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Kufuor We Are on Course Focus on Ghana a Country on the March A country on the march Focus on Ghana Kufuor We are on course Focus on Ghana A country on the march that their place in history is assured. Not all Ghanaians will agree though. They measure prosperity by the depth of their own pockets. Since their pockets are not yet full, or Ghana at a glance even half empty, nothing therefore has changed since Kufuor came into office. “Things are still hard” is a popular refrain in Accra and beyond. Land area: 92,100 sq miles (238,537 sq km) And they have reason. A nation is the aggregate of the people in it. Capital: Accra If a nation is doing well, according to the law of averages, the people Independence: 6 March 1957 in it must be doing well as well. If the people are not doing well, then System of government: Multiparty democracy/parliament something is wrong somewhere. President: John Agyekum Kufuor That is the paradox, nay dilemma, facing the millions of Ghanaians Ruling party: New Patriotic Party (NPP) who say “things are still hard”. But don’t tell Yaw Osafo-Maafo, Kufuor’s Next elections: 7 December 2004 finance minister. As he told parliament on 5 February when reading National population: 20 million the 2004 budget: Languages: English is the official language. Local languages include Akan “The economy of Ghana is in a more sound and healthier condition (Twi, Fante), Ga, Ewe, Dagbeni, Hausa today than it has been for decades ... The indisputable fact is that Religion: Christians 43%, Muslims 12%, Traditional 45% people are eating better, schools, health facilities and transportation Currency: Cedi, divided into 100 pesewas are improving apace, and the economic environment is definitely more Main exports: Cocoa, gold, timber stable ... Within the short period of three years, we have been able to Government website: www.ghana.gov.gh turn the fortunes of this country from a rather desperate position to a very hopeful state … All the macro-economic indicators are pointing in the direction of robust and sustainable development … GDP growth rates in the last three years have been on the ascendancy achieving Ghana’s rich traditions will 4.2% in 2001, 4.5% in 2002, and 5.2% in 2003. And we expect to, at be at the centre of a major least, maintain it at 5.2% in 2004.” tourism drive in 2004 In fact, two weeks before Osafo-Maafo’s budget statement, President Kufuor himself, in his ‘State of the Nation Address’ on 22 January, had said as much, in so many words: “For the past three years,” he told the nation, “we have initiated and implemented policies aimed at halting the downward slide of the economy and kick-starting its growth.” “And indeed we have,” Osafo-Maafo added for good measure. And these are not empty words. The facts on the ground, and on paper, are there to prove it. In the world of economics, there are certain variables or indicators that show whether a country is doing “What a delight, Ghana” well or not. Ghana’s indicators, under Kufuor, are all pointing up — in the right direction. That is not to say the country is out of the woods yet. Far from it. As Ghana celebrates 47 years of independence on 6 March, Baffour Ankomah, In fact, Kufuor’s government is not even claiming that it is. However, editor of ‘New African‘ and a Ghanaian himself, looks at how the country has those who know what makes an economy tick, like Paul Victor Obeng (PV for short), one of the leading lights of the Rawlings era, Ghana fared under President John Agyekum Kufuor’s three-year-old government. has not done badly at all under Kufuor. “Though there are areas that a lot could be done,” PV said last year in a rare praise of the political opposition now running the government, he headline above belongs to Peter Jazzy Ezeh, a hard-nosed peaceful, and green. Cedi may be relatively weak but it is better than “so far, the management of the economy has been sustained well. They Nigerian and long-time ‘New African‘ correspondent based in everyone who had been around told me it was some years back. Your couldn’t do any better than they are doing, having taken over at a very Enugu. He went to Ghana for the first time this February to deliver borders are the ones no one extorts bribes. I came back by road so that difficult time in our history as a nation.” a paper at the W.E.B. du Bois International Cultural Centre in Accra. I could look at that aspect too. As an African, I am proud of the Ghana PV, speaking in a radio interview, continued: “It will be miraculous After returning home on 10 February, he sent me the following that I experienced.” for