18389senchi Consensus - Final

NATIONAL
ECONOMIC
FORUM
20
14
Senchi, LasIern Pegion, Ghana
changing the narrative: building a national
consensus for economic & social transformation
NATIONAL
ECONOMIC
FORUM
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FxecuIive 5ummary 2
GOUP FPO15 7
Group One PesIoring Macroeconomic SIabiliIy 8
Group Two SIrengIhening Ihe Pole o Ihe PrivaIe SecIor in Achieving
lnclusive and SusIainable GrowIh and DevelopmenI !6
Group Three Key lssues in Lconomic ManagemenI 22
Group lour linancial MarkeIs and LongTerm Lconomic DevelopmenI J0
Group live Unlocking Ihe PoIenIial or LongTerm Lconomic DevelopmenI J8
Group Six PosI lorum lmplemenIaIion and CommunicaIion 42
1HF 5FNCHI CON5FN5U5 45
APPFNDICF5 50
Welcome Pemarks Vice PresidenI Kwesi AmissahArIhur 5!
KeynoIe Address His Lxcellency !ohn Dramani Mahama 5J
SIaIemenI by Dr. K.Y. Amoako, Arican CenIre or Lconomic TransormaIion (ACLT) 6!
SIaIemenI by Pro. MIhuli Ncube Vice PresidenI and Chie LconomisI,
Arican DevelopmenI 8ank Group 70
SIaIemenI by Ihe Trades Union Congress (TUC) 77
SIaIemenI by !ames AsareAdjei, PresidenI o AGl 8!
Closing Pemarks His Lxcellency !ohn Dramani Mahama 85
LI51 OF PA1ICIPAN15 87
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8eIween May !J!5, 20!4, a NaIional Lconomic lorum was held in Senchi, in Ihe
LasIern Pegion, wiIh Ihe aim o reaching a common undersIanding and agreemenI
over challenges currenIly acing Ihe Ghanaian economy and how besI Io address Ihem.
The resulI was Ihe Senchi Consensus a roadmap or overcoming Ihese challenges
and laying Ihe oundaIion or Ihe economic and social IransormaIion o Ihe counIry.
The lorum broughI IogeIher sIakeholders rom Ihe public secIor, Ihe privaIe secIor,
poliIical parIies, civil socieIy organisaIions, policy Ihink Ianks, proessional associaIions,
IradiIional leaders, Ihe securiIy services, Ihe !udicial Service, religious groups, key
individuals, Ihe media, among oIhers.
PresidenI !ohn D. Mahama perormed Ihe opening ceremony. The PresidenI Iraced
Ihe hisIory o such orums Io !997, when Ihe governmenI aI Ihe Iime organised one
and broughI IogeIher Ghanaians rom all walks o lie Io deliberaIe on Ihe challenges
o developmenI acing Ihe naIion aI Ihe Iime.
This, he noIed, was ollowed by anoIher orum in 200!, dubbed Ihe NaIional
Lconomic Dialogue, which was organised by Ihe NPP governmenI shorIly aIer iI Iook
oice. The presidenI ondly recalled his own parIicipaIion in Ihese orums, irsI as a
depuIy minisIer in Ihe previous governmenI (!997) and laIer as member o ParliamenI
who spoke on behal o Ihe minoriIy (200!).
Given Ihe persisIence o Ghana's economic problems over Ihe years, he urged Ihe
parIicipanIs Io go beyond merely discussing sIraIegies or aIIaining macroeconomic
sIabiliIy and ocus equally on sIraIegies or susIaining iI as a precondiIion or susIainable
and inclusive growIh. ln one o many presenIaIions IhaI ollowed, Ihe PresidenI o
Ihe Arican CenIre or Lconomic TransormaIion, Dr. K.Y. Amoako, poinIed ouI IhaI
Ghana aced several economic diiculIies, uelled by macroeconomic imbalances IhaI
posed serious challenges or susIained growIh. PersisIenIly high iscal deiciIs, rising
public debI, energy subsidies, and a high public secIor wage bill, he noIed, IhreaIened
NATIONAL ECONOMIC FORUM
2
Executive Summary
macroeconomic sIabiliIy and hence growIh. He added IhaI inlaIion had jumped Io
double digiIs as had inIeresI raIes, Ihus pushing up Ihe cosI o crediI. He noIed IhaI
or economic IransormaIion Io occur in Ghana, Ihere was irsI an urgenI need or
macroeconomic policies Io resIore sIabiliIy and Io osIer an environmenI IhaI would
be conducive Io economic acIiviIies and enIrepreneurship. This, he added, called or
acIion Io geI governmenI expendiIures under conIrol and avoid overreliance on Iax
increases.
AddiIionally, Ihere was Ihe need Io ensure value or money in procuremenI Ihrough
more IransparenI pracIices Io minimise or eliminaIe Ihe problem o wasIe, including
judgmenI debIs. He also sIressed Ihe need Io esIablish or sIrengIhen ormal insIiIuIions
or processes, including improved governance o sIaIeowned enIerprises, as well as
have a clear exporI sIraIegy IhaI would involve idenIiying low hanging ruiIs and
removing Ihe policy, regulaIory, and oIher boIIlenecks IhaI impede Iheir growIh and
developmenI.
ln a sIaIemenI presenIed on his behal by a represenIaIive rom Ihe Arican DevelopmenI
8ank, Pro. MIhuli Ncube, Vice PresidenI and Chie LconomisI o Ihe Arican
DevelopmenI 8ank Group, noIed IhaI even Ihough economic growIh may be sIrong
across Arica, economic IransormaIion remained a challenge across Ihe conIinenI.
Hence, deliberaIe policies were needed more Ihan ever Io reduce inequaliIies, promoIe
inclusive growIh and creaIe jobs as a parI o a broader IransormaIion process.
The plenary session IhaI ollowed was addressed by Ihe MinisIer o linance, Ihe
Governor o Ihe 8ank o Ghana, Ihe Chairman o Ihe NaIional DevelopmenI Planning
Commission (NDPC), Ihe SecreIary General o Ihe Trades Union Congress (TUC), and
Ihe PresidenI o Ihe AssociaIion o Ghana lndusIries (AGl). The MinisIer ouIlined
recenI economic developmenIs and some o Ihe measures deployed by his minisIry Io
resIore iscal balance and Io promoIe sIrucIural reorms. He also brieed Ihe lorum on
GovernmenI's social inIervenIions as well as ongoing eorIs Io supporI Ihe privaIe
secIor. lor Ihe medium Ierm, Ihe MinisIer explained IhaI growIh would be supporIed
by rising oil and gas producIion as well as Ihe expansion o Ihe services secIor. He
added IhaI IighIer conIrols and more durable longIerm public inancial managemenI
sysIems should also lead Io increased eiciency in public spending, which should in
Iurn supporI susIained economic growIh.
The Governor also acknowledged Ihe currenI economic challenges acing Ihe counIry,
wiIh parIicular emphasis on IhreaIs rom Ihe exIernal environmenI and Ihe iscal
secIor IhaI had resulIed in Ihe depreciaIion o Ihe cedi and Ihe depleIion o Ghana's
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inIernaIional reserves. He recalled Ihe 8ank's policy response in lebruary 20!4 Io
Ihe challenges acing Ihe cedi. They included a hike in Ihe cenIral bank's policy
raIe and a IighIening o reserve requiremenIs o banks while reducing Ihe neI open
posiIions o banks. He urIher explained IhaI Ihe 8ank had earlier issued a seI o
oreign exchange regulaIions and code o conducI Io markeI parIicipanIs. This was Io
ensure Iransparency, sIreamline acIiviIy and reduce leakages in Ihe oreign exchange
markeI as well as address anIimoney laundering issues and promoIe Ihe use o Ihe
cedi as Ihe legal Iender o Ghana. He added IhaI eorIs were underway Io assess Ihe
impacI o Ihese measures so as Io ascerIain any uninIended impacIs IhaI may need
Io be addressed.
The Governor airmed Ihe need Io mainIain macroeconomic sIabiliIy aI all Iimes and
avoid desIabilising iscal cycles. He also noIed Ihe need Io ensure compeIiIiveness o
Ghana's exporIs by avoiding misalignmenIs in Ihe exchange raIe and deepening Ihe
oreign exchange markeI urIher. He called or an expansion o Ihe exporI base and
Ihe diversiicaIion o sources o oreign exchange earnings while discouraging Ihe
imporIaIion o consumpIion goods IhaI have local subsIiIuIes. According Io him,
Ihere was Ihe need Io inIensiy eorIs Io check oreign exchange leakages Ihrough
pracIices such as Iranser pricing by some irms. linally, Ihe Governor called or an
eorI Io ensure IhaI all reIenIion accounIs o exporIers are mainIained wiIh domesIic
banks as perIains in oIher counIries.
The SecreIary General o Ihe TUC welcomed Ihe idea o a consulIaIive orum on
Ihe economy and noIed IhaI Ihis was in line wiIh Iheir earlier call or Ihe gaIhering
o Ghanaians Io deliberaIe on Ihe currenI economic challenges o Ihe counIry.
The SecreIary General called or a change in Ihe naIure o economic policies. He
explained IhaI Io reverse Ihe growing Irade deiciI and Ihe alling value o Ihe cedi,
Ihere was Ihe need or a second look aI Ghana's currenI Irade policy which, in Iheir
view, was Ioo liberal or Ihe counIry's level o developmenI. He Ihereore called
or a new inIernaIional Irade regime IhaI would supporI and encourage domesIic
manuacIuring while discouraging imporIs. This, he said, could be done by Iaking
advanIage o exisIing saeguards wiIhin Ihe inIernaIional Irade rules. He also called
or an innovaIive approach in which GovernmenI would work wiIh banks Io bring
down Ihe cosI o borrowing as a means o expanding business growIh and improving
employmenI creaIion. The TUC boss emphasised Ihe acI IhaI economic policies musI
ocus on adding value Io Ghana's naIural and human resources and being able, as a
counIry, Io produce some o Ihe basic necessiIies o lie aI home.
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The PresidenI o Ihe AGl, or his parI, noIed IhaI Ihe privaIe secIor required
macroeconomic sIabiliIy and predicIabiliIy o Ihe business environmenI in order or iI
Io regain conidence on a longIerm basis. He argued IhaI Ihe muchIouIed aIIracIive
business environmenI o Ghana was gradually giving way Io oIher compeIing
counIries in Ihe subregion. ln his view, growIh pillars musI be secIors IhaI spur
sIrucIural IransormaIion o Ihe economy, such as manuacIuring, wiIh a poIenIial
or job creaIion.
There is, Ihereore, Ihe need, he said, or Ihe proIecIion o inanI indusIries. Among
Ihe areas IhaI he indicaIed needed policy aIIenIion are IaxaIion, access Io crediI,
uIiliIies supply, inrasIrucIure, and eecIive policy implemenIaIion. OIhers were beIIer
collaboraIion beIween GovernmenI and Ihe privaIe secIor, wiIh signiicanI local
conIenI as a sIraIegic pillar Io acceleraIe economic growIh.
The Chairman o Ihe NaIional DevelopmenI Planning Commission (NDPC) gave a
background Io Ihe Ghana Shared GrowIh and DevelopmenI Agenda (GSGDA) (20!0
20!J) and an overall assessmenI o progress. He ouIlined some o Ihe key medium
Ierm developmenI challenges and Ihe sIraIegic direcIion o Ihe Second Ghana Shared
GrowIh and DevelopmenI Agenda (GSGDA ll, 20!420!7). linally, he poinIed ouI
some o Ihe implemenIaIion challenges and Ihe medium and longIerm inIervenIions
Io address Ihem.

Six breakouI groups began discussions aIer Ihe plenary session. Discussion Iopics
were grouped as ollows: (i) resIoring macroeconomic sIabiliIy, (ii) sIrengIhening
Ihe role o Ihe privaIe secIor in achieving inclusive and susIainable growIh and
developmenI, (iii) key issues in economic managemenI, (iv) inancial markeIs and
longIerm economic growIh, (v) unlocking Ihe poIenIial or long Ierm economic
developmenI, and (vi) posIlorum implemenIaIion and communicaIion.
During Ihe session on 'resIoring macroeconomic sIabiliIy', a number o observaIions
were made in Ihree broad areas. lirsI, iI was observed IhaI Ihere had been a gradual
deIerioraIion in policy credibiliIy, which was impacIing negaIively on macroeconomic
ouIcomes. Secondly, Ihere were several consIrainIs on Ihe budgeI IhaI limiIed Ihe
eicacy o iscal policy. Thirdly, a number o challenges wiIh inancing o Ihe budgeI
deiciIs needed Io be addressed.
ln Ihe session on 'sIrengIhening Ihe role o Ihe privaIe secIor ', discussions ocused
on inIervenIions required in Ihe agriculIural and indusIrial secIors (speciically
manuacIuring), and also reorms IhaI could posiIively impacI on Ihe acIiviIies o
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Ihe privaIe secIor generally. These included compeIiIiveness, IargeIed moniIoring and
evaluaIion, innovaIion, and inancing.
Discussions on 'key issues in economic managemenI' cenIred mainly on roles and
uncIions in Ihe economic managemenI process and ways o improving producIiviIy
in Ihe public secIor Ihrough improved coordinaIion and Iackling o bureaucraIic
boIIlenecks. The role o exIernal inancing and ways Io encourage Ihe spiriI o public
privaIe parInerships while improving Ihe climaIe or invesImenIs in Ihe counIry and
oIher crossingcuIIings issues were also discussed. ParIicipanIs noIed IhaI Ihe !992
consIiIuIion had clear provisions on Ihe developmenI paIh IhaI Ihe counIry musI ollow
and IhaI Ihe DirecIive Principles o SIaIe Policy musI conIinue Io guide Ihe naIional
developmenI eorI, anchored in a longIerm naIional developmenI ramework wiIh
a compelling vision.
The 'inancial markeIs and longIerm economic growIh' session reviewed Ihe
sIrucIure and developmenI o Ghana's inancial markeIs and Iheir impacI on long
Ierm economic growIh. Among oIhers, parIicipanIs highlighIed Ihe criIical role o
Ihe inancial secIor in promoIing susIainable and inclusive growIh and Ihe need
or synchronisaIion o inancial markeIs wiIh Ihe naIion's longIerm developmenI
sIraIegy as well as ensuring susIainable policy implemenIaIion Io avoid Iaking adhoc
measures IhaI could lead Io insIabiliIy in Ihe inancial markeIs. lI was poinIed ouI IhaI
iI was imporIanI Io develop innovaIive ways o inancing projecIs in Ihe agriculIure
secIor and oIher vulnerable secIors o Ihe economy, especially SMLs.
On ways Io 'unlock Ihe poIenIial or longIerm economic developmenI', Ihe group
considered peace and securiIy, rule o law and jusIice, a peoplecenIred approach
Io developmenI, civic responsibiliIy, and Ihe need or a longIerm ramework Io
guide naIional developmenI. CriIical issues raised included Ihe need Io develop
a uniied longIerm naIional developmenI plan wiIh a compelling vision, an apex
naIional insIiIuIion IhaI has Ihe auIhoriIy, independence, auIonomy and capaciIy Io
aciliIaIe Ihe process o developmenI, coordinaIion o implemenIaIion, moniIoring,
and evaluaIion o Ihe longIerm developmenI plan. The vision should be anchored in
selecIed lagship programmes and projecIs wiIh Ihe demonsIraIed capaciIy Io impacI
Ihe economy and socieIy while enhancing Ihe compeIiIiveness o Ihe privaIe secIor.
The Group considered Ihe need or an eecIive ramework or posIorum
communicaIion, a commiImenI Io implemenIing Ihe decisions o Ihe orum, and
Ihe insIiIuIionalisaIion o Ihe NaIional Lconomic lorum Io provide a plaIorm or
conIinued consensus building in implemenIing economic policy in Ihe uIure.
6
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A. InIroducIion
The Chairman noIed IhaI Ihe group's work was going Io be criIical Io Ihe successul
ouIcome o Ihe lorum and urged parIicipanIs Io make Iheir conIribuIions rigorously
and Io Ihe poinI so as Io allow or maximum parIicipaIion. The Iask o Ihe group,
he said, was Io idenIiy Ihe undamenIal causes o insIabiliIy in Ihe macroeconomic
environmenI and suggesI measures Io resIore sIabiliIy. He proposed IhaI Ihe
discussions begin wiIh a review o Ihe key issues suggesIed or consideraIion in Ihe
background documenI wiIh a view Io modiying Ihem as appropriaIe. ln Ihe ensuing
discussion, Ihe group decided Io adopI Ihe suggesIed key issues, wiIh Ihe addiIion
o Ihe ollowing Iopics: Pole o Oicial DevelopmenI AssisIance (ODA), and how Io
resIore credibiliIy in policy making.
. GeneraI ObservaIions
Members o Ihe group made a number o observaIions on Ihe issue o resIoring
macroeconomic sIabiliIy. These are ouIlined below:
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The group discussed exIensively Ihe imporIance o policy credibiliIy or Ihe resIoraIion
o macroeconomic sIabiliIy. They noIed several acIors IhaI creaIe credibiliIy problems
or GovernmenI in Ihe view o Ihe public, developmenI parIners and Ihe inancial
markeIs. The ollowing were noIed as some o Ihe acIors:
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i. lor Iwo consecuIive years (20!2 and 20!J) macroeconomic IargeIs have been
missed.
ii. Annual budgeIs have noI been implemenIed as approved by ParliamenI.
iii. Midyear reviews have someIimes been used Io inIroduce new policies raIher Ihan
or an assessmenI o policies ouIlined in Ihe budgeI.
iv. 8udgeI ouIcomes have deviaIed signiicanIly rom orecasIs and Ihereore have
Iended Io be perceived as noI dependable.
v. There is a general percepIion IhaI GovernmenI Iends Io explain economic
diiculIies more by aIIribuIing causes Io exIernal acIors Ihan Io domesIic policies.
This leads Io complacency and inappropriaIe responses.
vi. Lxcessive spending in relaIion Io Ihe poliIical cycle has undermined conidence in
Ihe commiImenI Io macroeconomic discipline and sIabiliIy.
vii. AnnouncemenI o policy measures (e.g., new Iax measures) IhaI are noI
implemenIed in accordance wiIh Ihe implemenIaIion schedule assumed in Ihe
budgeI.
viii. Surprise changes in Ihe oreign exchange markeI regulaIions ollowed by selecIive
revisions IhaI suggesI inadequaIe consulIaIion wiIh sIakeholders or assessmenI o
Ihe reacIion o Ihe public.
ix. lnsIiIuIional arrangemenIs have been proposed Io deal wiIh corrupIion, buI high
proile cases remain Io be dealI wiIh ronIally.
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The group noIed IhaI Ihe sIrucIure o GovernmenI spending is a major consIrainI on
iscal policy. ln Ihe 20!J budgeI, GovernmenI expendiIure on Iwo iIems Ihe wage
bill and inIeresI cosIs on Ihe public debI absorbed 57 percenI and 25 percenI,
respecIively, o IoIal GovernmenI revenue, leaving only !8 percenI or oIher budgeIary
iIems, including capiIal expendiIure.
ln addiIion, Iransers Io sIaIuIory unds (DACl, GLTlund, NHlS, Poad lund, GNPC,
eIc.) amounIed Io GHc2 billion, esIimaIed Io have been !J per cenI o IoIal revenue.
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lor reasons o Ihis 'sIrucIural' problem, Iransers Io Ihese sIaIuIory unds have usually
noI been meI and Ihereore are in arrears, meaning IhaI Ihe services IhaI were Io be
provided, e.g., naIional healIh insurance scheme, which now covers an esIimaIed !0
million people, are underunded. Similarly, Ihe objecIives o programmes unded rom
earmarked revenues may be compromised.
Given Ihis sIrucIure o Ihe budgeI, members noIed IhaI GovernmenI spending has
become an ineecIive Iool or Ihe realisaIion o Ihe imporIanI objecIives o growIh
and susIained improvemenI in social welare.

