This is the first time USAID will be funding a project and delegating authority to a leading donor organisation to implement on its behalf, in line with the “Paris Declaration” signed in 2005 between
Ghana, Denmark and USA.
Under the declaration, the signatories committed themselves to using the comparative advantage at sector and country level by delegation, where appropriate, to lead donors for execution of programmes, activities and tasks.
The BUSAC Fund is a grant initiated by DANIDA with the support of USAID and DfID to support private sector development in Ghana between 2004 and 2010. The second phase of the project started in 2010 with a budget proposal of 20 million US dollars, to which DANIDA had already committed 8 million dollars.
Speaking at the signing ceremony, the Head of Development Cooperation of DANIDA, Mr. Jan Poulsen, said establishment of the BUSAC Fund was based on the belief that when private businesses in
Ghana flourish, many people will get decent jobs – which will help many families to move out of poverty.
He said under the first phase of the project, 362 organised private sector groups were assisted to advocate on the local, regional and national levels to get local authorities and policymakers to
create the enabling business environment for profitable and competitive private businesses in Ghana.
Ghana Mission Director of USAID, Ms Cheryl Anderson, said by the agreement USAID has increased its support to the BUSAC Fund from 1.2million dollars for Phase-I of the project to 4million dollars
for implementation of Phase-II. She said the agreement under which USAID offers its support to another development partner is a pilot project, and when it succeeds in Ghana it will be replicated in other countries sharing the relationship of USAID with other development partners and agencies.
Ms Anderson said the US government assistance to BUSAC gives a voice to the private sector to advocate for legal and regulatory reforms of the business environment; so that business can thrive, generate more revenue and employment, and move Ghana forward economically.
The Coordinator of Trade Sector Support Programme of the Ministry of Trade and Industry, Mr. Joe Tachie, said the government will soon announce the structure for implementing the Private Sector Development Strategy (PSDS) II to enable the private sector engage the public sector in responding to their challenges.
He said the PSDS I enabled the public sector to appreciate the challenges of the private sector and how to support the expected growth of private businesses. Mrs. Elizabeth Joyce Villars, Chairman of the BUSAC Steering Committee, said the government is now listening and responding to the challenges facing the private sector.
See the original post:
USAID Supports BUSAC Fund With US$4M