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Kufuor gives
high marks for management of economy
Accra, Jan. 8, GNA - The nation has registered very
impressive achievements during the past six years in the
management of its macro-economy, President John Agyekum
Kufuor said on Thursday.
In his State of the Nation address delivered to Parliament
in Accra, he said government's policies had transformed the
macro-economy from years of stagnation to the current growth
rate of 6.2 per cent.
Inflation had come down from 40.5 per cent in 2000 to 10.2
per cent today, lending rates of commercial banks had also
slumped from over 50 per cent to 20 per and were still
falling, the cedi had stabilized and maintained its value
against major currencies, thus encouraging the Central Bank
to initiate a process of re-denomination.
"Mr Speaker, this outstanding performance of the
macro-economy is boosting the confidence of both domestic
and foreign investors, which is already on the upsurge.
"Ghanaians no longer feel the need to transfer their money
abroad or change it into foreign currency to preserve its
value.
"Further, all over the country, there is evidence of
vigorous construction works which must be taken as a sign of
a growing economy."
President Kufuor noted that another manifestation of
confidence was in increased remittances from Ghanaians
living abroad, which totalled over four billion dollars last
year.
He said four new banks - Guaranty Trust, Fidelity, Zenith
and Intercontinental - had been established within the past
two years.
In mining, President Kufuor said he had commissioned the
operation of Newmont Gold mine at Kenyasi in Brong Ahafo and
it had already poured its first gold.
He said Barry Callebaut Ghana had also installed a new
multi-million dollar processing line to produce its product
range while Cargill International, a global agro-processing
company, had started the construction of a new cocoa
processing plant at Tema, which involved over 50 million
dollars in new investments.
President Kufuor said Golden Exotic Company, a local
subsidiary of the multinational French company, Compagnie
Fruitiere, which started operations in 2003 projected to
export 17,000 tonnes of pineapples this year from 3,600 in
2005.
He said government would continue to direct various polices
and measures to identify companies in the informal sector to
assist them raise their production level and create more
jobs using micro as well as small and medium credit lines.
The President noted that this would not only improve their
businesses, but also help widen the tax net.
President Kufuor said agriculture remained the mainstay of
the national economy and government's policy was to enhance
productivity of the sector through application of science
and technology and best practices.
These include provision of irrigation facilities, improved
planting materials, effective extension services and various
forms of credit.
President Kufuor said Ghana Cocoa Board produced some
740,000 tonnes of cocoa in the 2005/06 season and had
targeted the one million-tonne mark within three years
without compromising Ghana's acclaimed quality bean.
He said the policy of applying science and technology
together with best practices was being applied to the
cultivation of legumes, cereals, vegetables, staples like
yam and horticultural produce like mangoes, pineapples and
pawpaw.
President Kufuor noted that one of the highlights of last
year was the signing of the Millennium Challenge Account
(MCA) in Washington between Ghana and the US under which
Ghana is to benefit from 547 million dollars to modernize
her agriculture and transform the rural economy.
"Mr Speaker, in this one huge project we are afforded the
model of what our agriculture should be. The vision is that
the success will spill over and be replicated throughout the
country."
President Kufuor commended the House for working with
dispatch on the approval of the MCA bill and called on the
whole country to show interest in the programme which was
expected to generate allied businesses like storage and
warehousing, sales and marketing, transportation and
processing and thereby create more than two million jobs.
GNA
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