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Peliance on domesIic and exIernal borrowing, including resorI Io sovereign bond
issues on Ihe capiIal markeIs and exIernal subscripIion Io domesIic debI insIrumenIs,
has increased. This has pushed public indebIedness close Io Ihe limiIs o susIainabiliIy.
Ghana's newly gained lower middleincome sIaIus has changed Ihe mix o concessional
and commercial inancing or Ihe public secIor, wiIh reduced inlows o ODA. Since
20!2, Ihe deIerioraIion in Ihe overall iscal and macroeconomic siIuaIion has urIher
curIailed disbursemenI o ODA .
Oil revenue prospecIs have provided collaIeral or access Io commercial borrowing
on a relaIively large scale, primarily Io inance domesIic expendiIure and resIrucIure
domesIic debI, buI Ihis has increased Ihe vulnerabiliIy o Ihe iscal posiIion Io swings
in markeI senIimenIs. lor example, auIhoriIies noIed Ihe impacI o 'quanIiIaIive
easing' by Ihe US lederal Peserve on oreign holdings o Ghana's domesIic debI.
There is an apparenI need or greaIer coordinaIion beIween Ihe cenIral bank and iscal
auIhoriIies. The increased iscal deiciI and borrowing is weakening Ihe eecIiveness
o moneIary policy and has resulIed in rising inIeresI raIes and borrowing cosIs or
Ihe privaIe secIor.
C. 2014 udgeI
There is danger o deepening Ihe credibiliIy problem, given IhaI Ihe 20!4 budgeI
IargeIs may noI be achieved. Due Io implemenIaIion delays and apparenI suspension
in Ihe implemenIaIion o some Iaxes, Ihe expendiIure implicaIions or Ihe provision o
subsidies on peIroleum producIs and uIiliIy Iaris in line wiIh Ihe agreemenI reached
wiIh organised labour cannoI be overlooked. (ln IhaI agreemenI, GovernmenI oered
a CosI o Living Allowance (COLA) in lieu o base pay increases). The CommiIIee
concluded IhaI Ihe iscal IargeIs or 20!4 are unlikely Io be realised.
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Moreover, Ihe economy is subjecI Io several vulnerabiliIies, such as Ihe global
economic slowdown, lower commodiIy prices, a rising currenI accounI deiciI, and
a consequenI all in revenue. lI was noIed IhaI Ihe reverse low o porIolio capiIal in
response Io Ihe Iapering o quanIiIaIive easing in Ihe UniIed SIaIes had also creaIed
challenging balance o paymenIs problems.
ln pursuiI o Ihe objecIive o sIronger coordinaIion o macroeconomic (iscal and
moneIary) policies, Ihe group elI a need or Ihe MinisIry o linance Io provide an
assessmenI o Ihe likely deviaIions rom IargeIs and Ihe inancing gap Io enable Ihe
8oG Io deIermine Ihe implicaIions or moneIary policy.
The presenI siIuaIion o expansionary iscal policy and IighI moneIary policy was
deemed Io be subopIimal and unsusIainable. ConIinued rise in already high (double
digiI) real lending raIes had been idenIiied in sIudies by ParIners or GrowIh (PlG),
AssociaIion o Ghana lndusIries (AGl) and Ihe CenIre or Policy Analysis (CLPA) as a
key barrier Io SMLs developmenI, growIh and job creaIion. Closely behind Ihis is Ihe
unavailabiliIy o reliable elecIriciIy supply. (!ob creaIion above all in Ihe SML secIor is
essenIial Io Ihe resoluIion o Ihe public secIor wage bill challenge).
Discussions also covered Ihe orecasIing capaciIy o Ihe Mol, given Ihe signiicanI
deviaIions in revenue IargeIs. lirsI quarIer esIimaIes o perormance poinI Io a repeaI
o lasI year's signiicanI deviaIions, Ihough by smaller margins. The irsI quarIer
ouIcome also suggesIs a need or beIIer balance beIween revenue and expendiIure.
PaIher Ihan a rush inIo addiIional Iaxes, ocus should be on urIher enhancing Iax
adminisIraIion. There are proposed Iax revenue measures noI being implemenIed and
oIhers wiIh delayed implemenIaIion. ln respecI o Ihe ormer, Ihe speciic excise duIy
on peIroleum producIs was Io be made ad valorem in line wiIh Ihe currenI policy on
excise duIy. The VAT on eebased inancial services is an example o Ihe laIIer. 8udgeI
esIimaIes o Ihe yields on Ihese Iaxes eiIher would noI be realised or would be only
parIially so.
Members Iook Ihe view IhaI Ihe planned midyear review should seek a balance
beIween revenue measures and expendiIure and avoid an overreliance on increased
IaxaIion. On revenue mobilisaIion, Ihe ocus should be on improved Iax adminisIraIion.
lI was also sIressed IhaI eorIs be made Io widen Ihe Iax neI and rope in Ihe inormal
secIor.
On aligning Ihe expendiIure o sIaIuIory unds Io Ihe naIional budgeI, iI was observed
IhaI Ihere are adminisIraIive as well as legal implicaIions IhaI musI be careully
examined and addressed.
Payroll managemenI measures already being implemenIed should be speeded up
in order Io achieve Ihe mediumIerm LCOWAS convergence criIeria. Provision musI
also be made noI only or ull cosI recovery on elecIriciIy and waIer Iaris buI also
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peIroleum producIs Io avoid paymenI arrears Io providers o Ihese producIs such
as LCG, VPA, GPlDCo and Ghana WaIer Company. 8oIh o Ihese are criIical Io Ihe
seIIlemenI o Ihe public secIor wage agreemenI wiIh organised labour.
The implicaIions o Ihe availabiliIy o elecIriciIy in 20!4 and beyond are o paramounI
imporIance and musI be ully recognised and addressed, Ihe group noIed.
D. Medium 1erm
A criIical review o Ihe sIraIegies ouIlined in Ihe homegrown mediumIerm inancial
and economic policies aIIracIed some concerns rom Ihe group. lirsI, iI is noI clear
wheIher Ihe IargeI o reducing Ihe wage bill rom 57% in 20!J Io J5% o Iax revenue
by 20!7 would be achieved. ln parIicular, iI is unclear whaI speciic supporIing policies
would be implemenIed Io ensure Ihe achievemenI o Ihe IargeI. The use o GllMlS,
HPMS and Payroll reorms can yield signiicanI beneiIs buI may noI be up Io Ihe
magniIude projecIed. PighIsizing Ihe public secIor may be one complemenIary way
o achieving Ihis buI wheIher Ihe GovernmenI would have Ihe poliIical will Io do so
during Ihe mediumIerm is yeI Io be ascerIained.
liscal policies pursued in Ihe medium Ierm should be coordinaIed wiIh moneIary
policy objecIives Io ensure IhaI Ihe privaIe secIor has a avourable macroeconomic
environmenI Io creaIe jobs and so absorb labour released rom GovernmenI's righI
sizing o Ihe public secIor
AnoIher major proposal was Io wean o subvenIed organisaIions rom Ihe GoG
payroll. This is a policy iniIiaIive IhaI musI be considered wiIhin a broader rame. More
speciically, some o Ihese subvenIed organisaIions raise inIernally generaIed unds
(lGl) Ihrough cerIain services rendered aI prices below Ihe markeI raIe and Ihereore
Iaking Ihem o GovernmenI subvenIions would imply charging economic or markeI
raIes or Iheir services. This may have wider social and poliIicaleconomy implicaIions
IhaI musI be considered in any acIion evenIually Iaken by Ihe governmenI.
The Group reviewed Ihe economic growIh implicaIions o new iscal measures, such as
a neI reeze on employmenI in some public secIor organisaIions. lI was recommended
IhaI some Iechnical work on such supplyside impacIs was imporIanI Io inorm policy.
ln addiIion, Ihis policy can be implemenIed selecIively, since some criIical secIors
IhaI drive Ihe growIh objecIives o governmenI may be aecIed. lI was noIed, or
insIance, IhaI a general reeze may raIher be deIrimenIal Io Ihe broader medium Ierm
objecIives.
Members also called or an urgenI invesImenI programme Io ix Ihe problems wiIh Ihe
uIiliIies so as Io ensure IhaI growIh objecIives were noI compromised. lor example,
13
Ihe energy pricing problem was a serious one IhaI had signiicanI budgeIary eecIs
and hence implicaIions or macroeconomic sIabiliIy.
A loI o eiciencyenhancing iniIiaIives are underway. 8uI Ihese Iake Iime Io have an
eecI, and in Ihe shorI Ierm Ihey may be even disrupIive, even i in Ihe long Ierm Ihey
yield posiIive resulIs. There is, Ihereore, Ihe need Io ind measures IhaI will address
Ihe expendiIure issues in Ihe shorI Ierm Io ensure Ihe achievemenI o IargeIs.
F. ecommendaIions
!. The MinisIry o linance should as a maIIer o urgency review or Ihe consideraIion
o Ihe Lconomic ManagemenI Team (LMT) Ihe IargeIs seI in Ihe 20!4 budgeI.
The review musI idenIiy likely deviaIions and make proposals or plugging Ihe
resulIanI inancing gap, while Ihe 8ank o Ghana Iraces Ihe implicaIions o Ihe
revisions or moneIary policy.
2. Midyear reviews should as a maIIer o policy be used or assessing Ihe
implemenIaIion ouIcomes o policies ouIlined in Ihe budgeI and lessons learnI
used Io inorm subsequenI budgeIs. Midyear reviews should noI be Ihe occasion
or making major changes Io policy as Ihis Iends Io uel percepIions o policy
uncerIainIy.
J. The number and uncIions o sIaIuIory unds should be reviewed wiIh a view
Io prioriIising and raIionalising Ihem and, subjecI Io Ihe applicable legal and
adminisIraIive consideraIions, aligning Iheir use wiIh Ihe prioriIies o Ihe naIional
budgeI.
4. liscal measures proposed in Ihe budgeI and approved by ParliamenI should be
implemenIed in Ihe Iimerame assumed in Ihe budgeI and alIernaIive measures
inIroduced Io make up or shorIalls occasioned by lags in implemenIaIion.
5. The MinisIry o linance should Iake sIeps Io improve Ihe realism and robusIness
o IargeIs seI in Ihe iscal programme so as Io ensure greaIer cerIainIy in Iheir
achievemenI and Ihereby help resIore policy credibiliIy and markeI conidence.
6. UrgenI consideraIion should be given Io Ihe promulgaIion o a liscal PesponsibiliIy
Law Io help sIrengIhen conIrols over expendiIure.
14
7. There should be increased eorIs Io urIher improve Ihe eiciency o Iax collecIion
as well as broaden Ihe Iax base and reduce recourse Io Ihe inIroducIion o new
Iaxes. ln Ihis regard, Ihe incidence o discreIionary Iax exempIions should be
reviewed and reduced.
8. Given Ihe implicaIions or growIh, employmenI, compeIiIiveness and
macroeconomic sIabiliIy, a programme Io deal wiIh Ihe energy crisis musI be puI
in place as a maIIer o urgency.
9. The 8ank o Ghana should expediIe work on Ihe assessmenI o Ihe recenIly
announced oreign exchange measures and Iake speedy and appropriaIe acIion
Io resIore conidence and relieve Ihe uninIended consequences o Ihe measures
!0. ConsideraIion should be given Io Ihe amendmenI o Ihe 8ank o Ghana AcI Io
seI a ceiling on iIs lending Io GovernmenI IhaI is based on GovernmenI's revenue
collecIion in Ihe previous year raIher Ihan Ihe currenI year as is currenIly Ihe
case. GovernmenI should separaIe Ihis rom Ihe ceiling on IoIal neI domesIic
borrowing.
!!. The 8ank o Ghana should exercise ull independence in Ihe exercise o iIs mandaIe
in Ihe seIIing o Ihe policy raIe buI should cooperaIe, as appropriaIe, wiIh Ihe
MinisIry o linance in Ihe implemenIaIion o macroeconomic policy
15
.,/%0 :;/ 1#0/,&
)&,#34&<#3'34 &<# 1/8#
/= &<# >,'(+&# )#$&/, '3
?$<'#('34 @3$8%2'(# +3A
)%2&+'3+78# .,/;&< +3A
B#(#8/0*#3&
16
A. InIroducIion
The Chairman encouraged members Io parIicipaIe reely as Ihe meeIing was being
conducIed under ChaIham House Pules (where Ihe names o conIribuIors are noI
recorded). He also reminded Ihe Group IhaI issues such as macroeconomic sIabiliIy
and inrasIrucIure developmenI were being addressed by oIher groups. ConsequenIly,
Ihe PrivaIe SecIor Group should ocus on inIervenIions IhaI would enhance Ihe
operaIion o Ihe secIor.
7*5$.$-$". "5 -1* !)$80-* 9*%-"):
Any business esIablishmenI IhaI is noI public secIor is privaIe secIor.
An organisaIion IhaI is driven by proiI, which leads Io compeIiIion, scalabiliIy,
innovaIion, eiciency, and job creaIion, i.e. rom peasanI agriculIure Ihrough
manuacIuring Io peIIy reIail and supermarkeIs, eIc.
. Discussion and CommenIs
!. Discussions ocused on inIervenIions in agriculIure and indusIry (speciically,
manuacIuring).
C. ecommendaIions
;< =3)$%2#-2)*
!. Key crops Need Io idenIiy key crops and ruiIs IhaI will move Ihe naIion orward
by creaIing jobs and providing ood securiIy based on idenIiied geographical
areas, soil qualiIy, eIc., Io deIermine which crops are suiIable or an area.
2. GuaranIeed Prices SubsIiIuIe blankeI inpuI subsidies such as IracIors and
erIilizers wiIh Ihe provision o guaranIeed prices or some selecIed goods IhaI
can be produced on a large scale, as happens in Ihe case o cocoa, or insIance.
J. Value chain Valuechains should be developed by Ihe relevanI insIiIuIions
in collaboraIion wiIh Ihe privaIe secIor. This musI begin rom environmenIal
suiIabiliIy Ihrough producIion Io processing and ulIimaIely markeIing Io help
boIh commercial and smallholder arming.
17
4. Agroprocessing Move rom only producIion Io agroprocessing, especially in
Ihe area o perishable goods.
5. Pesearch Money saved rom subsidised inpuIs should be invesIed in exisIing
research insIiIuIions Io equip Ihem well.
6. Land Ienure sysIem The compulsory acquisiIion law should be reviewed Io
enable GovernmenI Io acquire or use already acquired land in PPPs. This should
be demandderived.
;;< ;.+2/-)& > ?0.250%-2)$.3 0.+ @A-)0%-$8* ;.+2/-)$*/
7. Key indusIries Need Io idenIiy key indusIries where we can achieve comparaIive
advanIage and supporI Ihese indusIries. The supporI need noI be inancial.
8. Crosssubsidy in energy lndusIry should noI be made Io subsidise residenIial
usage o power.
9. PegulaIory ramework Need Io sIrengIhen Ihe regulaIory auIhoriIies Io proIecI
consumers and ensure Ihe enorcemenI o compeIiIion sIandards, as well as help
proIecI inanI indusIries Io creaIe an even plaIorm or compeIiIion. SMLs should
also be proIecIed, supporIed and duly regulaIed Ihrough Ihe use o nonIari
barriers.
!0. Pole o privaIe secIor GovernmenI should acIively and conIinuously engage Ihe
privaIe secIor in a sIrucIured manner.
!!. DevelopmenI by legislaIion LegislaIion should keep developmenI objecIives in
mind and be reviewed regularly wiIh Ihe privaIe secIor Io achieve developmenI
goals. Lxamples o such legislaIion include Ihe procuremenI law, GlPC law, and
Ihe local conIenI law.
!2. LxIracIive indusIries The books o exIracIive indusIries should be made available
Io Ihe Chamber o Mines or PeIroleum Commission Io aid local indusIries in
planning Io meeI Iheir demand.
18
;;;< 9*)8$%*/
!J. Service guaranIees Lach GovernmenI deparImenI providing services should
provide clearcuI sIandards and Iimelines or Ihe delivery o such services Io Ihe
privaIe secIor, ailure Io meeI Ihese sIandards musI be penalised.
!4. UIiliIies and inrasIrucIure WaIer and elecIriciIy musI be progressively improved
and Ihe privaIe secIor should be prioriIised in Ihe applicaIion o Ihe Ghana
lnrasIrucIure and lnvesImenI lund.
!5. lnormal secIor lnsIiIuIe a policy ramework IhaI will help migraIe Ihe inormal
secIor inIo Ihe ormal secIor. Lxample: simpliied business regisIraIion processes
and nonmandaIory SSNlT conIribuIion up Io a minimum number o employees
by inormal secIor operaIors.
!6. Trade shows GovernmenI should supporI enIerprises Io go or Irade shows
exhibiIing machinery and equipmenI and noI only or inished producIs in order
or Ghanaian businesses Io have increased exposure in Ihe area o manuacIuring.
!7. LxempIions regime Should be reviewed and coordinaIed Io ensure IhaI local
businesses are noI aI a disadvanIage.
!8. Human resources LducaIional auIhoriIies should liaise wiIh indusIry and clearly
idenIiy Iheir needs so as Io make Iraining programmes more relevanI Io Ihe needs
o indusIry. Peview Iechnical and vocaIional programmes o various insIiIuIions.
!9. 8usiness laws There is Ihe need or consIanI review o laws/regulaIions aecIing
Ihe operaIions o Ihe privaIe secIor Io make iI more relevanI Io currenI Irends and
Ihis should be done wiIh Ihe acIive involvemenI o indusIry/privaIe secIor.
20. GovernmenI purchases The sIaIe musI purchase rom local producers Io make
Ihem more compeIiIive, especially since GovernmenI is Ihe largesI consumer, i.e.,
governmenI musI buy Made in Ghana producIs and services.
2!. 8usiness environmenI The ease o doing business in Ghana should be enhanced
Ihrough Ihe implemenIaIion o Ihe PrivaIe SecIor DevelopmenI SIraIegy (PSDS ll)
2 and Ihe lndusIrial SecIor SupporI Programme.
19
22. ScalabiliIy GovernmenI insIiIuIions such as N8SSl should be properly resourced
Io help SMLs grow. This could be in Ihe orm o Ihe esIablishmenI o schemes by
Ihe privaIe secIor Io menIor enIrepreneurs.
2J. lndusIrial aIIachmenI lndusIrial aIIachmenI needs Io be resIrucIured and Ihe
collaboraIion beIween Iraining insIiIuIions and indusIries should be enhanced.
24. MulIiplier LecI PermiI and licensing space AI Ihe permiI sIage, Ihe appropriaIe
GovernmenI agencies (GlPC, municipal auIhoriIies, DisIricI Assemblies and
MinisIry o Trade) musI inserI clauses IhaI will ensure IhaI Ihe value chain Irickles
down Io local supply. Lxample: in Ihe area o shopping malls, GovernmenI can
inserI clauses such as percenIage o shel space and Iurnovers Io be allocaIed Io
local indusIries.
25. GovernmenI negoIiaIions GovernmenI should sIrengIhen and improve iIs
negoIiaIing Ieams by including Ihe privaIe secIor and Ghanaians wiIh global
experIise.
26. SubconIracIing arrangemenIs lor boIh local and inIernaIional conIracIs, Ihe
award criIeria should include backward linkages inIo Ghanaianowned SMLs.
;B< C0,"2) >?0.03*D*.- E*#0-$"./ 0.+ !)"+2%-$8$-&
27. NaIional producIiviIy GovernmenI and Ihe privaIe secIor should collaboraIe Io
insIiIuIe a naIional producIiviIy crusade. Lmployers, including GovernmenI, and
workers should ensure IhaI Ihey maIch producIiviIy wiIh remuneraIion.
B< 62/$.*// (".5$+*.%*
28. PredicIabiliIy The macroeconomic undamenIals should be properly resIored Io
enable business plan eecIively.
29. GovernmenI subsidies GovernmenI subsidies should be made eicienI, sIrucIured
and IargeIed.
20
21
B;< 42.+$.3F4$.0.%$.3FG0A0-$".
J0. Macroeconomy Macroeconomic sIabiliIy should be ensured as Ihis is undamenIal
Io privaIe secIor operaIions.
J!. Pension lunds There is Ihe need Io review Ihe Pensions AcI Io allow Ihe invesImenI
o pension unds in longIerm invesImenIs such as elecIriciIy, while ensuring IhaI
realisIic Iaris are paid.
J2. Taxe policy and developmenI GovernmenI needs Io reIain iIs abiliIy Io use
IaxaIion as a policy Iool Io promoIe privaIe secIor businesses, job creaIion and
naIional developmenI.
C#- @22%#2
'3 !$/3/*'$
6+3+4#*#3&
22
.,/%0 :<,## 1#0/,&
23
A. InIroducIion
The Chairman seI Ihe Ione by reminding parIicipanIs o Ihe ramework or economic
managemenI under Ihe DirecIive Principles o SIaIe Policy (ChapIer 6 o Ihe
ConsIiIuIion) and Ihe insIiIuIional arrangemenIs or Ihe conducI o Ihese policies.
. Key Issues
Discussions and commenIs were sIrucIured around Ihe ollowing key issues:
i. Lconomic ManagemenI (roles and uncIions)
ii. Public secIor producIiviIy (economic managemenI capaciIy)
iii. Pole o exIernal inancing (lMl, World 8ank, Arican DevelopmenI 8ank, donors,
eIc.)
iv. Lncouraging Ihe spiriI o PPP
v. lmplemenIaIion, MoniIoring and LvaluaIion
vi. Addressing bureaucraIic hassles/inerIia
vii. PegulaIions/boIIlenecks IhaI burden or rusIraIe invesIors
viii. CrosscuIIing areas
C. Discussions, CommenIs, and ecommendaIions
;< @%"."D$% ?0.03*D*.- H)"#*/ 0.+ 52.%-$"./I
a. AIer esIablishing IhaI Ihere exisI many policy documenIs (including, Ihe medium
Ierm developmenI policy rameworks, Ihe consIiIuIionally mandaIed CoordinaIed
Programme or Ihe Social and Lconomic DevelopmenI Policies o Ghana (Io be
produced by every new governmenI wiIhin Iwo years), parIy maniesIos, sIaIe
o Ihe naIion addresses, annual budgeI sIaIemenIs, and ouIpuIs o Ihe NaIional
Lconomic lorum), which underpin economic managemenI, Ihe group emphasised
Ihe need Io ensure eecIive linkages/synergies among Ihese documenIs.
b. There is lack o clariIy and synergy among insIiIuIions and relevanI governance
players, consIraining eecIive economic managemenI. The ollowing, among
oIhers, were proposed:
24
i. Clariy and sIreamline roles beIween Mol and NDPC on issues regarding
planning and budgeIing Io ensure eecIive linkages beIween Ihe annual
budgeI on Ihe one hand and Ihe mediumIerm policy ramework on Ihe
oIher,
ii. Clariy and sIreamline roles beIween Mol and 8oG on inancial and moneIary
policies Io ensure policy consisIency,
iii. Clariy roles beIween Mol and economic secIor minisIries,
iv. Align Ihe uncIions o relaIed minisIries Io avoid duplicaIion and encourage
synergies,
v. lor improved governance o public insIiIuIions, Ihere is Ihe need Io ensure, as
much as possible, IhaI appoinImenIs Io boards o sIaIeowned agencies are
based on compeIence devoid o any conlicI o inIeresI.
c. There is Ihe need Io empower and reposiIion NDPC Io play iIs role more eecIively
in developmenI planning Ihrough Ihe provision o adequaIe inancial and human
resources, among oIhers.
d. Lnsure policy alignmenI among real, iscal, moneIary, and exIernal secIors.
e. The group explored Ihe relaIionship beIween Ihe economic managemenI
apparaIus, such as Ihe Lconomic ManagemenI Team (LMT), Ihe Lconomic
Advisory Council, and Ihe Lconomic Policy CoordinaIing CommiIIee (LPCC)
and recommended sIreamlining o Ihese CommiIIees and Ihe esIablishmenI o
sIronger linkages among Ihem Io ensure more eecIive economic managemenI.
. To ensure policy consisIency wiIh Ihe budgeI, Ihe mediumIerm policy ramework,
SONA and oIher such documenIs guiding naIional developmenI, Ihere is Ihe
need Io ensure IhaI major GovernmenI policies are approved by CabineI beore
implemenIaIion. lndividual minisIers should be discouraged rom ormulaIing
and implemenIing policies wiIhouI CabineI approval. Proposals beore CabineI
wiIh inancial implicaIions musI go Ihrough Ihe linance MinisIry.
g. On Ihe issue o encouraging policy conIinuiIy and consisIency in line wiIh Ihe
ConsIiIuIional provision on Ihe subjecI maIIer, Ihe group recommended Ihe
ollowing:
25
i. GovernmenI should conIinue projecIs o previous GovernmenIs
ii. Link budgeIing Io planning
iii. lmproving Ihe sIaIure and Iechnical capaciIy o Ihe NDPC Io be able Io deliver
on iIs mandaIe
iv. UnderIake requenI policy impacI sIudies Io assess eecIiveness or oIherwise
v. LecIively engage relevanI sIakeholders prior Io policy implemenIaIion, Iaking
cognisance o implemenIaIion lags
vi. ParliamenI should play a more proacIive role in economic managemenI raIher
Ihan acIing aIer Ihe acI.
vii. Provide regulaIions Io supporI Ihe implemenIaIion o AcIs o ParliamenI
relevanI Io economic managemenI.
viii. Given IhaI our resources are limiIed, eecIive economic managemenI
requires IhaI we plan eecIively, prioriIise our policies, programmes, projecIs
and acIiviIies, and use cosIbeneiI analysis Io inorm prioriIy seIIing.
xi. There is Ihe need Io ensure IhaI donorunded projecIs are ormulaIed wiIhin
naIional sIraIegies and prioriIies Io avoid Ihe running o parallel projecIs by
minisIries.
x. There is Ihe need Io speed up Ihe implemenIaIion o Ihe Ghana lnIegraIed
linancial ManagemenI lnormaIion SysIem (GllMlS) Io enhance accounIabiliIy
and eicienI public inancial managemenI. More generally, Ihere should be
eecIive applicaIion o lCT in economic managemenI
xi. Given IhaI Ihe governmenI's budgeI is Ihe main Iool or implemenIing
developmenI programmes and acIiviIies, iIs ormulaIion should be properly
insIiIuIionalised Io ensure eecIive economic managemenI. lor example, Ihe
budgeI calendar should be clearly deined, well circulaIed and ollowed Io
ensure IhaI proposed policies are rigorously screened beore Ihey ind Iheir
way inIo Ihe budgeI.
xii. Lnorce sancIions on MDAs and public servanIs who louI inancial managemenI
laws such as lAP, lPP, and Ihe ProcuremenI AcI Io insIil discipline in Ihe public
inancial managemenI sysIem.
26
;;< !2,#$% 9*%-") !)"+2%-$8$-& H*%"."D$% D0.03*D*.- %0J0%$-&I
i. SIrengIhen Ihe capaciIy o Ihe public service or eicienI and eecIive service
delivery.
ii. 8uild sIrong and credible inIuiIions or Ihe public service devoid o poliIical
inIimidaIion and inIererence.
iii. Plug leakages in boIh revenue and expendiIures Io provide iscal space:
a. SIreamline Ihe GlPC and lree Zone incenIives regime and enhance iIs moniIoring
Io avoid abuse,
b. Address Ihe issue o Iranser pricing by mulIinaIionals
c. SIricIly enorce relevanI laws Io prevenI abuse.
iv. Provide Ihe environmenI or developmenIorienIed employeremployee
relaIionship. Lnsure Ihere is a air riskadjusIed reIurn on invesImenI or
invesIors as well as provision o good qualiIy jobs or workers whilsI ensuring
IhaI workers' condiIions o service are compeIiIive.
v. Pigorous analysis should be conducIed o earmarked unds and Ihe ouIpuI
should inorm Ihe review o Ihese unds Io reduce Ihe rigidiIies Ihey impose
on Ihe budgeI. There's a need Io moniIor Ihe use o Ihese unds Io ensure
IhaI expendiIures are in line wiIh naIional prioriIies.
vi. Lnsure a Iari regime IhaI is cosIrelecIive Io aIIracI privaIe invesImenI inIo
Ihe uIiliIies.
vii. Provide nonIax incenIives raIher Ihan Iax incenIives Io aIIracI lDls Io Ihe
counIry. Where Iax incenIives are used, Ihey should have sunseI clauses Io
enable easy review rom Iime Io Iime. NonIax incenIives, including shorIening
Ihe period Io regisIer businesses and provision o inrasIrucIure such as roads,
elecIriciIy, and waIer, reduce Ihe cosI o doing business, making irms more
compeIiIive.
viii. Lnsure Iimely release o unds Io MDAs Io honour Iheir inancial obligaIions
Io avoid Ihe creaIion o arrears and overinvoicing.
ix. lnadequaIe release o unds Io MDAs does noI promoIe alignmenI o
expendiIures Io naIional prioriIies during Ihe implemenIaIion sIage.
27
x. Avoid unbudgeIed expendiIures.
xi. SIreamline Ihe use o inIernally generaIed unds by MDAs in accordance wiIh
Ihe MDAs PeIenIion AcI Io avoid abuse.
xii. Wean o capable subvenIed agencies rom governmenI inancial supporI Io
promoIe producIiviIy o Ihe insIiIuIions and reduce Ihe iscal impacI o such
organisaIions on Ihe budgeI
xiii. Overpricing in public procuremenI should be checked. The MinisIry o linance
should ensure prompI paymenI Io avoid over pricing by conIracIors.
;;;< E"#* "5 @A-*).0# 4$.0.%$.3 =3*.%$*/ H;?4K L6K =76K +".")/K *-%<I
i. Our aIIainmenI o a lowermiddle income sIaIus requires IhaI we reIhink
our relaIionship wiIh developmenI parIners and mulIilaIeral insIiIuIions such
as Ihe lMl, Ihe World 8ank and Arican DevelopmenI 8ank Io address our
exIernal inancing requiremenIs or developmenI.
ii. Any decision Io go on an lMl programme should be mindul o Ihe pros and
cons or such programmes. There would be a need Io communicaIe Ihe pros
and cons o going Io Ihe lMl Io Ihe ciIizenry Io avoid misinormaIion on Ihe
subjecI maIIer.
iii. Going or an lMl programme provides a clean bill o healIh which may Irigger
disbursemenIs noI only rom Ihe lMl buI also rom oIher donors. lI may also
provide avourable signals Io Ihe markeI. They, however, go wiIh negoIiaIed
condiIionaliIies.
iv. NoI going or an lMl programme requires iscal discipline and implemenIaIion
o a homegrown programme which will signal conidence Io Ihe markeIs
and Ihe raIing agencies. lI provides an addiIional advanIage o owning Ihe
homegrown policies.
v. There is Ihe need Io rely more on domesIic resource mobilisaIion and less on
exIernal inancing.
vi. There is also Ihe need or revenuegeneraIing SOLs Io mainIain sound
balance sheeIs Io enable Ihem go Io Ihe markeI and borrow. There is Ihe
28
need Io ensure IhaI such debI is noI classiied as parI o public debI Ihrough
Ihe esIablishmenI o mechanisms such as escrow accounIs and onlending
aciliIies.
vii. Municipal bonds need Io be quickly inIroduced and used in a manner IhaI
Ihey are noI parI o Ihe cenIral governmenI debI.
;B< @.%"2)03$.3 -1* 9J$)$- "5 !!!
i. The GovernmenI should encourage and acceleraIe Ihe conversion o Ihe PPP
policy inIo law Io ensure eecIive and producIive parInership wiIh Ihe privaIe
secIor.
ii. There is Ihe need Io improve capaciIy Io ensure IhaI projecIs are well appraised
beore Ihey become parI o PPP.
iii. The insIiIuIional arrangemenIs around PPP should be sIrengIhened Io prevenI
abuse.
iv. There is a need Io idenIiy bankable projecIs Ihrough Ihe conducI o easibiliIy
sIudies as parI o Ihe PPP process.
B< ;DJ#*D*.-0-$".K ?".$-")$.3 0.+ @80#20-$".
i. There is Ihe need Io sIrengIhen Ihe Public AccounIs and linance CommiIIees
o ParliamenI Io play Iheir oversighI responsibiliIies more eecIively.
ii. Lnsure synergy beIween Ihe moniIoring uniIs o MDAs and IhaI o Ihe NDPC.
iii. Policy communicaIion should be sIrengIhened wiIhin MDAs.
iv. SIrengIhen Ihe capaciIy o oicers in MDAs or M&L
v. ConIinuaIion o Ihe M&L sysIem aI Ihe Oice o Ihe PresidenI.
vi. Need Io mainsIream inIernal audiI uncIions o MDAs.
29
vii. LsIablish a mechanism Io eecIively moniIor and evaluaIe Ihe use o sIaIuIory
unds IhaI are given Io public secIor insIiIuIions such as Ihe DACl, NHlA, and
GLTlund.
B;< =++)*//$.3 ,2)*02%)0-$% 10//#*/F$.*)-$0
i. MinisIry o linance is Iaking on Ioo many roles which may consIrain eecIive
economic managemenI. There is Ihe need Io supporI Mol Io eecIively
deliver iIs mandaIe.
ii. Need Io esIablish a OneSIopShop or boIh local and oreign invesIors.
iii. SIreamline Ihe acIiviIies o Ihe LxporI PromoIion Council, GlPC and lree Zones
8oard.
iv. SIrengIhen Ihe capaciIy o Ihe Ghana SIaIisIical Service Io produce economic
and social sIaIisIics Io supporI planning and developmenI.
v. LsIablish elecIronic IemplaIes Io simpliy business processes.
vi. GreaIer supervision rom Ihe minisIries o Ihe agencies under Ihem.
vii. CapaciIy building or civil servanIs.
B;;< M-1*)/
i. There is Ihe need Io idenIiy and agree on our naIional inIeresI and creaIe an
avenue Io promoIe Ihe realisaIion o Ihe naIional inIeresI Io all Ghanaians.
The naIional inIeresI musI be deended aI all Iimes, irrespecIive o poliIical,
religious, or eIhnic ailiaIion. There is Ihe need Io promoIe Ihe can do spiriI
and volunIarism.
ii. GovernmenI should use iIs leverage as Ihe largesI borrower Io inluence
inIeresI raIes downwards.
.,/%0 D/%, 1#0/,&
D'3+3$'+8 6+,E#&2
F G/34H&#,*
!$/3/*'$
B#(#8/0*#3&
30
34
1. InIroducIion
The chairman indicaIed IhaI Ihe objecIive o Ihe session was Io review Ihe sIrucIure and
developmenI o Ghana's inancial markeIs and Iheir impacI on longIerm economic
growIh wiIh a view Io making appropriaIe policy recommendaIions.
Among oIher Ihings, Ihe Chairman highlighIed Ihe ollowing issues as criIical Io
achieving Ihe seI objecIives o Ihe assignmenI:
Peemphasise Ihe criIical role o Ihe inancial secIor in susIainable and inclusive
growIh,
SynchronisaIion o inancial markeIs wiIh our longIerm developmenI sIraIegy,
PecogniIion o Ghana as a growing economy IhaI requires inrasIrucIure and
oIher key complemenIary developmenI programmes and projecIs Io susIain Ihe
growIh process,
The need Io ensure susIainable policy implemenIaIion Io avoid Iaking adhoc
measures IhaI could lead Io insIabiliIy in Ihe inancial markeIs, and
The need Io develop innovaIive ways o inancing projecIs in agriculIure and
oIher relevanI secIors o Ihe economy, especially Ihe SMLsdominanI secIors.
He inally urged parIicipanIs Io expand Ihe scope o Ihe discussion Io cover all secIors
o Ihe inancial secIor and ensure IhaI issues were addressed dispassionaIely and in
an open and rank manner.
2. Discussions, CommenIs and Key Issues aised
Generally, Ihe Group underscored Ihe criIical role o macroeconomic sIabiliIy Io enable
inancial markeIs conIribuIe eicienIly and eecIively Io longIerm developmenI o
Ghana:
A welldeveloped inancial sysIem uels Ihe real secIor Io aciliIaIe susIainable
growIh.
Ghana, a lower middleincome counIry (LMlC), can acceleraIe and susIain iIs
31
growIh process primarily Ihrough an eecIive and eicienI inancial sysIem.
The Group, however, underscored Ihe criIical role o macroeconomic sIabiliIy in
ensuring IhaI inancial markeIs conIribuIe eecIively and eicienIly Io Ihe long
Ierm developmenI o Ghana.
The group idenIiied SouIh Arica, Singapore, Malaysia and Nigeria as counIries
whose inancial markeIs could be considered good benchmarks or Ihe sIraIegic
developmenI o Ghana's inancial markeIs. SouIh Arica was generally accepIed
as Ihe preerred benchmark counIry since iIs inancial markeIs are well developed.
4")*$3. *A%10.3* D0)N*-
The Group noIed Ihe undamenIal sIrucIural imbalance beIween demand and
supply o oreign exchange in Ghana. This exerIs downward pressure on Ihe cedi
and places a consIrainI on Ihe eicienI developmenI o Ihe domesIic oreign
exchange markeI.
ln parIicular, high economic growIh in Ghana since 20!! has broughI in iIs
wake an increase in economic acIiviIy and a correspondingly higher demand or
imporIs.
A sIudy by CenIre or Policy Analysis (CLPA), Ghana, shows IhaI a !.0 percenIage
increase in GDP generaIes a corresponding rise in imporIs demand by !.!4
percenIage. Thus Ihe expansion in Ihe economy has led Io an even greaIer
demand or oreign exchange Io und imporIs Io supporI IhaI growIh.
lI was noIed IhaI Ihe oreign exchange markeI in Ghana aces consIanI supply
challenges which need Io be addressed.
?".*& ?0)N*-
There is an acIive inIerbank money markeI. The GovernmenI's sIrong presence in
Ihe money markeI oIen puIs upward pressure on shorIIerm inIeresI raIes. The
relaIively high inIeresI raIes oered or Tbills crowd ouI lending Io Ihe privaIe
secIor. GovernmenI should resIrucIure iIs borrowing rom shorIIerm Io long
Ierm.
32
lnadequaIe inancial capiIal or lending aecIs commercial bank crediI Io Ihe
privaIe secIor and Ihere is Ihe need Io increase Ihe supply o such capiIal. The
high reserve raIio o !! percenI is noI encouraging and serves as a disincenIive
Io Ihe inIermediaIion role o commercial banks.
(0J$-0# ?0)N*-/K ;./2)0.%* 0.+ !*./$". 42.+/
The need Io creaIe a developmenI bank Io supporI Ihe producIive secIors o Ihe
economy was emphasised.
An equiIy und could be creaIed in parInership wiIh Ihe privaIe secIor Io raise
unds on Ihe markeI Ihrough bonds Io supporI inrasIrucIure projecIs like Ihe
consIrucIion o airporIs, highways, roads and railways or mass IransiI.
Pension unds could provide longIerm inance or inrasIrucIure developmenI.
The role o Ihe pension unds subsecIor should Ihereore be criIically examined
and appropriaIe legislaIion inIroduced Io leverage resources in Ihe secIor or
growIhorienIed projecIs.
GovernmenI should Iake a criIical look aI Ihe high lending raIes, since Ihey serve
as an impedimenI Io deepening Ihe longIerm segmenI o Ihe inancial markeI.
The absence o longIerm porIolio invesImenI insIrumenIs on Ihe capiIal markeI
and Ihe absence o an acIive secondary markeI or Ihese insIrumenIs creaIes a
huge challenge or pension and insurance unds managers.
The capiIal markeI should be encouraged Ihrough appropriaIe policies Io
perorm iIs role as expecIed Io complemenI Ihe inIermediaIion uncIion o
commercial banks in order Io generaIe adequaIe capiIal Io inance longIerm
economic growIh.
There is Ihe need Io build capaciIy and creaIe longdaIed invesImenI insIrumenIs
Io enable Ihe insurance companies and pension unds managers Io invesI Iheir
unds in Ihese insIrumenIs.
33
C*0/$.3 ?0)N*-
Leasing provides longIerm sources o unding or producIive equipmenI and
machinery (including compuIers) which are known Io conIribuIe immensely Io
economic growIh and developmenI. There is, Ihereore, Ihe need Io develop
policies and incenIives Io promoIe leasing as an eecIive longIerm inancing
Iool.
3. ecommendaIions
A sIable macroeconomic environmenI is a musI. GovernmenI should ensure Ihe
creaIion o an enabling macroeconomic environmenI or business.
Mining ConIracIs or AgreemenIs Peview: To ensure sIeady supply o oreign
exchange in Ihe economy, and Io go beyond Ihe seasonal oneo supply o
oreign exchange rom cocoa proceeds in OcIober and December o every year,
Ihere is Ihe need Io criIically review Ihe reIenIion provisions in Ihe various mining
agreemenIs currenIly in place. The renegoIiaIion o Ihese mining agreemenIs
should serve Ihe besI inIeresIs o Ihe counIry. Some moral suasion and addiIional
regulaIions or measures (or insIance, mining companies should sell parI o Iheir
oreign exchange proceeds Io 8ank o Ghana) may be required Io ensure IhaI
Ihe mining companies comply.
Measures should be Iaken Io reduce Ihe demand or oreign exchange and limiI
Ihe use o oreign exchange Io criIical imporIs.
ank of Ghana shouId:
AcceleraIe Ihe auIomaIion o orex bureaux operaIions,
Lnorce already exisIing rules and regulaIions and enhance Ihe supervision o Ihe
orex bureau segmenI o Ihe markeI, and
Peview Ihe licensing regime o orex bureaux by increasing minimum capiIal
requiremenIs.
ln line wiIh Ihe llNSSP ll documenI, Ihere should be an acceleraIed implemenIaIion
34
or Ihe developmenI plan o Ihe inIerbank oreign exchange and money markeIs
Io ensure acIive primary and secondary Irading.
The inIerbank money markeI in Ghana uncIions quiIe well and iI is in an
advance sIage and players are deriving Ihe ull beneiIs o Ihe inIended purpose
or iIs esIablishmenI. However, Ihe same cannoI be said abouI Ihe inIerbank
oreign exchange markeI, Ihough Ihe CenIral 8ank has provided a sIaIeo
IhearI dealing plaIorm. There is Ihe need or capaciIy building Io develop Ihe
appropriaIe experIise or Ihe inIerbank oreign exchange markeI Io uncIion as
expecIed.
There is Ihe need Io improve skills, accounIing sIandards, Iechnology plaIorms
and risk managemenI capaciIies Io deepen Ihe eicienI operaIions o Ihe oreign
exchange markeI.
AgriculIure is a key secIor in Ihe growIh agenda and Ihere is Ihe need Io ind
innovaIive ways Io supporI Ihe secIor. ln Ihis regard, a sIudy o Ihe SouIhern
Arican case (Ihe Zambian model) could help idenIiy innovaIive ways o inancing
agriculIure in Ghana.
The provision o agriculIure insurance will help miIigaIe Ihe risks in inancing
Ihe agriculIure secIor. There is, Ihereore, Ihe need Io ully implemenI Ihe piloI
agriculIure insurance producIs already developed.
The LxporI DevelopmenI and AgriculIural lnvesImenI lund (LDAll) should be
auIhorised Io release managed unds Io Commercial 8anks, Pural 8anks and Ihe
VenIure CapiIal TrusI lund Io supporI Ihe agriculIure secIor.
lunds Io Ihese inancial insIiIuIions should be increased Io help expand crediI
Io Ihe agriculIure secIor and puI in place moniIoring mechanisms Io ensure IhaI
Ihe unds are acIually applied Io Ihe inIended acIiviIies. ln addiIion, unds should
be made available Io oIher secIors o Ihe economy, especially Ihe SMLs secIor,
Io supporI Iheir acIiviIies.
The regulaIory agencies in Ihe inancial secIor should sIricIly enorce Ihe exisIing
inancial rules and regulaIions.
PegulaIors should be made Io make lisIing on Ihe Ghana SIock Lxchange a
licensing requiremenI or all commercial banks, IelecommunicaIion companies,
insurance companies and mining companies. This will enable us Io improve on
Ihe sIabiliIy o Ihe local currency, as noI all Ihe proiIs will be Iranserred ouIside
Ihe counIry as dividends.
35
CorporaIe 8ond lssuance: There should be incenIives in Ihe orm o Iax rebaIes
or corporaIe bond issuers as Ihis will encourage more irms Io issue corporaIe
bonds Io deepen Ihe markeI.
There should also be relie on inIeresI earned on invesIing in corporaIe bonds
by invesIors.
Pisk ManagemenI: The CenIral 8ank should be looking aI managing markeI and
liquidiIy risks in order Io reduce volaIiliIy in Ihe markeI.
LquiIybased inrasIrucIure unds companies should be allowed Io have Ihe
mandaIe Io engage oIher inIernaIional and domesIic inancial insIiIuIions as
shareholders in Ihe und.
Municipal 8onds: GovernmenI should encourage Ihe municipal auIhoriIies Io
issue bonds Io selinance projecIs which should be managed proessionally.
The raising o Ihe unds, Ihe consIrucIion o projecIs and Ihe reIiremenI o Ihe
bond should be handled by proessionals Io minimise Ihe risk o deaulI.
GovernmenI should also implemenI Ihe various provisions in Ihe 20!2 linancial
SecIor SIraIegic Plan (llNSSP ll).
GovernmenI should ensure IhaI pension unds are channelled inIo longIerm
invesImenIs.
lnsurance unds, especially lie insurance, should be channelled inIo longIerm
invesImenI,
linancial lnclusion: 8ank o Ghana should properly supervise microinance
insIiIuIions and encourage selregulaIion or microinance insIiIuIions based on
Ihe Apex 8ank model.
8ank o Ghana should consider allowing Cocobod Io direcIly geI involved in Ihe
inIerbank oreign exchange markeI as a counIerparIy.
GovernmenI should Iake sIeps Io reprioriIise Ihe manuacIuring secIor and
enhance Ihe domesIic producIion o some agriculIural produce such as rice,
IomaIoes, poulIry and manuacIured goods Ihrough imporI subsIiIuIion.
There is Ihe need or capaciIy building Io develop appropriaIe experIise and skills
needed or Ihe various markeIs in Ihe inancial secIor Io uncIion eecIively and
36
eicienIly. To Ihis eecI, inancial and oIher insIiIuIions should be encouraged Io
invesI in Ihe susIainable developmenI o Iheir human capiIal and skills.
DevelopmenI o Ihe inIerbank orex, equiIy and secondary bond markeIs should
be a maIIer o prioriIy
DevelopmenI o longIerm inancing insIrumenIs on Ihe insurance, money and
Ihe capiIal markeIs musI be medium Io longIerm prioriIy goals.
37
38
.,/%0 D'(# 1#0/,&
I38/$E'34 &<#
>/&#3&'+8 =/, G/34
H :#,* !$/3/*'$
B#(#8/0*#3&
1. InIroducIion
The group considered Ihe ollowing key elemenIs as precondiIions or unlocking Ihe
poIenIial or longIerm economic developmenI and IransormaIion:
Peace and securiIy,
Pule o law and jusIice
PeoplecenIred approach Io developmenI
Civic responsibiliIy
A longIerm ramework Io guide naIional developmenI
2. Key Issues in NaIionaI Long-1erm DeveIopmenI Framework
!. Having a uniied longIerm naIional developmenI plan wiIh a compelling vision
IhaI is consIiIuIionally binding on all governmenIs (musI be IranslaIed inIo ive
year medium Ierms Io orm Ihe basis or annual budgeIs, and rom where poliIical
parIies will derive Iheir maniesIos). To IhaI end, Ihe group recommended a 25
year developmenI horizon, subjecI Io 5year reviews. We musI, Ihereore, have a
Vision 2040 longIerm plan.
The Group recommended IhaI Ihe longIerm naIional developmenI plan should be
abouI:
i. CulIivaIing posiIive naIional aIIiIudes, a IransormaIional culIure and civic
responsibiliIy.
ii. lnvesIing in people (educaIional IargeIs, skills developmenI IargeIs, healIh and
saniIaIion IargeIs, eIc.)
iii. lnvesIing in sIraIegic socioeconomic inrasIrucIure (e.g., roads, rails, porIs,
elecIriciIy, energy a sysIemaIic Iackling o Ihe deiciIs, waIer and housing
eIc.),
iv. Lnsuring inIegriIy, accounIabiliIy and Iransparency (i.e., good governance)
Ihrough sIrong insIiIuIions, inIegriIy and accounIabiliIy, addressing insIiIuIional
corrupIion, eicienI land adminisIraIion, rule o law),
39
v. 8uilding a sIrong and resilienI economy (good economic managemenI,
including economic linkages, and addressing Ihe issue o naIional producIiviIy),
vi. SIrengIhening Ihe SIaIe Io perorm iIs core developmenIal uncIions
vii. Lnhancing domesIic privaIe secIor capaciIy and improving overall business
environmenI wiIh Ihe capaciIy Io parIner wiIh GovernmenI, direcI oreign
invesIors, and giving speciic incenIives and removing consIrainIs in order Io
enIer inIo key areas where Ihey have comparaIive and compeIiIive advanIage),
viii. 8uilding naIional implemenIaIion, moniIoring and evaluaIion capaciIy
supporIed by reliable sIaIisIics,
ix. Developing sIraIegy or longIerm inancing
2. There should be an apex naIional insIiIuIion IhaI has Ihe auIhoriIy, independence,
and capaciIy Io aciliIaIe Ihe process o developmenI, coordinaIion o Ihe
implemenIaIion, moniIoring and evaluaIion o Ihe naIional longIerm developmenI
plan. The NaIional DevelopmenI Planning Commission musI be empowered Io
perorm Ihis uncIion. lIs unding and appoinImenI o key Iechnical personnel
should be apoliIical and iIs governing body chaired by Ihe PresidenI. These musI
be supporIed by legislaIion. The consIiIuIional provision IhaI requires Ihe PresidenI
Io submiI a coordinaIed programme o economic and social developmenI policies
should be removed rom Ihe consIiIuIion.
J. SIrengIhening Ihe SIaIe Io perorm iIs core developmenIal uncIions: To IhaI end,
as a naIion we should harness Ihe besI o naIional IalenIs or boIh bureaucraIic and
managerial posiIions. We musI aim aI sIrong insIiIuIions, including ensuring clariIy
o roles and uncIions, and geIIing insIiIuIions Io work. An eicienI bureaucracy is
a sine qua non or eecIive developmenI
4. A naIional vision should be anchored in selecIed highimpacI lagship programmes
and projecIs in which Ihe counIry can develop comparaIive and compeIiIive
advanIages. The ollowing may be considered:
8uilding key inrasIrucIure projecIs, such as highways, porIs, lCT backbone
An inIegraIed peIroleum secIor (oil and gas),
AgriculIural IransormaIion wiIh special emphasis on agroprocessing, cocoa
processing, and exporIs,
40
LicienI exploiIaIion and value addiIion o Ihe exIracIives indusIry (Ihe nonoil
indusIry). Minerals (e.g. bauxiIe and iron ore),
Tourism developmenI
Lmpowering Ihe domesIic privaIe secIor capaciIy Io be an eecIive parIner wiIh
GovernmenI, and direcI oreign invesIors, and improving Ihe overall business
environmenI. There is a need Io give speciic incenIives and remove consIrainIs
Io aciliIaIe implemenIaIion o lagship projecIs speciically and general privaIe
secIor developmenI.
The privaIe secIorsIaIe parInership/collaboraIion in TransormaIion: SIaIe
business engagemenIs should pursue Ihe ollowing: geIIing inpuIs on medium
and longIerm naIional developmenI plans, obIaining eedback on how
GovernmenI policies and programmes aecI Ihem, and supporIing Ihe design
and moniIoring o idenIiied IransormaIional iniIiaIives.
Developing a sIraIegy or longIerm inancing: As a counIry, we cannoI inance
our developmenI wiIh shorIIerm capiIal. There is, Ihereore, Ihe need Io
develop longIerm inancing insIrumenIs and sourcing exIernal privaIe and
oicial inancing. GovernmenI should noI necessarily be Ihe main inancier
o inrasIrucIure projecIs. lI should ensure IhaI such acIiviIies are being
underIaken. There is room or idenIiiable key projecIs IhaI are selinancing,
which should noI be allowed Io burden GovernmenI. Also, Ihere are many
sIaIe insIiIuIions which have ouIlived Iheir useulness and musI be resIrucIured
or olded inIo oIher exisIing insIiIuIions. lnsIiIuIions IhaI have Ihe poIenIial
Io be selinancing should be weaned o Ihe ConsolidaIed lund as soon as
pracIicable.
ConcIusion
The above processes should be inormed by lessons rom pasI developmenI plans. lI
is imporIanI or Ihe process Io be nonparIisan and Ihe naIional developmenI plan
consIrucIed in such a way IhaI Ihere would be naIional ownership. lI will Ihen become
Ihe sIandard or inIerrogaIing parIy maniesIos which should relecI how poliIical
parIies, i given Ihe mandaIe, would prosecuIe Ihe naIional developmenI agenda.
41
.,/%0 )'" 1#0/,&
>/2& D/,%*
@*08#*#3&+&'/3 F
J/**%3'$+&'/3
42
43
AIer exIensive deliberaIions and consulIaIions, Ihe Group agreed on Ihe ollowing:
!. GovernmenI in all posIlorum processes should conIinue Io explore ways o
engaging Ihe major opposiIion parIy, and all oIher relevanI sIakeholders IhaI did
noI parIicipaIe in Ihe lorum,.
2. As parI o eorIs Io consolidaIe Ihe decisions and recommendaIions o Ihe
lorum, Ihe group proposed Ihe holding o a meeIing wiIh a smaller group o
poliIical leaders and oIher nonpoliIical key sIakeholders Io validaIe Ihe decisions
and recommendaIions o Ihe lorum,
J. The group urges Ihe GovernmenI Io consider building a similar consensus around
oIher issues o naIional imporIance, especially wiIh respecI Io poliIical governance,
and iI should iniIiaIe a process o involving ciIizens whose experience, insighIs and
experIise can enhance economic policy managemenI and naIional governance,
4. LsIablish an insIiIuIional ramework or managing Ihe posIlorum processes by
orming an lmplemenIaIion Advisory Group (lAG). The membership o Ihe Group
should include Ihe MinisIry o linance, NDPC, and 8ank o Ghana as represenIaIives
o SIaIe, and represenIaIion rom Ihe various consIiIuencies represenIed aI Ihe
lorum, such as Ihe TUC, aiIhbased groups, Ihe privaIe secIor (PLl/AGl), Ihink
Ianks, CSOs, media, academia, poliIical parIies, IradiIional auIhoriIies, inancial
insIiIuIions, proessional bodies, and coopIed members as and when necessary.
5. The lAG should have a secreIariaI, hosIed by NDPC, wiIh an independenI budgeI
buI leaning on Ihe socioeconomic daIabase, knowledge and skills o NDPC,
6. The lAG would supporI implemenIaIion and perorm Ihe ollowing speciic
uncIions:
a). Oversee Ihe IranslaIion o Ihe decisions o Ihe lorum inIo an acIionable work
programme wiIh clear Iimelines or delivery o ouIpuIs and Ihe moniIoring
and evaluaIion o Iheir ouIcomes,
b). leed Ihe decisions o Ihe lorum inIo Ihe currenI mediumIerm developmenI
policy ramework, Ihis commiImenI should be relecIed in Ihe nexI economic
policy sIaIemenI and Ihe budgeI,
c). MoniIor and reporI on progress o implemenIaIion Io sIakeholders and Ihe
general public,
d). Serve as a communicaIion link, proacIively providing inormaIion Io Ihe
public and responding Io public queries. This is necessary Io ensure IhaI
conIradicIions and inconsisIencies are avoided in communicaIing Ihe
44
decisions and ouIcomes o Ihe orum while public inIeresI in Ihe dialogue
processes are promoIed and susIained,
e). linalise Ihe draI ramework or moniIoring and evaluaIion o implemenIaIion
o Ihe lorum's decisions and ensure iIs eecIive applicaIion.
). ConIinuously engage Ihe sIakeholders and Ihe wider public in Ihe
implemenIaIion o Ihe decisions o Ihe lorum Ihrough periodic progress
reporIs.
InsIiIuIionaIisaIion of Ihe Fconomic Forum
The group recommended Ihe ollowing:
!. As parI o eorIs Io promoIe inclusive parIicipaIion o sIakeholders in Ihe naIional
economic managemenI process, Ihe group proposed IhaI Ihe NaIional Lconomic
lorum should be modelled along Ihe lines o Ihe World Lconomic lorum and
held as an annual evenI. Holding iI annually will enable sIakeholders Io deliberaIe
on progress and implemenIaIion challenges and conIinuously engage Ihe wider
public in Ihe naIional economic managemenI dialogue and processes,
2. The annual ora should be convened by Ihe PresidenI Ihrough Ihe NDPC as
Ihe organising body. lI should be roIaIed across Ihe !0 Pegions o Ghana and
conscious eorIs should be made Io aIIracI Ihe besI o minds, experiences,
inluences and compeIences among Ghanaians, boIh aI home and abroad. The
annual lorum should also provide Ihe space or deliberaIing on homegrown
soluIions Io Ihe naIion's socioeconomic developmenI problems, iI should also
aord Ihe opporIuniIy or Ghanaians Io conIribuIe Io Ihe shaping o economic
and social policies and Iheir eecIive delivery in Ihe shorI, medium and long
Ierms. The Iiming o Ihe lorum should be such IhaI iIs decisions can eed inIo
naIional policy and budgeIary processes, as well as regional, conIinenIal and
global dialogue.
J. The GovernmenI and iIs agencies, parIicularly Ihe 8ank o Ghana, should
proacIively share credible inormaIion on Ihe economy IhaI sIakeholders require
Io make inormed business decisions and susIain public conidence and inIeresI
in economic managemenI processes.
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45
46
lrom May !J!5, 20!4, !40 Ghanaians represenIing organised labour, Ghanaian
privaIe secIor, proessional associaIions, inancial insIiIuIions, securiIy services, Ihe
!udicial Service, IradiIional leaders, poliIical parIies, ParliamenIarians, Ihe clergy, policy
Ihink Ianks, academia, civil socieIy, and GovernmenI MinisIries meI in Senchi in Ihe
spiriI o our shared inIeresI and commiImenIs or building a naIional consensus or
economic and social IransormaIion as well as our collecIive pursuiI o inclusive and
susIainable developmenI.
We Ihe parIicipanIs urIher agreed on Ihe ollowing:
!. ThaI Ihe DirecIive Principles o SIaIe Policy (ChapIer 6 o Ihe !992 ConsIiIuIion)
musI conIinue Io guide Ihe naIional developmenI eorI, anchored in a longIerm
naIional developmenI ramework wiIh a compelling vision.
2. ThaI Ihe longIerm naIional inIeresI should supersede all oIher inIeresIs.
J. ThaI Ihe SIaIe should encourage and promoIe indigenous enIrepreneurship
and conIinue Io execuIe projecIs and programmes commenced by previous
GovernmenIs.
4. losIer a sIaIe whose dayIoday managemenI is supporIed by a proessionally
compeIenI civil service working in an environmenI devoid o poliIical vicIimisaIion
and inIimidaIion and where supporI or Ihe GovernmenI is noI inIerpreIed as
poliIical ailiaIion.
47
5. lI is imperaIive Io sIrengIhen Ihe Public AccounIs and linance CommiIIees o
ParliamenI Io play Iheir oversighI responsibiliIies more eecIively, develop a
mechanism or eecIive synergy and coordinaIion beIween Ihe moniIoring uniIs
o MinisIries, DeparImenIs and Agencies (MDAs), Ihe NaIional DevelopmenI
Planning Commission (NDPC), and Ihe Oice o Ihe PresidenI.
