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Ghana

Author(s):
International Monetary Fund
Published Date:
August 2009
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Chapter One Introduction

1.1 BACKGROUND

This Annual Progress Report (APR) is a review of the status of actions taken on the implementation of policies outlined in the Growth and Poverty Reduction Strategy, GPRS II in 2006. The report has been compiled from the result of the assessment of a set of indicators, triggers and targets which have been adopted for monitoring and evaluating the achievements of key policy and programme interventions implemented in 2006. The objectives of the APR are to:

  • provide a single source of information on progress the country is making through the implementation of the GPRS II;
  • identify weaknesses that are likely to hinder the achievement of the goals and objectives of the GPRS II; and
  • propose policy recommendations for addressing the shortcomings.

The document provides an update on the status of actions taken on policies, programmes and projects implemented during 2006 within the framework of GPRS II. Specifically, it outlines and assesses the status of the following:

  • the set of core indicators agreed in the GPRS II M&E Plan, including additional ones that have since been identified;
  • the linkage between the 2006 Annual Budget and the GPRS II;
  • policy initiatives prioritised in the 2006 Annual Budget;
  • follow-up actions on policy recommendations made in the 2005 APR;
  • the Multi-Donor Budget Support (MDBS) programme; and
  • performance towards the attainment of the Millennium Development Goals (MDGs) and the African Peer Review Mechanism (APRM).

The report is presented in seven chapters. The first chapter presents an overview of the monitoring and evaluation activities related to the development of the 2006 APR. Chapter two is a review of macroeconomic performance and economic governance, and chapters three to five outline the status of actions taken on the implementation of the policies and measures outlined in the three thematic areas namely (Private Sector Competitiveness, Human Resource Development and Good Governance and Civic Responsibility). Issues relating to the financing of the GPRS II at the national and district levels are discussed in Chapter 6 and 7 respectively.

1.2 Challenges to Data Collection in the Monitoring and Evaluation of the GPRS II

Generally, data used in the preparation of this report were obtained mainly from sector ministries, departments and agencies, and metropolitan, municipal and district assemblies.

Problems encountered in data collection were not significantly different from those identified in the previous year. Key among the problems were the following:

  • inconsistencies in some data collected;
  • difficulties posed to the capacities of ministries, departments and agencies (MDAs) in responding to the different monitoring and evaluation needs and reporting requirements of different stakeholders;
  • inadequate financial and human resources for the conduct of monitoring and evaluation activities at the various levels of governance;
  • a number of new indicators which have emerged during the preparation of the GPRS II which do not have baseline or current data to support the setting of realistic targets and monitoring.
  • differences in the annual reporting cycles adopted by the MDAs as indicated in the Table 1.1 below.
Table 1.1:Reporting Cycles, and Data Gaps for Selected MDAs
MDAINDICATORS WITHOUT DATAANNUAL REPORTING PERIOD
Ministry of Finance and Economic Planning- Budget deviation IndexFebruary
Ministry of Women and Children’s AffairsFebruary-March
Ministry of Health- Maternal Mortality Ratio

- Percentage of rural population with access to adequate sanitation.

- Percentage of urban population with access to adequate sanitation.
April
Ministry of Education, Science and Sports- Percentage change in Research and Development expenditure (Public)March
Ministry of Trade, Industry, PSD & PSI- Private fixed investment (as % GDP)

- Time Taken to get duty drawback
April
Ministry of Food and Agriculture- Percentage changed in agro-processing and agrobusiness enterprises and micro-enterprises establishedMarch
Ministry of Fisheries- Total Fish Production (mt)

a. Inland Capture fisheries
April
Ministry of Lands, Forestry and Mines- Hectares of degraded forest, mining, dry and wet lands rehabilitated/ restored

a. Mining

b. Dry and wetland
March
Ministry of Road TransportApril
Ministry of Aviation- Total funds disbursed to the rail and maritime sub-sectors, relative to the investment needs

a. Air
April
Ministry of Ports, Harbours and Railways- Total funds disbursed to the rail and maritime sub-sectors, relative to the investment needs:

b. Rail

c. Maritime
March
Ministry of Energy- Average number of hours of electricity outage per consumer per yearMay
Ministry of Communications- Size of the ICT industryFebruary
Ministry of Tourism and Diaspora RelationsMarch
Ministry of Manpower, Youth and Employment- Social Protection Exp as percentage of GDPFebruary

Other challenges to data collection which were identified are discussed below:

(i) Metropolitan, Municipal and District Assembly (MMDA) Level

It was observed that contrary to the requirement for MMDAs to submit monthly trial balances to the Ministry of Local Government, Rural Development and Environment (MLGRDE), most district reports cover only 6 months of the year. It was also noted that there are a number of deficiencies in the quality of the data collected at the district level. This could be attributed to limited capacity to process data at this level. There are also inconsistencies relating to the DACF returns at both the MLGRDE and the DACF thus making analysis and reconciliation very difficult.

(ii) Macroeconomic Stability

Data received on macroeconomic indicators turn to be provisional. Data received from the Ministry of Finance and Economic Planning (MoFEP) and the Bank of Ghana (BOG) as at February 2007 covered transactions through the 3rd quarter of 2006, while that from the Controller and Accountant Generals Department (CAGD) was up to November 2006.

The specific challenges associated with collecting data had to do with the classification of resource allocations. Whereas the MoFEP has put in place mechanisms to track releases based on the GPRS II thematic groupings, the CAGD continues to classify actual figures according to the traditional functional classifications. This makes reconciliation of disbursements of funds (releases) and actual expenditures very difficult.

(iii) Private Sector Development

Key data collection challenges for this thematic area related to the non-availability of data on several indicators. This was due to a number of new indicators which were selected for monitoring the performance of this thematic area.

(iv) Human Resource Development

Generally data collection challenges identified in previous years still apply. These include inconsistencies in some of data collected and the differences in the annual reporting cycles.

(v) Good Governance and Civic Responsibility

Information received on this thematic area were mostly descriptive and highly dependent on secondary sources. This could be traced primarily to the difficulties in identifying quantitative indicators for tracking progress towards the implementation of policies and programmes.

Summary of Policy Recommendations:

Drawing from the general and specific data collection challenges, the following recommendations are made to enhance the data collection processes in order to facilitate the development of subsequent Annual Progress Reports:

  • the accounting systems of the MMDAs should be reviewed to identify any bottlenecks which impedes efficient reporting;
  • the different reporting formats issued to the MDAs from the Office of the President, the Office of the Head of Civil Service and the NDPC should be harmonised;
  • MDAs should be required to prepare sector APRs which would subsequently feed into the APR of the GPRS II; and
  • it is essential that sector APRs be prepared and submitted by the end of February to enable NDPC meet the deadline for the production of the national report not later than April each year. There is therefore the need to realign the reporting timelines of all MDAs to the timeframe for the development of the national APR.

1.3 Key Activities for the Monitoring and Evaluation of the GPRS

In line with the participatory processes which were adopted in formulating, monitoring and evaluating the GPRS I& II, the following three important activities were conducted in 2006:

1.3.1 Dissemination of 2005 APR

A series of two-day regional workshops were organised nationwide to disseminate the 2005 APR and the Citizen’s Assessment Report on the implementation of GPRS I.

The objectives of the dissemination exercise were to:

  • promote public awareness on the 2005 APR and the Citizen’s Assessment Report;
  • promote dialogue and obtain feedback on the progress made in the implementation of key policy and programme interventions undertaken under the various thematic areas of GPRS II; and
  • collect data for the preparation of the 2006 Annual Progress Report.

Participants were drawn from the ten Regional Planning and Coordinating Units (RPCUs) and the 138 District Planning and Coordinating Units (DPCUs), the regional and district directors of key sector departments: Agriculture, Health and Education. The Regional/District Coordinating Directors, Planning Officers, Budget Officers and Representatives from Civil Society Organisations (CSOs) also attended the meetings which were facilitated by technical staff of the NDPC.

Participants made the following recommendations towards enhancing the communication strategy of the GPRS II:

  • the dissemination workshops should be extended to the towns and villages;
  • handouts and tracts capturing key elements of the GPRS II should be developed to improve upon the dissemination process; and
  • adequate time should be allocated for the workshops to ensure that participants’ concerns are sufficiently addressed.

1.3.2 Evaluation of the GPRS I

A comprehensive evaluation of the GPRS I was initiated in 2006 to assess the general effect on the socio-economic development of the country and specifically to:

  • evaluate to what extent the GPRS was relevant, efficient and effective for achieving sustainable impacts on poverty reduction and growth;
  • identify evidence of good practices, lessons and recommendations on the implementation of the GPRS;
  • determine how, why, when and the circumstances or context under which the GPRS has achieved or could not achieve intended objectives; and
  • show clear links between development policy objectives, intended outcomes and the strategic directions adopted to achieve those objectives in development programming in Ghana.

The evaluation was also designed to assess the Poverty Reduction Strategy Paper (PRSP) approach and its impact on various variables of development management which could be used in strengthening the M&E of the GPRS II and future development programming in the country.

Working groups of experts were set up to evaluate the following aspects of the GPRS I:

  • design and ownership of the GPRS I
  • poverty analysis over the period the GPRS I was implemented
  • macroeconomic stability for accelerated growth
  • production and gainful employment
  • human resource development and access to essential services
  • vulnerability and exclusion
  • governance and increased capacity of the public sector
  • monitoring and evaluation issues of the GPRS I

1.3.3 GhanaInfo Database

The GhanaInfo database was launched by NDPC and GSS in July 2005. It is a comprehensive national socio-economic database made up of a compilation of indicators suitably adopted for planning and policy formulation.

The number of activities which were carried out in 2006 include the following:

  • training of the staff of PPMEDs;
  • regional roll-out of the GhanaInfo;
  • workshop on general data collection;
  • workshops on statistical literacy; and
  • workshops on the orientation and updating of GhanaInfo database.

Following the launch of the GhanaInfo, there was the need to train focal persons in the MDAs. Consequently, sixty officers from the MDAs were trained during the period December 2005 to January 2007.

The regional roll-out programme was designed to introduce the GhanaInfo to officers of the RPCUs and also expose the regions to the operational modalities of the national database. These workshops were successful on account of the high attendance, enthusiasm of participants and the ease with which the exercises were undertaken.

Various units of the Ghana Statistical Services collected data for use by the GhanaInfo and there was the need to bring the relevant units together to share ideas related to the data collection challenges they encountered on the field. An off-site workshop was thus organised over a 3 day period for about forty-five participants.

Workshops on statistical literacy were held for staff of the GSS, NDPC, Media and Religious bodies and Civil Society Organisations to sensitize participants on the need to appreciate the value of statistics.

The Ministry of Roads and Transport is currently collaborating with the GSS to set up a database on transport indicators. Workshops have been organised to this effect and a budget presented for the implementation.

1.4 Summary of Progress–GPRS II Core Indicators

Table 1.2 below provide a summary of assessment of performance on the GPRS II core indicators that were identified and monitored to date.

Table 1.2:Summary of the Progress made on Indicators
Thematic AreaNo. AchievedSteady ProgressNot AchievedInadequate dataTotal
Macroeconomic Stability747624
Private Sector Competitiveness156272068
Human Resource Development6124536
Good Governance and Civic Responsibility3851531
Total31196346159

Figure 1.1a:Summary of Indicator Achievement for 2006

Figure 1.1b:Summary of Indicator Achievement for 2006–Cumulative Percentages

Figure 1.1c:Summary of Indicator Achievement for 2006

(by Thematic Area)

Chapter Two Macroeconomic Performance and Economic Governance

2.1 Introduction

The GPRS II is guided by the goal of doubling the size of the economy (in terms of real production) within the next decade and bringing the per capita income of the average Ghanaian to middle income level by 2015. The strategy for attaining this goal is to accelerate growth of the economy through sustained macroeconomic stability, strengthening the capacity of the private sector to lead the growth, development of an adequate, knowledgeable and healthy human resource while deepening good governance and civic responsibility.

