, equivalent to US$77million, for three key interventions, including the improvement of local governance.

The support initiative, dubbed the ‘SECO Country Programme, 2025–2028’, aims to improve local governance and performance over the four years, especially in service delivery at the local level by enhancing framework conditions and empowering local governments.

This is to be achieved through decentralisation of budget support and capacity-building initiatives. Additionally, it will support urban development projects and provide targeted assistance to strategic value chains and enterprises in selected regions, thereby accelerating local development and promoting sustainable growth.

The second component aims to support the private sector in providing jobs and increasing income opportunities in selected areas, including agro-processing, textile, light manufacturing and others.

This intervention focuses on promoting a business-enabling environment, access to finance and increasing competitiveness and productivity in selected industries.

The third intervention is about environmental integration. This prioritises the promotion of ecological integrity by supporting renewable energy, sustainable supply chain management and the circular economy.

Swiss Ambassador to Ghana, Simone Giger, in her remarks at the launch of the programme, emphasised that the grant support programme is based on her government’s commitment to help Ghana build a resilient economy.

She explained that being resilient is the ability to withstand shocks and weather the storms, which the past few years have shown is very important for Ghana. However, the economy needs certain buffers that, when there’s an external shock like COVID-19, it can actually stand strong.

Thus, this partnership is to help the local economy strengthen value chains and become more resilient.

“This includes improving the framework for international trade standards, promoting sustainable integration into local, regional and international value chains. Working in key strategic value chains offers potential for linkages with the Swiss private sector and scientific cooperation with Swiss universities,” she said.

Minister of Local Government, Chieftaincy and Religious Affairs, Ahmed Ibrahim, highlighted that Ghana’s growth momentum has slowed and inequality has increased in recent times as the initial growth progress relied heavily on commodities such as oil & gas, Cocoa and gold, leaving the economy undiversified and citizens vulnerable to economic shocks. Rising inequality and stagnating poverty reduction have been exacerbated by frequent economic crises that have weakened Ghana’s fragile macroeconomic position.

He stated further that to revitialise the local economy and tackle the challenges, the country needs to create jobs, improve the business environment, enhance effective governance and promote environmental preservation.

“With strengthened local governance, a thriving private sector that generates jobs and incomes and a commitment to environmental integrity, Ghana is poised to build a resilient and diversified economy. As a result, the country will be capable of seizing opportunities, withstanding global challenges and generating prosperity for its citizens,” he said.

He mentioned that the Swiss Government has been a development partner of Ghana over the past 23 years, contributing to various development interventions, including budget support and capacity-building initiatives that have strengthened local service delivery across all 261 districts.

The minister also reiterated the Ghana Private Sector Competitiveness Programme (GPSCP II), an intervention that helped increase productivity and working conditions in the textile and shea sectors, with 156 SMEs supported. This positively impacted around 12,000 workers, 85 percent of whom are women.

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