The President of the Republic of Ghana on December 19, met with the press to answer question from the people of Ghana on the general development of the country.
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AT THE MEDIA ENCOUNTER, ON WEDNESDAY, 19TH DECEMBER, 2018, AT JUBILEE HOUSE, ACCRA,/b>
Welcome, once again, ladies and gentlemen of the media, to Jubilee House, the seat of our nation’s Presidency. We almost missed our promised rendezvous of, at least, two press conferences in a year, but we have made it, and, as the saying goes, better late than never.
We have all been busy. I know I have been busy, but not too busy to know that, thanks to technology, you are all able to track my activities every day and, often, in real time.
I wonder, therefore, if there is any harm done if we are not able to get around to a formal gathering such as this often, but, nonetheless, I am glad that we are all gathered here, as I intend to hold to my promise. At this time of the year, I should start by wishing all of you a Merry Christmas and a happy and prosperous New Year.
So, let us get on to the business of our gathering. I am happy to report that I have paid a working visit to all ten regions within the year, as I did in my first year, and plan to do every year of my mandate. I like Jubilee House, I fought long and hard to get an office here, but I have to admit it is always invigorating to go out and meet the people in their own communities. Nothing beats seeing and hearing things for yourself.
For example, going around the country means that I know at first hand that many of our roads are in a bad state. But that is not a new discovery to me, the distressing deficit in our infrastructure has been a running sore for our country for ages, despite the invisible, unprecedented infrastructural developments of yesteryear.
I know that we need to open up our country, build roads, bridges, airports, railways and make it easy for the people and goods to move around. This infrastructure deficit poses the biggest challenge in trying to deal with our development needs. I am glad to be able to report that we have started on a comprehensive programme to tackle this problem.
Ladies and gentlemen, we are resurrecting the railways. The existing narrow-gauge network, which had almost disappeared, and led to a generation of young Ghanaians hardly knowing about railways, is coming alive. Rehabilitation work on the fifty-six (56) kilometre narrow gauge line from Kojokrom to Tarkwa through Nsuta is nearing completion. This will lead to the restoration of passenger rail services from Tarkwa to Takoradi for the first time since 2007.
The freight service from the manganese mine at Nsuta to Takoradi is in operation, and the ongoing rehabilitation has also led to a spectacular reduction in the number of derailments and incidents that occur on the line.
When I went to see the works on the railway lines for myself, I was particularly touched by the enthusiasm of the workers. The Ghana Railway Company Limited, with its own workforce, started rehabilitation works on the seventy point eight (70.8) kilometre narrow gauge section of the Eastern Railway Line from Accra to Nsawam and Accra to Tema.
They did not have or need any foreign experts, so-called, they had the expertise, and those who did not were ready to learn, and they certainly had enough enthusiasm to carry them through.
Rehabilitation of the Achimota to Tema section of the Line is approximately ninety percent (90%) complete, and test runs have commenced. Work is ongoing on the Achimota to Accra Central section of the line and the Achimota to Nsawam section, and I have been assured that this will be completed before the end of the year.
Ten (10) existing passenger coaches have also been refurbished, ready to be pressed into action when commuter services re-open on this line.
We are not only rehabilitating the old narrow-gauge line. I am happy to report that the procurement process is far advanced to develop a new standard gauge line for the Eastern Railway Line and others for us to have a network that covers the whole country.
A major difficulty, which could slow down the work of this exciting development, is the nuisance posed by encroachers. I want to take this opportunity to appeal, again, to all citizens to join in and be part of this exciting development, and not place any hindrances in the path of bringing modern railways to our country.
There is excitement and a lot of activity in the aviation sector, and it is good to note the entry of two new private airlines offering services along the domestic routes. We welcome the competition, as this, already, is bringing down the prices for customers. Terminal 3, at Kotoka International Airport, is open for business and attracting a lot of positive comments.
I expect that the managers of this facility will maintain it at the highest standards. The airports at Ho and Wa are ready, and we await the commercial flights that have been promised.

