Ghana District Development Fund

Project completed

This programme provides decentralized budget support through the District Development Fund (DDF) to strengthen local governments public financial management capacity, reduce the financing gap and contribute to fiscal equalization. The Swiss contribution is linked to performance of the local governments.

Country/region Topic Period Budget
Economic and financial policy
01.01.2013 - 31.12.2015
CHF 10'000'000
Background In the last 5 years, decentralization reforms gained speed in Ghana. The decentralization reforms remain incomplete and suffer challenges to implementation originating from low capacitie at subnational level and fiscal imbalances between subnational governments. The District Development Facility (DDF) was set up by the Government of Ghana to tackle these shortcomings through a system of competitive grant allocation according to pre-agreed performance criteria, thus operating as a decentralized budget support with a built-in capacity development component.
Objectives The DDF strengthens core functions of local governments such as their public financial management system to enhance their ability to perform their duties and provide public services.
Medium-term outcomes Mobilize discretionary financial resources to local governments in order to support the implementation of their development plans and to improve the sustainable and demand-oriented provision of basic services at the local level.Improve the use of resources by ensuring compliance with existing policies, rules, regulations and administrative guidelines.

Expected results:   An annual assessment using the Functional and Organizational Assessment Tool (FOAT).An investment grant allocated to local governments against performance in FOAT assessments.A capacity-building programme linked to the performance against the FOAT results.Policy dialogue with senior government officials through the DDF Steering Committee and the Decentralization sector working group.

Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • Government of Ghana

Budget Current phase Swiss budget CHF   10'000'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   210'000'000
Project phases

Phase 1 01.01.2013 - 31.12.2015   (Completed)