In this context GPRS II will continue with the implementation of policies that will enhance and sustain the gains made in macroeconomic stability under GPRS I by ensuring:

  • prudent fiscal policy management;
  • a monetary policy that is flexible enough to respond to external shocks, promote growth and ensure price stability;
  • real interest rates that enhance effective mobilisation of savings and make credits affordable to the private sector; and
  • maintenance of relatively stable real exchange rates that promote Ghana’s competitiveness in international trade.

2.2 Trends in Selected Macroeconomic and Economic Governance Indicators

Within this framework and overall objective of the GPRS II, the following macroeconomic policy objectives were to be pursued to attain macroeconomic stability and improved economic governance in 2006:

  • improving expenditure management
  • promoting effective debt management
  • improving fiscal resource mobilisation
  • price exchange stability
  • improving the institutional, legal and regulatory framework
  • deepening the capital market
  • strengthening the financial sector
  • creating amore diversified financial sector and improve access to financial services
  • improve import competitiveness
  • diversify and increase export base
  • instituting mechanisms to manage external shocks
  • accelerating economic integration with other regional and/or sub regional states

To track progress towards the attainment of these objectives the following indicators have been selected:

  • per capita GDP (in US$);
  • real GDP Growth Rate;
  • real sectoral growth rate;
  • percentage contribution of sub-sectors to GDP (in %):
  • inflation;
  • interest rates;
  • domestic revenue;
  • overall budget deficit;
  • exchange rate;
  • foreign reserves;
  • external debt; and
  • domestic debt-servicing.

A review of the macroeconomic indicators for the first year of implementation of the GPRS II reveals that some progress has been made in the implementation of macroeconomic policies in 2006 and that economic performance has continued to be broadly satisfactory leading to a stable economic environment. The economy of the Ghana has remained resilient in the wake of increased world crude oil prices. The favourable environment has been achieved as a result of improved fiscal management, prudent monetary management, debt relief, a supportive international environment and structural reforms. The review of performance of key indicators in 2006 is presented below:

2.2.1 Real GDP Growth Rate

The GPRS II targets the economy to grow at an annual rate which is projected to rise from 6% to 8% towards the realization of a middle income status by 2015.

The growth rate of GDP for 2006 was projected at 6.11% in the GPRS II while the 2006 Annual budget had targeted 6.0%. The actual growth rate of 6.2% was above these two targets. This growth was mainly driven by the significant growth experienced in the industrial and services sectors.

Agriculture has been identified as the lead sector among the strategic sectors, as investments in this sector has the potential to accelerate economic growth in the medium term. Growth in the sector is projected at 5.2% under the GPRS II and 6.6% in the 2006 Annual budget. Actual agricultural growth was 5.7% which was above the GPRS II target but significantly below the Annual budget target. The 5.7% agricultural growth has been attributed to increase in cocoa production and marketing. It must be noted that the 8.7% growth in the cocoa sub-sector far exceeded the targets of 3.0% set under the GPRS II.

The fishing sub-sector has started showing signs of recovery, recording a 3.6% growth in 2006 from the negative 1.2% growth in 2005. As a result of the lower than expected agricultural growth, its share as a percentage of GDP declined from 36.0% in 2005 to 35.8% in 2006, while it contributed 2.1% to the overall GDP growth.

Table 2.1Selected Macroeconomic and Economic Governance Indicators
INDICATORGPRS 2006 TargetIndicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Per capita GDP (in US$)538434.0492.4572.0Target exceeded
Nominal GDP (million $)8862.529234.4412277.63
Population (in million)21.02020.5221.05
2. Real GDP growth rate6.1%5.8%5.9%6.2%
3. Real sectoral growth rate (in %):Target exceeded
- Broad Agriculture5.247.04.15.7
- Broad Industry6.114.87.77.3
- Broad Services5.754.96.96.5
4. Percentage contribution of sub-sectors to GDP (in %):
- Broad Agriculture34.636.636.035.8Target exceeded
- Broad Industry26.724.725.125.4Steady progress
- Broad Services30.129.930.030.4Target exceeded
5. End-year inflation10.4%11.814.810.5Steady exceeded
6. Nominal Exchange Rate of Depreciation (cedi/$)Between 0.4%–4%−2.2−0.9Target met
7. Interest Rates (%):
- Bank of Ghana Prime RateNa18.5015.5012.50Steady Progress
- Demand Deposits (Annual Av.)Na7.507.137.13
- Savings Deposits (Annual Av.)Na9.506.384.75
- Lending Rates (Annual Av.)Na28.7526.0024.25
- 91-Day Bills (Annual Av)Na17.0811.4510.70
8. Foreign remittance as a percentage of GDPNa14.5%16.8%15.5%Steady progress
9. Gross international reserve (months of imports of goods and services)¾3months3.043.83.2Target exceeded
10. Ext. Debt service as percentage of exports of goods and service2.3%5.36%5.81%3.17%Steady progress
11. Domestic revenue (excluding grants) as % of GDP23.5%23.9%23.9%22.7%Slow progress
12. Budget deficit excluding grants/ GDP¼4%3.22.74.9Slow progress
13. Deficits as % of GDP8.857.27.7
14. BOG financing of Deficit/ Domestic revenue (excl. grants)¼10%1.57−8.79−0.8Target met
15. Incidence of extreme poverty26% by 2015)39.5% (1998/99)Na28.5%Significant progress
16. BPEMS generated and reconciled fiscal reports issued monthly within 4 weeks---Delayed rolled out
17. Removal of secondary reservesRemovedTarget met
18. Computerization of the inter-bank foreign exchange marketOngoingSlow progress
19. Establish credit referencing bureauBill in ParliamentSteady progress
20. Availability of diversified financial institutions providing alternative financial services to bank productsongoingSteady progress
Sources: Bank of Ghana, MOFEP, Budget Statements, 2006
Sources: Bank of Ghana, MOFEP, Budget Statements, 2006
Table 2.2:Percentage Sectoral Growth Rates(2002-2006)
200220032004 Actual2005 GPRS Target2005 Budget2005 Actual2006 Budget2006 ActualGPRSII 2006 target
GDP4.55.25.85.05.85.96.06.26.11
Agriculture4.46.17.54.86.56.56.25.75.24
Crops and livestock5.25.35.46.06.06.26.06.11
Cocoa−0.516.429.913.213.212.28.72.99
Forestry & Logging5.06.15.85.65.65.62.63.86
Fishing2.83.03.53.63.63.63.63.9
Industry4.75.15.15.25.85.66.47.36.11
Mining & Quarrying4.54.74.54.93.06.33.03.22
Manufacturing4.84.64.65.55.55.04.25.53
Electricity & Water4.14.23.74.56.64.023.06.11
Construction5.06.16.67.07.07.58.26.11
Services4.74.74.75.15.45.45.56.55.75
Transport, Storage & Communication5.75.85.66.06.06.07.26.11
Wholesale & Retail Trade5.65.04.96.16.16.27.56.11
Finance & Insurance5.55.24.85.65.65.77.66.06
Government Services3.64.04.44.35.05.05.75.13
Community, Social & Personal Services4.44.14.24.34.24.25.54
Producers of private non-profit services3.13.33.53.83.83.84.54.92
Source: 2004 Annual Progress Report/2003-2007 Budget Statement
Source: 2004 Annual Progress Report/2003-2007 Budget Statement

Industrial growth was a contributory factor to the GDP growth rate of 6.2%. The 7.3% industrial growth with electricity and water (23%) being the major contributory sub-sectors exceeded the GPRS II and the Annual budget targets of 6.1% and 6.4% respectively.

The Mining and Quarrying and the Manufacturing sub-sectors underperformed with growth rates lower than projected in the GPRS II and the Annual budget. The Construction sector with 8.2 %, growth rate exceeded the target for the year. This is attributed to increased activities in road construction and other infrastructural projects in the country.

As a share of GDP, the industrial sub-sector has improved from 24.7% in 2004 to 25.4% in 2006 although it is still below the GPRS II target of 26.7% for 2006. Although modernisation of agriculture is a priority for growth under the GPRS II, its share in GDP was expected to decline from 36% in 2005 to 34.6% in 2006, although the actual was 35.8%.

The services sector almost maintained its share in GDP at around 30%.

2.2.2 Trends in Inflation

The inflation rate as measured by the year-on-year CPI which has been declining from 23.6% since 2003 fell to 10.6% in 2006. This rate is still higher than the single digit target set in the GPRS II for 2006. This may be attributed largely to the upward adjustment in crude oil prices in the global market with the accompanied negative rippling effect felt in small non-oil producing developing economies like Ghana and the underperformance of the agricultural sector.

The effect of crude oil price increases on inflation was ameliorated by the increase in the growth of food crops from 3.3% in 2005 to 6.0% in 2006, the strong monetary policy and the relatively stable exchange rate environment.

Figure 2.1:Trends in Inflation, 2000–2006

Source: 2006 Budget Statement/MoFEP

2.2.3 Interest Rates

Following the decline of the Central Bank’s prime rate in 2005 from 15.5% to 12.5% in 2006, the money market rates and the deposit and lending rates all experienced a downward decline in 2006. The average interest rates on the 14-day, 1-month and 2-month Bank of Ghana bills declined to 10.3%, 11.6%, and 11.2% respectively. Also the average interest rate on the 91-day Treasury bill dropped from 11.5% in 2005 to 10.7% in 2006. The Deposit Money Banks’ (DMBs) average savings deposit rate declined from 6.4% in 2005 to 4.8% in 2006, while the average lending rate which was 26.0% in 2005 also declined to 24.3% in 2006.

2.2.4 The Government Budget

In the course of 2006, the government continued to promote the practice of efficient taxation and enhanced confidence in the tax system by introducing measures that seek to remove the bottlenecks that impede revenue generation and collection. A number of reform initiatives which were implemented covered procedures, reporting requirements, and increased vigilance to prevent smuggling and under-invoicing of imports. These measures have subsequently improved domestic revenue mobilization.

i. Domestic Revenue

As a percentage of GDP, domestic revenue has registered a smooth and steady growth. However, domestic revenue as a percentage of GDP declined from 23.9% to 22.3% in 2006, just below the 2006 target of 23.5%. In 2006 domestic revenue was ¢25,360.1 billion against a budget estimate of ¢26,438.8 billion.

The outturn for overall total government receipts amounted to ¢41,357.1 billion, against the budget estimate of ¢43,468.2 billion. Total revenue and grants in 2006 amounted to ¢31,917.7 against an outturn of ¢28,256.4 billion registered for 2005. This shows a 13% increase over the outturn for 2005. The relatively high outturn of total receipts recorded is mainly due to receipts from the Multilateral Debt Relief Initiative (MDRI) totaling ¢1,980.4 billion.

ii. Overall Budget Deficit

The overall budget balance recorded a deficit equivalent to 7.7% of GDP compared to the budget estimate of 4.5% of GDP. The domestic primary balance also recorded a deficit of 1.9% of GDP against the budget estimate of a deficit of 1.4% of GDP. As a result, the main fiscal anchor–domestic debt-to-GDP ratio was 10.1% against a target of 8.7% for 2006.