If the railways and aviation sectors are causing excitement, I believe I
can promise that there will be even greater excitement when work on
repairing and building many roads around the country intensifies. Ladies
and gentlemen, the Sino-Hydro project is about to take off. This two
billion US dollar barter deal that we have negotiated with China should
bring a dramatic and very welcome change to our infrastructure
developments, especially in the roads sector.
The roads that are going to be tackled first, under the facility, have
been enumerated, and they should make a great and immediate difference
to the lives of many people. The first $650 million worth of projects
has been approved by Parliament, and are ready for execution.
It is now up to our professionals, who would be supervising and working
on the projects, to make sure that we get value for money. I am aware
that there is some anxiety among some people that we might be putting
ourselves in a position of too much dependency on China.
Ladies and gentlemen, for far too long, the lack of money has hampered
our development and dampened our self-confidence. I am determined that
we should use what opportunities there are to raise ourselves out of
poverty, but there is no chance that I would ever preside over the loss
of Ghana’s sovereignty to any foreign country.
The settlement of our obligation is through the supply of aluminium
products to China. We have resisted any attempt to export the raw
material for the settlement. That is why we have established the Ghana
Integrated Aluminum Development Corporation, a statutory corporation, to
take charge of the development of the full value chain of our bauxite
resources.
The Corporation is ready to begin work. Not only is this an innovative
way to undertake our infrastructure development, but it also enables us
to establish an industry with a metal, which is described as the metal
of the future, and which can be a major catalyst for our
industrialisation.
In the almost two years that we have been privileged to run the affairs
of our country, everything we have done has been aimed at building a
strong economy.
A month ago, the Minister for Finance went to Parliament and gave us a
candid view of the state of affairs of the economy. He presented a
compelling picture, one of hope, because it is clear that, now, as a
result of our policies, the fundamentals of our economy are in the right
place. The foundation has been laid for the rapid growth and
development we expect next year and succeeding years.
The 2019 budget focuses on six strategic pillars: entrepreneurship,
infrastructure, industrialization, social intervention, agricultural
modernization and improving efficiency in revenue mobilization.
Available data up to the end of September 2018, indicates that Ghana’s
economic health is in good shape.
Headline and core inflation generally trended downwards in 2018.
Headline inflation dropped to 9.3 per cent in November 2018, down from
the 11.8 percent in December 2017. In real terms, growth of credit to
the private sector showed a strong recovery registering a growth of 6.8
percent in September 2018, compared to a contraction of 2.3 percent in
September 2017. Interest rates eased downward in line with the reduction
in the Monetary Policy Rate.
The interbank weighted average lending rate declined by 4.71 percent to
16.23 percent between September 2017 and September 2018. Treasury
securities also declined over the period, in other words, the
fundamentals are all pointing in the right direction.

Even though there is little doubt that salaries and wages continue to be
low, an increase in income levels can only come about by the expansion
and growth of the economy, and that is exactly what we are working to
achieve. I am confident that there will be welcome news on that front
soon. It is, also, quite clear that, when it comes to the expenditure
pattern in our public finances, we are not doing that well.
Public sector salaries and wages are still taking too large a percentage
of our public sector finances, and that is why there is never enough
money left for us to finance all the things we need to do. Revenue
mobilisation is still inadequate. Not enough people are paying taxes or
paying at the proper rate, and too much economic activity still takes
place without any formal records.
The government has put in place many measures to formalise and modernise
our economy. It is the fairest and fastest way to achieve what we all
aspire to. The introduction of the paperless operations at the port, the
interoperability of mobile money transactions, the National Identity
Card rollout, e-business registration system, and access to digital
financial services are all part of the drive to formalise our economy,
and enhance its productivity.
A critical element is the National Digital Property Addressing System
(NDPAS), which aims to generate digital addresses for individuals and
commercial properties and also provide navigation capabilities that
helps with the ease of finding locations. The system has already
attained some milestones.
There are 1.2 million registered and verified addresses. The system has
also recorded seven million, seven hundred and eighty-seven thousand,
eight hundred and ninety-nine (7,787,899) address searches, eleven
thousand (11,000) tagged properties, and twenty thousand (20,000)
digital address deliveries.
