President Akufo-Addo speaking at the German-Ghana Business Forum in Berlin
President Akufo-Addo has said that despite the excellent relations that exist between Ghana and Germany, the former has decided to turn its back on the old economy, which had been dependent on the production and export of raw materials, as well as aid.
According to President Akufo-Addo, “We want our relations with Germany to be characterised by an increase in trade and investment co-operation.”
He explained that an increase in trade and investment cooperation between the two countries is the only way to put Ghanaian products at the high end of the value-added chain in the global market place, and, thereby, create jobs for the teeming masses of Ghanaians, particularly the youth.
President Akufo-Addo made this known on Wednesday, 28th February, 2018, when he delivered the keynote address at the German-Ghanaian Economic Forum, organized by the German Chamber of Commerce, and the Konrad Adenauer Foundation in Berlin.
German Development Cooperation
Expressing his delight that German development co-operation is now being aligned with his government’s vision of moving Ghana Beyond Aid, President Akufo-Addo added that his administration had implemented measures aimed at attracting investment – domestic and foreign – into Ghana, as well as stimulating growth of the Ghanaian private sector.
“We have introduced a monetary policy that is stabilising the currency and reducing significantly the cost of borrowing; and have initiated a raft of tax cuts that is bringing relief to and encouraging businesses,” he said.
These interventions, the president noted, have ensured that the fiscal deficit, which stood at 9.5% at the end of 2016, has been reduced to 5.6% at the end of 2017, and is projected to go down to 4.5% in 2018.
Inflation Declines
Additionally, he stated that inflation has declined from 15.6% at the end of 2016 to 10.3% at the end of January this year; the economy has grown from 3.6% in 2016, to 7.9% in 2017, and, this year, it is estimated to grow at 8.3%, which would make it the fastest growing economy in the world.
President Akufo-Addo indicated further that Ghanaian industry is undergoing a spectacular revival, a decline in interest rates, a more stable cedi, and overall, “our macro-economy is growing stronger.”
These measures, he stressed, have been put in place to build the most business-friendly economy in Africa, and create jobs and prosperity for all Ghanaians.
New Digital Age
Additionally, he told the gathering that his government had taken specific measures which would lead the country and its economy into the new digital age.
These include the introduction of an e-business registration, paperless port clearance, digital addressing, mobile interoperability and national identification card systems – all of which are designed to formalise the Ghanaian economy, reduce the cost of doing business and facilitate interactions between businesses and their clients, particularly in a technology-driven era, where connectivity through digital services is an important element in achieving competitiveness.
“I am, thus, notifying the German business community to take advantage of the growing business-friendly climate in the country to invest in Ghana,” he entreated.
Flagship Policies
President Akufo-Addo continued, “Our flagship policies of ‘One District, One Factory,’ ‘One Village, One Dam’ and the ‘Planting for Food and Jobs’ map out areas of opportunity, which I commend to you, as I do in areas in the development of renewable energy and ICT growth. We are particularly keen to receive German investment in the area of renewable energy, for reasons that are self-evident.”
Addressing the challenge of the country’s infrastructural deficit, he told the gathering that his government is embarking on an aggressive public-private partnership programme to attract investment in the development of both the country’s road and railway infrastructure.