President Akufo-Addo hails G20 compact as a catalyst for macroeconomic stability
The president, Nana Addo Dankwa Akufo-Addo, has lauded the G20 international economic cooperation Compact with Africa (CwA), indicating that the partnership has helped Ghana’s macroeconomic stability.
According to him, the compact has helped the country to systematically tackle the structural challenges which have inhibited its drive towards becoming Africa’s investment hub through the implementation of targeted policies in specific areas.
This includes establishing macroeconomic stability, enhancing domestic revenue mobilisation, improving fiscal risk management, and strengthening business legal and regulatory frameworks to de-risk private investments.
The president made these remarks last Friday when he delivered a speech at the G20 Compact with Africa Summit in Berlin, Germany, stating that this has significantly contributed to the country’s economic stability since its start.
“As one of the few economies to have recorded positive growth in 2020, Ghana has, so far, had a strong start to 2021, despite the ravages of the pandemic, with the economy recording, a growth rate of 3.1% and 8.9% in the first and second quarters of this year, respectively,” he stated.
President Akufo-Addo said, this development was reflective of the impact of the government’s Covid-19 containment measures and recovery interventions, which he said, would return the country onto the path of steady economic growth.
In spite of these, he indicated that Ghana was still confronted with numerous challenges in the areas of healthcare delivery, access to education, the provision of decent housing, development of road and railway networks, and funding the GH¢100 billion Ghana CARES programme, aimed at revitalising the economy.
He added that with public debt levels in Ghana, currently at 77.1% of GDP, the government has limited the scope for growth through debt-funded large public investment programmes, bringing into sharp focus the importance of interventions such as the CwA initiative.
Productive partnership
Nana Akufo-Addo said he was particularly happy that in the past year, Volkswagen (VW), the German multinational automotive manufacturing corporation, has partnered with a Ghanaian company to establish a vehicle assembly facility.
Already MoUs have also been signed with Voith Hydro Holding for the supply of technologies for the construction of a hybrid solar-hydro power plant attached to the Bui Dam project, and with Robert Bosch Packaging for the supply of technologies for the construction of a vaccine factory,” he noted.
President Akufo-Addo, said, “Ghana is also grateful for the support received so far under the compact towards the establishment of the Development Bank of Ghana (DBG).”
The bank’s vision, he remarked, was guided by the history of KfW, a German investment and development bank, which has played an essential part in Germany’s post-World War II recovery experience.
He said he was optimistic that DBG when launched, would efficiently deploy resources across key business sectors to “fulfil our ambition of rapidly creating a prosperous economy that offers opportunities for all, and accelerate Ghana’s path towards economic and social transformation.”
President Akufo-Addo was also confident that Ghana’s ongoing partnership under the CWA “will guide us, as we work towards effective economic recovery from the debilitating effects of the pandemic.”
Call on African heads of States
He noted that Covid-19 has exposed deep structural fragilities in Africa that require urgent attention, particularly in relation to green growth, climate-conscious industrialisation, and the creation of resilient economies.
He, therefore, urged African Heads of State to help build Africa as a continent, capable of safeguarding her environment, founded on the creativity, enterprise and industry of her citizens.
Furthermore, he underscored that the continent was opened to investments and trades in the global marketplace at the high end of the value chain.
To the German Chancellor, Angela Merkel, who was presiding over her last compact meeting, president Akufo-Addo wished her a very fond farewell, as she goes off into retirement, after 16 years of work.
“Frau Merkel, you will be sorely missed by many in Africa, especially by those of us in Ghana,” the president said.
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About the CwA
In July 2017, at the prompting of Germany as president of the G20, the new partnership with Africa – Compact with Africa (CwA) was formed.
Initially, eight African countries participated in the initiative; more have since signed up, increasing the number to 11.
The primary objective of the compact is to increase the attractiveness of private investment through substantial improvement of macroeconomy, business and financing frameworks in Africa.