6. ThaI a mechanism Io eecIively moniIor, evaluaIe and reorm Ihe use o sIaIuIory
unds Iranserred Io public secIor insIiIuIions, such as Ihe DisIricI Assemblies
Common lund (DACl), NaIional HealIh lnsurance AuIhoriIy (NHlA), and Ghana
LducaIion TrusI lund (GLTlund), musI be esIablished.
7. ThaI GovernmenI should esIablish a OneSIopShop or invesImenIs, elecIronic
IemplaIes Io simpliy business processes, as well as sIreamline Ihe acIiviIies o
Ihe Ghana LxporI PromoIion AuIhoriIy (GLPA), Ghana lnvesImenI PromoIion
CenIre (GlPC), and Ihe lree Zones 8oard, iI should also sIrengIhen Ihe capaciIy
o Ihe Ghana SIaIisIical Service (GSS) and oIher sIaIisIics reporIing agencies Io
produce reliable and Iimely economic and social sIaIisIics or planning, research
and developmenI.
8. The MinisIry o linance should as a maIIer o urgency review Ihe IargeIs seI in
Ihe 20!4 budgeI. The review musI idenIiy likely deviaIions and make proposals
or plugging Ihe resulIanI inancing gap while Ihe 8ank o Ghana Iraces Ihe
implicaIions o Ihe revisions or moneIary policy.
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340/.0/+/ "# #,. &54/%01 /.//%40 46 #,.
7"#%40"5 8&4049%& :4$+9;
48
9. ThaI a mechanism musI be esIablished Io realign Ihe budgeI whenever Ihe
economy is aecIed by unanIicipaIed shocks.
!0. GovernmenI musI sIrengIhen Ihe regulaIory auIhoriIies Io proIecI consumers and
ensure Ihe enorcemenI o sIandards and air compeIiIion.
!!. lurIher sIeps musI be Iaken Io supporI Small and Mediumscale LnIerprises (SML)
in order Io creaIe jobs.
!2. ThaI urIher eorIs musI be made Io improve Ihe eiciency o Iax collecIion as
well as broaden Ihe Iax base and reduce recourse Io Ihe inIroducIion o new
Iaxes. The incidence o discreIionary Iax exempIions should be reviewed and
reduced.
!J. 8ank o Ghana should expediIe work on Ihe assessmenI o Ihe recenIly announced
oreign exchange measures and Iake speedy and appropriaIe acIion Io resIore
conidence and relieve Ihe uninIended consequences o Ihe measures.
!4. ConsideraIion should be given Io Ihe amendmenI o Ihe 8ank o Ghana AcI Io
seI a ceiling on iIs lending Io GovernmenI IhaI is based on GovernmenI's revenue
49
collecIion in Ihe previous year, raIher Ihan Ihe currenI year as is currenIly Ihe
case. This should be separaIe rom Ihe ceiling on IoIal neI domesIic borrowing
by GovernmenI.
!5. An invesImenI programme Io deal wiIh Ihe energy crisis musI be puI in place
as a maIIer o urgency in order Io propel growIh, employmenI creaIion,
compeIiIiveness, and macroeconomic sIabiliIy.
!6. GovernmenI musI Iake sIeps Io revamp Ihe manuacIuring and agriculIure
secIors Io encourage domesIic producIion o some agriculIural producIs as well
as imporI subsIiIuIable manuacIured goods.
!7. Ghana needs acceleraIed implemenIaIion o Ihe currenI plan Io develop Ihe
inIerbank oreign exchange and money markeIs Io ensure acIive primary and
secondary Irading.
!8. lor purposes o encouraging high naIional producIiviIy, GovernmenI, labour
and Ihe privaIe secIor musI collaboraIe Io insIiIuIe a managemenI and labour
producIiviIy crusade, including Ihe inIroducIion o a Service CharIer IhaI ensures
IhaI remuneraIion is maIched wiIh producIiviIy.
!9. Take sIeps Io develop longIerm inancing insIrumenIs Io minimise reliance on
shorIIerm inancing.
20. ThaI a clear and simpliied policy ramework Io help grow and migraIe Ihe inormal
secIor Io Ihe ormal secIor is urgenIly required. As such, sIeps musI be Iaken Io
simpliy business regisIraIion process and nonmandaIory SSNlT conIribuIion up
Io a minimum number o employees by inormal secIor operaIors.
2!. We, your ellow Ghanaians, recognise IhaI socioeconomic developmenI is a
journey, noI a desIinaIion. As such, eorIs Io build a naIional consensus and
longIerm plan musI also Iake Ihe mode o a journey. We Ihereore recommend
IhaI Ihe NaIional Lconomic lorum be insIiIuIionalised and IhaI a commiIIee be
esIablished Io explore various opIions and models or underIaking Ihis process o
insIiIuIionalisaIion.
22. GovernmenI musI Iake sIeps Io galvanise consensus around oIher issues o
naIional imporIance, especially wiIh respecI Io poliIical governance and naIion
building maIIers, and should iniIiaIe a process o involving ciIizens whose
experience, insighIs and experIise will enhance economic policymaking and
naIional governance.
50
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51
welcome remarks by
Vice President Kwesi Amissah Arthur
13th May 2014
l wish Io welcome His Lxcellency Ihe PresidenI and all parIicipanIs, especially Ihe
ormer PresidenI, who is parIicipaIing in Ihis naIional enIerprise aI very shorI noIice.
The idea o a NaIional lorum developed during Ihe PresidenI's preparaIion or Ihe
SONA when we meI Ihree groups represenIing Ihe Ghanaian privaIe secIor Io discuss
how Ihe macroeconomic challenges and our plans or resolving Ihem were impacIing
on Iheir businesses. We probed Ihem abouI whaI GovernmenI could do Io supporI
Iheir operaIions and Ihe privaIe secIor Io creaIe jobs.
These were privaIe secIor operaIors, overwhelmingly Ghanaian, who addressed Iheir
problems in a naIional conIexI.
lI became obvious IhaI a general conversaIion (noI a dialogue) was needed and would
beneiI rom Ihe inclusion o Ihe social parIners, poliIical organisaIions, IradiIional
auIhoriIies, religious leaders, eIc.
Given IhaI we needed Io do iI as soon as we could, we have had a very shorI period
Io plan or Ihis meeIing. Keeping in mind Ihe aIIenIion Ihe looIball World Cup would
aIIracI among our people, Ihe period mid!une Io mid!uly was ouI.
Also, in discussions wiIh Ihe social parIners, Ihe period aIer !7Ih May would be
inconvenienI, because o Iravel obligaIions.
Thereore, i Ihe planning is noI opIimal, blame me buI orgive Ihe Planning Team,
which has done a marvellous job o addressing Ihe challenges o organisaIion in jusI
a ew weeks.
The major weakness relaIes Io posiIion papers. We decided IhaI we would noI impose
any views on Ihe lorum. A concepI paper has, however, been disIribuIed Io guide Ihe
discussion.
8uI Ihe purpose o Ihe lorum is Io discuss how Io Iurn Ihe shorIIerm challenges inIo
an opporIuniIy or Ihe uIure, or Ihe mediumIerm.
The shorIIerm measures Io resIore iscal balance were irsI unveiled by Ihe linance
MinisIer in his sIaIemenI Io ParliamenI on !sI April 20!4. ThaI brie is being urIher
52
developed and reined Io address Ihe longerIerm opporIuniIies or Ihe economy.
AI Ihe requesI o Ihe PresidenI, we have circulaIed Ihe laIesI version o Ihe Home
Grown plan Io Ihe Group Chairs.
This will conirm IhaI Ihe shorIIerm acIions have been developed. We are deIermined
IhaI shorIIerm consideraIions should noI undermine consideraIions or Ihe economy's
longerIerm prospecIs.
SelecIion o parIicipanIs has been done careully or balance, IhaI Ihere will be no
GovernmenI dominaIion, IhaI we give an opporIuniIy Io people who have expressed
views on Ihe economy Io elaboraIe Ihem in discussion wiIh Iheir peers.
To allow or an honesI, rank and undiluIed discussion, we have agreed wiIh Ihe
Chairpersons, laciliIaIors and PapporIeurs IhaI Ihey will encourage openness and Ihe
ree expression o views. The rules or Ihe conducI o meeIings such as Ihis were
originally developed in !927. Peerred Io as Ihe ChaIham House Pule, iI sIaIes: When
a meeIing, or parI Ihereo, is held under Ihe ChaIham House Pule, parIicipanIs are
ree Io use Ihe inormaIion received, buI neiIher Ihe idenIiIy nor Ihe ailiaIion o Ihe
Speaker(s) nor IhaI o any parIicipanI, may be revealed.
linally, one innovaIion o Ihis lorum is Ihe decision Io creaIe a Group IhaI will
develop a posIlorum AcIion Plan Io mainIain Ihe momenIum o Ihe inclusiveness in
moniIoring Ihe progress o Ihe agenda. The responsibiliIy or managemenI is reserved
or GovernmenI, buI Ihe people who have parIicipaIed and Ihose who are keenly
inIeresIed in Ihe progress o Ihe economy, need Io be assured IhaI Ihe commiImenI
is sIill Ihere and acIions are proceeding according Io plan.
The Vice PresidenI o Ihe Pepublic o Ghana
Her Ladyship Ihe Chie !usIice
H.L. ormer PresidenI !erry !ohn Pawlings
SecreIary General o Ihe TUC
Senior CiIizen and renowned LconomisI Mr. Kwame Pianim
ParamounI Chie o Akwamu and Ihe Queen MoIher
DisIinguished GuesIs
Ladies and GenIlemen
lI is a pleasure or me Io be here Ioday, buI iI is an even greaIer pleasure or me Io
welcome you here, Io Ihis gaIhering. Your presence here is a posiIive indicaIion o a
collecIive desire Io rise above Ihe peIIy poliIics IhaI so oIen leave us eeling divided so
as Io conIribuIe Io Ihis naIional dialogue abouI ways Io supporI Ihe IransormaIion
o our economy.
LeI me irsI sIarI o by admiIIing IhaI like so many good ideas, Ihe idea or Ihis orum
is noI a new one. lI has been well IesIed, and iI has, in iIs previous incarnaIions,
proven iIsel Io be a useul Iool in planning and policymaking.
The organisaIion o Ihis orum represenIs Ihe conIinuaIion o a IradiIion. ln !997,
Ihe NDC held Ihe irsIever naIional economic orum. ln 200!, Ihe NPP successully
replicaIed iI in Ihe orm o a naIional economic dialogue. ln acI, Iomorrow, Ihe !4Ih
o May 20!4, marks Ihe !JIh anniversary o IhaI dialogue, or which Ghanaians rom
diverse backgrounds came IogeIher Io deliberaIe on Ihe issues around which we, as a
NaIion, musI consider and ind consensus in order Io move orward.
l am proud Io say IhaI l parIicipaIed in Ihese earlier economic consulIaIions, irsI as a
DepuIy MinisIer o CommunicaIions in Ihe IhenNDC GovernmenI, and Ihen, again,
as a MinoriIy Member o ParliamenI during Ihe IhenNPP AdminisIraIion.
l ound Ihose economic dialogues useul in Ihe sense IhaI Ihey allowed a broad
specIrum o experIise Io be broughI Io bear on our economic policy ormulaIion.
Those orums aorded us Ihe opporIuniIy Io hear oIher voices. Those orums promoIed
undersIanding and Ihough we did noI miraculously ind unanimiIy, we were able Io
53
KEYNOTE ADDRESS BY
HIS EXCELLENCY JOHN DRAMANI MAHAMA
PRESIDENT OF THE REPUBLIC OF GHANA,
AT THE NATIONAL ECONOMIC FORUM
[SENCHI- AKOSOMBO TUESDAY, MAY 13TH, 2014 ]
orge a consensus behind criIical economic policies such as Ihe HlPC lniIiaIive and Ihe
PoverIy PeducIion and GrowIh SIraIegies (PPGS) o Ihe pasI decade.
As a governmenI, we remain convinced IhaI orums such as Ihis are one o Ihe suresI
ways Io engage Ihe public direcIly. lorums such as Ihese are one o Ihe suresI ways or
us, as a NaIion, Io charI a credible and lasIing course or our collecIive developmenI.
My lellow CiIizens,
One o Ihe mosI dangerous condiIions IhaI we as a NaIion can allow Io exisI is
cynicism. We need Io speak in order Io be heard. We cannoI remain silenI on issues
IhaI aecI Ihe NaIion. We need Io Ialk wiIh one anoIher, raIher Ihan aI each oIher.
And we need Io lisIen, Io be IhoughIul in our consideraIion.
We will, o course, have divergenI views. And even i we agree on ideas, we may
dier in our opinions on how Io implemenI Ihem. 8uI whaI we do share, whaI we
will always have as our common ground is our inIenIion we all wanI Io see Ghana
succeed and Io IhaI end, we all wanI Io ind a soluIion IhaI is pracIical, a soluIion
IhaI is susIainable.
lI is in Ihis spiriI o inclusiveness IhaI we have inviIed you here Ioday, and IhaI you
have also graciously accepIed. The circumsIances under which Ihis orum is being held
make iI markedly dierenI Ihan Ihe previous Iwo economic orums.
lirsIly, Ghana is no longer jusI anoIher developing counIry, we are classiied as a
middleincome counIry. Truly, we are currenIly aI Ihe lower end o Ihe middleincome
specIrum, buI we are working hard Io consolidaIe Ihis new sIaIus. We are working
hard so IhaI soon enough, in Ihe oreseeable uIure, we can aIIain uppermiddle
income sIaIus and, shorIly IhereaIer, graduaIe inIo a highincome sIaIus.
Secondly, we are in Ihe midsI o overcoming various challenges associaIed wiIh Ihis
new naIional income sIaIus while aI Ihe same Iime sIriving Io develop Ihe insIiIuIions
IhaI would enable us grow and Iransorm our economy aI Ihis Iime o greaI volaIiliIy
and uncerIainIy in Ihe global economy.
Three aspecIs o Ihese challenges Io which l've reerred have remained parIicularly
persisIenI over Iime. These are:
Ihe rising debI levels, as well as Ihe associaIed burden o servicing Ihem,
Ihe disproporIionaIe amounI o governmenI revenue IhaI goes inIo Ihe
paymenI o salaries and beneiIs o public secIor workers and pensioners, and
Ihe resulIanI high budgeI deiciIs.
Lvery governmenI IhaI Ghana has had over Ihe course o Ihe lasI decade has had
Io conronI some o Ihese challenges. This alone implies IhaI Ihey are o a complex
54
origin, IhaI Ihey are sIrucIural problems IhaI have Iaken years, in some cases decades,
Io maniesI. lI implies IhaI Ihey will require Ihe sorI o soluIions IhaI we have gaIhered
here Ioday Io creaIe soluIions IhaI have been subjecIed Io Ihe scruIiny o many,
soluIions IhaI have been shaped by Ihe voices, Ihe hands and Ihe vision o many.
My lellow Ghanaians,
As you approach your discussions, l wanI you Io bear in mind IhaI despiIe Ihese
challenges, we have managed Io sIeer Ihe economy Io some o iIs highesI growIh
raIes on record. ln 20!J, growIh was a respecIable 7.!%. ThaI same year, Ihe growIh
raIe or Ihe world economy was J.0%, Ihe growIh raIe or emerging economies was
4.7%, Ihe growIh raIe or subSaharan Arica average was 4.9%, and Ihe growIh raIe
or Ihe advanced economies averagely was !.J%. ln Ihe medium Io long Ierm, we
expecI Io raise Ihis Io an average annual growIh raIe IhaI is above 8.0%.
20!J growIh o 7.!% is impressive againsI a backdrop o reduced commodiIy prices
or our major exporIs gold and cocoa and an energy crisis Iriggered by disrupIion o
gas supplies rom Ihe WesI Arican Gas Pipeline.
As a governmenI, we have doneand will conIinue Io doour besI Io deal wiIh Ihe
aoremenIioned challenges. Some o Ihe measures IhaI we adopIed have imposed
uninIended hardshipsbuI Ihese hardships are Iemporary and will noI lasI beyond
Ihe shorI Ierm. Already Ihe posiIive resulIs are beginning Io show in Ihe orm o a
slowdown in Ihe growIh o Ihe wage bill, and oIher indicaIors againsI Ihe background
o a relaIively sIrong economic growIh.
The wage bill (excluding arrears), as a share o IoIal Iax revenue, declined sIeadily
rom 65% aI Ihe end o 20!2 Io 57% aI Ihe end o 20!J. We are however sIill ar
rom achieving Ihe IargeI spelI ouI in Ihe WesI Arican MoneIary Union convergence
criIeria o J5%.
ln AugusI o 20!J, governmenI hosIed a orum o all key sIakeholders in Ho in Ihe
VolIa Pegion Io deliberaIe on sIraIegies or saniIising Ihe wage bill in order Io ree
resources or oIher criIical invesImenIs, such as educaIion, healIh and inrasIrucIure.
ThaI orum concluded wiIh a communique o !8 very imporIanI recommendaIions.
Among Ihose recommendaIions were Ihe ollowing:
ThaI Io ensure Ihe susIainabiliIy o Ihe single spine pay policy, expendiIure on personal
emolumenIs should be subjecI Io Ihe overall budgeIary consIrainIs o GovernmenI.
(This requires IhaI GovernmenI and organised labour should meeI periodically Io
review Ihe single spine pay policy and iIs implicaIions or Ihe shorI, medium, and
longIerm condiIion o governmenI's inances).
55
ThaI Ihere is Ihe need Io remove wasIage and seepage in public pay adminisIraIion,
including having a human capiIal daIabase linked Io Ihe payroll as a way o ensuring
IhaI all ghosI names are permanenIly removed rom Ihe sysIem. And, as l announced
on May Day, we are abouI Io embark on a vigorous exercise Io discover and remove
ghosI names and Io severely sancIion any persons responsible or Ihe inserIion o such
names.
ThaI pay should be linked Io work and producIiviIy in Ihe public secIor based
on IargeI seIIing and perormance.
ThaI Ihe relevanI agencies should develop a naIional producIiviIy policy wiIh
indicaIors Io guide public secIor/service pay adminisIraIion, and
ThaI subvenIed agencies IhaI have Ihe capabiliIy Io exisI on Iheir own should
be idenIiied and gradually weaned o GovernmenI subvenIion wiIhouI
delay.
NoI long aIer IhaI orum, Ihe MinisIer o LmploymenI and Labour PelaIions puI
IogeIher an advisory commiIIee or Ihe purpose o implemenIaIion. l am happy Io
announce IhaI Ihe commiIIee has compleIed Ihe irsI phase o iIs work and submiIIed
iIs reporI Io Ihe Lconomic ManagemenI Team, which is currenIly reviewing Ihe reporI
prior Io iIs submission Io CabineI or urIher consideraIion.
We have also puI in place a new sIraIegy Io eecIively manage our debI. The goal is
Io bring Ihe IoIal debI sIock and Ihe associaIed servicing Io more manageable levels.
A key elemenI o Ihis sIraIegy is Io separaIe loans IhaI could be commercially sel
inancing rom Ihose IhaI musI be inanced rom general governmenI revenue.
The Ghana lnrasIrucIure and lnvesImenI lund is one o Ihe many Iools we are using
Io pursue Ihis sIraIegy. CabineI has already given iIs blessing Io Ihe lund, and iI will
soon be presenIed Io ParliamenI or Iheir review and endorsemenI when parliamenI
reconvenes rom recess.
AnoIher sIraIegy is Io implemenI eecIive prioriIizaIion in Ihe selecIion o acIiviIies or
projecIs Io be inanced Ihrough loans or oIher orms o crediI. SelecIed projecIs musI
be deIermined Io be o prime imporIance Io our NaIion's advancemenI and progress.
lellow counIrymen and women,
Since 20!J, we have underIaken several measures Io resIore macroeconomic sIabiliIy
and achieve iscal consolidaIion. These measures were scaIIered in many policy
direcIives including Ihe budgeIs o 20!J and 20!4. There were some measures also
included in Ihe midyear review o lasI year's budgeI, 20!J. We realized IhaI in view
o Ihe scaIIered naIure o Ihese policies and measures, Ihey did noI promoIe a air
undersIanding o whaI we wanIed Io achieve.
56
ln early April Ihereore, we decided Io aggregaIe all Ihese measures and iniIiaIives
inIo a single documenI and presenIed iI Io Ihe people o Ghana Ihrough Iheir
represenIaIives o Ihe people o Ghana in ParliamenI. A more deIailed version o Ihe
documenI IhaI was read in ParliamenI was laIer presenIed Io Ihe lMl as parI our
ArIicle lV consulIaIions IhaI iI underIakes wiIh all o iIs member sIaIes.
l wish Io Iake Ihis opporIuniIy Io sIaIe, wiIh greaI emphasis, IhaI as PresidenI l have
noI Iaken any decision Io enIer our counIry inIo an lMl programme. WhaI we are
concenIraIing on is Ihe preparaIion o a homegrown sIraIegy o iscal consolidaIion.
lI is our expecIaIion IhaI boIh our domesIic and our inIernaIional parIners will join us
in Ihe implemenIaIion o Ihis sIraIegy. The bries IhaI were presenIed Io ParliamenI
and Ihen laIer Io Ihe lMl under our ArIicle lV consulIaIion represenI work in progress
and would be inalised Ihrough broad consulIaIions, such as Ihe orum we are holding
Ioday. LaIer Ioday, MinisIer o linance Tekper will make a presenIaIion in which, in
which l am sure he will highlighI some o Ihese iniIiaIives.
lI is a Iragedy o our very polluIed and exIremely parIisan poliIical environmenI IhaI
such a simple misundersIanding o Ihe relevance o Ihis innocuous documenI should
become Ihe basis or a major poliIical player Io sIay away rom Ihis allimporIanI
naIional exercise.
Those o you who have shared your views under Ihe umbrella o hash Iag 8ring 8ack
The Cedi (8ring8ackTheCedi), you will be pleased Io hear IhaI Ihe 8ank o Ghana
iniIiaIed a number o measures Io sIabilise Ihe cedi and osIer Ihe overall sIabiliIy o
Ihe inancial secIor, including conIrolling inlaIion and Ihe exchange raIe.
l wanI you Io know IhaI as PresidenI iI is wiIh greaI inIeresI and an open mind IhaI
l always lisIen Io your views. l am aware o Ihe concerns raised in various quarIers
o Ihe populaIion abouI Ihe eecIs o Ihese measures by Ihe CenIral 8ank. As a
governmenI we believe IhaI Ihe acIions Iaken were in Ihe besI mediumIolongIerm
inIeresIs o Ihe counIry.
SIill, as promised, a review o Ihose measures was scheduled Io Iake place aIer Ihree
monIhs o implemenIaIion, and we awaiI Ihe resulIs o IhaI review rom Ihe 8ank.
lI is our hope IhaI Ihe review addresses Ihe uninIended implemenIaIion laws and
allays whaIever ears or anxieIies Ihe public in general and Ihe invesIor communiIy in
parIicular have expressed ouI Ihe measures in order Io osIer Ihe broad macroeconomic
sIabiliIy IhaI we all so very much desire.
ln Ihis year's SIaIe o Ihe NaIion Address, l spoke o Ihe undamenIal laws IhaI we
have in Ihe sIrucIure o Ihe economy and l announced some sIraIegies IhaI we will
57
implemenI immediaIely Io recIiy Ihem. Since Ihen, l have esIablished a uniI in my
oice Io Irack Ihe implemenIaIion o Ihese measures and l ully expecI Io be able Io
reporI posiIively on Ihem in my nexI SIaIe o Ihe NaIion Address Io ParliamenI.
PighI now, we Iurn our aIIenIion Io you, Ihose whom we serve, Ihe Ghanaian public,
Io also hear whaI you have Io say and Io explore how IhaI can help advance our
collecIive economic progress. Ihe voices o Ihose presenI represenI businesses, non
governmenIal organisaIions, proessional associaIions, academia, IradiIional leaders,
and many oIher segmenIs o our IoIal populaIion.
Over Ihe course o Ihe nexI our days, we expecI Io Iackle some o Ihe challenges IhaI
have deied successive governmenIs over Ihe pasI decade, be Ihey NDC or NPP.
Lvery governmenI, or example, has succeeded Io various degrees in aIIaining
macroeconomic sIabiliIy buI as o now, none has been successul in inding a way Io
susIain iI. lndeed, almosI every governmenI leaves oice wiIh a lessIhandesirable
macroeconomic siIuaIion, and Ihe governmenI IhaI will succeed iI Ihem Ihen spends
Ihe nexI ! Io 2 years bringing Ihe economy back rom Ihe brink. lI is a vicious cycle
IhaI we musI be break. lI is clear IhaI we know how Io aIIain Ihis, buI now, we musI
learn how Io susIain iI.
We hope IhaI Ihis orum would help us do precisely IhaI.
8uI as imporIanI as Ihe macroeconomy is, we musI also look aI Ihe bigger economic
picIure and devoIe a air amounI o Iime Io Ihe oIher side o Ihe economy Ioo, namely
Ihe micro, or producIive secIor. |ThaI is where Ihe acIion is.
We are especially inIeresIed in how besI Ihe privaIe secIor can play iIs role noI jusI in
proiI making buI in iIs conIribuIion Io Ihe overall naIional and human developmenI
Ihrough job creaIion and decenI work. We need Io work wiIh Ihe privaIe secIor as
parIners.
PecenIly, l held a series o dialogues wiIh represenIaIives o Ihe privaIe secIor wiIh a
view Io undersIanding how governmenI can assisI Ihem Io grow Iheir businesses. l
have received Ihe minuIes o Ihose meeIings and have requesIed IhaI Ihey be senI or
validaIion and commenIary by Ihose who were presenI so IhaI IogeIher we can ashion
Ihe nexI sIeps orward. 8uI even beore Ihe compleIion o Ihis exercise governmenI
has acIivaIed supporI Io Ihe pharmaceuIical, poulIry, rice and aquaculIure subsecIors.
PreparaIions are also well advanced or Ihe launch o a major campaign Io promoIe
Ihe consumpIion o producIs made in Ghana
We cannoI Ialk abouI Ihe privaIe secIor wiIhouI addressing Ihe issue o crediI boIh
in Ierms o access and o aordabiliIy, especially among SMLs. AlIhough Ihese SMLs
accounI or over IwoIhirds o employmenI in our counIry, Iheir urIher expansion
58
and urIher job creaIion remains consIrained by access Io aordable inance, limiIed
markeIs and o course, inrasIrucIure boIIlenecks, among oIher Ihings.
As a governmenI, we have puI in place a number o inIervenIions, buI we will require
more Ihan speciic inIervenIions, whose eecIs Iend Io be limiIed. WhaI we require
is a broadly sound and predicIable environmenI IhaI will allow new businesses Io rise
and exisIing ones Io Ihrive.
8eyond crediI, l would like or you Io consider lessexplored issues such as Ihe logisIics
subsecIor, which is criIical Io our agenda o socioeconomic IransormaIion. LogisIics,
including IransporIaIion and sIorage, orm a core parI o supply chain developmenI,
which in Iurn is criIical Io value chain developmenI. How all Ihese elemenIs come
IogeIher Io creaIe a sound and eicienI ramework or economic growIh and social
developmenI is someIhing we are very much inIeresIed in having explored during Ihe
course o Ihis dialogue.
The days o sole proprieIorships and sole direcIor companies are over. ln Ihis irsI
decade and a hal o Ihe 2!sI cenIury, we are wiInessing how Ihe playing ield is being
Iaken over by Ihe creaIive and innovaIive, and how iI is being redeined by cross
erIilizaIion Ihrough joinI venIures, mergers, Iakeovers, public lisIings and Ihe such.
The Ghanaian privaIe secIor musI be bold and advenIurous.
Now is Ihe Iime.
We musI enIer inIo parInerships, i need be, Io raise Ihe capiIal and acquire whaIever
experIise we do noI possess in order Io grow our businesses. We musI be willing Io
Iake risks. We musI be willing Io explore opIions oIher Ihan Ihose wiIh which we are
amiliar.
We look Io you Io work wiIh us, in Ihe spiriI o naIionalism and paIrioIism, Io
collecIively idenIiy some o Ihese opIions. We look Io you, in carrying ouI your
deliberaIions, Io Iake a criIical and deeper look aI Ihe sIaIisIics wiIh which we have
become increasingly amiliar because aI irsI glance Ihey may someIimes only Iell a
small porIion o a more complex sIory.
Allow me Io share wiIh you an example o Ihis. ln recenI Iimes, Ihanks Io Ihe Iireless
eorIs o our armers, we have been orIunaIe enough Io have cocoa producIion rise
sIeadily Io record levels, averaging aI leasI 850,000 Ionnes per year.
This is nearly 40% higher Ihan Ihe 58!,000 Ionnes we produced in !965, which aI
Ihe Iime was a record. However, in per capiIa Ierms, cocoa ouIpuI in recenI Iimes
amounIs Io only JJ kilos per Ghanaian, compared Io 75 kilos per Ghanaian in !965.
59
l you Ihereore concenIraIed on Ihe sIaIisIics only wiIh respecI Io Ihe Ionnage, you
will see a dramaIic increase in producIion, buI i you look aI Ihe per capiIa, our
producIion per capiIa is lower because o Ihe increased populaIion. lndeed, since
!984, real cocoa prices on Ihe world markeI have been declining by an average o
over !.0% per year. l ever Ihere were a case or us Io diversiy our economy and add
more value Io our primary commodiIies, Ihis would be iI.
8uI leI me sIaIe clearly and Io assure our armers, in parIicular IhaI diversiicaIion
does noI mean IhaI we will leave Ihem and oIhers behind. ln acI, diversiicaIion and
indusIrialisaIion oer a unique opporIuniIy or us Io make opIimal use o primary
commodiIies like cocoa.
This will noI only raise Ihe incomes o armers, buI iI will also creaIe employmenI and
by so doing help raise naIional income and Ihereore reduce poverIy. 8uI in order Io
aIIain and susIain Ihese goals, we need a road map.
My lellow CiIizens,
Your presence here Ioday will enable us Io work IogeIher Iowards Ihe creaIion o
such a map. As l have already noIed, we have begun a loI o work in Ihis regard, buI
we believe IhaI iI is Iime or us Io creaIe a plaIorm IhaI is nonparIisan, iI is Iime
or us, as a governmenI, Io creaIe a speciic space wiIhin which Ihe people o Ghana
can address us, and each oIher. lI is a space, a plaIorm, or you Io share your views,
experiences and aspiraIions on Ihe direcIion o economic policy.
The Iime is now or us Io come IogeIher, iI is a Iime or us Io work IogeIher.
These are challenging Iimes, buI we have gone Ihrough Iimes IhaI were even more
challenging Ihan Ihese and we have survived. These are also promising Iimes, and l
have every aiIh IhaI IogeIher we will emerge rom Ihese challenges more vicIorious.
We will emerge rom Ihese challenges sIronger and beIIer. We will aIIain Ihe success
IhaI we seekand in so doing, we will ind Ihe ways and means Io susIain iI and l
believe IhaI Ghana will be a more prosperous naIion.
My lellow CiIizens,
l Ihank you again or your presence and parIicipaIion. l wish you ruiIul deliberaIions
and l look orward Io meeIing you again aI Ihe end o Ihis conerence.
May God bless you.
And may God bless our homeland Ghana.
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61
NOT JUST ANY NATION:
GHANAS PROSPECTS FOR ECONOMIC
TRANSFORMATION
Dr. K.Y. Amoako
President, African Centre for Economic Transformation
(Former executive secretary, UN Economic Commission for Africa)
His Lxcellency Ihe Vice PresidenI o Ihe Pepublic o Ghana, Mr. Kwesi 8ekoe Amissah
ArIhur, his Lxcellency Ihe ormer PresidenI o Ihe Pepublic o Ghana, Mr. !erry
Pawlings, her Ladyship Ihe Chie !usIice o Ihe Pepublic o Ghana, Mrs. Georgina
Woods, honourable MinisIers and ParliamenIarians, members o Ihe DiplomaIic
Corps, disIinguished guesIs, ladies and genIlemen, Ihank you or Ihe inviIaIion Io be
here Ioday. l am honoured Io speak beore such an esIeemed audience and Io Iake
parI in Ihis NaIional Lconomic lorum, which comes aI a
criIically imporIanI Iime or Ihe counIry we are all proud Io call home.
As Ghanaians, we are Ihe heirs Io a greaI legacy o Arican leadership, vision, and
acIion. lI is our responsibiliIy Io ensure IhaI legacy and carry iI orward.
1his is whaI brings us here Ioday.
AI Ihe risk o giving away my agewhich my youIhul exuberance no doubI hides!l
can'I help buI recall anoIher siIuaIion, more Ihan J0 years ago, when l lived in Zambia
as Ihe residenI represenIaIive o Ihe World 8ank. AI Ihe Iime, Zambia aced a serious
economic crisis, characIerized by severe shorIages o oreign exchange, debiliIaIing
subsidies, arIiicial price conIrols, and huge parasIaIal losses.
The counIry's powerul mining union was ready Io sIrike. The privaIe secIor was in a
sIaIe o despair. PresidenI KenneIh Kaunda called only Ihe Ihird naIional convenIion
in his counIry's hisIory, an aIIempI Io bring everyone Io Ihe Iableunion heads, parIy
leaders, Ihe privaIe secIor, civil socieIy. Their goal was Io agree on a ramework or
reorm, a plan Io puI Iheir counIry back on Irack.
l had Ihe opporIuniIy Io parIicipaIe, behind Ihe scenes, in Ihose deliberaIions. And
whaI l remember was a diverse crosssecIion o counIry sIakeholders coming IogeIher
or Ihe greaIer good. The mining union did noI sIrike. The sIaIe agreed Io liberalize
prices, reduce subsidies, and carry ouI inIeresI and exchange raIe reorms.
The privaIe secIor became hopeul.
62
My poinI is IhaI l wiInessed every major player who had a say in IhaI counIry's
economic uIure uniIe in Ihe ace o crisis, sacriice Iheir selinIeresI, and make Ihe
Iough decisions. lI wasn'I easy, buI iI was necessary.
Ghana's Fconomic Crisis in ConIexI
We all know why we are here. Ghana aces exIensive economic diiculIies, uelled
by major macroeconomic imbalances IhaI pose serious implicaIions or susIained
growIh. liscal deiciIs remain high. Pising public debI, energy subsidies, and a high
public secIor wage bill IhreaIen macroeconomic sIabiliIy. lnlaIion has jumped inIo
double digiIs, as have inIeresI raIes, pushing up Ihe cosI o crediI. Some
are orecasIing economic growIh Io drop below 4 percenI wiIhin a ew years.
The counIry's currenI iscal imbalance, i mainIained aI currenI Irends, is expecIed Io
resulI in an unIenable domesIic debI posiIion in as ew as Ihree years.
These numbers and Irends are alarming, and Ihey require an aggressive response. On
Ihis, we all agree. The governmenI recenIly announced new measures inIended
Io reduce public secIor expendiIure and improve revenue generaIion, such as
expanding oil producIion, boosIing invesImenIs in agriculIure, and increasing Ihe
valueadded Iax while also broadening iIs coverage base. We should hearIily welcome
Ihese measures and build upon Ihem.
AIer all, any naIion in economic disIress musI Iake Ihe necessary sIeps Io Iurn Ihings
around.
uI Ghana is greaIer Ihan IhaI. We are noI jusI "any naIion."
We are Ihe irsI counIry souIh o Ihe Sahara Io reclaim our righI Io sovereignIy. We
are Ihe ones oIhers looked Io or hope, as an example o independence Io come. We
are a naIion visiIed by American presidenIs and Lnglish monarchs because, as 8arrack
Obama said, we show Ihe world a ace o Arica IhaI is Ioo oIen overlooked. We
are a naIion o sIable democracy, o peaceul Iransers o power, o adherence Io Ihe
rule o law, o respecI or civil socieIy, and o impressive raIes o economic growIh.
This is Ihe legacy IhaI's on Ihe line.
This is whaI brings us here IodayIo noI jusI Iurn Ihings around, buI Io also aim
higher.
The economic diiculIies we ace could seriously undermine Ihe achievemenIs Ghana
has made by weakening a sIrong socieIy. 8uI Ihey also IhreaIen Io undermine all IhaI
Ghana is sIill capable o achieving.
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Undoing pasI gains is bad enough. SaboIaging uIure poIenIial is even worse, because
Ghana's ouIlook remains brighI. We are blessed wiIh a youIhul and growing labour
orce, and wiIh abundanI land and agriculIural resources, many o which, such as raw
cocoa beans, provide us wiIh a powerul comparaIive advanIage in exporIs.
We are blessed wiIh naIural beauIy IhaI drives Iourism and Ihe lucraIive leisure Iravel
indusIry. We are blessed wiIh highly soughI naIural resources: oil, gas, and valuable
minerals. We were Ihe Gold CoasI or a reason. We are blessed Io be Ghana.
We are a naIion wiIh a Irack record o achievemenI, buI also o vasI poIenIial. The
challenge beore us is Io geI Io a place where we are able Io more ully realize IhaI
vasI poIenIial.
This, my CounIrywomen and men, is whaI brings us here Ioday.
1he 1ransformaIion 5Iory and Ghana
We know IhaI Ghana has been growing. ThaI's Ihe good news. 8uI we also know IhaI
iI's noI enough. The economy grew rom iIs average o 5.J percenI in Ihe 2000s Io
!4 percenI in 20!!, buI exIremely avourable commodiIy prices underwroIe much o
IhaI growIh. During IhaI peak year o 20!!, or insIance, our manuacIuring secIor
conIribuIed only 7 percenI Io GDP.
The real longIerm challenge or Ghana, as wiIh mosI resourcerich Arican naIions
IhaI have experienced growIh o unequal or unsIable naIure, is Io igure ouI whaI's
necessary Io maximize Ihe value o iIs resources, sIabilize and diversiy iIs growIh, and
ensure susIainable and equiIable developmenI.
l ounded Ihe Arican CenIre or Lconomic TransormaIion, or ACLT, in Accra in 2008
Io help Arican governmenIs do jusI IhaI. Our goal is Io become Arica's unmaIched
resource or Ihe analysis, advice, and advocacy necessary or counIries Io Iransorm
Iheir economies, noI jusI grow Ihem.
WhaI does IhaI mean, in pracIical Ierms? lI means IhaI governmenIs, Io ensure IhaI
growIh is susIainable and improves Ihe lives o Ihe many, need Io address Iheir sIrucIural
weaknesses, and deliberaIely and vigorously promoIe economic IransormaIion.
We caII IhaI "GrowIh wiIh DFP1H." D-F-P-1-H.
The D sIands or diversiicaIion o producIion and exporIs, Ihe L or exporI
compeIiIiveness, Ihe P or producIiviIy gains, Ihe T or Iechnological advances, and
Ihe H or human wellbeingall broughI abouI by expanding ormal employmenI and
raising incomes. This is ACLT's recipe or Ihe uIure o sound Arican economies. This
is our blueprinI or a counIry like Ghana Io realize iIs vasI poIenIial.
Larlier Ihis year, we released our lagship Arica TransormaIion PeporI. The reporI
64
is Ihe culminaIion o a Ihreeyear research program IhaI looked sysIemaIically
aI IransormaIion as a broad ramework or balanced and susIainable growIh. lI
also puIs our blueprinIGrowIh wiIh DLPTHin empirical Ierms via Ihe Arican
TransormaIion lndex, a key eaIure o Ihe reporI. The lndex provides a comparaIive
baseline Io measure Ihe perormance and progress o Arican counIries on Ihe ive
DLPTH aIIribuIes.
LeI me briely share where Ghana sIands.buI irsI, a warningIhe news is noI very
good.
We sIudied 2! Arican counIries. According Io Ihe overall composiIe TransormaIion
lndex, Ghana ranked !6Ih. This is urIher evidence IhaI rapid economic growIh, like
Ghana has experienced since 2000, does noI necessarily IranslaIe inIo sIrucIural
IransormaIion. Lven worse, Ihere's a noIable negaIive Irend.
We calculaIed scores or every counIry going all Ihe way back Io 2000. ThaI year,
Ghana ranked 9Ih on Ihe overall IransormaIion index. Ghana's plunge rom 9Ih Io
!6Ih was Ihe largesI drop since 2000 among all 2! counIries in our sIudy.
On Ihe ive individual DLPTH aIIribuIes, Ghana's rank among iIs peers is equally eye
opening. Keep in mind, Ihe rankings or each aIIribuIe are among 2! IoIal counIries.
On DiversiicaIion, we rank !7Ih, down rom 8Ih in 2000. The currenI 7 percenI share
o manuacIuring in GDP, which l menIioned earlier, is well below Ihe world average
o !6 percenI. lI's also below Ihe subSaharan average o around !0 percenI. Ghana's
economy remains sIuck in exIracIives and primary producIs.
On LxporI compeIiIiveness, we rank 7Ih. On Ihe surace, Ihis number seems sIrong.
8uI when compared Io 2000, when Ghana ranked 2nd overall, we see anoIher
Iroubling sign o decline.
On ProducIiviIy, we rank !2Ih.
On Technology, 20Ih.
And on Human wellbeing, we rank 8Ih. This oIherwise solid ranking is also
Iempered by Iroubling underlying daIa, however. lor insIance, less Ihan one quarIer
o Ghana's labour orce is in ormal employmenI.
l'm noI Irying Io be an alarmisI. This is Ihe realiIy beore us. And leI me make a
quick poinI: Ihe TransormaIion PeporI, rom which Ihese numbers derive, is noI
jusI anoIher reporI. lI's Ihe irsI o iIs kind. lI's comprehensive. lI's objecIive, and
daIadriven. lI's a benchmark or naIions Io measure Iheir progress. Those are oIher
people's words, noI mine. And many have endorsed iI. !im Wolensohn, Ihe ormer
presidenI o Ihe World 8ank, called iI an exIraordinary reporI. The LconomisI
65
praised iI or being grounded in realiIy. The New Arican magazine wroIe, The
reporI could readily be used Io shape Ihe sIraIegies o individual Arican naIions.
AD8 head Donald Kaberuka said iI is insighIul, useul, and Iimely. And PresidenI
Lllen !ohnsonSirlea said Ihe reporI is proo IhaI ACLT is an insIiIuIion IhaI gives
new meaning Io Arican ownership o Arican desIiny.
O course, l'm proud o iI, and l sIand behind iI, buI Ihe poinI is IhaI iIs indings
are meaningul and have been sIrongly supporIed. lI's noI jusI anoIher reporI. lI's a
relecIion o economic realiIy or Arica, and as some have called iI, a game changer.
lI's a wakeup call or Ghana.
How We Move Forward
So IhaI brings us Io Ihe big quesIion: l iI's Ihis bad, how do we ix iI? WhaI do we
do? We Iake iI one sIep aI a Iime. And we ollow Ihe signs in ronI o us.
We know, in general, whaI iI Iakes Io Iransorm. OIher counIries have done iI, mosI
noIably in Asia. As parI o ACLT's sIudy, we considered Ihose counIries buI we also
looked aI Ihe counIries in Arica IhaI have already sIarIed down Ihe paIh successully,
such as MauriIius and SouIh Arica. We ound many lessons rom which Io draw, buI
l wanI Io share Ihe ive mosI imporIanI ones or Ghana. This is how we geI on Ihe
righI Irack.
lirsI, we musI have a plan. A uniied naIional visiondeveloped Ihrough broad
consulIaIions wiIh Ihe privaIe secIor, civil socieIy, Ihink Ianks, and orums like Ihis
oneis imperaIive Io guide a IransormaIion sIraIegy.
Second, we musI be consisIenI. TransormaIion is a longIerm process. lI can
Iake 20 or J0 years. lrequenI shiIs in sIraIegy or abrupI policy changes impede
progress. The vision needs Io Iranscend poliIics.
Third, we musI work IogeIher. AcIive collaboraIion beIween Ihe sIaIe and Ihe
privaIe secIor is aI Ihe core o economic IransormaIion, and IhaI means regular
conIacI beIween governmenI and business inIeresIsand shared goals.
lourIh, we musI coordinaIe closely. Successul IransormaIion sIraIegies cuI across
minisIries, agencies, and organizaIions. There is a demonsIraIed need or enIrusIing
coordinaIion oversighI Io a single individual or agency IhaI can serve as a Iraic
cop. Working IogeIher is one Ihing. Working IogeIher producIively is Ihe key.
66
liIh, we musI ocus on core sIaIe uncIions. Successul IransormaIion demands
IhaI Ihe mosI imporIanI sIaIe uncIions be perormed well, parIicularly sound
macroeconomic managemenI. ln shorI, Ihe sIaIe musI manage Ihe economy Io
enable businesses Io lourish. TransormaIion is noI driven jusI by Ihe sIaIe or jusI
by Ihe privaIe secIoriI's Ihe combinaIion o boIh.
Now, leI me back up a momenI, because we shouldn'I puI Ihe carI beore Ihe horse.
This iIh lesson leads me Io Ihe mosI imporIanI poinI l'll make Ioday.
l jusI described Ihe ways Ghana can geI on Irack or IransormaIionwhich is a
necessiIybuI we can'I lose sighI o Ihe undamenIals, Ihose core sIaIe uncIions
IhaI enable a vision or IransormaIion Io Iake rooI.
Above all else, IhaI means geIIing Ghana's macroeconomic policies back on
Irack, and osIering an environmenI IhaI is conducive Io economic acIiviIies and
enIrepreneurship, parIicularly by privaIe business. According Io Ihe indings o Ihe
TransormaIion PeporI, Ihis requires policy acIion on many ronIs, speciically:
Pursuing iscal and moneIary policies ensuring IhaI Iheir impacIs on inlaIion,
wages, inIeresI raIes, and exchange raIes promoIe acrossIheboard growIh in
GDP, jobs, and exporIs.
Planning and managing public spending, so IhaI a healIhy balance beIween shorI
run consumpIion and longrun invesImenI is a prioriIy.
Placing sIronger oversighI on porIs and cusIoms, buI wiIh more simpliied
procedures, Io move goods in and ouI o Ihe counIry more eicienIly.
Making public procuremenI deliver value or money by reducing corrupIion, which
noI only wasIes precious inancial resources, buI undermines IrusI and public
conidence.
And inally, sIreamlining regulaIion Io encourage enIrepreneurship, innovaIion,
and invesImenI, Ihe only losers will be corrupI oicials.
Given our currenI siIuaIion, leI me menIion very briely some o Ihe acIions we
urgenIly need. lirsI, we musI geI governmenI expendiIures under conIrol and avoid
overreliance on Iax increases. Second, we musI ensure value or money in procuremenI
Ihrough more IransparenI pracIices: Third, we musI esIablish or sIrengIhen ormal
insIiIuIions or processes, including improved governance o sIaIeowned enIerprises.
lourIh, we musI have a clear exporIs sIraIegy IhaI involves idenIiying low hanging
ruiIs and removing Ihe policy, regulaIory, and oIher boIIlenecks IhaI impede Iheir
expansion. And we musI proacIively provide governmenI supporI Io such producIs
and secIors, while avoiding cronyism and paIronage.
ProspecIs for 1ransformaIion
Once we geI Ihe undamenIals in order, Ihen Ghana will have ample paIhways
Io IransormaIion. As l previously noIed, we are a counIry blessed wiIh abundanI
resources, be Ihey naIural, land, or labour. These resourcesand our own proud
hisIory o achievemenIoer us exciIing prospecIs or IransormaIion.
lor example, cocoa oers opporIuniIies Io increase exporI earnings by improving
yields and moving up Ihe value chain inIo inIermediaIe processing. Since Ghana is
Ihe world's second largesI producer o raw beans, we should be reaping more o
Ihe proiIs.
WiIh more Ihan one million hecIares o land suiIable or oil palm, Ghana has greaI
poIenIial Io increase boIh iIs manuacIures and iIs exporIs Io regional and global
markeIs.
Ghana's horIiculIural exporIs, led by pineapples, yams, and bananas, can exIend
Io mangoes, ciIrus ruiIs, melons, and avocadoes. Pice, sugar, meaI, and poulIry all
oer increased processing poIenIial or domesIic and regional markeIs.
Our exIracIives indusIry gives us opporIuniIies Io harness naIural gas Io generaIe
power, Io develop ancillary oil and gas services, and Io produce peIrochemicals.
And perhaps mosI promising are Ihe prospecIs or lighI manuacIuring, which
has yeI Io Iake o in SubSahara Arica. LighI manuacIuring has been a crucial
sIeppingsIone or mosI successul developing counIries, parIicularly in Asia,
and mosI noIably in China. Now an economic powerhouse, China is looking Io
Arica Io relocaIe manuacIuring jobs. 8y Ihe end o 20!2, China's invesImenI in
Arica's manuacIuring indusIry had reached $J.4 billion US dollars. OIher Arican
counIries, such as LIhiopia and Pwanda, are leading Ihe way by IargeIing speciic
secIors as a source o oreign invesImenI in lighI manuacIuring indusIry and jobs.
Ghana musI geI on board Ihis Irain.
These are jusI a ew o Ihe ways IhaI Ghana can excel. This is jusI some o Ihe poIenIial
IhaI IransormaIion can oer. And Ihis is Ihe opporIuniIy IhaI we have beore us,
aI Ihis orum. To begin Io make Ihe vision o IransormaIion a realiIy. 8uI iI Iakes
courage, commiImenI, and a willingness Io work IogeIher. lI Iakes compromise, and
iI Iakes sacriice.
67
l began Ihis discussion by recalling my wiIness Io Zambia's naIional economic orum
J0 years ago, when Ihe counIry's poliIical and economic leadership came IogeIher
and made Ihe hard choices or Ihe greaIer good. WhaI l didn'I say, and whaI many
o you probably know, is IhaI wiIhin a ew years Zambia abandoned Ihe progrowIh
sIraIegy IhaI iIs governmenI, privaIe secIor, and labour leaders agreed Io. Amid
painul inlaIion and oIher correcIive shocks, Ihe poliIical pressure became Ioo much.
The poliIical will or sIrucIural change dissipaIed, and Zambia ell inIo an economic
abyss or Iwo decades.
Zambia's experience provides us wiIh a cauIionary Iale, buI l am an undying opIimisI
aI hearI, so leI me conclude on a more hopeul noIe.
ln Ihe !980s and early !990s, 8razil suered rom crippling sIagnaIion and
hyperinlaIion. As Ihe ormer head o 8razil's CenIral 8ank puI iI, lmagine IhaI Ihe cosI
o your ood and cloIhing wenI up by 40 percenI every monIh. lI seemed ouIlandish
Io imagine 8razil was anywhere near economic sIabiliIy, much less growIh. ln !995,
lernando Henrique Cardoso was elecIed presidenI, and his governmenI, an alliance
o his own moderaIe parIy and Iwo righIwing parIies, embarked on a decade o
sIrucIural reorms and ausIeriIy measures. These moves puI 8razil on a new paIh, and
by Ihe mid2000s, Ihe counIry was seen as an emerging economic power. Cardoso's
successor, Lula da Silva, chose Io mainIain Ihe core policies o his predecessor, despiIe
da Silva's leIisI background. As a resulI o Ihis sIraIegic sIabiliIy, 8razil conIinued Io
increase GDP per capiIa, grow producIion or exporIs, boosI employmenI, and even
expand social welare.
8razil became one o Ihe new cenIury's greaI economic Iurnarounds. lI also shows
how a longIerm sIraIegy o IransormaIion can beneiI a counIry economically i iI's
supporIed by naIional leadership across parIy lines.
ConcIusion
A successul IransormaIion sIraIegy is a shared vision, an ongoing commiImenI Io
progress IhaI acIs as a compacI beIween leaders and Ihe ciIizens Ihey are elecIed
Io look ouI or. We have many reasons Io be proud o our democracy, and o our
democraIic reorms. 8uI in Ihe mulIiparIy environmenI IhaI we have Ioday, Ihere is
Ioo oIen a surplus o poliIics, and a deiciI o ideas. LeI's ensure IhaI
our conversaIion Io rebuild Ghana's economic uIure does noI all vicIim Io IhaI. The
sIakes are Ioo high.
8ecause aI iIs coreaI iIs hearIeconomic IransormaIion is abouI peopleIheir
jobs, Iheir prosperiIy, Iheir livelihood, Iheir conIribuIions Io Ghana's ongoing legacy.
68
Successul IransormaIion is a 20 or J0year process. l we imagine a Iransormed
Ghana in 2040, or example, we imagine a naIion in which Ioday's young people are
Ihe adulIs, many in Ihe prime o Iheir working lives. 8uI among Ioday's youIh, a large
majoriIy is eiIher unemployed or eking ouI a living in Ihe inormal secIor. They are Ihe
reason Io ix our undamenIals. They are Ihe reason Io Iransorm our economy.
As New York Times columnisI Thomas lriedman once wroIe, CounIries IhaI don'I
plan or Ihe uIure Iend noI Io do well Ihere. l we wanI Io do well Iomorrow, we
have Io sIarI planning Ioday.
l hope in Ihe nexI ew days we can use Ihis economic orum Io usher in a new era o
sIable, shared, and susIainable growIh.
We are noI jusI any naIion. We are Ghana!
69
70
Statement by Professor Mthuli Ncube
Vice President and Chief Economist
African Development Bank Group
Read by Mrs. Marie-Laure Akin-Olugbade
Resident Representative, African Development Bank,
Ghana Country Office
13 May 2014, Akosombo, Ghana
Your Lxcellency, PresidenI !ohn Mahama,
Your Lxcellency, Vice PresidenI, Kwesi AmissahArIhur,
Honourable MinisIer o SIaIe, DisIinguished Ladies and GenIlemen
On behal o Ihe Arican DevelopmenI 8ank Group PresidenI, Dr Kaberuka and Ihe
8oard o DirecIors, iI is a greaI pleasure and privilege Io parIicipaIe in Ihe Ghana Na
Iional Lconomic lorum on '8uilding a NaIional Consensus or Lconomic and Social
TransormaIion and Io address Ihis augusI gaIhering. l regreI my absence due Io
various prior commiImenIs and imminenI deparIure or Ihe 8ank Annual MeeIings in
Kigali. l have asked Ihereore our PesidenI PepresenIaIive in Ghana Io kindly deliver
Ihis sIaIemenI on my behal.
LeI me begin by Ihanking HL Vice PresidenI AmissahArIhur or his very kind hospi
IaliIy during my recenI visiI Io Ghana. l also congraIulaIe Ihe GovernmenI o Ghana
or convening Ihis very imporIanI orum aI a Iime when Ihere is evidence IhaI sIrong
headline economic growIh is noI enough! Large numbers o our youIh are enIer
ing Ihe labour markeI each year buI cannoI ind decenI jobs. The reason or IhaI is
sIraighIorward. Yes, economic growIh is sIrong, buI economic IransormaIion re
mains a challenge. DeliberaIe policies Io reduce inequaliIies, promoIe inclusion and
creaIe jobs are now needed more Ihan ever. A renewed ocus on people's expecIa
Iions is Iimely: Arican needs decenI work, a living wage, access Io basic and aord
able services, welluncIioning insIiIuIions and accounIable governmenIs. Today, l will
share wiIh you our views on Ihe recenI economic developmenIs on Ihe conIinenI and
Ihe Arica IransormaIion agenda, as a conIexI Io Ihe discussions IhaI you will have
over Ihe coming our days.
71
1. Key recenI economic deveIopmenIs
Your Lxcellency, in 20!J, Arica's economic growIh slowed while iscal and exIernal
balances worsened due primarily Io global headwinds. The adverse exIernal
environmenI included IighIening global inancing condiIions and rising inancing
cosIs, less dynamic emerging markeIs, and less avourable commodiIy prices. ln Sub
Saharan Arica, growIh remained almosI unchanged aI 4.8% in 20!J againsI 4.9%
Ihe previous year. ln NorIh Arica, however, iI ell rom !0.2% in 20!2 Io jusI !.7%
in 20!J due Io poliIical Iurmoil or sIalemaIe in LgypI, Tunisia, and securiIy seIbacks
in Libya. lndeed, poliIical unresIs and disrupIions in oil producIion in parIs o NorIh,
WesI and CenIral Arica (principally in Libya, LgypI, Mali and CenIral Arican Pepublic)
slowed growIh in Arica's oilexporIing economies rom 9.!% in 20!2 Io jusI J.4%
in 20!J
We also noIe IhaI alIhough Ihree counIries (againsI ive in 20!2) had growIh
conIracIion in 20!J, mosIly due Io varying orms o insIabiliIy, over 40% o Arican
counIries recorded growIh raIes o 5% or above.
GrowIh prospecIs in Arica remain robusI. GDP is projecIed Io reach 4.8% in 20!4
and 5.8% in 20!5, supporIed by domesIic demand, relaIively resilienI lDl inlows,
improvemenIs in Ihe business environmenI, and easing inrasIrucIure consIrainIs.
However, Ihe conIinenI remains vulnerable Io key exIernal risks, including urIher
weakening in emerging markeI economies, disorderly Iapering, and sharper Ihan
projecIed declines in commodiIy prices. DomesIic risks Io growIh ouIlook relaIe Io
inabiliIy Io conIain macroeconomic imbalances in some counIries, poliIical sIrie,
adverse indusIrial relaIions in SouIh Arica, securiIy risks in norIhern Nigeria, weaIher
shocks Io local harvesIs and ood prices and piraIe aIIacks along Ihe Gul o Guinea,
which could raise shipmenI cosIs and disrupI regional Irade. ln NorIh Arica, overall
growIh is expecIed Io remain weak due Io poliIical and economic uncerIainIy. Average
iscal deiciIs as a percenIage o GDP on Ihe conIinenI rose rom J.2% in 20!2 Io
4.!% in 20!J, wiIh nearly J0% o Ihe counIries recording deiciIs o 5% or above.
AlIhough in mosI counIries exIernal debI remains manageable, a ew counIries are
beginning Io have high debI raIios. This calls or iscal consolidaIion and increased
domesIic revenue mobilisaIion Io rebuild buers and Io ensure susIainabiliIy o public
inances in Ihe medium Ierm.
The currenI accounI deiciI widened in 20!J in many Arican counIries, relecIing
increased invesImenI in exporIorienIed acIiviIies and inrasIrucIure. AbouI 40% o
counIries had currenI accounI deiciIs above !0% o GDP. While overall exporI growIh
is projecIed Io improve in 20!4, a sharperIhanprojecIed decline in commodiIy prices
will lead Io a signiicanI deIerioraIion in balances o oil exporIers.
72
AIer rising by a high o !5.2 percenI in 20!2, lDl inlows Io Arica increased by only
an esIimaIed 5.6% in 20!J, relecIing Ihe Iepid and mixed recovery o advanced
economies. SouIhern Arican counIries such as SouIh Arica and Mozambique
experienced record inlows, Ihough, o more Ihan US$!0 billion and US$7 billion,
respecIively. However, overall perormance was dampened by lower lDl Io Nigeria,
relecIing IransnaIional corporaIions' reIreaI rom Ihe oil secIor.