Although one cannot assign the increase in the deficit to a given expenditure item, a comparison of the numbers before and after the fiscal slippage indicates that the decline in the revenue to GDP ratio was equivalent to just under two-thirds of the widening in the deficit. Lower revenues were due primarily to tax exemptions granted on imports. The other one-third increase in the deficit can be assigned to public sector pay increases and to energy subsidies. As a result, the domestic debt to GDP ratio, which has been the cornerstone of fiscal policy over the last few years, is estimated to have risen to 13.8% by end of 2006, up from 10.8% at end of 2005. While part of the increased deficit was financed by issuing government bonds, a large fraction of these bonds were purchased by foreign investors. The latter meant that less pressure than expected was placed on domestic resources, allowing the Bank of Ghana to maintain its policy of gradually reducing interest rates in line with the decline in inflation.

2.2.5 Developments in the External Sector

i. Exchange Rate

In 2006, the cedi maintained its relative stability against the major international currencies though the British Pound and the Euro strengthened due to international market developments. The cedi depreciated by 9.5% against the British Pound and 7.8% against the Euro, while a moderate depreciation of was recorded against the US dollar. The underlying reasons for the relatively stable exchange rate were the improved private remittances through formal channels, foreign exchange liquidity on the forex market, and sound fiscal and monetary policies which allowed a build-up in external reserves, International recognition of the cedi was finally established in October 2006 with the first euro-cedi bond issued offshore by the Africa Development Bank (AfDB).

ii. Balance of Payments

Provisional data indicate that the balance of payments (BOP) recorded a surplus of US$178.8 million compared to the surplus of $84.34 million in 2006. This improvement is attributed to strong export performance, strong growth in remittances, donor resources and debt relief.

iii. Foreign Reserves

The Bank of Ghana accumulated net international reserves in 2006, and as a result the level of gross international reserves went up to US$2 billion which was enough to provide cover for 3.2 months of imports of goods and services.

iv. External Debt

Ghana’s total medium and long-term external debt as at end 2005 stood at US$6,347.9 million. This amount was reduced significantly to US$2,143.79 million in 2006, as a result of a 66 % debt reduction secured under the Multilateral Debt Relief Initiative (MDRI).

The composition of external debt remains largely the same as in 2005 as the country continues to hold more of multilateral debt, amounting to about US$1,359.2 million (constituting 63.4% of total external debt), of which the World Bank contributes about 44.3%. Bilateral debt constitutes about US$610.49 million (representing 28.5%) of total external debt with the remaining US$174.1 million (representing 8.1%) ascribed to commercial debt. External debt service as a percentage of exports of goods and services declined from 5.8% in 2005 to 3.17% in 2006 which is still higher than the target of 2.3%.

2.2.6 Domestic Debt Stock/GDP and Domestic Debt Service

i. Domestic Debt Stock

The Public Domestic Debt (excluding ¢4,952.3 billion interest bearing revaluation stock and other long-term stocks held by Bank of Ghana) stood at ¢17,061.2 billion or 15.21% of GDP. This represents an increase of ¢3,420.2 billion or 25.2% over the stock of ¢13,631.0 billion in 2005. Factors which account for the increase in the domestic debt include the following:

  • lower-than-projected receipts from tax revenues and divestiture proceeds;
  • delays in inflows and non-receipt of some pledged funds from the Multi-Donor Budget Support;
  • unanticipated demand and agitation for higher wages by the public sector workers.
  • unanticipated transfers to SOE’s such as TOR and VRA on account of under-recovery and higher oil requirements respectively.

ii. Domestic Debt Servicing

By end-September 2006, domestic debt service amounted to ¢11,396.1 billion, made up of a redemption of ¢9,554.0 billion and ¢1,842.1 billion interest payment, compared to ¢15,133.1 billion during the same period in 2005. This represented an overall reduction of ¢3,737.0 billion (24.7 %) over the 2005 level.

2.3 Trends in Selected Poverty Indicators

Evidence from the results of various GLSS surveys conducted up to the fourth round indicates that poverty levels have been falling consistently. Results from the GLSS 5 conducted in 2005/2006 indicate that the proportion of Ghanaians described as poor in 2005/06 was 28.5%, falling from 39.5% in 1998/99. The proportion of persons described as extremely poor declined from 26.8% to 18.2%. Thus it appears that the first Millennium Development Goal of halving the poverty rate could be met ahead of time if growth of the economy continues to be sustained at high levels.

Table 2.3:Poverty Incidence by Locality
LocalityPovertyExtreme Poverty
1998/992005/061998/992005/06
Accra4.410.61.95.4
Urban Coastal31.05.519.02.0
Urban Forest18.26.910.92.9
Urban savannah43.027.627.118.3
Rural Coastal45.624.028.511.5
Rural Forest38.027.721.114.6
Rural Savannah70.060.159.345.4
ALL39.528.526.818.2
Source: Ghana Statistical Service, Pattern and Trends of Poverty in Ghana, 1991-2006, April 2007, Tables A1.1 and A1.2
Source: Ghana Statistical Service, Pattern and Trends of Poverty in Ghana, 1991-2006, April 2007, Tables A1.1 and A1.2
Table 2.4:Poverty Incidence by Region
RegionPovertyExtreme Poverty
1998/992005/061998/992005/06
Western27.318.413.67.9
Central48.419.931.59.7
Greater Accra15.211.82.46.2
Volta37.731.420.415.2
Eastern43.715.130.46.6
Ashanti27.720.316.411.2
Brong Ahafo35.829.518.814.9
Northern69.252.357.438.7
Upper East88.270.479.660.1
Upper West83.987.968.379.0
ALL39.528.526.818.2
Source: Ghana Statistical Service, Pattern and Trends of Poverty in Ghana, 1991-2006, April 2007, Tables A1.5 and A1.6
Source: Ghana Statistical Service, Pattern and Trends of Poverty in Ghana, 1991-2006, April 2007, Tables A1.5 and A1.6

The decline in poverty and extreme poverty between 1998/99 and 2005/2006 was more evenly distributed than in the earlier periods of 1991/92 to 1998/99. All the localities and regions with the exception of the city of Accra and the Upper West region experienced declines in poverty. (Tables 2.3 and 2.4). While the city of Accra experienced an increase in poverty, Greater Accra Region experienced a decline in poverty from 15.2% to 11.8% between 1998/99 and 2005/2006, although extreme poverty worsened, implying that areas in the region outside the city witnessed significant declines in poverty. The Central and Eastern regions experienced the largest decline in poverty. These may be attributed to the concentration of programmes implemented under the President’s Special Initiatives on Cassava, pineapples, and Oil palm in the Central Region and increased export of pineapples and cocoa from the Eastern region.

The overall decline in poverty may be attributed to the high growth rates achieved during the period of implementation of GPRS I. The growth has come from high growth in cocoa production. Thus the benefits of the growth are maintained in the more significant reductions in poverty in the cocoa producing localities and regions. Figures from the GLSS 5 show that there have been significant increases in employment across the economic sectors leading to significant reduction in poverty.

Analysis of the data suggest that if income inequalities had not worsened more in the rural areas than the urban areas during the 1998/99 to 2005/2006 period, the improvement in poverty reduction through growth would have been better for the rural areas than in the urban areas (Table 2.5).

Table 2.5:Decomposition of Change in Poverty Headcount-1998/99 to 2005/06
LocalityTotal changeShare of change due to:
GrowthRedistribution
National−10.9−13.5+2.6
Urban−8.6−8.60.0
Rural−10.4−13.8+3.4
Source: Ghana Statistical Service, Pattern and Trends of Poverty in Ghana, 1991-2006, April 2007, Tables 3
Source: Ghana Statistical Service, Pattern and Trends of Poverty in Ghana, 1991-2006, April 2007, Tables 3

2.4 Developments in the Macroeconomic and Economic Policy Environment

In order to realise the strategic objectives outlined under the macroeconomic and economic governance areas, a number of policy measures and strategies were implemented in 2006. The following section is a review of some of the key measures and strategies.

2.4.1 Management of Fiscal Policy

i. Improving Expenditure Management

Develop a more Effective Data Collection Mechanism:

Considerable progress was made in the implementation of the BPEMS especially in the areas of deployment of 3 modules (general ledger, accounts payable and purchase ordering) in the entire 8 pilot MDAs and the complete and uninterrupted connectivity of the pilot MDAs through Fibre Optic Wide Area Network.

In June 2006, the Integrated Personnel and Payroll Database (IPPD2) was successfully used to pay the salary of the Health Sector Structure (HSS) workers following the introduction of a new pay structure. This was followed by the migration of Pension Payment and the Audit Service Payroll in July 2006. The rest of the Ghana Government Payroll including some pilot subvented agencies were migrated onto the IPPD2 in October 2006.

Ensure Transparency in use of Statutory Funds:

To improve the Cash Management System, the Controller and Accountant General’s Department has successfully operationalised a re-aligned treasury system under which MDAs at the regional level are being serviced exclusively by the Regional Treasuries and the Departments and Agencies at the District level are also being serviced by District Treasuries.

Each Ministry now has one Consolidated Fund sub-account which services the Ministry and its Departments and Agencies at the national level. One Consolidated Fund sub-account has also been created for each of the 10 Regional Coordinating Councils which serves all the Departments, Agencies, and Institutions at the Regional level. In addition, 138 Consolidated Fund sub-accounts have been opened for each of the District Assemblies.

Departmental allocations for MDAs are now being lodged into the respective sub-consolidated fund bank accounts. These measures have been put in place to improve the Cash Management System in the Public Sector.

To ensure judicious, economic, and efficient use of state resources, the Public Procurement Board developed Standard Tender Documents and Manuals for Entity Tender Committees and re-assessed 100 entities to ensure that the entities adhered fully to the provisions in the Public Procurement Act. A margin of preference document to support local businesses has been prepared. A website for the Board was developed and launched in 2006.

Enforce Budget Controls on SOEs:

The Controller and Accountant General’s Department has established Financial Monitoring Units at the Headquarters and Regional Directorates. This is to ensure effective and efficient fiscal decentralisation.

The Ministry of Finance and Economic Planning (MoFEP) has strengthened the capacity of the Public Expenditure Monitoring Unit to track fund releases for the timely implementation of all government and donor funded projects, as well as ensuring that expenditures are consistent with the budget estimates and growth targets. But there has been less progress in enforcing budget controls over the State Owned Enterprises (SOEs). At present the State Enterprises Commission (SEC) receives only individual reports from the SOEs, but neither consolidate them, nor prepare reports on SOE accounts for the Ministry of Finance and Economic Planning.

The Central Government and the District Assembly Charts of Accounts have been reviewed and harmonised into a common chart of accounts to facilitate comprehensive and timely financial reporting.

Promote Effective Dept Management

The overall thrust of Government’s domestic debt management policy in 2006 was to build capacity for improved debt management as well as to broaden and deepen the operations of the domestic money market. The key objectives of improving domestic debt management include the following:

  • lowering of borrowing costs;
  • containing the growth of the domestic debt;
  • lengthening the maturity profile of domestic debt to reduce the rollover/refinancing risk;
  • improvement in Public Sector Borrowing Requirements (PSBR) determination and daily/weekly forecasting;
  • continuing improvement in the efficiency of Government debt financing through the use of public auctions and stable issuance.

Monitor Size of Domestic Debt:

Government continue to improve upon the achievements made in 2005 for the purposes of meeting the key objectives of:

  • reducing the cost of borrowing (lower interest rates) of the various debt instruments. The average Treasury Bill Rate fell from 13.79% in September 2005 to 10.37% in September 2006. The volume of refinancing fell from ¢19.9 trillion to ¢11.0 trillion or from ¢383.0 billion to ¢211.0 billion per week;
  • improving the forecasting of Public Sector Borrowing Requirement (PSBR) as a result of the completion of the electronic linkage of Government Accounts at the Bank of Ghana (BoG) to the Ministry of Finance & Economic Planning (MoFEP) and the Controller & Accountant-General’s Department (CAGD). Daily account balances and outstanding bills are being factored into the determination of the weekly PSBR.

