REPUBLIC OF GHANA THE IMPLEMENTATION OF THE GHANA SHARED GROWTH AND DEVELOPMENT AGENDA (GSGDA), 2010 - 2013 2010 ANNUAL PROGRESS REPORT ACCRA, GHANA AUGUST, 2011 NATIONAL DEVELOPMENT PLANNING COMMISSION (NDPC) TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................................... I LIST OF TABLES AND FIGURES ................................................................................................... V LIST OF ACRONYMS ..................................................................................................................... IX EXECUTIVE SUMMARY ............................................................................................................ XIV CHAPTER ONE: INTRODUCTION ............................................................................................... 29 1.1 BACKGROUND............................................................................................................................. 29 1.2 GSGDA INDICATORS AND TARGETS ...................................................................................... 30 1.3 PREPARING THE 2010 ANNUAL PROGRESS REPORT .......................................................... 30 1.4 SUMMARY OF PROGRESS MADE – STATUS OF CORE SET OF NATIONAL INDICATORS IN 2010 .................................................................................................................. 33 CHAPTER TWO: ENSURING AND SUSTAINING MACROECONOMIC STABILITY ....... 35 2.1 INTRODUCTION........................................................................................................................... 35 2.2 TRENDS IN SELECTED ECONOMIC INDICATORS ................................................................ 36 2.2.1 Real GDP Growth Rate ................................................................................................................... 36 2.2.2 Trends in Inflation ............................................................................................................................ 38 2.2.3 Interest Rates ..................................................................................................................................... 38 2.2.4 Developments in the Fiscal Sector ................................................................................................. 40 2.2.5 Developments in the External Sector ............................................................................................. 43 2.2.6 Domestic Debt Stock/GDP and Domestic Debt Service ............................................................. 44 2.2.7 Developments in the Money Market ............................................................................................... 44 2.2.8 Developments in the Capital Markets ............................................................................................ 45 2.3 POLICY RECOMMENDATIONS ................................................................................................. 45 CHAPTER THREE: ENHANCING COMPETITIVENESS OF GHANA’S PRIVATE SECTOR .......................................................................................................... 47 3.1 INTRODUCTION........................................................................................................................... 47 3.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES, AND STRATEGIES IN 2010 .................................................................................................................. 47 3.2.1 Private Sector Development ............................................................................................................ 47 3.2.2 Promote Good Corporate Governance ......................................................................................... 54 3.2.3 Develop Micro, Small, and Medium Enterprises (MSMEs) ....................................................... 55 3.2.4 Accelerated and Industrial Development ...................................................................................... 57 3.2.5 Developing the Tourism Industry for Jobs and Revenue Generation ....................................... 60 3.2.6 Promote the Creative Arts Industry for Economic Development............................................... 63 3.3 SUMMARY AND POLICY RECOMMENDATIONS ................................................................. 67 CHAPTER FOUR: ACCELERATED AGRICULTURAL MODERNISATION AND SUSTAINABLE NATURAL RESOURCE MANAGEMENT ..................... 71 4.1 ACCELERATED AGRICULTURAL MODERNISATION .......................................................... 71 4.2 STATUS OF SELECTED INDICATORS AND KEY POLICY MEASURES AND STRATEGIES IN 2010 ......................................................................................................... 71 4.2.1 Improve Agricultural Productivity ................................................................................................. 72 4.2.2 Increase Agricultural Competitiveness and Enhanced Integration into Domestic and International Markets ...................................................................................................................... 76 i 4.2.3 Reduce Production and Distribution Risks/ Bottlenecks in Agriculture and Industry ............ 78 4.2.4 Promote Selected Crops Development .......................................................................................... 88 4.2.5 Promotion of Livestock and Poultry Development ...................................................................... 90 4.2.6 Promotion of Fisheries Development ............................................................................................ 92 4.2.7 Improved Institutional Coordination ............................................................................................. 94 4.3 SUSTAINABLE NATURAL RESOURCE MANAGEMENT ...................................................... 96 4.4 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES, AND STRATEGIES IN 2010 .................................................................................................................. 96 4.4.1 Mineral Exploration and Extraction .............................................................................................. 96 4.4.2 Biodiversity ........................................................................................................................................ 99 4.4.3 Protected Areas ............................................................................................................................... 100 4.4.4 Restoration of degraded Forest and Land Management .......................................................... 102 4.4.5 Marine Ecosystems and Coastal Management ........................................................................... 104 4.4.6 Wetlands and Water Resources .................................................................................................... 106 4.4.7 Waste, Pollution and Noise ........................................................................................................... 108 4.4.8 Community Participation in the management of natural resources ........................................ 109 4.4.9 Natural Disasters, Risks and Vulnerability ................................................................................. 111 4.4.10 Climate Variability and Change ................................................................................................. 112 4.5 SUMMARY AND POLICY RECOMMENDATIONS ............................................................... 114 CHAPTER FIVE: OIL AND GAS DEVELOPMENT .................................................................. 121 5.1 INTRODUCTION......................................................................................................................... 121 5.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES, AND STRATEGIES IN 2010 ................................................................................................................ 122 5.3 POLICY RECOMMENDATIONS ............................................................................................... 126 CHAPTER SIX: INFRASTRUCTURE AND HUMAN SETTLEMENTS ................................. 127 6.1 INTRODUCTION......................................................................................................................... 127 6.2 TRANSPORT INFRASTRUCTURE: ROAD, RAILWAY, WATER AND AIR ........................ 127 6.2.1Road Transport ................................................................................................................................ 127 6.2.2 Railways .......................................................................................................................................... 130 6.2.3 Maritime Transport ........................................................................................................................ 131 6.2.4 Air Transport ................................................................................................................................... 131 6.3 SCIENCE AND TECHNOLOGY TO SUPPORT PRODUCTIVITY AND DEVELOPMENT .. 135 6.4 DEVELOPING INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ............. 136 6.6 HUMAN SETTLEMENTS .......................................................................................................... 141 6.7 HOUSING AND SLUM UPGRADING ...................................................................................... 143 6.8 SAFE WATER ................................................................................................................................