Arica experienced a revival in remiIIance inlows beIween 20!! and 20!2, rising Io
over US$64 billion rom abouI US$56 billion. lndicaIions are IhaI Ihe Irend conIinued
in 20!J and is expecIed Io remain so in 20!4 and 20!5.
lI had been esIimaIed IhaI oicially recorded remiIIance lows Io SubSaharan Arica
remained resilienI Io Ihe crisis in Lurope and increased by abouI 6% in 20!J. ln
NorIh Arica, LgypI was Ihe largesI recipienI o remiIIances in 20!J. However, high
remiIIance cosIs will work Io keep remiIIances low inIo Ihe subregion subdued in
20!4 and 20!5. Oicial developmenI assisIance (ODA) Io Arica is esIimaIed Io have
increased in 20!J by abouI 5.5%.
However, global counIry programmable aid (CPA) is expecIed Io sIagnaIe over 20!4
20!6 (OCLD, 20!J). This will mainly aecI counIries in SubSaharan Arica, which are
idenIiied as poIenIially 'underaided' counIries.
2. Assessing Ihe ImpacI of Key ecenI GIobaI Fconomic DeveIopmenIs on
Africa
The combined eecI o Ihe slowdown in emerging markeIs, subdued recovery in
advanced economies, a decline in commodiIy prices, and IighIening o global inancial
condiIions may pose challenges or Arica's growIh prospecIs in 20!4.
@2)" O".* 0.+ =5)$%0: @A-*).0# E$/N/
The euro zone ouIlook is subjecI Io downside risks. LxporIs rom Arican counIries,
Iourism, remiIIances, capiIal lows, and exIernal balances would be impacIed. A one
percenIage poinI drop in Lurozone growIh is esIimaIed Io lead Io a 0.24 percenIage
poinI (0.24%) loss in IoIal Arican GDP growIh,
6E;(9 H*/J*%$0##& (1$.0I 0.+ =5)$%0P/ Q)"R-1
The 8ank has esIimaIed IhaI a one percenIage poinI drop in 8PlCS economic growIh
will have dierenIiaIed impacIs on Arican economies' growIh in 20!4, a 0.!4
percenIage poinI (0.!4%) loss in IoIal Arican GDP growIh, China has become Ihe
largesI single Irading parIner or Arica and a key invesIor and provider o aid. These
rising linkages have supporIed growIh buI also expose Arican counIries Io poIenIially
negaIive spillovers i China's growIh slows or Ihe composiIion o iIs demand changes.
73
A one percenIage poinI drop in China's economic growIh will have dierenIiaIed
impacIs on Arican economies' growIh in 20!4, buI could lead Io a 0.06 percenIage
poinI (0.06%) loss in IoIal Arican GDP growIh, CommodiIy Prices and Arica: Long
Ierm SIrucIural Decline in CommodiIy Prices
One o Ihe main inIernaIional risks IhaI IhreaIen Arica's economic ouIlook in 20!4
and 20!5 relaIes Io a proIracIed decline in commodiIy prices due Io decreased ouIpuI
and weaker demand.
The 8ank's esIimaIes show IhaI a one percenIage poinI drop in commodiIy prices will
have varied impacIs on Arican economies' growIh in 20!4. The resulIs suggesI a 0.07
percenIage poinI (0.07%) loss in IoIal Arican GDP growIh,
QL Tapering (TighIer MoneIary CondiIions) and Arican Lconomies