Restructure Domestic Debt Stock:

The following key achievements were made in 2006:

  • shifting towards the longer end of the market by increasing the level of outstanding medium-term instruments. Medium-term funding increased by ¢3,285.1 billion or 43.6%, that is, the balance outstanding as at the end of September 2006 stood at ¢10,818.1 billion compared to ¢7,533.0 billion in September 2005; and
  • listing of the 2-year fixed rate treasury note and 3-year fixed rate treasury bond on the Ghana Stock Exchange (GSE), which took place in October 2006 to boost trading in these securities.

Reduce Stock of Domestic Debt (20% of Projected HIPC Relief Funds Applied to Domestic Debt Stock Reduction):

Planned expenditures incurred from the HIPC relief funds for 2006 came to a total of ¢2,277.74 billion out of which ¢455.5 billion was applied to offset the domestic debt. As at the end of September 2006 total domestic debt payments amounted to ¢96.98 billion.

ii. Improve Fiscal Resource Mobilization

Minimise Revenue Leakages in all Collecting Agencies:

The Ministry of Finance and Economic Planning in collaboration with National Security Agencies embarked on operations to curtail leakages in the revenue collection system of ten MDAs. The positive effect of this exercise was that some defaulting companies which understated their shipping quantities started paying amounts owed to government. Illegal operators arrested in respect of false vehicle licensing, issue of false passport, business registration certificate and birth certificates were prosecuted.

Review and Revise Existing Taxes, Fees and User Charges:

The IRS implemented the Venture Capital Tax Incentive and reduced the corporate tax rate from 28% in 2005 to 25% in 2006. The Service also extended Loss Carry Forward to cover agro-processing, tourism and ICT industries. The one-off Amnesty on penalties and sanctions for self-disclosure of unreported taxes for the first 6 months of the year was implemented by the service. The tax stamp programme designed to widen the tax net, especially to cover the informal sector, was re-launched in September 2006. In the area of personal income tax relief, the tax bands for income earners were expanded and modified. The taxation of overtime income was also fully implemented.

The VAT Service operationalised the VAT Refunds Scheme and by July 2006, 654 refunds had been processed. The full impact of the scheme was expected to be felt by the end of 2006.

The VAT Service has initiated steps to implement a Flat Rate Scheme (FRS) at 3.0% of sales value for the informal sector without recourse to input VAT claims as programmed in the 2006 budget. It is hoped that most of the difficulties of the sector will be addressed by the FRS which will be closely monitored to ensure its success.

Strengthen Revenue Collection Institutions:

The automation of IRS operations was initiated on a pilot basis by installing the Tanzania version of ITAX software. The system is to be adapted and staff to be trained for full operationalisation.

The automation of operation of transit regime was also launched on a trial basis in September 2006 and it is expected to be in full operation by the beginning of 2007. This is intended to ensure that cargo entered in transit through Ghana duly leave Ghana for the entered destination. The import of this measure is to stop the diversion of transit goods into the Ghanaian market without the corresponding revenue inflows.

Strengthen MMDAs for Improved Tax Collection:

As part of its initiative towards improving the generation of Non Tax Revenue, the Ministry of Finance and Economic Planning (MoFEP) released an amount of ¢4.8 billion to 16 MDAs to enable them implement revenue enhancement measures, including revenue monitoring, training of revenue collectors, provision of equipment, public education, and improvement in compliance with statutory provisions.

2.4.2 Monetary Policy

i. Improve Liquidity Management

The year-on-year growth rate of reserve money at the end of the third quarter was 32.3% compared with 19.3% in the third quarter 2005. Seasonally adjusted, annual growth in reserve money at the end of the review period was 16.4%, which is below the 32.3% growth in the actual series.

Available data for the year 2006 shows that the annual growth rate of broad money supply, which includes foreign currency deposits (M2+) was 39.1% compared to 18.6% in the third quarter period of last year. The growth in broad money was evenly reflected in its components even though the domestic currency component dominated. Broad money excluding foreign currency deposits (M2) increased by 39.1% in 2006, compared to 22.5% in September 2005.

ii. Improve The Institutional, Legal and Regulatory Framework

The law on Collateral Enforcement and Truth in Lending was reviewed. The following bills were prepared and submitted to Parliament for consideration and enactment:

  • Credit Reporting Bill (passed in 2006);
  • National Insurance Bill (passed in 2006);
  • Foreign Exchange Bill (passed in 2006);
  • Central Securities Depository Bill (in Parliament);
  • Apex Bank Regulations (in Parliament); and
  • Insolvency Bill (passed in 2006).

It is expected that these instruments would enable the private sector to have access to more capital and more diversified sources of capital and access to financial services including micro finance, etc.

iii. Deepen the Capital Market

Implement Schemes to Increase Long-Term Savings/Funds:

Implementation of capital market development policies is showing results. This is indicated by the shifting maturity composition of government debt with an increasingly large percentage of investors moving from short-term to medium-term instruments. However, the current yield curve which is limited to 3 years does not provide a strong signal for financial institutions to lengthen the terms of their loans to the private sector.

Building on the success of the medium term instrument, the Ministry of Finance listed 2 and 3 year medium term bonds on the Ghana Stock Exchange as part of measures to develop the secondary market for Government debt securities. Furthermore, the preparatory work on the establishment of an International Financial Services Centre is in its advanced stages.

Expand Bond Markets:

In 2006 the Securities and Exchange Commission (SEC) consolidated its existing MOU with the capital market regulator in Nigeria. Another MOU with the Financial Services Board (FSB) of South Africa was to be signed before the end of this year. This will encourage sharing of information and cross listings between South Africa and Ghana.

In September 2006, the Securities and Exchange Commission approved the listing of Ecobank Transnational Incorporated (ETI) on the Ghana Stock Exchange. ETI was simultaneously listed on all the stock exchanges in the sub-region–Ghana, Nigeria and Cote d’Ivoire. This brings to 3, the number of cross-listed stocks on the GSE.

iv. Strengthen the Financial Sector

The Ministry of Finance and Economic Planning established a Financial Services Division to be responsible for policy formulation and the development of Ghana’s Financial Sector.

Facilitate the Development of Database for Credit Management:

The numbering of houses and naming of streets under the current initiative to implement a National Identification System has commenced.

Reduce Bank of Ghana Secondary Reserve Requirements:

The Bank of Ghana (BOG) secondary reserve requirement for banks was abolished during the year.

Promote Competition in the Financial System to Reduce High Interest Rates:

To promote fair and competitive interest rates, the Bank of Ghana has directed all bank and non-bank financial institutions with effect from January 1, 2007 to publish in all advertisements for loans as well as disclose transparently to all prospective borrowers, the Annual Percentage Rate (APR) of interest applicable to their loans, including loan processing and administration fees.

Create a more Diversified Financial Sector and Improve Access to Financial Service

For this policy objective, it was expected that there would be an increase in long-term savings, increase in savings as percentage of GDP, as well as an increase in credit to the private sector as a share of domestic credit.

As part of the efforts aimed at creating a more diversified financial sector and improving access to financial services, the Government continued to implement the blueprint for the financial sector deregulation as follows:

  • The Central Securities Depository (CSD) is now operational with the bill submitted for parliamentary approval to make it possible for equities to be admitted into the depository;
  • The Long Term Savings (LTS) bill was passed along with the subsequent appointment of the respective Boards of the Venture Capital Trust Fund and the Long term savings scheme. The Chief Executive Officer of the Venture Capital has also been appointed;
  • The Insurance Bill was laid in parliament before the end of 2006 to ensure efficiency and competitiveness of the insurance industry. This is expected to support innovation and risk management in pursuit of capital market development in the country;
  • the Legislative Instrument on ARB Apex Bank Regulation is in Parliament; and
  • the credit reporting bill has been passed.

In 2006, government initiated preparatory work on the establishment of an International Financial Services Centre (IFSC) in Ghana. The centre will enable Ghana to provide specialised financial services for offshore customers in the areas of banking, insurance, securities, leasing and other non-bank financial services.

To deepen the financial system, Bank of Ghana, in collaboration with the banks, is spearheading the introduction of a National Payments System (NPS) to ensure delivery of financial services to the unbanked, underbanked and banked segments of the population under a common payment system framework.

In 2004, the Venture Capital Trust Fund Act was passed to provide a vehicle for SMEs to raise equity and quasi-equity capital. The Venture Capital Trust Fund has signed 2 investment agreements with venture capital finance companies. However, government is working to enable more venture capital finance companies participate in the scheme.

2.4.3 International Trade Policy

i. Improve Import Competitiveness

A study on the impact of tariff on companies is underway to inform the improvement of the incentive regime for businesses and the development of methodology for computing the “Effective Rate of Protection” for local industries. Single corridor and 100% inspection for customs clearance of textile imports was instituted.

ii. Diversify and Increase the Export Base

Promote new areas of Competitive Advantage:

Group export Marketing Schemes were implemented by Ghana Export Promotion Council (GEPC) for associations of vegetable growers. Confirmed orders of ¢20.24 billions (US$2.2 million) for fruits, vegetables, medicinal plants and seeds, garments, fish and wood, secured through government facilitated trade missions.

MOTIPSD&PSI has established 3 Export Trade Houses (ETH) namely Ghana Export Trade Company Ltd (Gextraco), Ghana Trade Centre (GTC) and Ghanextrade. The ETH serves as commercial intermediaries between SME suppliers and buyers located in different countries by helping to identify and select markets, evaluate client products and related materials, negotiate export contracts as well as providing promotional support to Ghanaian SMEs.

Engage Fully in Multilateral Trading Negotiations:

Ghana continued to play a strong role within continental and sub-regional groups in all international trade negotiations for a.

Ghana is an active member of the World Trade Organization (WTO) which aims at achieving improved, secure and predictable market access opportunities in a more equitable international trading system. At the ongoing Doha Development Round, Ghana together with other developing countries are negotiating a secured development oriented outcome, particularly the cotton initiative, the elimination of trade distortions and the reduction of tariffs and non-tariff measures in industrial products. Ghana together with other West African countries is engaged in the negotiation of the WTO-compatible Economic Partnership Agreement (EPA) with the European Union (EU) to replace the existing non-reciprocal preferential trade regime in the Cotonou Partnership Agreement (CPA).

The EPA is expected be more supportive of the West African integration processes, assist in the achievement of broader development goals, enhance the productive capacity of West African countries and accelerate their integration into the global trading system.

Take Full Advantage of Preferential Access to Markets such as AGOA, EU-ACP:

National working groups were constituted to coordinate preparations for Ghana hosting of the AGOA Forum in 2007 and UNCTAD in 2008; lobbying by African Ministerial Group led to third country fabric provision of AGOA being extended from2007 to 2012 by US Senate and Congress.

iii. Institute Mechanisms to Manage External Shock

As at the end of 2006 the level of international reserves was about US$2.0 billion, enough to cover more than three months of imports of goods and services.

