President Akufo-Addo at the 5th FT Africa Summit
President Akufo-Addo says his government, over the last 21 months, has ensured stability and adequate supply of power in the country, notwithstanding the erratic power situation it inherited.
Speaking at the Financial Times Africa Summit in London on Monday, 8th October, 2018, President Akufo-Addo indicated that his government, over the same period, had also ensured a reduction in tariff rates, with domestic consumers enjoying tariff reduction of up to 17.5% and a 30% reduction for industry to stimulate industrial activity.
“In addition, a review of 24 power purchase agreements, which has led to the termination of 11 power deals and the rescheduling of eight others, has enabled us to save the government treasury about $7 billion in excess capacity charges over a 13-year contract period,” the President said.
He told the forum that his government had issued seven-year and 10-year cedi-denominated bonds, totalling GH¢4.7 billion, which have halved the $2.4 billion energy debt it inherited.
Time for economic transformation
After 25 years of a stable and free democratic nation, with a strengthening market economy, President Akufo-Addo indicated that today Ghana has the best opportunity since independence to undertake a deliberate and meaningful transformation of its economic structure and set it on the road to modern development.
As a relatively new entrant in the league of oil-producing countries, President Akufo-Addo indicated that Ghana has the perfect occasion to transform the structure of her economy through industrial and value-added commercial activities.
“We are determined to use our oil revenues to create assets, not waste it on consumption and accumulate debt,” he said.
Additionally, President Akufo-Addo told the forum of his government’s desire to develop strategic industries out of Ghana’s abundant natural resources of bauxite and iron ore.
“We have established by statute, two months ago, a public commercial corporation, the Ghana Integrated Bauxite/Aluminium Development Corporation to assemble the relevant financial resources for the full exploitation and development of the entire value chain in Ghana of our large bauxite deposits,” he pointed out.
By the same token, President Akufo-Addo indicated that “we have decided to exploit our substantial iron ore and manganese deposits situated in the Western and Northern Regions of our country to build an integrated steel industry to serve the needs of our country and region. We are seeking suitable partners for both ventures.”
The President gave an assurance that his government would ensure that businesses are up and running, having access to capital and at the same time maintain macro-economic stability, an efficient bureaucracy, a strong adherence to the rule of law, and a fair and equitable social system in health and education.