I project that we can find addresses without resort to the second turn
on the left after the blue kiosk, and that the banks should be able to
lend money to the private sector at much lower rates. Verifiable
addresses should come with lower interest rates.
Ladies and gentlemen, we expect that the digitization process will help
ease the problems that come with our land tenure system, and investors
can lease and acquire title to lands without the fear of having to
litigate in the courts for years over the same piece of land that had
been sold allegedly to many other people.
Speaking about land leads me, inexorably, to the physical state of our
lands and water bodies. Last Friday, that high-minded public servant,
the world-acclaimed Ghanaian scientist, Prof. Kwabena Frimpong-Boateng,
Chairperson of the Government Inter-Ministerial Committee on Small-Scale
Mining, announced the measures that Government is undertaking to
regularise the mining sector and enforce mining laws.

He indicated, inter alia, the circumstances under which the ban on
legitimate small-scale mining has been lifted. Let me reiterate here
clearly that the ban on galamsey, i.e. illegal mining, has not been
lifted, and will not be lifted. Some of our media collaborators in the
fight against galamsey have, in response to this announcement, expressed
their dismay at what they see as the government having lost the will to
fight galamsey.
The ban on small-scale mining was never intended to be permanent. It was
to enable Government fashion a policy that would sanitise the sector,
and ensure that, in future, small-scale mining, which has been with us
for centuries, would not damage our environment.
The measures announced last Friday do exactly that. I cannot, and will
not, give up on the fight to protect our environment. I entreat the
media and all well-intentioned Ghanaians to continue to join the fight
to protect our lands and water bodies.
Ladies and gentlemen, the protection of the environment is uppermost in
our considerations as we seek to bring rapid development to the people.
One thousand (1,000) units of 10-seater water closet institutional
toilets with mechanized boreholes are currently under construction
around the country, and so are one thousand (1,000) community-based
limited solar powered mechanized water systems. Each constituency is
getting a minimum of three of these institutional toilets and water
systems under the Special Development Initiatives and the Development
Authorities.
I notice that there is room for constituency priority infrastructure
needs, under which the constituencies pick what they identify as their
priority need. I believe there is a lesson in there for all of us by
simply taking a look at the diversity of priority needs: community
centres, police posts, street lights, culverts etc.
The procurement process will enable every constituency to get one
ambulance each in the early part of next year. This will not solve the
ambulance problem immediately, but it certainly shows more commitment to
finding a solution than we have ever seen. Lots of things are happening
in the health sector, including the fact that this government has paid
up the GH¢1.2 billion arrears we inherited, and brought the operations
of the NHIS back to life.
We are also in the process of launching the world’s largest and most
advanced medical drone delivery network. The four (4) distribution
centres, from where the drones will be operating, will stock one hundred
and forty-eight (148) lifesaving and essential medical supplies, and
not only blood.
The drone delivery service will save lives, decrease wastage in the
system, guarantee healthcare access for more than 14 million people
nationwide, and employ over two hundred (200) Ghanaians. This programme
is NOT going to be run on the public budget. Corporate Social
Responsibility contributions from private sector players will pay for
the service. I prefer drones flying to deliver essential medicines to
our people than an investment in guinea fowls that allegedly fly off to
Burkina Faso without any trace.

In all we do, we want to ensure that health officials are well-trained,
reasonably content with their conditions, and are able to practice their
profession, so we can all have the confidence to entrust our lives into
their hands. The prosperity we seek for our people can only be attained
when our people are healthy.
Ladies and gentlemen, for the first time in many years, there is an
abundance of food, and, I note that prices of foodstuffs are low, and,
in some cases, there is a glut. We are currently exporting plantain to
some of our neighbours. Quite a turnaround from when I was lamenting two
years ago that we were importing plantains from Cote d’Ivoire. We also
did not import a single grain of maize this year.
It is not often we have such good news, and it must mean if you invest
in agriculture, you get results. “Planting for Food and Jobs” is
working, and I look forward to rice joining the list of foodstuffs we
are no longer importing. I also look forward to meat and fish becoming
abundant under the “Rearing for Food and Jobs” programme, and our
farmers being rich and satisfied with their lot in life. I encourage all
of us to look on farming as the serious business that it is.
