Let’s make wealth creation our focus — Kufuor

Former President John Agyekum Kufuor, has stressed the need for governments and the private sector to make wealth creation the country’s focus.

That, he said, could be done if government continuously improves the business environment for the private sector to grow and contribute more meaningfully to Gross Domestic Product (GDP).

Recounting some of the achievements under his tenure as President between 2001 and 2009, he mentioned the declaration of the ‘Golden Age of Business’ a mantra he said inspired renewed hope and confidence in Ghana’s economy and which attracted many Ghanaians from the diaspora to return home to invest in the economy.

He also mentioned how Foreign Direct Investments (FDIs) ballooned during the period.

Former President Kufuor said this in his remarks when he was rewarded by the American Chamber of Commerce (AMCHAM) Ghana at the celebration of the 35th anniversary of the chamber. 

The occasion was also to mark America’s Thanksgiving Day, while honouring individuals and companies for their invaluable contribution to the growth of the chamber.

Former President Kufuor said that with the private sector as the engine of growth, there was a need for deliberate policies that enabled them to thrive, while helping to create wealth for all.

He mentioned Carghill and Newmont among many others that found the country attractive and had to change their course from Cote d’Ivoire where they wanted to invest and opted for Ghana.

Business environment

Unlike in the past when more businesses found Ghana a conducive destination to invest, many private businesses are relocating to neighbouring countries due to what has been described as the unfavourable business environment.

They mentioned excessive taxes at the ports of entry where raw materials imported for production among other equipment attract up to 21 different taxes and levies.

They have also listed the taxes on production among other things, which they argued, were not helping their cause.

All these are aggravated by high inflation which stood at 21.5% in October, as reported by the Ghana Statistical Service (GSS) and the cost of borrowing at 29.84% according to the Ghana Reference Rate effective November 6.

AGOA

Former President Kufuor mentioned the African Growth and Opportunity Act (AGOA) initiative and how Ghana took advantage to help boost private sector growth.

He said despite the gains, there are still opportunities available that the private sector can exploit to export into the US market duty-free and quota-free.

He reminded Ghanaian exporters about the quality standards required by the US if they are to fully leverage the opportunity.

Against this background, he stressed the need to encourage Joint Ventures (JVs) that will enable companies to meet the standards required by the US and also help add more value to Ghana’s natural resources before they are exported.

He paid glowing tribute to AMCHAM for the role it plays in strengthening economic ties between Ghana and the United States.

AfCFTA

The American Ambassador to Ghana, Virgina Palmer pledged the resolve of America to support efforts for the African Continental Free Trade Agreement (AfCFTA) to succeed.

“The US government and other development partners provide technical assistance for this effort because it will transform economies and livelihoods on the continent.  

However, regional integration is a long-term project.  And even those of us here in Accra who are tuned into the AfCFTA can miss major moments of progress.  We are in one of those moments and some very important threshold progress has been made,” she said. 

She said Ghana was one of the pioneers of the Guided Trade Initiative (GTI) in 2022, which saw eight countries commence trading under the AfCFTA for some limited products adding, “there has been significant progress since then.  As of October, there are now 37 AfCFTA State Parties that are “open for business” for trading under 
the AfCFTA for a wide range of goods.  This creates real opportunities for Ghanaian exporters and foreign investors whose products meet the rules of origin.”  

The American Ambassador added; “There has also been tremendous progress on important protocols related to investment, the digital economy and women, youth among other areas. 

Africa is innovating and tackling leading-edge policy issues in this process.  If the companies in the audience have not thought about your “AfCFTA strategy” for business on the continent, we encourage you to do that.” 

Vigilance

Ms Palmer said despite the successes, companies and policymakers needed to be vigilant.  

“While many barriers are coming down across Africa, new ones are also being created.  I encourage the private sector to play a role in pushing the Ghanaian government and other AfCFTA governments to rigorously implement the agreement so that it can deliver on its promise.  

We are already starting to see some potential green shoots of the types of regional value chains that have transformed and industrialised other continents     - sectors such as lithium mining, processing and battery production for example.”