Consultative Group Meeting on economy underway in Accra

Accra, June 30, GNA- The 15th Ghana Consultative Group Meeting is underway in Accra, to pave the way for massive capital injection into the economy which is reeling under the burden of fuel price hikes and other global economic shocks.

The annual partnership event, which is being attended by 350 participants, comprising government officials, development experts and partners and civil society organisations would offer the donor community the platform to indicate how much money they could pump into the economy within the next three years.

Vice President Alhaji Aliu Mahama opened the day's meeting where the participants would discuss the results, achievements and challenges of Ghana's development and poverty reduction efforts. It was on the theme: Ghana's Aid Policy-A Joint Approach to Accelerated Development." Highlights of the meeting include a long-term national development plan being prepared by the National Development Planning Commission and the Annual Progress Report on Ghana's Growth and Poverty Reduction Strategy II.

Vice President Mahama described the discussion of the aid policy for Ghana as "The icing on the cake" for the ruling New Patriotic Party (NPP) and an appropriate end of service gift for the Government. The term of office for the current NPP administration ends on January 7, 2009.

He expressed gratitude for the study initiated by the development partners on Division of Labour to help address donor fragmentation, accountability and transparency and also minimise transaction costs and achieve greater comparative advantage.

Vice President Mahama said Ghana had succeeded in stabilising the economy and growing to an appreciable rate.

"The achievement made it possible for Ghana to successfully issue a Euro-bond to the tune of 750 million dollars on the London Stock Exchange in September 2007 to fund infrastructural development. Vice President Mahama said Government would endorse a Voluntary Partnership Agreement with the European Union to help the country to address challenges in the forestry sector to ensure that the resource is used in a sustainable manner.

Touching on the huge crude oil find, he said government would work with the various Oil and Gas Sub-Committees to evolve a policy and strategic position to harness it to impact positively on the National Development Agenda.

Mr. Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, said the pressures from domestic power supply shock, higher crude oil process and escalating food process had stalled the resistant potential of the economy.

"For instance, Ghana's crude oil import bill has risen from 500 million dollars in 2005 to 2.1 billion dollars as at the end of 2007 and is moving to 2.5 billion dollars for the same quantity of oil," he said. Mr. Baah-Wiredu projected a growth rate of nine per cent to 10 per cent between 2009 and 2015 to facilitate Ghana's entry into the big economic league.

Mr. Ishac Diwan, Country Director of the World Bank said the meeting was not "business as usual," since Ghana had a lot on the table to be discussed..

He described Ghana as a "star performer" in Africa despite the global environment challenges.

Dr. Paul Acquah, Governor of the Bank of Ghana called for prudent planning to solve the problems confronting the economy.