March 6, 2002 marks the 45th Independence Anniversary of Ghana and it is being celebrated with renewed determination to build a united, stable, democratic and prosperous country. Recognizing that Ghana's single most important asset is her human resources, President John Agyekum Kufuor recently declared before the nation, "I believe in the Ghanaian."
Last year, the government organized the first ever "Homecoming Summit." What stood out most prominently was the strong national consensus for democratic governance and a liberal market economy. The consensus for open and accountable government inspired the government to organize a People's Forum early in the year in which the president appeared before the people to answer questions directly from them.
In spite of the challenges faced by the Ghanaian economy, the government managed last year to stabilize the national currency and to bring down inflation considerably as well as clear a backlog of arrears owed to various construction companies, demonstrating its commitment to creating the most congenial environment for trade and investment in the country.
While the measures so far introduced to tighten up the management of the economy have achieved appreciable success, the international economic environment, characterized by the volatile commodities market, continues to pose a challenge for the national economy.
There still are several opportunities for doing business in Ghana. The factors that make the country attractive for investment include: a stable multi-party democracy and a solid commitment by the government to good governance and the rule of law; a vibrant and dynamic market economy coupled with a macro-economic framework that has consistently recorded positive GDP growth averaging 3-5 percent per annum for the past decade and more; a viable legal and institutional framework to facilitate trade and investment; membership of the Economic Community of West African States (ECOWAS); and the country's ever-improving physical infrastructure. Plans are underway to construct the West African Gas Pipeline. Also, the wealth of human and material resources, quota-free access to the U.S. and European Union markets, and flexible, fast-developing and innovative financial sector are some other advantages Ghana offers.
Looking ahead
The government is resolutely focused on laying the foundation for a strong and resilient modern economy that can hold its own in the competitive global market. President Kufuor outlined the government's development priorities.
The first is vigorous development in infrastructure. The government plans to develop most of the major roads in the country. Other areas that will receive serious attention are air travel, mass transportation to ease traffic congestion in the city and the energy sector as well the ports. The telecommunications sector has been de-regularized. The Ghana Maritime Authority Bill will also establish the framework for more efficient management of Ghana's ports.
Modernized agriculture centered on rural development is the second of the priorities. The government is actively pursuing a strategy that is intended to use agriculture to alleviate unemployment, reverse rural-urban drift of the youth, boost rural development and lay the foundation for the development of agro-based industry.
Social services will be enhanced with emphasis on health and education. The "cash and carry" system is to be replaced with a national health insurance scheme. Many hospitals are undergoing rehabilitation and refitting with modern facilities and equipment. The HIV/AIDS pandemic is being tackled through intensive public education and related measures. Ghana has also received license to produce anti-retroviral drugs to help those already infected. With all arrears of payments cleared, the Ghana Education Trust Fund is now a viable source of sustained funding for education in the country. Discussions are taking place aimed at building a national consensus on the needed reforms as well as long-term funding of the education system.
Alongside on-going programs such as the National Governance Program and the National Institutional Renewal Program there are plans to decentralize the administration of justice instead of concentrating it in Accra. The Land Title Registry whose work impinges directly on investment is also to be re-organized to make land acquisition easier for investors.
To underscore its commitment the government has assured both local and foreign businessmen that its tenure of office shall be the "Golden Age of Business" in Ghana. The Ministry of Private Sector Development has consequently been tasked with identifying, empowering and encouraging the evolution of investors and coordinating inter-Ministerial efforts aimed at taking Ghana into the mainstream of global business. Thus, several new initiatives have been launched aimed at strengthening the country's capacity to meet the challenges of a competitive global environment.
In response to the emergent information technology and biotechnology industries, the government launched the Framework for the Development of Strategic National Information Technology Policy. It is envisaged that a National Information Technology Agency and National Institute for Information Technology would soon be established and expected, respectively, to coordinate IT-related activities and to provide academic training in specialized fields. Standard Chartered Bank and Social Security Bank have introduced, respectively, the Horizon Visa Card and the Sika Debit Card. AfricaOnline, one of the main Internet Service Providers, has also introduced a tracking service into the Ghanaian Postal Service and plans to extend it across West Africa as Accra develops into a postal hub for the region. AfricaOnline is planning to issue its own debit card to facilitate easier online payments in collaboration with Barclays. These are the first steps towards a less cash-driven and more credit-driven society.
Against the background of these dynamic developments in the country, parliament has passed a number of crucial bills aimed at providing the essential planks needed to consolidate the open and harmonious society Ghanaians seek to realize.
The global concerns about the environment have not been lost on Ghana. The appropriate legal framework will soon be established as a first step towards placing Ghana at the heart of the international effort to halt the degradation of the environment.
