The Government of Ghana and Switzerland have signed a CHF 12 million about USD$14million grant agreement aimed at supporting the implementation of the District Assemblies Common Fund Responsiveness Factor Grant (DACF-RFG).
The signing ceremony in this landmark development, held in Accra, was attended by Ghana’s Minister for Finance, Dr Mohammed Amin Adam, the Swiss Ambassador to Ghana, Simone Giger, and other key stakeholders.
The grant seeks to strengthen Ghana’s decentralized governance systems, enhance accountability, and improve the delivery of essential services at the local level.
Speaking at the event, Ghana’s Minister for Finance, Dr Mohammed Amin Adam, expressed profound gratitude to the Swiss Government for its unwavering support of Ghana’s development agenda.
“Switzerland’s financial contribution of CHF 12 million to the DACF-RFG underscores the strong and enduring partnership between our two nations,” the Minister noted.
The Minister highlighted Switzerland’s commitment to support the DACF-RFG framework describing it as, “a testament to her shared vision for sustainable development and effective decentralization in Ghana”.
Boosting Local Governance
The DACF-RFG is a performance-based grant system designed to incentivize Metropolitan, Municipal, and District Assemblies (MMDAs) to improve efficiency, transparency, and accountability in local governance.
The grant has enabled MMDAs to deliver critical infrastructure, build institutional capacity, and foster greater trust between local authorities and citizens.
Addressing Challenges
The Minister acknowledged challenges, such as delays in fund disbursement, that have occasionally hindered the program’s effectiveness.
However, he expressed optimism about the progress made and the commitment of stakeholders to addressing these issues.
Switzerland’s Support
Ambassador Simone Giger disclosed that local governance and decentralisation were key pillars of Switzerland’s support to Ghana and this had been underscored in the new cooperation framework with the country which highlights it as a priority.
She expressed her strong support for the DACF-RFG initiative and mentioned that, from her visit to some project sites in 12 regions of the country, it was clear citizens were direct beneficiaries of the support from the government of Switzerland, a situation she described as, “heart-warming”.
While commending Ghana for the judicious use of the DACF-RFG, she emphasized the impact the DACF-RFG had made and expressed her commitment to the success of the programme.