2.5 SUMMARY OF POLICY RECOMENDATIONS

  • The government should continue to sustain macroeconomic stability and prudent fiscal policy management in the areas of:
    • public expenditure management;
    • external resource mobilization;
    • non-tax revenue mobilization;
    • financial sector development; and
    • fiscal policy monitoring
  • The Revenue Agencies Governing Board should review and strengthen its strategic operations in meeting its mandate. Activities towards the computerization of the Internal Revenue Service (IRS) should be accelerated.
  • The coverage of the integrated financial management system under the BPEMS should be expanded to the remaining MDAs, as well as the regional and the district capitals.
  • The Controller and Accountant General’s Department should consolidate and expand the gains made from the treasury re-alignment and the Sub-Consolidated Funds Bank Account to cover the management of other public funds including Internally Generated Funds (IGF) and Donor Funds. This is to facilitate comprehensive reporting and fiscal decentralisation.
  • To improve non-tax revenue collection, the MoFEP should collaborate with the Ministry of Local Government and Rural Development to implement measures to improve the capacity of MMDAs to generate revenue and facilitate the review of obsolete and unrealistic fees and charges by MDAs
  • The government should continue its efforts at strengthening and ensuring a more facilitative regulatory framework to improve the financial market infrastructure to increase access and depth of financial services.
  • The MoFEP should continue to monitor and evaluate the impact of fiscal policy on sectoral performance of MDAs and MMDAs to ensure that the budgetary allocations are used to fund activities that lead to the realization of sectoral targets.
  • The financial sector reforms should focus on inducing more competition and efficiency in the bank and non-banking institutions with the view to narrowing the wide interest rate spread.

Chapter Three Private Sector Competitiveness

3.1 Introduction

The focus of medium-term policies outlined under the thematic area of Private Sector Competitiveness is to achieve accelerated growth through modernised agriculture, led by a vibrant and competitive private sector. The key policy interventions prioritised under this thematic area include:

  • the development of the private sector
  • modernised agriculture;
  • development of the fisheries industry including aquaculture;
  • restoration of the degraded environment and improvement in natural resource management;
  • promotion of trade and industrial development;
  • development of transport infrastructure including road, rail, water and air transport;
  • improvement in energy supply to industry and households;
  • increased support to science and technology for enhancing productivity and development;
  • development of Information and Communication Technology (ICT);
  • harnessing the revenue and employment generation potential of the tourism sector; and
  • increased generation of employment and the improvement and expansion of the social safety nets.

Fifty-three indicators have been adopted to track progress over the period of implementation of this segment of the policy framework. The chapter reviews progress made in 2006 towards achieving the set targets including the status of the MDBS/PRSC policy measures and triggers.

3.2 Status of Selected Indicators, and Key Policy Measures, and Strategies in 2006

Overall, 15 of the indicators (representing 28%) achieved the targets set with about nine of them exceeding the targets, while 20 of them (representing 38%) fell short of the targets during the year under review. The remaining indictors could not be sufficiently assessed due to unavailability of initial targets or inadequate data. The performance of these indicators is detailed below.

3.2.1. Private Sector Development

Status of Selected Indicators:

The focus of policies on support to private sector are to; (i) improve Ghana’s position in global and regional markets, (ii) enhance efficiency and accessibility of national markets, (iii) strengthen firms competency and capacity to operate effectively and efficiently, (iv) enhance government capacity for private sector policy formulation, implementation, and monitoring and evaluation, (v) facilitate private sector access to capital, (vi) facilitate the removal of institutional and legal bottlenecks, (vii) facilitate innovation and entrepreneurship, (viii) accelerated development of strategic sectors, and (ix) supportive and mindset change of the population towards the private sector.

The key indicators selected for monitoring progress towards the attainment of these objectives include:

  • ease of doing business ranking;
  • FDI net inflows;
  • private fixed investment (as % GDP);
  • number of days for register a business;
  • the number of days spent on resolving commercial disputes; and
  • domestic credit to the private sector as a percentage of GDP.

The results of data analysed indicate that, the number of days to register business, domestic credit to the private sector as a ratio of GDP and the number of days spent on resolving commercial disputes exceeded the respective targets set for 2006, and showed a significant improvements over the 2005 levels. These, subsequently, have contributed to enhancing the environment for doing business, FDI net inflows, as well as the level of economic activities which all experienced an improvement over the 2005 situation. The ease of doing business ranking improved from 102nd in 2005 to 94th out of a 175 countries assessed in 2006. Additionally Ghana was rated among the top 10 reformers on the ease of doing business, while the Bank of Ghana Composite Index of Economic Activities (CIEA), which is an index of eight economic indicators and measures the level of confidence of businesses in the economy, increased from 225.4% in 2005 to 285.7% in 2006. The FDI net inflows increase from US$144.97 million in 2005 to US$434.50 million in 2006 (an increase of 200%).

Table 3.1:Private Sector Development
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Ease of Doing Business rankingWithin the first 55 countries in the world by 2009Na10294Slow Progress toward target, with high prospect for improved business environment. The Bank of Ghana Composite Index of Economic Activities (CIEA) indicates that economic activities are on the increase, showing the confidence of economic agents in the economy.
2. Complementary Indicator: Composite Index of Economic Activities (CIEA)
CIEA–Nominal Movement =Na188.96%225.39%285.69%
CIEA–Year-on-Year growth (Nominal) =Na14.26%19.28%26.8%
CIEA–Real Movement =Na144.91%160.43%140.17%
CIEA–Year-on-Year growth (Real) =Na7.98%10.71%−12.6%
3. FDI net inflows (in millions of US$)Na139.27144.97434.50No baseline target, but there was a significant improvement over the previous year’s level
4. Number of days for registering a Limited Liability Company7Na145Target exceeded
5. The number of days for resolving a commercial disputes17519518590Target exceeded
6. Domestic credit to the private sector as ratio of GDP19.6% by 200913.1%14.9%18.0%Substantial progress towards target
Source: MOTIPPSI/BOG, 2006
Source: MOTIPPSI/BOG, 2006

Key Policy Measures and Strategies:

The following policy measures and strategies were pursued in 2006:

Improve Ghana’s Competitiveness in the Global Market

Trade Policy:

The Trade Sector Support Programme (TSSP), commenced fully in 2006. By the end of the year, all the major planned interventions were underway in nine out of the ten components of the TSSP. Preparations for the implementation of the remaining component (IPR) are at an advanced stage. The status of actions taken on the key components of the programme is as follows:

  • Multilateral Trade Negotiations
    • - Key stakeholders were consulted and regularly briefed on the progress of negotiations by the multilateral and regional trade teams during the year under review. EPA and ECOWAS CET impact assessments were carried out to inform negotiation strategy, as well as strengthening the overseas trade offices with additional staff and equipment to support Ghana’s trade negotiation teams. An Inter-Institutional Committee has been reconstituted and is expected to be fully operational in 2007, while national working groups were constituted to coordinate preparations for Ghana’s hosting of the AGOA Forum in 2007 and UNCTAD XII in 2008. The lobbying by African Ministerial Group led to third country fabric provision of AGOA being extended from 2007 to 2012 by US Senate and Congress.
  • Trade Facilitation
    • - The coordinating functions of the MOTIPSD/PSI over the programmes of key institutions facilitating trade was strengthened through regular inter-agency meetings. The extension of the GCNet connectivity to key MDAs (BoG, GSS, MOTIPSD/PSI, IRS, VAT, GSB, GIPC, Minerals Commission, VELD and GEPC) enhanced online inter-agency information sharing. The extension of GCNet to key border points which has enabled more declarants across the country to lodge customs declarations electronically. Other activities undertaken in this area include successful piloting of transit trade tracking system; remote entry system made fully operational and users trained; a Valuation Appeal Committee established to review petitions on valuations; competition introduced into the provision of cargo handling services; measures implemented to improve port security; fee structure for port services and WTO valuation procedures under review; and involvement of private companies in port services increased and inland container depots being established to ease congestion and facilitate the clearance of goods at Tema port.
  • Import-Export Regime
    • - A study on the impact of tariffs on companies was commenced in 2006 to inform the improvement of the incentive regime for businesses and the development of a methodology for computing the ‘Effective Rate of Protection’ for local industries. A training and capacity building programme on trade contingency measures has been implemented and a single corridor for 100% inspection for customs clearance of textile imports instituted. Preparatory work is underway to develop and institute a Tariff Review Mechanism (Tariff Board), and to revise customs procedures and documentation in the Ghana Free Zones area.
  • Production Capacity
    • - The formulation of an Industrial Policy commenced in 2006 and is expected to continue in 2007. Preparatory committee to guide the development of a Future Skills Advisory Group has been established, while the technical assessment of upgrading requirements for existing and proposed Craft Villages has been completed. Also a number of companies engaged in agro-processing (oil palm, cassava, sorghum, tomatoes, sugar, horticulture), garments manufacturing, salt production and crafts production were actively supported to expand production capacity.
  • Export Trade Support Services
    • - Group Export Marketing schemes were implemented by the Ghana Export Promotion Council (GEPC) for associations of vegetable growers. Confirmed orders of ¢20.24 billion (US$2,200,000) for fruits, vegetables, medicinal plants and seeds, garments, fish and wood products was secured through Government-facilitated trade missions, exhibitions and buyer-seller meetings. Government supported the establishment of three Export Trade Houses to promote the establishment of commercial intermediaries between SME suppliers and buyers located in different countries. Pineapple exporters were provided with financial assistance to introduce the market-preferred MD2 variety. An export trade information centre located in Accra was made fully operational during the year. This facility is expected to be upgraded to host the launching of an online multi-purpose trade information system under the MSME project. A Foreign Trade and Investment programme was commenced with the appointment of representatives in the US and India.
  • Finance and Investment
    • - Credit from the Export Development and Investment Fund (EDIF) to exporters increased steadily. The mandate of the fund was extended to support non-export companies in key strategic areas. As at October 2006, EDIF has provided ¢155.2 billion of financial support to the Non-Traditional export sector.

Quality Standards:

Highlights of progress made are as follows:

  • the Sanitary and Phyto-sanitary (SPS) and Technical Barrier to Trade (TBT) National Enquiry Points at Plant Protection Regulatory Services Directorate (PPRSD) and Ghana Standards Board (GSB) have been fully equipped, with a contractor selected for the development of an interactive website to provide access to technical information for exporters;
  • a Joint Publication Agreement has been signed between the GSB and the International Trade Centre to customise and publish a guidebook to SPS and TBT requirements for Ghanaian exporters;
  • a Quality Management Steering Committee established to commenced work on the development of Quality Management training syllabi for SMEs, the establishment of a professional body for Quality Management practitioners in Ghana and to institute procedures for administering a National Quality Award Scheme;
  • stakeholder consultative workshops were organised on the Standards Bill and the Food and Drugs Bill in 2006; agreement has been reached with Parliament to consider and pass the two Bills concurrently;
  • the Ghana Standards Board (GSB) has been restructured into commercial and core divisions, with technical experts being recruited to assess the upgrading requirements of selected laboratories;
  • negotiations were conducted with the Foreign Agricultural Service of the US Department of Agriculture to support the development of a National Alert System for Ghana.

