Education Bank is a valid solution to education financing

Accra, Sept. 30, GNA - Negotiations are underway for the establishment of a bank, which would be devoted to addressing the needs of the educational sector, Mr Kwadwo Baah-Wiredu, Minister of Education, Youth and Sports, has said.

Speaking in an interview with Journalists in Accra, Mr Baah-Wiredu said having such an institution to manage allocated idle funds for education profitably was the solution to make up for the deficit in financing education.

"I believe that available funds that are not immediately required for planned educational programmes or projects could be utilised gainfully by the bank, while the profits made could be used to finance other projects or given as housing loans to teachers or lecturers," he said.

He said consultations and negotiations had started with both external and internal banking experts as well as relevant stakeholders in education on devising the best model for the country.

Norway and South Africa, the Minister said, had similar institutions, adding that the proposed bank for Ghana would be public-owned with the government owing about 20 per cent shares. The Minister said the wide gap between the planned expenditure for pupils and students and actual spending should be worrying to all citizens because the quality of education would suffer without the right investments.

Giving details about the present situation, Mr Baah-Wiredu said in 2001 the government could only spend the cedi equivalent of 19 dollars on a pre-school child out of the planned 89.7 dollars, leaving a deficit of 70.7 dollars.

For primary school, 27.1 dollars was spent on a pupil, instead of 128 dollars, while 58.5 dollars was spent on a junior secondary student instead of 184 dollars.

Mr Baah-Wiredu said 240.1 dollars was spent on a senior secondary student instead of 558.8 dollars, while 304.1 dollars was spent on a technical and vocational student instead 605.5 dollars. The shortfall levels at the tertiary level were also high at between 50 and 60 per cent.

The spending was to cover areas such as feeding, textbooks, medical, sporting and entertainment.

Mr Baah-Wiredu said the recommendations on funding that were made by the President's appointed Educational Review Committee were also under consideration as possible means of bridging the gap.

These include levying of salaried workers in the formal sector, contributions from Ghanaians resident abroad, special fund-raising programmes and the establishment of foundations and endowment funds.