Kojo Oppong Nkrumah
Information Minister Kojo Oppong Nkrumah has dismissed claims that Ghana has applied for the Highly Indebted Poor Countries (HIPC) programme of the International Monetary Fund (IMF), saying the claims are false.
There has been an attempt to create the impression that Ghana is going back to the debt relief programme and recent media reports have suggested that President Akufo-Addo has taken Ghana back to HIPC due to what they claimed to be ‘gross economic mismanagement,’ but the minister said the reports are fake.
Mahama Fire
It was former President John Mahama who appeared to have started the HIPC issue which the NPP has described as ‘propaganda’.
At a meeting at the La Palm Royal Beach Hotel in Accra on Monday, Mr. Mahama berated the NPP for always saying that he left nothing in the kitty.
“Contrary to the impression created by Nana Addo Dankwa Akufo-Addo that he inherited nothing from me and that he inherited a mess, I left him revenue from two new oil fields—the TEN field and ENI Sankofa fields. I left him with $270 million in the Ghana Infrastructure Investment Fund. I left him with more than $207 million in the Stabilisation Fund and about $300 million in the Sinking Fund with which the final payment of the Kufuor euro bond was paid on maturity in 2017.”
Mr. Mahama then said, “As for the 2020 growth, the economy that was sold to us as resilient and capable of withstanding shocks for at least three months without any external intervention could not stay afloat without IMF support for more than three weeks.Even worse, the rate of borrowing by this government has dazed many observers”, adding, “The IMF in its sub-Saharan African Regional Economic Outlook forecast the current rate of borrowing and debt at a frightening 76.7% debt to GDP ratio. Ladies and gentlemen; unfortunately, Ghana is back to HIPC status under Nana Akufo-Addo and Ken Ofori-Atta administration.”
HIPC History
The International Monetary Fund (IMF) and the World Bank Group’s International Development Association (IDA) agreed on February 22 and 26, 2002 to support a comprehensive debt reduction package for Ghana under the enhanced Heavily Indebted Poor Countries (HIPC) initiative.
Then NPP government led by President J.A. Kufuor, after assuming office in 2001, signed Ghana unto the Bretton Woods institutions arrangement for poor countries because the previous NDC government had mismanaged the economy and the country was going to struggle if that action had not been taken.
At the time, the total relief from all of Ghana’s creditors was worth approximately $3.7 billion, which was equivalent to $2.186 billion in net present value (NPV) terms, one or 56 per cent of total debt outstanding after the full use of traditional debt relief mechanisms.
Govt Rebuttal
However, delivering a welcome remark at the 5th Nation-Building Updates yesterday at the Academy of Arts & Sciences in Accra, the minister said there is no such attempt by the government as being bandied about.
“That is not true, it is a false narrative,” he said, adding that currently, there is no HIPC programme for any country to sign on to.
Mr. Oppong Nkrumah said Ghana exited the programme long ago and has never signed on to it again.
“Currently, there is no HIPC programme for any country to even qualify for,” he stated.
On the contrary, he said the Ghanaian economy has seen significant improvements under the Akufo-Addo administration, adding, “So, please disregard all of those false narratives that are being put out there.”
Regional Ministers
The 5th Nation-Building Updates had some five regional ministers taking their turns to share insights into steps they were taking in their respective regions to help rebuild the economy.
The ministers included Kwabena Okyere Darko-Mensah, Western Region; Kwamena Duncan, Central; Dr. Archibald Y. Letsa, Volta; Salifu Saeed, Northern Region, and Evelyn Ama Kumi-Richardson, Bono.
Volta Security
Dr. Letsa, taking his turn, said that the security situation in the Volta Region is under control despite recent violence by people who claimed they wanted to ‘secede’ and form a state called Western Togoland.
According to him, the government has taken control of the region’s security situation and that everyone interested in investing in region are assured of peace and security.
In the early months of the NPP taking office in 2017, there were serious security challenges at Alavanyo and Nkonyan, he recounted, but said that through the interventions of the government and all stakeholders, peace has been restored to restive area.
He said the security agencies are vigilant and would not allow anybody to foment trouble in the region.
Central Challenge
Taking his turn, Central Regional Minister Kwabena Duncan said that despite recent insecurity issues, including the gruesome killing of the MP for Mfantseman, the region is still the most peaceful and secured region in the country.
He stated that the entire region has been profiled for the 2020 elections and there are only three hotspots in Awutu Senya East and Effutu constituencies, saying, “We are secured as a region to be part of the elections…We as a region will go through this election without a breach of the peace.”
Sunyani Airport
Bono Regional Minister Mrs. Evelyn Ama Kumi-Richardson said they are expecting to commission the Sunyani Airport project soon.
She stated that the airport is expected to improve economic activities in the region by opening up the region through travels.
She described the region as the most peaceful region in the country, saying all investors are welcome to enjoy the peace of the region.
WR Roads
Western Regional Minister Kwabena Okyere Darko-Mensah stated that at least 60 per cent of the roads in the region “are in a good to fair shape and 38.2 percent of the roads are in a bad shape.”
According to him, 80 contracts have been signed for 1,300 kilometres of roads, adding that contractors are on site already for the projects.
He wooed investors to take advantage of investment opportunities in the region and said the government’s agenda to make the place oil hub is on course.
NR PFJ
Northern Regional Minister Salifu Saeed, on his part, said key government’s programmes, especially ‘Planting for Food and Jobs’ (PFJ) are critical for the economic development of the region.
He stated that the mainstay of the Northern Region is agriculture and as such investment in the sector by the government is helping to improve upon the livelihoods of farmers and all people in the region.
He also said efforts by President Akufo-Addo to restore peace in the region and end the Dagbon chieftaincy crisis has made the region safe and providing the opportunity for farmers to work in peace, and said the people are highly grateful to the President.
The minister said because of the Free SHS, the interest in education among the youth has gone up suddenly and it has brought some level of relief to parents.
He also said under the Infrastructure for Poverty Eradication Programme (IPEP), a total of 751 projects were underway in the Northern Region, with 451 being education projects, 31 health projects, 49 road infrastructure projects, 91 sanitation and water resources projects, 12 agriculture projects, 38 rural electrification projects and 79 socio-economic projects.
By Melvin Tarlue