Tapering eecIs on Arican economies will vary according Io Ihe degree o global
inancial inIegraIion and resilience.
Currency depreciaIions: ln vulnerable economies, Iapering has conIribuIed Io sharp
local currency depreciaIions. lor example, Ihe SouIh Arican rand ell 7.5% in !anuary
20!4 and conIinued Io all even aIer Ihe cenIral bank raised iIs benchmark inIeresI
raIe Io 5.5% rom 5.0% Ihe irsI increase in almosI six years.
However, SubSaharan Arica's inancial secIor remains relaIively uninIegraIed Io
inIernaIional markeIs. SubSaharan Arica's currency mix losI an average o only 4.6%
compared Io Ihe US dollar rom ! May 20!J Ihrough Io 5 lebruary 20!4.
lall in sIock/equiIy indices: SIock markeIs across developing counIries experienced
sellos ollowing Ihe May 20!J announcemenI o Iapering. Such all in share prices
are also indicaIive o Ihings Io come or more globally inIegraIed economies in Arica.
PaIe Hikes: 8oIh shorI and longIerm inIeresI hikes are expecIed in Arican counIries
ollowing Iapering, Ihus consIraining business expansion and general economic
acIiviIy. SouIh Arica, which has sIrong links wiIh global inancial markeIs, is parIicularly
vulnerable Io sudden sIops o capiIal inlows given iIs reliance on porIolio inlows
Io inance iIs currenI accounI deiciI. lronIier economies such as Ghana, Kenya and
Nigeria, which have seen signiicanI porIolio inlows in local securiIies markeIs, would
also be aecIed by Ihe reversal o capiIal lows, and counIries IhaI are planning Io Iap
Ihe inIernaIional bond markeIs are likely Io ace higher coupon raIes.
Drop in privaIe capiIal inlows: 20!J was a bad year in Arica, wiIh respecI Io neI
privaIe porIolio lows, owing Io ouIlows in NorIh Arica and volaIile inlows in ronIier
equiIies and bond markeIs, ollowing Ihe IhreaI o US led Iapering. The recovery in
20!2 aIer Ihe poor perormance during Ihe global inancial crisis was more Ihan
wiped ouI in 20!J. The Iapering has spurred some invesIors Io pull Iheir money ouI o
74
emerging and ronIier markeIs. However, longerIerm lDl inlows Io Arica will remain
on Irack. This means IhaI Arican counIries can wiIhsIand US led Iapering in Ierms
o overall inancial inlows buI counIries wiIh weak undamenIals, or insIance Ihose
wiIh Iwin deiciIs such as Ghana and SouIh Arica, are Ihe mosI exposed.
Your Lxcellency, we view some criIical policy implicaIions rom Ihe oregoing:
Policy responses Io risk o longIerm sIrucIural decline in commodiIy prices will
need Io ocus on criIical sIrucIural reorms: ocusing on increased value addiIion in
Ihe primary commodiIy secIor and diversiicaIion inIo higher producIiviIy secIors,
especially manuacIuring and modern services. ln addiIion, mobilising domesIic
revenues, improving public inancial managemenI, enhancing regional inIegraIion
Ihrough inIraArica Irade, and developing nonIradiIional sources o inance and
markeIs will be imporIanI.
Guarding againsI disorderly exchange raIe adjusImenI: While exchange raIes
should be allowed Io respond Io changing undamenIals, Ihere is a need Io
guard againsI risks o disorderly adjusImenI. Some inIervenIion Io smooIh
markeI volaIiliIy will be needed in counIries wiIh adequaIe reserves, buI
Ihis should noI oresIall underlying exIernal adjusImenI or counIries where
exIernal deiciIs exceed levels warranIed by undamenIals and desired policies.
lnIernaIional and regional policy coordinaIion and cooperaIion will be needed:
lnIernaIional and regional policy coordinaIion and cooperaIion under Ihe
G20 and C!0 will be imporIanI Io ensure orderly Iapering and IhaI cross
border policy spillovers are appropriaIely inIernalised, hence improving global,
regional and naIional socioeconomic ouIcomes. Pegionally, preparing Ihe
economic environmenI and appropriaIe incenIives or Iapering will also be
imporIanI.
CenIral banks and capiIal ouIlows: Pisks rom a IighIening o global inancial
condiIions could lead Io a rise in risk premiums or Arican counIries and lead
Io lower lDl. Thus, as capiIal inlows weaken or reverse, cenIral banks will
have Io rely on Iheir credibiliIy and acIive communicaIion Io convince markeIs
o Iheir ocus on sIable inlaIion and orderly markeIs, wiIh a moneIary policy
response IhaI is appropriaIe Io Ihe cyclical posiIion. This will help Io miIigaIe
lighI Io qualiIy and Ihe associaIed increases in risk premia. Some counIries
may be able Io access cenIral bank oreign exchange swap lines Io help cope
wiIh markeI Iurbulence.
Your Lxcellency, l will briely Iurn Io Arica's IransormaIion agenda. As parI o Ihe
Arican Union's 50Ih Anniversary in May 20!J, Arican Heads o SIaIe agreed on
an agenda on Ihe Arica We WanI by 206J, Io be achieved Ihrough economic
75
IransormaIion. The objecIive o Ihis vision is Io see a conIinenI IhaI is more inIegraIed,
wiIh robusI inrasIrucIure IhaI promoIes Irade among Arican naIions, a conIinenI
IhaI is more indusIrialised moving away rom exporIs o primary producIs and a
conIinenI IhaI uses iIs abundanI naIural resources or inclusive growIh. AlIhough
Ihe economic growIh perormance has IranslaIed inIo improvemenI o a number
o social and economic indicaIors, such as improved per capiIa income Io around
US$!000, reduced morIaliIy by hal and increased lie expecIancy up rom 40 Io
60 years, Ihere conIinues Io be inequaliIy and dispariIies in Ihe impacI o economic
growIh boIh across Ihe conIinenI and wiIhin counIries such as Ghana, Io Ihe ordinary
person, i Ihe economy is growing, why is Ihis noI being IranslaIed inIo Iheir daily
income and mosI graduaIes are leI jobless? Answers are needed on how Arica's
currenI sIrong economic perormance can be IranslaIed inIo jobs, opporIuniIies or
all and a reducIion in Ihe reliance on a narrow range o commodiIies. WhaI we know
is IhaI iI is key or Ihe momenIum o Ihe growIh Io be susIainable, inclusive, and
IransormaIional.
Arica and iIs people, including Ihe people o Ghana, aim Io be a pole or global
growIh in Ihe decades ahead. Arica is Iransorming, buI economic IransormaIion
can be acceleraIed. SIrucIural IransormaIion cannoI Iake place wiIhouI :
Sound macroeconomic environmenI, including adequaIe iscal policies
Growing Ihe middle class
lnvesIing in IransormaIional and inclusive inrasIrucIure
PrivaIe secIor developmenI and enIrepreneurship, including SMLs IhaI creaIe
decenI jobs
Harnessing Ihe naIural resource boom
DomesIic resource mobilisaIion
Harnessing Ihe ull poIenIial o lCT and mobile Ielephony
Transorming Arica's agriculIure
DiversiicaIion, processing and beneiciaIion
SecuriIy o ownership o asseIs
PromoIing inclusive growIh Ihrough a IransormaIion agenda will also help ensure
poliIical sIabiliIy as equal disIribuIion o wealIh, increased social and producIive
secIors, eecIive public spending leading Io Ihe creaIion o decenI work will reduce
Ihe risks o poliIical upsurge.
76
42-2)* 52.+$.3
LeI me close my remarks by borrowing rom PresidenI's Kaberuka Io discuss Ihe issue
o how Arica's economic and social IransormaIion agenda will be unded in Ihe
coming years. He said: lI is now evidenI IhaI Ihe eorI will be primarily inIernal, wiIh
inIernaIional donor inance coming Io supporI IhaI inIernal eorI. Today, approximaIe
igures indicaIe IhaI various orms o domesIic inance accounI or IhreequarIers o
all expendiIures. lnIernaIional cooperaIion has played a major role in Ihe pasI 50
years Io inance Arica's developmenI, and iI is sIill needed and much appreciaIed,
especially by counIries wiIh limiIed resources, buI or now iI is curIailed by Ihe global
recession, budgeI cuIs and a diminishing consIiIuency or aid.
ln Ihe pasI decade cooperaIion wiIh new parIners has conIribuIed parIicularly Io
inrasIrucIure. We musI now do more, rom domesIic revenue mobilisaIion, Io
spending wisely, Io more eecIive naIural resource managemenI and leveraging
Ihe capiIal markeIs. The PeporI by Ihe Arica Progress Panel under Koi Annan and
how Arica is being deprived o revenues rom our naIural resources will require our
acIion. LeI Ihose mining businesses prosper in Arica buI leI Ihem also pay whaI Arica
deserves. AI Ihis momenI, capiIal markeIs are awash wiIh liquidiIy and inIeresI raIes
are aI a hisIoric low.

