Gov't is determined to diversify economy - Ashitey

Pretea (W/R), March 14, GNA - The President's Special Initiative (PSI) on oil palm, is one of the projects being pursued as part of government's efforts to diversify the country's export and production base to enhance steady economic growth and wealth creation, Minister of State, Ishmael Ashitey has stated.

Mr Ashitey who is at the Ministry of Trade, Industry and Presidential Initiatives, said Government was no longer over dependent on few primary products like Gold, Cocoa and Timber for its foreign exchange earnings.


Speaking at the celebration of this year's Norplam farmers' awards day at Pretea in the Ahanta West district on Saturday, Mr Ashitey reiterated the government's determination to pursue its economic policies vigorously to enhance the pace of growth.


"The PSI on oil palm has the principal objective to make the oil palm industry one of the new key drivers of economic growth and wealth creation", he stated, and urged farmers and landowners in the area to embrace the projects.


He said in order to make the project viable and more beneficial, a total of 100,000 hectares of new oil palm plantations were expected to be cultivated within the next five years, adding that this would subsequently increase to 300,000 hectares to meet palm oil demand in the West African sub-region.


Mr Ashitey assured the farmers of government's support for the supply of improved seedlings and other inputs, including easy access to financial credits.

Norpalm, which is among companies selected to raise improved oil palm seedlings for supply to out-grower farmers has nursed 50,000 seedlings that would be ready for transplanting in September, this year.


Mr Ashitey appealed to chiefs and other landowners in the area to pledge at least 10,000 hectares of land to kick-start the project that would also offer employment to the youth.


Mr Thor Bakkan, General Manager of Norpalm, commended the over 5,000 out-grower farmers who are currently supplying fresh fruit bunches to process over 60 percent of palm oil produced by the company. He urged farmers to cultivate high quality seedlings for maximum returns and also for their mutual benefit.


Mr Per Schoenberg, Chairman of board of directors of the company, lauded the government for its efforts to create an enabling environment for private sector development.


He mentioned political stability, low interest rates on borrowing, single digit inflation and respect for the law as a prerequisite for investment and said the government has come a long way in achieving these goals.

Mr Schoenberg spoke about the current land title issue between the company and the indigenous people, which he said, was frustrating the Company's expansion programmes.


He appealed to the government to expedite action on the land issue to enable the company to operate in peace. Mr Kwesi Binney, District Chief Executive for Ahanta West, called on the company to offer a minimum guaranteed price for fruits supplied by the farmers.


He warned chiefs and other landowners who offer their lands for "galamsey" operators to desist from the act since it that contravenes the law.


He explained that it is only the Minerals Commission that has the authority to give out land for mineral prospecting and mining activities.


In all 210 farmers were honoured at the ceremony. They were given roofing sheets, Wellington boots, crates of soap, bicycles, cutlasses and cloth.