On January 14, 2020, Ghana signed a Memorandum of Understanding (MoU) with Germany under the Compact with Africa program, securing €250 million to enhance its electricity transmission infrastructure.
The agreement, signed at Jubilee House by Jonathan Amoako-Baah, CEO of Ghana Grid Company (GRIDCo), and Sabine Dall’Omo of Siemens, was witnessed by President Nana Addo Dankwa Akufo-Addo and Siemens AG President Joe Kaeser.
The funding, a quarter of Germany’s €1 billion Compact fund, aims to bolster Ghana’s private sector.
Project Objectives
The initiative focuses on improving Ghana’s electricity grid capacity and stability, enabling power exports to West African neighbors like Burkina Faso, Togo, and Benin.
President Akufo-Addo described the project as vital for Ghana’s industrializing economy, supporting infrastructure and resource development in bauxite, manganese, and iron ore industries.
“The retooling and refitting of our transmission and grid system across the country is necessary,” he stated, emphasizing reliable power access.
Strategic Importance
As the first African nation to secure significant funding from the Compact with Africa, Ghana received a strong vote of confidence from Germany. Akufo-Addo assured transparency, stating,
“We are determined to work in transparency and openness to make sure that this project comes to a proper conclusion.”
Siemens’ Joe Kaeser highlighted the project’s role in modernizing Ghana’s grid, training youth, and fostering sustainable energy solutions.
Compact with Africa Context
The Compact with Africa, launched at the 2017 G20 Africa Partnership Summit in Berlin, promotes private sector investment in African nations.
Ghana’s participation, reaffirmed in 2018, positions it as a leader in leveraging such partnerships to drive energy and economic development, enhancing regional energy security.