Radical measures are being taken to establish a solid infrastructure for
agriculture – the imminent availability of significant numbers of
tractors and the enhancement of Agricultural Mechanisation Centres, the
construction of 80 warehouses this year for the storage of surplus food,
the revival of the National Food and Buffer Stock Company, and the
recent establishment of the Commodities Exchange.
All these are being done to modernize and transform Ghanaian agriculture to serve as a major growth pole for the economy.
Despite the dramatic decline in the world market prices for cocoa, we
maintained the producer price paid to farmers as a sign of our
commitment to them. We are on course to realizing the 1 million tonne
mark for our cocoa production, and seeing to the increasing domestic
processing of the product. Our alliance with Cote d’Ivoire, to change
the dynamics of the global cocoa industry, is also on course to enable
us, the producers, obtain an increasing share of the industry’s value
chain. It is good news for our farmers.
One of the highlights of my year was sitting through a morning of what
we called the Presidential Pitch, where young people who had been
trained to turn their entrepreneurial ideas into businesses, made
presentations. I felt pleased and happy that the future was bright for
our country. The entrepreneurial spirit is growing among the youth and
that has to be good.
It is also being manifested in the fact that we are paying greater
attention to technical and vocational subjects in schools and training
institutions, and encouraging those who want to pursue such trades and
professions.
Free SHS gets all the headlines, but I encourage you to look at all the
other interesting and dynamic new things that are happening in Education
in our country. Of course, Free SHS deserves to get the headlines; we
have held our nerves and Ghanaians have come to accept that every child
deserves a secondary education.
We have not got enough classrooms or desks or laboratories or computers
or dormitories, but children, once born, cannot wait until we get enough
Prempeh Colleges and Holy Childs around the country before they can
attend secondary school. In addressing this issue, Government, with
ingenuity and innovation, has, through the Ghana Education Trust Fund,
secured a $1.5 billion facility to help develop infrastructure in our
schools.
Parliamentary approval has been obtained, and the first tranche of this
facility will be used to build more classroom blocks and dormitories in
our schools to give our schools appropriate facilities to meet the
demands of the 21st century.

And, so, we are on doubletrack, and we are building the classrooms and
laboratories, and gradually turning the once deprived schools into
well-equipped ones. We find that paying attention to the proper
management of schools means we are getting better results.
The area to show the results, really, would be when school is over and
we see the quality of products that emerge. Would we have the literate,
numerate and well-trained workforce that Ghana needs to be able to
compete on the world stage?
As we have been making our voices heard on the international stage, some
countries are beginning to take a chance on us. It is not every day
that Volkswagen, Nissan and Sino-Truck offer to build assembly plants in
your country round about the same time.
We would have to demonstrate through our expertise, our work culture and
attitude that they have taken the right decision. Systematically, we
are also rolling out our 1-District-1-Factory policy of
industrialisation.
Thus far, seventy-nine (79) projects have been implemented under 1D1F,
with another 35 going through credit appraisal by officials of the
Ministry of Trade and Industry and the financial institutions that are
supporting the programme.
Under the Stimulus Package, two hundred and thirty-seven million dollars
($237 million) have been disbursed to 16 companies, with an additional
thirty-five (35) being considered for support. The process of
industrialization will be accelerated in the course of 2019.
The possible creation of new regions – the first such exercise by
democratic, constitutional means in our history – has made rapid
progress, and, in a week’s time, voting will take place in the referenda
to decide if we should have six new regions. I am grateful to the
people who have put in all the hard work to bring us this far, and I
trust that the new leadership of the Electoral Commission will pass well
their first test of organizing a free, fair, transparent poll. I pray
and expect that the voting will go off peacefully. There can be no
excuse for any disturbance or violence.
The people who seek new regions are not seeking to secede from Ghana –
they are Ghanaian citizens who are seeking new administrative structures
to guide their lives by a constitutionally-sanctioned process within
the Ghanaian space. The Supreme Court has unanimously confirmed and
validated the propriety of the process. Let us, then, leave them in
peace to have their day, and see whether they can satisfy the high
constitutional threshold for the creation of new regions.