Your Lxcellency, Ihis lorum is Iimely or Ghana as l am sure we will all have recognised
IhaI Ghana shares many o Ihe opporIuniIies and challenges IhaI l have briely
reviewed. The currenI economic challenges acing Ihe counIry should noI undermine
Ihe economic dividends and delay Ihe counIry's march Iowards socioeconomic
IransormaIion. SIraIegic policy leadership and consensus are criIical aspecIs o such
a IransormaIion agenda.
lI is noIeworIhy IhaI aI a Iime Ghana is holding Ihe NLl, Ihe 8ank Group is preparing
Io hold iIs annual meeIing in Kigali, Pwanda, under Ihe Iheme The Arica We WanI
in 50 years ahead. The meeIing aims Io propel Ihe Arican Union's Agenda 206J Io
relecI Ihe aspiraIions o Ihe Arican people. lrom Ihe 8ank's poinI o view, or Arican
counIries Io achieve inclusive growIh Ihey need Io address our criIical aspecIs relaIing
Io iI: (i) sIraIegic policy leadership, (ii) regional inIegraIion, (iii) producIive jobs or
Arica's large populaIion, especially or youIh and women, and (iv) sIrong aIIenIion
Io conlicI and ragiliIy.

The Arican DevelopmenI 8ank inIends Io conIribuIe Io Ihe economic IransormaIion o
iIs regional member counIries. The 8ank envisions a sIable, inIegraIed and prosperous
Arica wiIh compeIiIive, diversiied, and growing economies IhaI parIicipaIe ully in
global Irade and invesImenI. lI is wiIhin IhaI conIexI IhaI Ihe 8ank Group's Ten Year
SIraIegy (20!J2022) has exclusively ocused on inIervenIions IhaI promoIe socially
inclusive and environmenIally susIainable economic growIh.
77
Your Lxcellency, wiIhin Ihis conIexI, Ihe 8ank once again congraIulaIes you on
Ihe approach adopIed by your GovernmenI Io convene all key players in Ghana's
developmenI Io dialogue on building a consensus or Ihe economic IransormaIion
o Ghana.
We wish you very ruiIul deliberaIions and wish Io reairm Ihe Arican DevelopmenI
8ank Group's conIinued commiImenI Io work sIeadasIly alongside you and all
sIakeholders in Ghana and all our Pegional Member CounIries Io conIribuIe Io
meeIing Ihe aspiraIions o Ihe greaI people o Ihis counIry and Ihe conIinenI .
Thank you or your aIIenIion.
78
statement by the
Trades Union Congress (TUC)
Delivered by Brother Kofi Asamoah, Secretary General
at the national economic forum
13th to 15th May, 2014
Your Lxcellency, !ohn Dramani Mahama, PresidenI o Ihe Pepublic o Ghana,
Your Lxcellency, Kwesi AmissahArIhur, Vice PresidenI o Ihe Pepublic o Ghana,
Honourable MinisIers o SIaIe, Honourable Members o ParliamenI, Members o Ihe
DiplomaIic Corps, Members o PoliIical ParIies PresenI,
On behal o Ihe Trades Union Congress and Organised Labour l convey our graIiIude
Io Ihe PresidenI and Ihe GovernmenI or organising Ihis orum and also or giving
us Ihe opporIuniIy Io parIicipaIe. You may recall IhaI in lebruary, Ihe TUC issued a
sIaIemenI on The general economic siIuaIion in Ghana. ln IhaI sIaIemenI, we called
on governmenI Io iniIiaIe a naIional dialogue on Ihe economy.. We are happy
IhaI governmenI has responded Io our call. This year, we commemoraIed May Day
on Ihe Iheme Ghana's Lconomy: A Concern or All Io demonsIraIe Ihe concerns
we have, as working people, abouI Ihe eecIs o Ihe prevailing economic challenges.
Your Lxcellency, Ihe TUC inds Ihe Iheme or Ihis orum Changing Ihe NarraIive:
8uilding a NaIional Consensus or Lconomic and Social TransormaIion, apI and
Iimely. lI is imporIanI IhaI we achieve broad consensus on where we are, and how
we goI Ihere beore we can even Ialk o changing Ihe narraIive. l have no doubI in my
mind IhaI all o us gaIhered here and indeed Ghanaians in general are aware o Ihe
broad conIours o Ihe currenI narraIive. lor Ihe avoidance o doubI, leI me crave your
indulgence Io resIaIe iI in Ihe way in labour sees iI.

