Ghana benefits from French largesse

TOTAL French Investment through the Agence Francaise de Developpement (AFD) as at the end of December 2001 stood at 327 million euros.

This is as a result of Ghana?s inclusion in the list of the ?Priority Solidarity Zone? countries as part of the reform of French Co-operation Mechanisms.

Ghana, which became a member of the zone about two years ago, is benefiting from various financial and technical instruments available under the French Development programme assistance some of which have been restricted to the francophone countries.

Current portfolio of 15 projects in the country with the government amounts to 85 million euros.AFD recent activities have focused on infrastructural development in rural and urban areas and in the agricultural sector mainly in Northern Ghana.

These projects include the fight against the lethal Cap 57 Pact with coconut disease and the rehabilitation of small holder plantations in the Central and Western regions. A six million euro expansion of outgrower rubber plantations in partnership with the Ghana Rubber Estates Ltd. in the Western Region is currently going on.

Urban roads in the two harbour cities of Tema and Takoradi are also being rehabilitate with a development assistance programme of 20 million euros.

The major programmes being undertaken with financial assistance from AFD include drainage works within the city of Accra, rural and water sanitation project in the Northern Region, rehabilitation of urban roads in some district capitals and the rehabilitation of feeder roads and construction of rural bridges in the northern sector of the country.

Propaco, the subsidiary of AFD which is dedicated to supporting the private sector, has set up a strong partnership with the banking sector by providing medium-term line of credit to finance the investment projects of small and medium sized enterprises.

Five commercial and leasing companies have so far benefited from PROPACO?s lines of credit up to $27 million. On bilateral trade between France and Ghana, French sales to Ghana amounted to 145 euros at the end of 2001 an increase of 31 per cent compared to 2000 and (111 million euros). Ghana became the 95th client of France in 2001 (it was the 104th in 2000)

Import of French products was mainly in the area of semi-finished products, equipment and agro-products. In 2001, France was the fith supplier of goods to Ghana. In 2001, Ghana?s export to France amounted 102 million euros, an increase of five per cent compared to 2000; export involved mainly agro-products. At the end of 2001 Ghana was the 93rd supplier of goods to France.

France was the seventh client of Ghana in 2001. French import had a supplus of 43 million euros at the end of 2001.

During the first seven months of 2002, French sales amounted to 67 million euros, a decrease of 28 per cent compared to the same period of 2001. Ghana is now the 102nd client of France.

Over the seven-year period, French sales to Ghana increased by almost 133 per cent in value (145 million euros in 2001 as against 62 million euros in 1995). The trade balance, which initially had a surplus in favour of Ghana (in 1995, 1996, then 1998) became a deficit for Ghana in 1999 and in 2000 and become a surplus again in 2001.

In terms of value, French investment occupy the third place in Ghana, behind the United Kingdom and the United States of America.

About 50 French companies are operating in Ghana in various sectors of the economy: Petroleum products (total Elf Fina), hotels (Accor - Novotel), shipping (SDV), inspection (Bureau Veritas), water and electricity (Sade, Burgeap, Spie, Norelec), road construction (Razel, Colas), distribution (CFAO), agriculture (GREL) and industry (Franpac, I?Air Liquide).