anybody to expect that after just 24 months in office, significant eye- ACCRA Temail from Enugu, about his impressions of Ghana: Encomiums do not come easily from Peter Jazzy Ezeh. He is a hard catching prospects will be recorded by the new government.” “What a delight, Ghana,” he wrote. “I was in your country. And how Ibo man, and one of those Africans with licence to criticise Africa to death. Today, 39 months into its 48-month term, and as Ghana celebrates 47 Cape Coast heavenly! No hyperboles intended. The surprise is that some of you For him to be so lavish in his praise for the Ghana he saw, is very high years of independence, Kufuor’s government can proudly point to dozens are still outside. I don’t remember having been to any place as orderly, praise indeed. President Kufuor and his government can retire knowing of “eye-catching” achievements already firmly bagged away. Takoradi II � NEW AFRICAN March 2004 March 2004 NEW AFRICAN � III Focus on Ghana A country on the march and fair conduct of the elections. Last year, the Electoral Commission (EC) announced that it would create 30 additional constituencies (bringing the country’s total to 230), and replace the voter’s register and issue new voter Solid achievements - the 2003 balance sheet identity cards. The voter registration will now begin on 16 March and end on 29 March. To ensure that the EC is able to comprehensively conduct the elections, Last year, the main objective of the Kufuor government was to the government released the equivalent of US$10m to the Commission last August, in addition to further committing itself to funding 60% of the total consolidate the remarkable achievements of the 2002 fiscal year. cost, estimated at $24m. Donor countries will fund the remaining 40%. This is how the macroeconomic front panned out in 2003. Golden Age of Business For business people, there could be no more business-friendly n the 2003 budget, the government set itself a real GDP growth of at GSE All-Share Index, the main gauge of performance on the GSE, rose by government than Kufuor’s. When he came into office in January 2001, least 4.7%; a reduction in the year-to-year rate of inflation from 15.2% 154% (or 142.7% in dollar terms), making it the best performing year to date he declared the next four years as the “Golden Age of Business”. He has at end-December 2002 to 9% by end-December 2003; an overall in the history of the GSE. It was also the best performing market in now gone further by declaring 2004 as the “Business Friendly Year”. Ibudget deficit of 3.1% of GDP; a domestic primary budget surplus the world. Market capitalisation went up by 104%, while turnover in both The government is convinced that growth will come only if the private of 3% of GDP; and rebuilding of gross official reserves equivalent to 2.3 volume and value terms increased by 118.3% and 335.4% respectively. sector is strengthened in a positive way to act as the engine of growth months of imports. and poverty reduction. Last year, the government therefore put in place National debt various measures to make the private sector feel more comfortable in the Most of these goals were attained, and even bettered: The total stock of domestic debt at the end of December 2003, exclusive country. For example, a Business Law Division of the Ministry of Justice n The GDP growth rate was higher than expected - 5.2% against a of revaluation stock, decreased by 298.2 billion cedis. The decline was due was established to embark upon the task of reforming all laws that impede projected 4.7% to the redemption of 218.9 billion of Tema Oil Refinery bonds held by the the setting-up and growth of businesses in the country. n Year-on-year inflation declined to 23.6% at end-December 2003, Ghana Commercial Bank, and net redemption of Treasury Bills by 520.1 The next elections will pitch the NPP (whose supporters are seen This year, the thrust of the policy initiatives announced in the 2004 after peaking at 30% at end-April 2003. billion cedis. The country’s total medium and long-term external debt stood here) with the main opposition party, NDC budget, has been fashioned to create a more conducive business friendly n The cedi remained relatively stable throughout the year at US$6.47 billion in December 2003, representing an increase of about environment that will accelerate the development of a more vibrant private — depreciating by only 4.7% against the US dollar 4% over the 2002 level. In 2004, the external debt stock is expected to How did they do it? In February 2001, then only two months in office, sector.
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