It is, of course, during times like these that we all realize what a
great debt of gratitude we owe to our security services. As the
policemen at a roadblock tend to say when you come across them in the
night on your way home from an outing, they are being beaten by
mosquitoes so we can be safe! No, I am not recommending you give money
to the police on the road, but it is true that they keep us safe.
I am happy that we are gradually being able to give them the tools they
require to perform their duties. A few months ago, I presented the
Police Service with two hundred (200) vehicles. The National Fire
Service and other agencies are all being stocked. The exercise to
recruit four thousand (4,000) young people into the Police Service is
on, so that the increased numbers would make their work easier.
The Ghana Armed Forces continue to perform their duty of guarding and
protecting the integrity of Ghana. They have been in OPERATIONS CALM
LIFE, COWLEG, HALT and AHODWO to maintain law and order.
They have also participated in ‘Operation VANGUARD’ to reduce illegal
mining and environmental degradation, and Operation ROADSTAR to
construct a 40-acre Cattle Ranch to accommodate some six thousand
(6,000) cattle at Wawase, Afram Plains, as part of the measures to stop
the perennial nomadic headsmen menace. Already, four thousand (4,000)
cattle are enclosed there.
A legislative Instrument has passed Parliament that has increased the
duration of the service years of the “Other Ranks” from 25 to 30 years.
Construction is going on to deal with the housing needs of our Armed
Forces. This year, as they have done consistently for more than forty
years, the Ghana Armed Forces has contributed about two thousand, seven
hundred and forty-six (2,746) men and women to serve in peace keeping
efforts around the world.
I am glad to see that the proactive measures being taken have helped to
reduce the incidence of vigilantism associated with members of the
ruling party. I am determined to stamp it out completely, as well as any
other sources of vigilantism that may emerge.
I have said that I have been busy and, indeed, apart from going around
all ten regions of Ghana, I have also done quite a bit of travelling
around the world to continue with the marketing of our country abroad.
Quite a number of world leaders have also visited Ghana.
The German Chancellor, Angela Merkel, was here, and so was the French
President, Emmanuel Macron, and so was the Emir of Qatar, His Highness
Sheikh Tamim bin Hamad Al Thani, and so was the heir to the British
Throne, Prince Charles, and his wife, Camilla, the Duchess of Cornwall,
and the Managing Director of the International Monetary Fund, Christine
Lagarde, has also paid us, this week, a visit of encouragement. I
believe all these interactions help to illuminate the progress we are
making in Ghana.
Government has increased the funding for the accountability institutions
of our State, such as Parliament, the Judiciary, the Office of the
Attorney General, CHRAJ and the Auditor General. 2017 witnessed a 12.2%
increase in allocations to these five institutions over that of 2016.
The financial endowment for the establishment of the Office of Special
Prosecutor has also been made. I have no doubt that we will hear from
the Special Prosecutor when he is ready.
The institution of the Office of the Special Prosecutor does not mean
that the Office of the Attorney-General no longer functions. Indeed, the
prosecutions the Office has initiated in the last year and a half – the
Republic vrs Stephen Opuni, Seidu Agongo and Agricult (GH) Ltd; the
Republic vrs Ernest Thompson and Othrs; and the Republic vrs Baffoe
Bonnie and Othrs – involve the alleged, willful loss or theft, in the
period of the last government, of some GH¢556 million.
This past year, the Office of the Attorney General has also been busy
vigorously defending the state in many civil cases, and has won so many
cases for government.
I suspect the word has gone out that the government of Ghana is no
longer the soft touch she was reputed to be. Every case brought against
the government will be vigorously defended, and the days of easy
judgement debts are over.
We inherited a financial system that was under a considerable state of
distress, with banks that were known to be insolvent as far back as
2015, and banks that had been licensed without the requisite capital.
Some of these banks were surviving day to day only by virtue of
liquidity support from the Bank of Ghana with the underlying problems
that plagued them remaining unresolved.