Mr. Chairman, our assessmenI is IhaI Ghana's economy is weak and noI working or
Ihe majoriIy o Ghanaians as evidenced by Ihe high incidence o poverIy among our
people. AI Ihe macro level, Ihere are projecIions IhaI growIh is slowing, Ihe currenI
accounI deiciI is widening as imporIs saIuraIe our markeIs and our exporIs remain
raw maIerials, inlaIion is surging and Ihe cedi is alling by Ihe day. The naIional
debI is Irending Iowards unsusIainable levels. These are big headline macroeconomic
issues IhaI oIen capIure Ihe aIIenIion o policymakers buI Ihere are also imporIanI
boIIomline issues. The Iimes are hard or mosI Ghanaians. The hardship is inIense
and spreading quickly. Prices are rising asIer Ihan incomes, good jobs are diiculI
Io ind, as Ihe vasI majoriIy o our young people remain jobless. Public services and
uIiliIies, including waIer and elecIriciIy, are poorly delivered aI exorbiIanI prices. lI's
becoming Ioo diiculI and cosIly Io obIain public services.
79
Your Lxcellency, our view is IhaI, Ihese challenges are rooIed in Ihe naIure o economic
policies we have pursued in Ihe lasI Ihree decades. We have made reerence Io Ihe
handso neoclassical economic policies and Ihe ailure o Ihose policies. We have
expressed grave reservaIion abouI Ihe unbridled liberalisaIion o inIernaIional Irade
and Ihe way iI has desIroyed Ihe domesIic manuacIuring base. We have also raised
concern abouI Ihe overliberalisaIion o exIernal paymenI leading Io Ihe Iranser o
oreign currency ouI o Ihe counIry someIimes beyond Ihe legal limiIs seI by Ihe
8ank o Ghana. The TUC has drawn aIIenIion Io Ihe high inIeresIs raIe regime, which
has aorded Ihe banks considered proiIs while Ihe resI o Ihe business communiIy
suocaIe and unable Io balance Iheir books.
Your Lxcellency, inherenI in Ihese economic policies has been a conIinuous weakening
o Ihe sIaIe and Ihe insIiIuIions o sIaIe. The sIaIe has reIreaIed inIo Ihe comorI
zone o poliIics, leaving economic governance Io markeI orces. The exIreme poliIical
polarisaIion has made iI diiculI or us Io agree on common soluIions Io our problems.
We are deending and projecIing Ihe narrow inIeresI o parIies. The low and high
proile corrupIion cases we wiIness every day and Ihe inabiliIy Io successully prosecuIe
oenders are a maniesIaIion o Ihe weakness o Ihe insIiIuIions o Ihe sIaIe. ln such
a siIuaIion, no ciIizen would wanI Io hear Ihe word sacriice.
Your Lxcellency, ladies and genIlemen, Ihese are our views as ar as Ihe currenI
narraIive goes. lI may noI be Ihe view o everybody here, buI we believe IhaI Ihese
relecI Ihe views o Ihe majoriIy o Ghanaians. lor us in Ihe labour movemenI, going
orward Ihereore enIails Iwo inIerrelaIed approaches.
lirsI, iI is imporIanI IhaI we change Ihe naIure o economic policies. To reverse Ihe
growing Irade deiciI and Ihe alling cedi, we need Io Iake a second look aI our
Irade policy. We are o Ihe view IhaI our Irade policies and pracIices are Ioo liberal
or our level o developmenI. We need a new Irade policy regime IhaI supporIs
and encourages domesIic manuacIuring and penalises imporIs. This does noI mean
IhaI we close our borders. lI means being smarI and Iaking advanIage o exisIing
saeguards wiIhin Ihe inIernaIional Irade archiIecIure. This also means noI acceding
Io lMl programmes in Ihe sense IhaI Iheir condiIionaliIies will noI allow us Io provide
remedies or addressing Ihe currenI diiculIies wiIhouI necessarily placing Ihe counIry
on Ihe paIh Io susIainable developmenI in Ihe long Ierm.
AddiIionally, governmenI musI inIervene sIraIegically in Ihe money markeI Io bring
down inIeresI raIes. Here again we are noI suggesIing IhaI governmenI conIrol Ihe
banks. WhaI we are recommending is an innovaIive approach in which governmenI
works wiIh Ihe banks Io bring down Ihe cosI o borrowing as a means o improving
employmenI creaIion. ln Ihe long run, Ihe usurious inIeresI raIes are noI in Ihe inIeresI
o anyone, including Ihe banks Ihemselves.
80
Your Lxcellency, economic policies musI emphasise Ihe cenIraliIy o adding value Io
our naIural and human resources and being able, as a counIry, Io produce some o Ihe
basic necessiIies o lie. We cannoI make any headway in creaIing decenI employmenI
and reducing poverIy by living on imporIs. GovernmenI needs Io oer unalloyed
supporI Io Ghanaian businesses. SIaIe power musI be leveraged Io promoIe domesIic
indusIry regardless o Ihe poliIical orienIaIion o Ihe people behind Ihe enIerprise.
The ruiIless aIIempIs Io desIroy businesses IhaI are viewed Io be poliIically unriendly
musI sIop.
There is also Ihe need Io reorm our capiIal accounIs and exIernal paymenIs sysIem.
Ghana cannoI conIinue Io allow oreigners and oreignowned companies Io Iranser
any amounIs o oreign currency ouI o Ihe counIry. The legal limiIs on Iransers musI
be reviewed and enorced.
linally, your Lxcellency, iI is imporIanI Io rescue, and rehabiliIaIe Ihe sIaIe and place
iI aI Ihe cenIre and ronI o naIional developmenI. lI is our view IhaI developmenI
cannoI be achieved and susIained by relying solely on Ihe devices o Ihe markeI,
neiIher can iI be done Ihrough an overbearing sIaIe IhaI scuIIles privaIe iniIiaIives and
kills markeI incenIives. There is noIhing more desIrucIive Io privaIe enIerprise Ihan a
sIaIe IhaI is weak and unable Io mediaIe economic and social IransacIions airly and
speedily. lI, Ihereore, becomes necessary IhaI we Iake a harder look aI Ihe sIaIe
and iIs insIiIuIions wiIh a view Io ensuring IhaI Ihey play Iheir proper role in naIional
developmenI.