Investment Promotion:

Key achievements made in this area in 2006 are as follows:

  • the third draft of the revised GIPC Act 478 was completed and is further to be benchmarked against models of best practice to ensure that the law provides Ghana with a competitive edge as a preferred investment destination when it is passed;
  • a new Tourism Investment Law, Act 1817 was launched by the GIPC and the Ministry of Tourism and Diasporan Relations in March 2006. The new Law seeks to promote investment in various activities in the tourism value chain through the granting of fiscal incentives and benefits;
  • as part of its efforts to increase private investment across the regions of the country, the GIPC collaborated with the respective Regional Coordinating Councils in organizing investment Promotion Seminars/Fora in 8 regions to educate local and prospective investors on the investment climate in Ghana including the opportunities, incentives and guarantees available;
  • the GIPC registered a total of 114 investment projects with an estimated investment outlay of US$2.22 billion. The significant increase in the value of registered projects during the first half of the year was as a result of the projected value of investments by the ALCOA group in the aluminium and bauxite sectors;
  • the GIPC also supported investors to secure the relevant permits and approvals for the operation of their businesses and continued to provide advisory, hand-holding and liaison services to investors;
  • the Centre hosted 21 Trade and Investment missions during the period from USA, India, Nigeria, Thailand, UK, Cote d’Ivoire, Sweden, The Netherlands, Gabon, Brussels, China, Japan, United Arab Emirates and Canada among others;
  • GIPC collaborated with UNCTAD and the Japan Bank for International Cooperation in launching the ‘Blue Book’ for Investment in Ghana which recommends 12 priority measures, to be implemented over a one-year period, to improve the investment climate in Ghana; and
  • four technology transfer agreements were registered in 2006, with the aim of transferring selected categories of technology (including professional, technical and management services, trade marks and technical assistance) to beneficiary local enterprises in Ghana.

Strategic Export Sectors:

A draft framework document which was completed in the last quarter of 2005, as a basis for agreeing on operational guidelines and action plans for PSI with key stakeholders, including DPs, was reviewed and implemented in 2006.

Enhance Efficiency and Accessibility of National Markets

Financial Sector Reforms:

The implementation of the Financial Sector Strategic Plan (FINSSP) under the MOFEP is of critical importance to the national strategy for growth and private sector development in Ghana.

Highlights of the implementation of FINSSP in 2006 included the following:

  • two and three year medium term Bonds were listed on the stock exchange, as part of measures to develop the secondary market for Government Debt Securities. Preparatory work on the establishment of an International Financial Services Centre is in advanced stages. The Centre will position Ghana to provide specialised financial services for offshore customers in the areas of banking, insurance, securities, leasing and other non-bank financial services;
  • discount Houses were completely phased out and the regulations guiding investment management service providers were harmonised;
  • the laws on Collateral Enforcement and Truth in Lending was reviewed;
  • the BoG commenced the installation of a fully integrated banking and ERP solution.
  • the first phase of the automation of the banking and financial systems of 12 rural community banks was completed;
  • the Venture Capital Trust Fund was established and made operational. The Fund has signed 2 investment agreements with venture capital finance companies and to encourage more venture capital finance companies to participate in the scheme the government announced an enhancement of the tax incentives including;
    • - the extension of the 5year full exemption from corporate income tax, dividend tax and capital gains tax for eligible venture capital finance companies to 10 years;
    • - the expansion of the 100% chargeable income deduction granted to financial institutions which invest in venture capital finance companies to include all corporate and individual investors who invest in venture capital financing companies;
    • - tax exemptions on distributions of interest, dividends and capital gains to investors in venture capital finance companies, in addition to the fact that losses from disposal of the shares of a venture investment may be carried forward for a period of up to 5 years after disposal.
  • under the Financial Sector Strategic Plan (FINSSP) the following Bills were submitted to Parliament for consideration and enactment:
    • - Credit Reporting Bill (passed in 2006)
    • - National Insurance Bill (passed in 2006)
    • - Foreign Exchange Bill (passed in 2006)
    • - Central Securities Depository Bill (in Parliament)
    • - Apex Bank Regulations (in Parliament)
    • - Insolvency Bill (passed in 2006)

In addition, the Securities and Exchange Commission (SEC) consolidated its existing Memorandum of Understanding (MOU) with the capital market regulator in Nigeria in 2006. The Securities and Exchange Commission also approved the listing of Ecobank Transnational Incorporated (ETI) on the Ghana Stock Exchange. ETI was simultaneously listed on all stock exchanges in the sub-region including Ghana, Nigeria and Cote d’Ivoire, bringing to 3, the number of cross-listed stocks on the Ghana Stock Exchange. Another MOU with the Financial Services Board (FSB) of South Africa is expected to be signed before the end of 2007, with the expectation that it will encourage sharing of information and cross listings between South Africa and Ghana.

Public Sector Reform:

The programme of activities outlined to the be implemented in 2006 by the Ministry of Public Sector Reform’s focused on four main areas, which were considered critical in improving the quality and speed, and reducing the cost of service delivery to the private sector namely:

  • the implementation of priority activities arising out of the recommendations of the Institutional Review exercise conducted with PSD-related MDAs to inform the implementation of the PSDS;
  • the establishment of Clients Services Units in key PSD-related MDAs;
  • the implementation of Customer Charters; and
  • the delivery of culture change programmes for public servants interfacing with the private sector.

Under the strategy of establishing Client/Customer Service Units in key PSD-related MDAs, twenty-three MDAs signed MoUs in September 2006 with MPSR, in addition to the three main revenue agencies (CEPS, VAT and IRS), to guide the establishment and operations of their Clients/Customer Service Units.

The twelve (12) selected MDAs that regularly interface with the private sector commenced implementation of their institutional review recommendations in July 2006 and are expected to focus on simplifying administrative procedures and improving transparency in their operations and provide greater access to information by the private sector

The highlights of other activities undertaken to improve the quality of service delivery include:

  • the establishment of 3-member Project Implementation Teams (PITs) in the participating MDAs, headed by DMDs, Deputy CEOs, Deputy Directors
  • delivery of a training programme on “Total Customer Care” to staff of CSUs in March 2006.
  • the launch of a Customer Satisfaction Survey in April 2006
  • support to the development of new customer-friendly facilities at DVLA in July 2006.
  • training programme on Leadership of the Civil Service in collaboration with GIMPA.

Internal Revenue Service (IRS)–Implementation of FIAS Recommendations:

In line with the recommendations of the Foreign Investment Advisory Service (FIAS) in relation to the IRS, four areas of activity were outlined for implementation in 2006. The highlights of achievements are as follows:

  • a significant reduction of tax registration in IRS to 3 days, though the process of company registration and taxation registration are yet to be fully integrated;
  • the use of manuals by all the 50 District Offices of IRS as part of the measures to intensify and enforce the use of Tax Collection Manual; and
  • the launch of Tax Stamps in 2006.

Customs Reforms–Customs, Excise and Preventive Service (CEPS):

The following activities were undertaken in 2006 in this area:

  • customs procedures have been simplified and remote entry system for customs declarations is fully operational. The implementation of the GCNet programme has eliminated the reliance on discretion in determining valuations, with an Appeals Committee established at MOTIPSD/PSI to handle petitions;
  • GCNet was connected to more MDAs, border points and other users;
  • about 75% of port operations are managed by private sector companies with GPHA maintaining only 25% of stevedoring operations;
  • a study of Ghana’s compliance with WTO valuation procedures has been undertaken, based on which a capacity building programme will be organised for CEPS officials;
  • CEPS conducted workshops to train its officials in trade facilitation; and
  • the Government engaged the services of consultants to carry out a comprehensive review of the excise duty. The rationalisation of the excise tax regime has focused on achieving simplicity in administration and enforcement, ensuring a steady stream of revenue, discouraging tax evasion and smuggling, curtailing the consumption of harmful products and removing the distortions.

Business Registration Reforms:

The Registrar-General’s Reform Strategy aims to provide a customer friendly business registration services which are close to the client either by location or through on-line services. The highlights of activities implemented in 2006 include the following:

  • name searches and retrieval of information on registered companies reduced from 2 days to 5 minutes. This has led to marked improvement in processing registration documents from 7 days to about 3 days;
  • training of staff in the use of electronic workflows has been completed with businesses registered with the right classification;
  • the installation of the network infrastructure has been competed;
  • user training in data conversion software was conducted for staff of RGD;
  • the RGD gained access to the Tax Identification Number (TIN) Office network and can call up TIN numbers but still these have to inserted on RGD forms manually;
  • work on establishment of a customer-friendly front office was commenced and tenders for the construction are currently being evaluated; and
  • regional offices in Kumasi and Takoradi have been furnished and staffed, as part of the process of RGD’s decentralisation programme. The two regional branches serve as collection and distribution points and would become fully operation when fully equipped and connected to the Head office via a wide area network.

It is anticipated that when the RGD starts using the electronic registration workflow fully, the turnaround for registration of companies could be reduced further. RGD’s database is to be classified into sectors and sub-sectors, to enable RGD analyze business data on a sector by sector basis and to facilitate information sharing with other MDAs.

Judicial Service Reforms:

The objective of the commercial court reform programme is to ensure speedy dispute resolution of commercial disputes and the enforcement of contracts. The establishment of the commercial court to deal exclusively with business and commercial disputes has recorded significant progress in reducing the number of days it takes to hear and dispose of cases. Alternative Dispute Resolution (ADR) has also been introduced in court procedures as part of the dispute resolution process. The focus of the courts is the restoration of confidence of the business community in the judicial system.

Out of 740 cases filed before the Commercial courts between March 2005 and October 2006, about 42% were related to restructuring of commercial debts, 25% were about banking and financial services; and 14% were about business documents and contracts. The remaining included 5% intellectual property rights cases, 4% other claims of a commercial nature, 3% tax matters and about 10% other cases (including commercial fraud (0-5%), carriage of goods by sea, land or pipeline (3%), applications under the Companies Code (2%)). Activities implemented in 2006 include:

  • a review of the rules of the Supreme Court and Court of Appeal;
  • training for Commercial Court Judges;
  • ICT Training for Commercial Court staff;
  • hosting of regional sensitizations workshops for about 220 lawyers and entrepreneurs in the Volta, Greater Accra, Eastern, Central, Western, Ashanti, Brong-Ahafo, Northern, Upper East and Upper West; and
  • calling back and clearing the backlog of land cases through “Registrar’s Summons” (advertisements).

Business Law Reform:

Some progress was made in the implementation of the Business Law Reform by the BLD, particularly in the ongoing revision of the Companies Code. The mandate of the Business Law Division (BLD) of the Attorney General’s Office was to research, review and update business laws of Ghana. It is also to disseminate business laws and to liaise with other government agencies in business promotion and development. The institutional review exercise had recommended that the mandate of the Division was too broad and had to be refocused to be able to make an impact given the resources and expertise available in the Division.

Consequently the Business Law Division was scrapped and some of its functions integrated into the Ministry of Justice and Attorney-General during the course of the year. The Business Law programme has been taken up by a programme implementation team in the Ministry. The team is to work with a Committee of Experts to be appointed to draw up a detailed work programme. In addition in 2007 a Senior Programme Manager will be recruited to coordinate and support the implementation of the programme, working in collaboration with relevant MDAs.

Strengthen Firms’ Competence and Capacity

Preparatory activities commenced to conduct a survey on the informal sector and the development of a Business Development Services (BDS) best practice framework, which should provide the basis for productivity related firm-level capacity building interventions in key strategic sectors. This is linked to the areas of intervention already supported under the MSME Project.

Government of Ghana has granted exemptions to 66 active pharmaceutical ingredients to further encourage local pharmaceutical industries to increase the supply of locally produced drugs and support the current National Health Insurance Scheme.

A Micro Credit Fund of US$50.00 million was launched in September 2006 with the establishment of the head office of MASLOC and 9 decentralized regional offices. About ¢154.00 billion was extended as micro credit in 2006 and this has benefited over 103,000 borrowers in various sectors, especially agriculture, fisheries and micro enterprise

Under the Rural Enterprises Project a total of 13 new Business Advisory Centres were established and 376 graduate apprentices supported to obtain the NVTI certificate. The Business Development Services component of the programme organised a total of 69 training sessions and reached out to 1,934 entrepreneurs. Seventy master-craft persons were given skills training, and Business Opportunities Identification Surveys (BOIS) were undertaken in 13 new districts.

