Ghana fighting to avoid hedging cocoa

Mr Yaw Osafo-Maafo, Minister of Finance on Friday said the government was fighting hard to avoid hedging its cocoa in the international market to reap the maximum benefit the market prices offered.

Ghana had not been reaping the benefit of the actual world market price of the commodity because she sold in advance sometimes at a low price and even if the price rose the country did not enjoy the actual rise in price.

Mr Osafo-Maafo was winding-up a debate on the 2002 Budget he presented to Parliament on February 21, which received parliamentary approval on Friday after many members praised portions of the document and others condemned it as lacking in focus and direction.

Commending members for criticising and making useful comments on the budget proposal, Mr Osafo-Maafo said the House performed its constitutional and democratic assignment.

He said it was true that macro economic stability alone could not be a panacea to economic development yet it was necessary to stabilise the economy as a benchmark from which all other activities could take off.

"You cannot grow without stabilising and you cannot swim without using your limbs." Mr Osafo-Maafo said there was a slight shift from service providing sectors to agricultural, industrial and mining sectors to expand and to promote economic growth and to generate employment.

He said the Stock Exchange Market made 60 million cedis profit last year compared to a loss the previous year and that this was possible because treasury bills had been falling through financial discipline the government was instilling into the economy.

The Minister said the criticism that the budget was not balanced and that there was a 792.4 billion cedis financing gap was not valid. That amount was not added to the total estimate because it was being expected from external sources that could or could not come and that it was not a gap that was created from "our own domestic financing".