To protect depositors’ funds as well as to prevent contagion from these
failed banks to the rest of the financial system, the new administration
of the Bank of Ghana took some courageous measures in the public
interest, to clean up the banking system and to put it on a stronger and
more resilient path.
There is no doubt that the failure of the seven banks came at a cost to the Ghanaian taxpayer and staff of the affected banks.
However, the decisions taken by the Bank of Ghana and the financial
support Government provided through the establishment and funding of
Consolidated Bank Ghana Limited, ensured that deposits of more than 1.5
million customers with deposit values of over GH¢10 billion and about 70
per cent of the 5,000 jobs in the affected banks were saved.
This was important to alleviate the severe adverse outcomes that could
have occurred. It is important that the costs of these interventions,
which were borne by taxpayers, are recovered to the extent possible
through recoveries from debtors, shareholders, and related and connected
parties who took money from the defunct banks.
The receivership processes are ongoing, and the receivers are making
great strides in their recovery efforts. Amounts in excess of GH¢400
million have so far been recovered by the Receivers of the 2 banks
closed last year.
The Government has set up a Special Investigations Team to undertake
criminal investigations into the failures of all seven banks for
possible prosecutions by the relevant State agencies. No one found
complicit will be spared. The Bank of Ghana is conducting its own
internal investigations into the conduct of its officials (past and
present) that could have facilitated wrong doing at these banks.
At the same time, the recapitalisation efforts by banks have been very
successful so far, with about twenty-two (22) banks already meeting the
new minimum capital of GH¢400 million well in advance of the 31st
December deadline. The twenty-two (22) banks that have met the new
requirement include a good number of indigenous banks.
A few others are in the final stages of meeting this requirement. I am
confident that at the end of the exercise, we will have a stronger, more
resilient banking sector with a strong indigenous presence,
well-positioned to finance the next phase of our agenda of economic
growth.
The interest of major oil companies in Ghana has become dramatic. Today,
oil companies such as the American giant, ExxonMobil, and the Norwegian
conglomerate, Aker, have signed petroleum exploration agreements with
Ghana.
Through the launch of the “GHANA OIL AND GAS LICENSING ROUNDS 2018”, the
bidding process for the allocation of new petroleum rights to
prospective investors, the first such exercise in our history, other
global players such as BP, CNOOC Group and Total have expressed interest
in coming to Ghana. We anticipate, as a result, an increase in crude
oil production from the current 200,000 barrels per day to 500,000
barrels per day in the medium-term, and to 1 million barrels per day in
the long-term.
The Ghana National Petroleum Company, on its part, is conducting a
geochemical analysis, and will soon start a 2-dimensional seismic survey
over the northern and southern sectors of the Voltain basin. Successful
results of this survey will pave way for exploration and drilling
activities to begin.

This year is an important one in the economic history of Ghana. We are
about to exit, at the end of the year, from our 17th IMF programme since
we joined the institution. We are doing so on a good note, and expect
that the two remaining reviews in January and April next year will be
completed successfully.
The presence here, earlier this week, of Madam Christine Lagarde, the
Managing Director of the IMF, who expressed clearly her support of the
current management of the economy, is, in this regard, a good omen.
The most important lesson that we must derive from our IMF experience is
that we cannot afford, any longer, any disarray in our public finances,
the reason for our demand for IMF assistance. Government will
legislate, in this meeting of Parliament, a fiscal rule that will cap
permissible fiscal deficits at a maximum of 5%, and a debt-to-GDP ratio
of a maximum of 65%.
It is my intention to anchor the implementation of this fiscal rule that
will provide stability to our economy, by establishing a Presidential
Advisory Fiscal Council, composed of eminent Ghanaian economists, who
will provide independent advice to the President on how to comply with
the fiscal rule.
We have everything to gain from discipline. It is the foundation for sustainable, rapid growth of the economy.
As you can see, a great deal of work is being done in so many areas, so
that we can turn our back on our recent era of failure, and set our
country on the path of sustainable, rapid development and growth. I am
excited about the prospects for Ghana, and I invite you to share in this
excitement, which will see the Black Star shining brightly again.
Thank you very much for your attention.
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