Enhance Government Capacity for Private Sector Policy Formulation, Implementation, Monitoring and Evaluation

As part of the processes towards strengthening public-private partnership a public-private dialogue unit was created at the MOTIPSD/PSI in 2006. The unit undertook a number of activities particularly in the area of budget preparation, which led to some far-reaching pro-PSD measures by Government in the 2007 Budget Statement and Economic Policy. These activities were in the form of pre-budget consultations which took the form of:

  • - Bi-monthly breakfast meetings with the private sector and selected MDAs
  • - Bi-annual Trade and Industry Forums
  • - Annual PSD Conference
  • - Ghana Investors’ Advisory Council (GIAC) is currently under review.

A Policy Regulatory Impact Assessment (PRIA)/ Programme Intervention Evaluation Template (PIET) tools was approved by government as part of the Central Governance Programme.

3.2.2. Modernised Agriculture

Status of Selected Indicators:

Agricultural sector policies under the GPRS II are focused on ensuring: (i) sustainable increase in agricultural productivity and output to support industry and provide stable income for farmers; (ii) food security for all and increase the access of the poor to adequate food and nutrition; and (iii) the development and strengthening of the requisite institutional capacity to support increased productivity.

The key indicators selected to monitor progress towards implementation of policies include:

  • the percentage change in the yield of selected traditional crops;
  • percentage change in volume of export and the value of non traditional crops;
  • percentage of cultivated lands under irrigation;
  • the share of credit to agriculture, forestry and fisheries by Deposit Money Banks (excluding cocoa);
  • per capita production of key staple foods (crops);
  • farm and non-farm household incomes;
  • ratio between subsistence crop/livestock and commercial crop/livestock farming; and
  • percentage change in agro-processing and agro-business enterprises and micro-enterprises registered.

Key result from a review of the sector performance is as follows:

i. Sustainable Increase in Agricultural Productivity and Output:

The overall agriculture sector growth rate in 2006 has been estimated to be about 5.7% and contributed about 35.8% to the GDP. This was more than the GPRS II target of 5.2%, but less than the growth rate of 6.6% anticipated in the 2006 budget statement. This shortfall has been attributed to the inability of the cocoa sub-sector to achieve the target set under the budget statement, even though the 2005/06 production represents the highest in the history of Ghana.

A total quantity of 740,458 metric tonnes of cocoa was declared purchased at the end of the 2005/2006 season. This represents an increase of 23.0% over the 601,922 metric tonnes achieved in the 2004/05 crop season and surpasses the record production of 736,629 metric tonnes in 2003/04. These consistently high production volumes achieved since 2002/03 are the result of continuous support to the cocoa sector.

The performance of the sector in terms of the yield of the key staples however recorded a decline in 2006, in addition to the fact that the target set for 2006 could not be attained. This situation has been attributed largely to farmers resort to land expansion instead of investing in yield improvement activities (see Box 3.1). Also the value and volume of selected non-traditional export crops showed the same declining pattern except in the case of banana, where the volume exported exceeded its targets in 2006. The export of pawpaw and mango begun to decline in 2005 and has worsened in 2006, while export of pineapple, even though below target, recorded a positive trend since 2005 in both volume and value.

Box 3.1:Reasons for Low Yield

The underlying causes of the low investment and poor yields in 2006 is that:

  • farmers gave priority to farm expansion instead of farm intensification, because fallow lands are readily available and farm expansion is considered less risky and inexpensive compared to intensification (Figure 3.1);
  • decreasing profit margin of some crops due to stable prices of crops and increased input cost, especially for maize and cassava

Figure 3.1:Area under Cultivation for Major Staples

(2005-2006)

Source: MOFA, 2006

Available estimates on livestock production show that the rate of growth in the production of the various species has increased by an average of 4% over the 2005 figures (cattle sheep- 3.2%, goat -5%, pigs -3% and poultry- 8.8%), though sufficient data are not available to assess the changes in productivity during the year under review. It is estimated that a total of 1,392, 000 cattle, 3,314,000 sheep, 3,997,000 goat, 477,000 pigs and 34,030,000 poultry were raised in 2006, while a total of 183,099 head and 185,277 head of live animals (cattle, sheep and goats) were imported in 2005 and 2006 respectively. This represents increases of 14.1% and 15.4% respectively over the 2004 levels (160,539 heads base year). The bulk of these imports (about 99.8%) originated from the Sahelian countries of Burkina Faso; Mali and Niger.

Table 3.2a:Productivity of Crops and Livestock
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Change in yield of selected traditional crops and productivity of livestock.Targets not achieved Yield of all the selected staple crops declined, except rice.
Maize =0.39−0,050.01−0.08
Rice (milled) =1.17- 0.03- 0.020.02
Cassava =0.57- 0.480.56- 0.56
Yam =0.490.640.580.11
Plantain =1.50.341.61−0.38
Cocoa =0.10Na0.460.46
Poultry =0.11Na0.11Na
Sheep =0.05Na0.03Na
Goat =0.04Na0.04Na
Cattle =0.01Na0.01Na
2. Percentage change in export volume and value of non traditional crops.With the exception of volume of the banana exported, non of the targets set for the selected non-traditional crops was not attained
i. Pawpaw
Volume = (3,751,947Kgs in 2004)20095.77−14.40−54.0
Value = (US$1,226,695 in 2004)20066.49−11.85−35.0
ii. Mango
Volume = (375,911Kgs in 2004)40060.388.33−52.0
Value = (US$163,850 in 2004)40051.59−17.88−34
iii. Pineapple
Volume = (71,804,617Kgs in 2004)40059.05−74.41196
Value = (US$13,316,459.48 in 2004)40053.49−42.0733.0
iv. Banana
Volume = (725,365Kgs in 2004)150099.5353.941,830
Value = (US$208,938 in 2004)1500−7.82119.651,291
Source: MOFA, 2006
Source: MOFA, 2006

In order to track the progress made in enhancing the environment for agricultural productivity and reducing risk associated with agriculture, three main indicators were identified. These are the share of credit to agriculture, percentage of cultivated lands under irrigation, and percentage change in agro-processing and agro-business enterprises and micro-enterprises registered.

Available data indicates that the target for the share of credit to agriculture, fisheries, and forestry (excluding cocoa) in 2006 could not be attained, in addition to the fact that it fell short of the 2005 level by 1.4%. The decline in this indicator began in 2004 and has continued to date, thereby reducing the opportunities for increased investment by the private sector into agriculture.

Similarly the percentage of cultivated lands under irrigation declined marginally in 2006 by 0.05% from the 2005 level and also fell short of the target set for 2006 by 0.12%. Currently, the total cultivated lands under formal irrigation amounts to 14,928 hectares, out of which 82% are in the Greater Accra, Volta and Upper East Regions. However, it is estimated that most of the irrigated area is held by small-scale operators in the non-formal sector, and concentrated around and in urban areas where water is used either from river, wells, drainage and collecting tanks. Available statistics indicate a total developed area of 45,000 ha under non-formal irrigation.

The assessment of progress made towards modernizing agriculture beyond production within the value chain could not be completed due to inadequate data to calculate the percentage change in agro-processing and agro-business enterprises established.

Table 3.2b:Improving the Environment for Agricultural Productivity
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Percentage of cultivated lands under irrigation0.33%Na0.26%0.21%Target not attained
(Area developed for irrigation/ha)(23,500)(19,000)(14,928.5)Regional distribution:

Ashanti ‒ 188

Brong Ahafo ‒ 236

Central ‒ 386

Greater Accra ‒ 5,147

Northern ‒ 690

Upper East ‒ 3,690

Upper West ‒ 115.5

Volta ‒ 3,463

Eastern ‒ 603

Western ‒ 60

Total ‒ 14,928.5
2. The Share of Credit to Agriculture, forestry and Fishing by Deposit Money Banks (excluding Cocoa)≥10%8.1%6.2%4.8%Target not achieved
3. Percentage changed in agro-processing and agro-business enterprises and micro-enterprises establishedNaNaNaNaData not available to evaluate the indicator
Source: MOFA, 2006
Source: MOFA, 2006

ii. Food Security and Increase the Access of the Poor to Adequate Food and Nutrition:

An analysis of available data indicates that farm incomes constitute nearly 61% of all household incomes of most farmers in 2006. Data are not available to determine how much changed has occurred between 2005 and 2006, however significant progress has been made to achieve the target set for 2006. Significantly, efforts made at moving towards commercial farming is yielding limited results as the target set to attain subsistence-commercial farming ratio of 2.5 in 2006 could not be met. Instead the subsistence-commercial farming ratio currently stands at 3.16, which has an important implication for the agriculture modernisation effort.

For agriculture to continue to be able to lead growth and poverty reduction, priority efforts to modernize agriculture are 1) to increase the share of commercial agriculture by both expanding farm size and intensifying farm; 2) add value to production by promoting and consolidating the agricultural non farm value chain, in particular the agro-processing and agro-business sector; 3) facilitate timely access to credit and mechanization to motivate increased production and investment in commercial agriculture.

In terms of the per capita production of key staple foods, which is an important indicator of the level of food security, the data indicate that some significant progress was made in 2006 as at least 50% of the selected products exceeded their target. Out of the thirteen selected staple crops, livestock and fish products monitored seven exceeded their respective targets, while five of all the products fell short of the 2005 levels, though two of these have achieved their targets.

Table 3.2b:Farm Household Incomes and Food Security
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Per capita production of key staple foods (crops), livestock and fish; (in kg/Annum, except * which is in live animal/annum)
Maize =45.0555554At least 50% of target attained (Five out of eight selected staple crops, and two out of five of the selected livestock and fish products exceeded their respective targets)
Rice (milled) =25.071111
Sorghum =15.0141414
Millet =8.0797
Cassava =400.0464445436
Yam =180.0185182194
Plantain =110113130131
Cocoa =21.0Na15.333.5
Poultry* =1.7Na1.491.52
Sheep* =0.17Na0.160.15
Goat* =0.21Na0.200.18
Cattle* =0.07Na0.070.63
Fish =0.022Na0.210.29
2. Farm Household incomes60%--61%Target exceeded in 2006
Non-farm Household income40%39%
3. Ratio between subsistence crop/livestock and commercial crop/livestock farming2.5--3.16Target not achieved
Source: MOFA, 2006
Source: MOFA, 2006

Key Policy Measures and Strategies

The attainment of the overall objective of the Growth and Poverty Reduction Strategy (GPRS II) is anchored in the agricultural sector showing strong growth. The following policy interventions were prioritised for implementation during the year under review.

Crops Sub-Sector

The Grains and Legumes Development Board (GLDB) under the National Seed Support Service produced 55 mt of foundation seed maize, processed 500 mt of certified maize seed, 8 mt of sorghum and 25 mt of rice foundation seeds for planting; while another 200 mt of maize grains was processed for storage. In the North, three warehouses were established at Tamale and Yendi for grain storage.

The Inland Valley Rice Development Project extended credit to 905 farmers, in addition to providing technical support to farmers in the areas of land and water management techniques in the 17 project districts. 850 farmers with average holding of 0.4 ha were assisted to plant 340 hectares of rice under the Nerica Rice Dissemination Project.

The Irrigation Company of the Upper Region (ICOUR) facilitated the production of 200 tons of paddy rice seed, 1,800 tons of rice grains and also cropped 220 hectares of millet and 34 hectares of soybeans at its Vea and Tono dam sites. In addition, the Ministry assisted farmers in the North in land preparation and supply of seeds for the establishment of 10,000 hectares of cotton.

