ACCOUNTING TO THE PEOPLE

132 #ChangingLives
#TransformingGhana
#ChangingLives
#TransformingGhana
133
•A project to produce 20 million
broilers has been initiated to
reduce the importation of poultry
products by 40% by the end of
2016. It will save the economy
about US$150 million every year.
Available statistics show that we
have achieved a drop of 30% in
poultry imports from US$208.7
million to US$149 million since
the launch of this project.
Table 9: A camparison of first quarter 2014 and 2015 indices
INDICATOR 2014 (% of GDP) 2015(% of GDP)
First quarter growth -3.8% 4.7 %
Agric Sector growth -8.0% 7.4%
Industrial Sector growth -1.8% 0.9%
Service Sector -5.5% 4.7%
Notwithstanding the transitional
challenges Ghana’s economy
continues to expand. The
country’s GDP as of June 2015
stood at GHC133.34 billion from
GHC30,179 billion in 2008.
Despite this growth, cyclical
instability occasioned by longstanding
structural weaknesses
in the economy continues to pose
challenges. In a bid to address this
head on, President John Mahama
has crafted a vision to transform the
structure of the Ghanaian economy.
The transformation agenda is
hinged on diversification, value
addition to our primary products
and the promotion and patronage
of locally manufactured goods and
services.
This is intended to make Ghana
self-reliant and to position the
country as an export-led economy.
This will guarantee a stable
economy, massive job creation,
enhanced incomes and improved
standards of living for the people.
Pursuant to this vision, a number of
initiatives have been introduced as
follows:
• In Komenda, in the Central
Region, a new sugar factory
is under construction. When
completed, the over US$300
million spent to import about
375,000 metric tonnes of sugar
annually will be substantially
reduced. This factory will create
7,300 direct and indirect jobs in
addition to the savings on foreign
exchange.
• The defunct Kumasi Shoe
Factory has been refurbished and
is operating under the Defence
Industrial Holdings Company
Limited (DIHOC). The factory
currently produces high quality
shoes for many clients including
the security agencies and mining
companies and provides direct jobs
for over 200 people. It recently
produced 10,000 pairs of school
sandals that are being distributed to
school pupils.
To boost local production and
further diversify our export base,
Government through the Export
Development and Agricultural
Investment Fund supported
over 125 projects (by Ghanaian
companies) in the production of
pharmaceuticals, rice, sheanut,
poultry etc with GH¢245.4 million
between January 2013 and June
2015.
Also, the Exim Bank bill has
been approved by Cabinet and it
is presently being considered by
Parliament
Under the Skills Development
Fund, more than GHC 150 million
in grants has been provided to 510
grantees made up of institutions,
businesses and associations.
Some of the beneficiaries are the
Ghana Atomic Energy Commission,
University of Ghana, Ghana
Technology University College
(GTUC), Kumasi Polytechnic,
Centre for Scientific and Industrial
Research (CSIR), KNUST Jewellery
Design and Technology Centre,
Progressive Electronic Technicians
Association of Ghana, Ghana
National Association of Garages,
Ghana National Association
of Poultry Farmers and the
Ghana Association of Electrical
Contractors.
This year grants totalling GHS65
million are being awarded to cover
an estimated 100 private sector
firms.
Efforts to diversify the country’s
export base are yielding fruits
as total non-traditional exports
between 2013 to June 2015
amounted to USD$ 6.17 billion.
Annual Non-Traditional exports
is projected to reach US$ 5 billion
from the current US$ 2.5 billion.
This compares with US$ 1.32 billion
in 2008.
Macro-economic
stability
As part of efforts to consolidate
the recovery and restore macroeconomic
stability, Government has
been implementing a home grown
programme aimed at ensuring
greater efficiency in public financial
administration.
To give further impetus to this
programme and to ensure policy
certainty, Government entered
into an Extended Credit Facility
Programme with the International
Monetary Fund under which the
country is benefiting from Balance
of Payment support to the tune of
US$918 million. Nearly all critical
benchmarks were met after the
programme was reviewed.
Revenue and expenditure targets
for the first quarter were met and
Ghana is on track to further reduce
the budget deficit, stabilize the cedi
and curb inflation.
Between January and May, 2015
total cash deficit was 1.9% of GDP
which is much lower than the
budget target of 3.4%. In the same
period in 2014 the figure was 3.7%
of GDP.
This is the result of improvements
in revenue mobilisation and tighter
controls on expenditure.
Confidence in the
Economy
Investor confidence in Ghana
continues to grow as a result of
measures introduced to stabilize the
economy.
• Data from the Ghana Investment
Promotion Center show that in
2014, inflows from foreign direct
investment stood at US$3.57 billion
from 184 projects;
• Between January 2013 and June
2015, USD$ 817.5 million was
invested in the Free Zones by 69
newly registered companies
• The 2014 US$1billion Eurobond
was oversubscribed at a competitive
coupon rate. This targeted the
development of infrastructure and
The Sankofa Gas project
is a good example of how
Africa can address its
infrastructure challenges
and lay the foundation for
sustained economic growth
by providing affordable
and relaible power to its
population.
Makhtar Diop
Vice President, World Bank.July, 2015
refinancing of the 2007 Eurobond.
The 15 years tenure 2015 Eurobond
was also oversubscribed.
• The 2014 syndicated loan for
cocoa purchases yielded US$1.7
billion.
• In 2015, the syndicated loan for
cocoa purchases yielded US$1.8
billion.
• Ghana signed a US$7 billion
agreement for the development of
the Sankofa field. This is the single
largest investment made in the
petroleum sector.
This year, the World Bank made
available an amount of US$700
million in guarantees for Ghana’s
Sankofa Gas Project.