Swiss investment in Ghana is based on stable economy- Knapp

Accra, March 23, GNA - Mr Oscar Knapp, Swiss Minister of International Development on Wednesday said investments by the Swiss Government in Ghana was based on good governance, democratic development and a stable economy.

He said: "Swiss investments in Ghana is not based on the co-operation and cordial relationship between both countries but on the efficient good governance, well developed democracy and a stable economy."

Mr. Knapp, who is leading a 20-member Swiss Business Delegation to Ghana made the observation when the delegation paid a courtesy call on President John Agyekum Kufuor at the Castle, Osu.

"We are impressed about the macro-economic development and sure the investments would be fruitful and the Swiss taxpayer would see their monies were invested profitably ", he added.

President Kufuor said some skeptics had doubted the Government's performance in governance and the efficient and effective management of the economy.

He said Ghana and Switzerland had been friends many years ago and related in many sectors such as education, health and in religion. President Kufuor said the investments by Switzerland, especially in the private sector partnership would help reduce poverty and create more job opportunities and further strengthen relationship between both countries.

During their three-day visit in Ghana, the delegation on Tuesday signed a Memorandum of Understanding (MOU) for 10 million dollars from Switzerland for the reconstitution of the Volta River Authority (VRA) into two separate companies as part of Ghana's Power Sector Reforms.

The MOU signed between the governments of Ghana and Switzerland would turn the VRA into a Hydro Company responsible for hydro generation and another company to own the Aboadze Thermal Power Complex.

The 10 million-dollar-grant would be used as payments to the private service provider under the Management Support Services Agreement (MESSA), effect change management activities within the ECG and finance poverty-focused infrastructure improvements.

The 20-member delegation was in Ghana to strengthen and deepen existing bonds beyond governmental level and forge partnerships at the private level.

Private sector operators in construction, engineering, fruits, textiles and electricity were among the delegation. Cabinet also approved a memorandum to put in place the aim of improving the operational performance of the distribution utilities, namely ECG and the NED.

The 10-million dollar grant would be used as payments to the private service provider under the MESSA, effect change management activities within the ECG and finance poverty-focused infrastructure improvements.

Mr Knapp said the decision to support the reforms was an important one for the Swiss government, which focused on providing increased support to the private sector. March 23 05