Your Lxcellency, Ghana musI be made and be seen Io be working or all Ghanaians
regardless o how each o us views Ihe governmenI o Ihe day. We can orge consensus
on whaI maIIers or Ghana. We expecI sIrong leadership rom you, your Lxcellency,
Io Iake Ghana ouI o Ihese economic challenges. The working people o Ghana are
prepared Io supporI your eorIs.
l Ihank you or your aIIenIion.
81
Statement by James Asare-Adjei,
president of agi
ensuring effective contribution by industry
to national economic development
Your Lxcellency, Ihe PresidenI o Ihe Pepublic o Ghana,
Your Lxcellency, Ihe Vice PresidenI o Ihe Pepublic o Ghana,
Honourable MinisIers o SIaIe,
Members o Ihe DiplomaIic Corps,
Chie LxecuIives o lndusIry,
lellow lndusIrialisIs,
Members o Ihe Media,
DisIinguished Ladies and GenIlemen.
Today's orum marks an imporIanI sIep in advancing a posiIive eorI Iowards Ihe
acceleraIion o our IransiIion Io a higher and susIainable developmenI paIh as a
counIry. l believe we all share Ihe commiImenI Io a susIained dialogue Io enhance
sIrucIural IransormaIion o our economy. The AssociaIion o Ghana lndusIries
is happy Io be parI o Ihis process, and l wish Io provoke our IhoughIs wiIh Ihis
presenIaIion on how can we ensure eecIive conIribuIion o lndusIry, and or IhaI
maIIer Ihe privaIe secIor Io naIional economic developmenI, in Ihe midsI o all Ihe
challenges we ace.
lndeed, Ihe challenges businesses aced in 20!J became more prominenI in 20!4
ollowing urIher depreciaIion o Ihe cedi againsI Ihe major oreign currencies. WhilsI
businesses were yeI adjusIing Io Ihe eecI o Ihe depreciaIion, an addiIional 2.5%
VAT was inIroduced in !anuary and Ihe 8ank o Ghana (8OG) direcIives on loreign
Lxchange AccounIs and loreign Currency AccounIs also came inIo orce, puIIing
mosI businesses under immense pressure. The aoremenIioned challenges impacIed
business conidence, which Ihe !sI quarIer AGl business baromeIer demonsIraIed,
wiIh business conidence alling sharply Io iIs lowesI in our years.
Your Lxcellencies, Ladies and GenIlemen, whaI Ihe privaIe secIor needs Io resIore
conidence on a longIerm basis is macroeconomic sIabiliIy and predicIabiliIy o Ihe
business environmenI. l dare say IhaI Ihe much IouIed aIIracIive business environmenI
is gradually giving way, and oIher compeIing counIries are ready Io grab iI. l am
happy Io noIe IhaI macroeconomic sIabiliIy is one o Ihe key IhemaIic areas Io be
considered aI Ihis orum.
82
Your Lxcellencies, disIinguished Ladies and GenIlemen, Ihe kind o sIrucIure we
envision or our economy Iomorrow should inorm our presenI dialogue. 8eIween
20!2 and 20!J, Ihe growIh raIe o lndusIry's conIribuIion Io GDP declined rom
!!% Io 7%. The manuacIuring subsecIor which is supposed Io drive Ihe growIh or
lndusIry was worsI aecIed by Ihe decline in GDP growIh rom 2% Io 0.6%. And Ihis
is Ihe picIure l wish Io bring Io lighI. Paradoxically, elecIriciIy consumpIion grew rom
!!.!% Io !6.!%. This is a sign IhaI Ihe increase in consumpIion o elecIriciIy is noI
as a resulI o indusIrial acIiviIies.
As we sIrive Io grow our economy Io a real middleincome counIry, our growIh pillars
musI be secIors IhaI can spur sIrucIural IransormaIion o Ihe economy wiIh job
creaIion poIenIial, and manuacIuring is Ihe secIor Io consider. lndeed, experiences
rom several counIries have conirmed IhaI hardly is any counIry able Io develop wiIhouI
a sIrong manuacIuring base. There is Ihereore Ihe urgenI need or Ihe proIecIion o
inanI indusIries in Ihe economy, as Ihe mulIiplier eecI o manuacIuring serves as
jusIiicaIion or such proIecIion.
DisIinguished guesIs, l wish Io highlighI a ew more challenges IhaI have sIiled Ihe
conIribuIion o lndusIry Io our economic developmenI, l am doing so mindul o Ihe
acI IhaI Ihe group secIions will discuss Ihe soluIions in deIail.
G0A0-$".
The year 20!J saw Ihe inIroducIion o several iscal measures by GovernmenI in Ihe
orm o IaxaIion. WhilsI appreciaIing Ihe urgenI need Io increase governmenI revenue,
AGl is o Ihe view IhaI Iax measures should raIher supporI Ihe growIh o local indusIry
Io enable Ihem conIribuIe more revenue raIher Ihan sIile Iheir operaIions and we
wish Io reiIeraIe our view IhaI Iaxes on raw maIerials or local manuacIuring should
be zero, wiIh upronI relieve on VAT or all raw maIerials being mainIained.
=%%*// -" %)*+$-
Access Io crediI and high cosI o borrowing are sIill major concerns or business,
especially our SMLs. WiIh lending raIes in Ghana ranging beIween 25% and JJ%, one
o Ihe highesI in Arica, iI is obvious IhaI indusIry cannoI borrow longIerm Io reIool
and expand operaIions Io conIribuIe eecIively Io naIional economic developmenI.
Today, IradiIional developmenI banks have all gone commercial, so where will
developmenI come rom? This has necessiIaIed AGl's inIenIion Io seI up an lndusIrial
bank Io bridge Ihe unding gap o lndusIry, parIicularly SMLs.
S-$#$-$*/ /2JJ#&
The reliabiliIy and aordabiliIy o uIiliIies supply is crucial or indusIries' developmenI.
The minimum lndusIry can ask or is greaIer eiciency in Ihe operaIions o boIh
elecIriciIy and waIer disIribuIion. A huge jump in Iaris desIabilises Ihe privaIe secIor
and Ihis should be avoided, and under no circumsIance should indusIry subsidise
83
residenIial usage o elecIriciIy, unorIunaIely Ihis is sIill happening! The conIinued
indebIedness o GovernmenI Io Ihe LlecIriciIy Company and iIs eecI is worrying.
lncreased local conIenI, especially in equipmenI or Ihe energy secIor, should be
encouraged by governmenI. There is Ihe urgenI need or medium Io long Ierm energy
policies, sIraIegies and plans, Io address our energy siIuaIion.
;.5)0/-)2%-2)*
Our inrasIrucIure deiciI alone is an expensive barrier noI only Io our compeIiIiveness
as a counIry buI also Io our regional inIegraIion. Proper value or money analysis o
governmenI procuremenI, especially in large inrasIrucIure projecIs, is very essenIial.
We IrusI IhaI Ihe lnrasIrucIure lund will come in handy Io address our underdeveloped
inrasIrucIure needs.

7*#0&/ $. J"#$%& $DJ#*D*.-0-$".
We have been very proacIive as a counIry in ormulaIing good policies buI have always
had challenges wiIh implemenIaIion. WhaI has happened Io Ihe Ghana lndusIrial
Policy launched in 20!!, Ihe PrivaIe SecIor DevelopmenI SIraIegy ll, which was
supposed Io span 20!020!5, as well as Ihe Ghana LxporI SIraIegy documenI which
was also launched abouI six monIh ago? AGl believes IhaI unIil insIiIuIions mandaIed
Io oversee Ihe implemenIaIion o such policies and sIraIegies become eecIive, by
receiving suicienI resources and commiImenI rom GovernmenI, lndusIry cannoI
conIribuIe meaningully Io naIional economic developmenI.
These challenges noIwiIhsIanding, l am conidenI IhaI we can improve our economic
siIuaIion, we do noI have an opIion Ihan Io succeed. To ensure eecIive conIribuIion
by indusIry Io naIional economic developmenI, Your Lxcellencies, AGl would like
Io see more collaboraIion beIween GovernmenI and Ihe PrivaIe SecIor wiIhin Ihe
ramework o PublicPrivaIe ParInerships, wiIh signiicanI local conIenI, as a sIraIegic
opIion Io acceleraIe economic growIh. However, Ihe misuse o Ihe PublicPrivaIe
ParInerships, wiIh many deals being IouIed as such, buI are noI deined in Ihe relevanI
PPP legislaIion, should be checked.

Local ConIenI and Local ParIicipaIion DevelopmenI The passage o Ihe PeIroleum
PegulaIions or Local ConIenI and Local ParIicipaIion is a welcome developmenI and
we commend governmenI or Ihis, buI more imporIanIly we need Io sIraIegise Io Iake
ull advanIage o Ihis policy and exIend Io oIher secIors, where necessary.
We welcome H.L. PresidenI Mahama's recenI pronouncemenI on Ihe need Io paIronise
Made in Ghana producIs, and wish Io pledge lndusIry's commiImenI in parInering
governmenI Io make iI a realiIy. We believe IhaI governmenI procuremenI alone can
make a big dierence.
84
linally, disIinguished Ladies and GenIlemen, leI's Iake poliIics ouI o our economic
managemenI and run iI on sound ooIing. l am opIimisIic IhaI Ihe success o Ihis
NaIional dialogue will generaIe a new impeIus or subsequenI ones.
l Ihank you or your aIIenIion.
85
closing remarks by
HIS EXCELLENCY JOHN DRAMANI MAHAMA
president of the republic of ghana,
at the national economic forum
Senchi, Eastern Region, Thursday, May 15, 2014
As your lasI several days have been illed wiIh plenIy o Ialking and lisIening, l will be
brie.

l recognise Ihe acI IhaI all o you have Iravelled some disIance Io be here in Senchi.
And you have over Ihe lasI Ihree days Iaken Iime away rom your proessional
responsibiliIies and your personal obligaIions. l am graIeul or 5his sacriice IhaI you
have made in Ihe spiriI o paIrioIism. l menIioned in my opening remarks IhaI Ihis
orum is parI o whaI has now oicially become a IradiIion. l was, o course, reerring
Io Ihe irsI NaIional Lconomic lorum held by Ihe NDC in !997 and a similar gaIhering,
Ihe NaIional Lconomic Dialogue, held by Ihe NPP in 200! and subsequenI years.
8uI Ihe discussions IhaI have been Iaking place here over Ihe pasI several days ollow
in Ihe ooIsIeps o an even older and more deining IradiIion or us as Ghanaians. lI is
Ihe IradiIion o coming IogeIher as a people Io Ialk Ihrough our dierences in order
Io ind pracIical soluIions Io our problems. lI is Ihe same IradiIion o amily meeIings
and o IradiIional councils, and iI is, Io all inIenIs and purposes, Ihe same process
wheIher iI is being carried ouI in a personal conIexI or a poliIical one.
AnoIher observaIion worIh making is IhaI Ihis IradiIion o problem solving is one
IhaI, by iIs very naIure, is geared Iowards acIion. lrom Ihe decision Io show up and
parIicipaIe, rom Ihe heaIed debaIes and IhoughIul conversaIions' come ideas and
suggesIions. lrom all IhaI, a plan o acIion musI be ormulaIed and Ihen earnesIly
implemenIed. l wanI you Io know IhaI we are commiIIed Io Iaking IhaI nexI sIep.

l have glanced aI Ihe recommendaIions capIured in Ihe inal communique o Ihe
conerence. The recommendaIions are breaIhIaking and arreaching. Some o Ihem
we are dealing wiIh already and Ihis orum inspires us Io redouble our sIeps in achieving
Ihose goals. lor example, improving eiciency o Iax collecIion and broadening Ihe
Iax base, dealing wiIh Ihe energy crisis Io ensure reliable and aordable power
supply, review o 8OG measures Io smooIh ouI uninIended consequences and resIore
conidence, careul prioriIisaIion o our policies, programmes, projecIs and acIiviIies
and many such oIher recommendaIions.
The oIhers we haven'I quiIe goIIen round Io implemenIing yeI buI which have been
lagged by Ihis orum as urgenI Io begin dealing wiIh. l am saIisied wiIh Ihe ouIcome
86
o Ihe orum. l am impressed aI Ihe zeal and enIhusiasm you have shown Ihese lasI
Ihree days.
l sIand here making Ihese closing remarks wiIh Ihe knowledge IhaI while Ihis NaIional
Lconomic lorum may be ending, whaI lies ahead o us is Ihe beginning o a new day
or Ghana, one IhaI we are shaping IogeIher as a naIion.
WhaI lies ahead o us, as a GovernmenI, is Ihe careul consideraIion and Iimely
implemenIaIion o Ihe viable soluIions IhaI have been proposed here in Senchi.
There musI be no delays or disIracIions.
Our Lconomic ManagemenI Team has been reinvigoraIed by Ihis process and is ready
Io begin immediaIely implemenIing Ihe ouIcomes o Ihis gaIhering. l have spoken
wiIh Ihe Vice PresidenI, His Lxcellency Kwesi 8ekoe AmissahArIhur, who has shared
wiIh me Ihe sense o boIh urgency and opIimism IhaI permeaIed Ihese proceedings.
We will use Ihis sense o urgency and opIimism Io uel our acIions as we move in Ihe
direcIion o change. l wish Io Ihank Vice PresidenI AmissahArIhur or all Ihe Iime,
hard work and dedicaIion IhaI he has invesIed in Ihis orum. The leadership and oIher
conIribuIions he has made Io ensure Ihe success o Ihis orum are noIhing shorI o
exemplary.
l wish also Io Ihank all Ihe oIher organisers o Ihis orum: people in Ihe business
communiIy, civil socieIy, organised labour, Ihe various minisIries, parIicularly linance,
and Ihe Presidency, especially Iheir supporI sIa, and every single person who has
conIribuIed direcIly or indirecIly Io Ihe success o Ihis projecI.
LasI, buI cerIainly noI leasI, l would like Io Ihank you Ihe parIicipanIs or your Iime,
your ideas and analyses, your honesIy, openmindedness and good cheer.
You came in your numbers, represenIing noI jusI yourselves buI your amily members,
your coworkers, Ihe people wiIh whom you worship, and Ihe people wiIh whom
you inIeracI on social media. You came also carrying Ihe ideas, opinions and soluIions
o Ihose individuals who could noI be presenI here. You came as Ihe emissaries o
Ihe people o Ghana, and by your parIicipaIion you have proved Io be Iheir worIhy
represenIaIives.
WiIh Ihese inal remarks, l would like Io ormally declare Ihe NaIional Lconomic lorum
successully concluded. lI is Iime now or us Io puI all your words Io work, or Ihe
good o Ghana.
May God bless you.
And May God conIinue Io bless our homeland, Ghana.
G'2& /=
>+,&'$'0+3&2
87
88
Dr. Kwesi 8oIchwey Ghana Gas Company
Pro. PeIer QuarIey UniversiIy o Ghana
Dr. !oe Abbey CLPA
Dr. !ohnson Asiama 8ank o Ghana
Mrs Nelly Mireku MinisIry o linance
Dr. !.K Kwakye lLA
Dr. Abu Sakara CPP
Dr. Koi Wampah 8ank o Ghana
Dr. Nii Kwaku Sowa NPPA
Dr. Paul Acquah lormer Governor, 8oG
Dr. Samuel D. Ameyaw MinisIry o linance
Hon. 8enjamin Kpodo MP, Ho CenIral
Hon. lii KweIey MinisIer o SIaIe
Hon. KluIse Avedzi MP, KeIu NorIh
Hon. Kweku PickeIIsHagan MinisIry o linance
Hon. SeIh Terkper MinisIry o linance
Mr. lranklin Cudjoe lMANl
Mr. PeIer 8oamah OIokunor NYA
Mr. Sammy Ampah PPP
Mr. Sidney CasleyHayord 8iz Ghana
Mr. S.P. Adamu GSlP
Mr. Thomas Akabza UniversiIy o Ghana
Nana AdjeiMensah !ospong Group o Companies
List of Participants
GOUP 1: F51OING MACOFCONOMIC 51AILI1Y
Dr. OIeng Gyasi AGl
Puben AIekpe MLCOWA
Kweku 8eduAddo SIandard CharIered 8ank
Dr. MillicenI DeGraI !ohnson MinisIry o linance
Mr. !ohn Adraki AGl
Mr SeIh TwumAkwaboah AGl
Hon. Haruna lddrissu MinisIer, MOTl
Hon. Pashid Pelpuo Oice o Ihe PresidenI
Hon. Kweku PickeIIs Hagan MinisIry o linance
Madam VicIoria Hajar GLA/GCCl
Mr. Alex lrimpong GLA
Mr. AnIwi8oasiako Sekyere MinisIry o LmploymenI and Labour PelaIions
Mr. AusIin Gamey Gamey & Gamey
Mr. Lmmanuel Anane 8oaIe !ospong Group o Companies
Mr. George lynn MoTl
Mr. lsaac Yankson MoTl
Mr. !acob Lshun lUSSAG o TUC
Mr. !ames Asare Adjei AGl
Mr. !ohn Lsiape UNlCOl
Mr. Koi Asamoah TUC
Mr. Kwaku SakyiAddo Ghana Chamber o Telcos
Mr. Oluwaseun Layade Mabani Holdings Ghana LId
Mr. Prince AsauAdjei TUC
Mr Prosper Adabla Ghana Chamber o Commerce and lndusIry
Mr. P. A. Apaaya TUC
Mr. Samuel A. Zacca Mabani Holdings Ghana LId.
Mr. Senyo Hosi 8ulk Oil DisIribuIing Company
Mr. Sulemanu Koney Ghana Chamber o Mines
Nana Owusu Aari AGl
Pev. lred Logan NorIh Ghana Mission
Pev. Pichard Yeboah TUC
Mr. Koi KapiIo Consumer ProIecIion Agency
Mr. Amar Deep Hari lPMC
Kwamena Lssilie Adjaye KLA ConsulIing LId.
89
GOUP 2: 51FNG1HFNING 1HF OLF OF 1HF PIVA1F
5FC1O FO INCLU5IVF GOW1H
90
GOUP 3: KFY I55UF5 IN GHANA'5 FCONOMIC
MANAGFMFN1
Mr. Kwame Pianim New World lnvesImenIs LId.
Dr. Lkow Asmah UniversiIy o Cape CoasI
Dr lriIz Gockel UniversiIy o Ghana
Dr. Alhassan lddrisu MinisIry o linance
Mr. Mumuni Zakari 8ank o Ghana
Dr !ohn GaIsi UniversiIy o Cape CoasI
Hon. AIo lorson MinisIry o linance
Madam 8ridgeI KaIsriku Public Services Commission
Madam Grace Adzroe CAGD
Mr.Ahmed Pamadan PNC
Mr.8uadi Alexander Mawusi GNAT
Mr.lelix Amegashie LPMPLegon
Mr.George Lkeha SMC
Mr.George SmiIhGraham lair Wages Commission
Mr. lsaac 8ampoe Addo CLOGSAG
Mr George 8lankson Ghana Pevenue AuIhoriIy
Mr.!acob Lmmanuel Lshun lUSSAG o TUC
Mr. MarIey Newman Council o SIaIe
Mr. Millison Narh 8ank o Ghana
Mr. Cephas Kwabena Owusu AGl
Mr. SIanislaus Nabome NAGPAT
Mr SylvesIer Mensah NHlS
Pro LrnesI AryeeIey UniversiIy o Ghana
Pro. Thomas Akabzaa MinisIry o Lnergy
Proessor Kusi MinisIry o linance
Togbe Aede House o Chies/ SAS
Mr 8righI AkweIIey G8A
91
GOUP 4: FINANCIAL MAKF15 AND LONG-1FM
FCONOMIC GOW1H
Dr Samuel Nii Moi Ashong GlMPA
Mrs. Mansa NeIIey SIandard CharIered 8ank
Mr. lrank Adu CAL8ANK
Mr. !oseph Chognuru MinisIry o linance
Mr. VicIor Osei 8ank o Ghana
Dr. AbdulNashiru lssahaku 8ank o Ghana
Dr. !usIice Yankson GMA
Dr. P.A Kuranchie Council o SIaIe
Ms. Hannah AmoaIeng Ghana Trade lair
Madam !aneI SarneyKuma NPC
Mr. Adu Anane AnIwi SLC
Mr. AugusIine Addo lCA (GH)
Mrs Lydia Lariba 8awa NaIional lnsurance Commission
Mr. K. S. Yamoah Ghana SIock Lxchange
Mr. Lord Senanu NPPA
Mr. Michael Mensah8aah 8arclays 8ank
Mr. PoberI Dowuona Owoo Ghana CommodiIy Lxchange
Mr. Simon Dornoo Ghana Commercial 8ank
Mr. Wilberorce Mariki AlD8
Dr. Nii Moi Thompson Oice o Ihe PresidenI
92
GOUP 5: UNLOCKING 1HF PO1FN1IAL FO LONG 1FM
DFVFLOPMFN1
Pro SIephen Adei lormerly o GlMPA
Dr K.Y. Amoako ACLT
Dr. Yaw 8aah TUC
Mr. Ken Owusu NDPC
Mrs. Grace Akroi 8ank o Ghana
Air Commodore lsaac Pockson Wayoe NDC
Dr. William lnsaidoo UniversiIy. o Cape CoasI
Dr. !oe Tuour ACLT
Dr. K.Y Amoako ACLT
Dr Philomena Nyarko Ghana SIaIisIical Services
Hon Koi Humado MinisIry o lood and AgriculIure
Mr. A.8 Sumaila GNPC
Mr. 8ishop Akolgo lSODLC
Mr. L.D. 8rown ACLT
Mr. L.T. QuarIey COCO8OD
Mr. Kodzo Sedegah DevelopmenI Challenge
Mr. Lord Senanu NPPA
Mr. George Spencer Quaye lnside Ghana
Mrs Mawuena Trebah GlPC
Nana Osei Nyako LasIern Pegion House o Chies
Nana Agyemkum Dwamena Oice o Ihe Head o Civil Service
Ohenenana ObonIi Krow SMC/SONLTCO lnsIiIuIe
Pro. lvan Addae Mensah UniversiIy o Ghana
Nana 8erkoe House o Chies/GlMPA
Dr Pegina G. AduIwum NDPC
93
GOUP 6: PO51 - FOUM IMPLFMFN1A1ION AND
COMMUNICA1ION
Sir P.V. Obeng NPDC
Dr. Lmmanuel AkweIey lDLG
Mr. !ohn GaIsi UniversiIy o Cape CoasI
Mr. AIo Kobbie GNPC
Dr SIeve ManIeaw lSODLC
Dr. Aail Monney G!A
Dr. Nana OseiTuIu Tulip Splash Co. LId
Dr Sulley Gariba Oice o Ihe PresidenI
Hon. lii KweIey Oice o Ihe PresidenI
Mr. !oe MbrokohLwson Woodields Lnergy Company LId
Mr. Kwaku Sakyi Addo Ghana Chamber o Telcos
Mr. PaIrick Awuah Ashesi UniversiIy
Mr. Samuel ArkhursI MinisIry o linance
Pev. Dr. Opuni lrimpong ChrisIian Council o Ghana

18389senchi Consensus - Final

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