From Akufo-Addo’s economic pot

Continued from last week

As stated in our last edition, President Nana Addo Dankwa Akufo-Addo, in the previous week, welcomed scores of journalists to the second in the series of biannual encounters with media personnel at the seat of the Presidency – the Flag Staff House.

Here is a continuation of his statement as relates to the economy:

Reports indicate that the planting for food and jobs campaign, which registered over two hundred thousand (200,000) farmers in the 2017 crop season, has been a big success.

I am particularly excited about the institutional sub–programmes, where twenty (20) Senior Technical High Schools, National Service Scheme and the Prison Services were supported to cultivate their own farms.

Under the Youth in Agriculture programme of Planting for Food and Jobs, ten thousand (10,000) youth were supported to cultivate eight hundred (800) hectares and ten thousand, three hundred and twenty (10,320) hectares of rice and maize, respectively.

Under the campaign, average yields of maize and rice have increased, and our warehouses are filling up.

Whilst the full picture of this success is yet to emerge, it is noteworthy that many farmers have expressed their satisfaction that, for the first time in a long while, a deliberate government policy has helped to boost their harvest. We are doing things differently, and we are getting results.

In the energy sector, we have brought stability in the place of the erratic power situation that we inherited. Adequate power supply is critical to the operation and success of industry, especially small and medium scale enterprises, which provide the bulk of employment.

Not only is regular supply important, but competitive rates of power are equally important. Tariff rates for non-residential users of electricity, which embrace many SMEs, have been reduced by an average of 14% to boost their competitiveness.

Furthermore, an Industrial Development Tariff has been approved for industry to enhance its competitiveness. A new rate of US$6.50 per Million British Thermal Units (MMBtu), as against the previous rate of US$8.84 per Million British Thermal Units (MMBtu), has been established – a 26.5% reduction.

In addition, a review of 24 power purchase agreements, which has led to the termination of 11 power deals and the rescheduling of 8 others, has enabled us to save the government treasury about $7 billion in excess capacity charges over a 13-year contract period.

We also issued 7 year and 10 year cedi-denominated bonds, totaling GH¢4.7 billion, which have halved the $2.4 billion energy debt we inherited, and have helped improve the liquidity of the banks, and the balance sheets of the SOEs in the energy sector.

This year, we will consolidate these gains, and ensure the flow of regular, affordable power to support the economic development of our country. Efficient management will always yield positive results.

After a year in office, it would be fair to ask what frustrations and regrets if any, that I have. My answer would be I wish we had been able to do certain things much faster and the entire government machinery moved more quickly, because, as I said, I am in a hurry.

For those who continue to be obsessed by the size of my government, let me, with due deference to the chairperson of the Economic Management Team, my brilliant Vice President, cite from his speech, two days ago, at Legon, at the opening of the New Year School:

“The question that we should ask is how can you inherit a budget deficit of 9.3% of GDP, proceed to reduce taxes, bring down inflation, bring down interest rates, increase economic growth (from 3.6% to 7.9%), increase your international reserves, maintain relative exchange rate stability, reduce the debt to GDP ratio and the rate of debt accumulation, pay almost half of arrears inherited, stay current on obligations to statutory funds, restore teacher and nursing training allowances, double the capitation grant, implement free senior high school education and yet still be able to reduce the fiscal deficit from 9.3% to an estimated 5.6% of GDP? Quite simple, this is a remarkable achievement and this is what we mean by competent economic management.”

It is that competence, coupled with integrity in the conduct of public transactions, ensuring value-for-money, protecting the public purse, that are going to bring the dream of a happy and prosperous Ghana, a Ghana Beyond Aid, quickly within our grasp.