Legumes

GLDB produced foundation seeds to enhance farmers’ access to viable and high yielding leguminous seeds in the minor rainy season. As a result, 20 mt of foundation seed groundnuts was produced to enable farmers’ access rosette resistant groundnut seeds. Also 1,572 hectares of cashew fields was established with the assistance of the Cashew Development Project, while 9,000 unproductive cashew trees (90 hectares) within the 10 Project Districts were stumped and grafted with scion materials taken from trees with desirable characteristics to increase yields.

In collaboration with the Crop Research Institute (CRI), technological packages were developed to enhance cashew production. The packages include vegetative propagation techniques, development of a strategy for canopy substitution and control of cashew diseases.

Root and Tubers

Under the Root and Tubers Improvement and Marketing Programme 40 trained farmers were supplied with 10,000 mother yams for multiplication into minisetts for planting. The GLDB produced 100,000 units of yam setts at the Kintampo and Ejura nurseries.

To reduce the risk associated with over-dependence on rainfall for agriculture purposes, nine irrigation schemes located in various parts of the country are currently being rehabilitated. A total of 1,896 ha of irrigable land will be made available for the cultivation of maize, vegetables and rice upon the completion of the rehabilitation programme.

Horticulture

The rehabilitation of Shed 9 at Tema Port under the Horticultural Export Industry Initiative (HEII) and the implementation of the Export Marketing Quality Awareness Project in four regions namely, Greater Accra, Eastern, Central and Volta Regions has taken off. GLDB also produced about 15,000 citrus seedlings for sale to farmers.

Another initiative is the distribution of about 1.8 million MD2 pineapple plantlets to smallholder farmers through the collaborative rapid sucker multiplication scheme. The scheme aims at enhancing access of smallholders to the MD2 variety that is currently in high demand on the export markets.

Livestock Sub-Sector

To boost livestock production, fodder banks were established under the Livestock Development Project to ensure the availability of fodder for livestock, in addition to carrying out a reconnaissance survey of 44 selected dugout sites and 28 selected boreholes sites.

Three training sessions for 3,500 farmers in 33 Districts were conducted to strengthen farmers capacity to identify, prevent and control such diseases like new castle, rabies, African swine fever and foot and mouth disease.

To effectively control an endemic poultry disease such as new castle in rural poultry about 2.5 million I2 vaccines were produced by the Veterinary Central Laboratory at Pong Tamale and over 700,000 rural poultry were treated with the product.

A total of 80 Farmer Based Organizations were strengthened to enable them access business development services including credits and grants. Research Extension Liaison Committees (RELCs) involving farmers were strengthened through their participation in planning sessions and on-farm adaptive trials.

The Cocoa Industry

A total of 358 km of feeder roads were rehabilitated at a total contract cost of ¢92.7 billion in the cocoa growing areas of Ashanti, Brong Ahafo, Central and Western regions.

The Cocoa Diseases and Pests Control Programme continued with a total expenditure of ¢564.9 billion during the year. In total, 742,213 cocoa farms and 514,361 cocoa farmers had their farms sprayed with either fungicides or insecticides against the black pod disease and capsid respectively. The programme employed 50,765 youth from local communities within the six cocoa growing regions for the spraying exercise. The total area covered was 1,948,101 hectares made up of 800,000 hectares under the black pod control and 1,148,101 hectares under the capsid control.

To assist cocoa farmers acquire houses, the government through the Ghana Cocoa Board voted an amount of ¢5.0 billion as seed fund for a housing scheme and accordingly released ¢1.0 billion out of the fund for the commencement of the pilot phase in the Western Region. The Department of Rural Housing has started the construction of 10 houses, which are all three bedroom units with the necessary amenities and rain water harvesting system. The 10 houses are being built in three townships in three Districts of the Western Region namely, Enchi in the Aowin-Suaman Distrct, Afranse in the Wassa Akropong District and Yawmatwa in the Bia District.

Government partnered the Agricultural Development Bank (ADB) to successfully launch in September, 2006 a special package for cocoa farmers under the “ADB Farmers Golddrive” aimed at assessing cocoa farmers as well as other farmers acquire means of transport.

Dissemination of Technology

Through support under AgSSIP funding, sixty-four technologies were released by research to the Extension Services Directorate of MOFA for dissemination to farmers during the year 2006. A total of 41 technologies were demonstrated by DADU/RADU throughout the regions, made up of 15 technologies for crops, 13 for livestock, six for fisheries and seven for other technologies.

Also the following technologies were disseminated in all regions, each one benefiting more than 20,000 farmers: i) row planting for optimum production; ii) correct use of agro chemical; iii) improved crop varieties; iv) seed planting material production and multiplication technique; v) pest/disease recognition; vi) post harvest of food grain; and vii) soil fertility improvement and management.

Mechanisation and Equipment

Tractors and tillers for land preparation were distributed to farmers during the year. Other agricultural equipment distributed to farmers included 55 units of 20 MT ProCocoon storage facilities. The beneficiaries were trained in the use of and basic maintenance practices on the distributed equipment and machinery. Due to lack of funds, the planned rehabilitation of the five animal traction centres were not be implemented. Out of the new 1,000 boreholes planned for 2006, only 20 boreholes were drilled and eight were equipped.

3.2.3. Fisheries and Aquaculture Development

Status of Selected Indicators:

To reduce overdependence on marine fisheries which has reached optimum sustainable yield, the focus of policies under this broad area included: (i) the development of aquaculture infrastructure including fish hatcheries; (ii) promote private investment in aquaculture; and (iii) utilize irrigation systems and other impounded reservoirs for aquaculture; and ensure value addition of fisheries products to improve fisheries contribution to Ghana’s GDP.

The key indicators selected to monitor progress towards the attainment of the objectives, in this regard, include:

  • total fish production;
  • quantity of fish produced per hectare of pond per year; and
  • total surface of pond/cage/pen under fish farming

Indicators selected in this policy area were to track; (i) trends in fish production in the country, (ii) level of productivity in aquaculture, and (iii) trends in aquaculture development. Analysis of the data shows that the marine fisheries sub-sector has started showing signs of recovery, recording an estimated 3.6% growth in 2006 following a decline in 2005. Total surface water under fish farming increased from 231.4 ha in 2005 to 508.58 ha in 2006, thereby exceeding its target in 2006. However the quantity of fish produced per hectare of pond per year stagnated at 1.5tons/ha/yr, falling short of its target in 2006. Over the same period the production of fish from ponds accounted for about 19.877 mt in 2006 (with nearly 90% coming from the Ashanti and Eastern regions alone), while culture based fisheries accounted for 18.54 mt.

Table 3.3:Fisheries and Aquaculture Development
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
2. Total Fish Production (mt)
a. MarineNa352405.19322,789.48334,409.9No Initial target for assessment
b. Inland Capture fisheriesNaNaNa14,481Regional distribution (Kg):
c. Harvesting of PondsNa3,5006,90019.877Ashanti ‒ 9,378.1

Brong Ahafo ‒ 1,167.5

Central ‒ 376.36

Greater Accra ‒ Nil

Northern ‒ Nil

Upper East ‒ Nil

Upper West ‒ Nil

Volta ‒ Nil

Eastern ‒ 8,411

Western ‒ 544

Total ‒ 19,876.96
d. ImportNaNa166,003.1165,559.7
3. Quantity of fish produced per hectare of pond per year2 Tons/ ha/yr1.31.51.5Target not attained
4. Total surface water Area under fish farming250ha200231.4508.58Target exceeded



Disaggregations:

Total # of Ponds = 3,472

Functional ponds = 3,234

Total # of farmers = 1,597
Source: MOFI, 2006
Source: MOFI, 2006

Key Policy Measures and Strategies:

In pursuit of the policy objectives of the fisheries sub-sector the following measures were implemented in 2006:

  • draft fisheries regulations intended to give effect to the Fisheries Act, Act 625 of 2002 to streamline activities in the fishing industry were prepared for parliamentary approval. Also a series of training courses in fish farming was organised for 280 people selected from all regions in the country;
  • five community dams in the Upper West Region (Zinni, Boti, Kupulma, Kokoli and Nimoro) covering 21hectare were stocked with 824,354 fish species, which are made up of Oreochromis niloticus, Heterotis spp, Auchenoglanis occidentalis, Sarotherodon galileus, and Tilapia zilli;
  • Two public hatcheries in Ashaiman and Cadbury Hall were very active during the year under review, while most of the private hatcheries also produced fry and fingerlings for sale to farmers all over the country. By the end of the year, Ashaiman had produced 220,288 fingerlings of Oreochromis niloticus out of which 167,288 had been sold to fish farmers, 327, 000 catfish fry, had been produced by MOFI at Cadbury Hall in Kumasi for farmers. Two main private hatcheries in the Ashanti Region, Kumah Farms and Gyan-Fosu farms produced a total of 84,000 fingerlings/fry of tilapia and clarias for stocking;
  • agreement for the training of two small scale fingerling producers in all regions was concluded in Kumasi;
  • training of fish farmers which started in 2005 at the Kumah Farms Complex continued with the development of fish farming skills of 300 youth, drawn from the Central, Eastern, greater Accra, Brong Ahafo, Northern, Upper West, Upper East and Volta regions;
  • pond construction gangs were also trained at Assin Kumasi in the Central region, of which 15 of the participants were drawn from the nearby villages, and 13 were prison officers from the various prison camps. The programme was also used to demonstrate and train sixteen prisoners in practical pond construction;
  • a needs assessment was conducted for the Wassa West Fish Farmers Association (WWFFA) to provide financial assistance for members to expand operations and complete cold storage facility, undertake study tour for commercial for farmers, training in various aspects of fish farming and the acquisition of earth moving machines for pond construction;
  • the process to rehabilitate the hatchery at Ashaiman begun with the signing of contract during the year under review. The Water Research Institute was also awarded a contract for the completion of the Dormaa Ahenkro Fish hatchery, while advertisement for expression of interest by consultants in the development of a reservoir and canals for the Wassa West Fish Farmers Association at Tarkwa was posted in the national dailies.
  • sea trials of the trammel net were conducted in the Western and Greater Accra regions from inshore vessels during the year under review of which;
    • - mean catch rates off Tema (Eastern part of shelf) was approximately 1.36kg/hour
    • - mean catch rates off Sekondi (Western part of shelf) was approximately 2.0kg/hour

A total of 338 outboard motors costing ¢7.842 billion were also distributed to fishermen under a special credit scheme (known as work and pay tools) to enhance fishing in the country. The Ministry of Fisheries through the Rural Banks also advanced a ¢4.0 billion Micro-credit support to 3,000 fish processors, to enhance the processing, distribution and marketing of fish, while a Spanish grant was obtained for the establishment of cold storage and fish processing facilities at James Town, Mumford, New Takoradi, Moree, Shama, Winneba, Senya Bereku, Nyanyano and Teshie, in collaboration with the private sector.

3.2.4. Restoration of Degraded Environment and Natural Resource Management

Status of Selected Indicators:

The focus of the medium term policy under this broad area is to (i) secure the current natural resources through the promotion of sustainable natural resource management practices and the restoration of degraded natural resources, (ii) improve the environmental and natural resource governance through the building of the requisite institutions and strengthening of the regulatory framework; (iii) ensure that benefits are equitably distributed to resource owners; and (iv) take advantage of opportunities existing under the various regional and global arrangements to build the linkages toward the management of natural resources.

To track progress towards implementation, the following indicators were selected:

  • cost of environmental degradation as a ratio to GDP (lands, forests, fisheries);
  • rate of deforestation;
  • number of Timber Utilisation Contracts (TUCs) awarded;
  • number of Social Responsibility Contracts (SRC) signed;
  • percentage change in resource spent on Corporate Social Responsibility, including alternative livelihood programmes;
  • hectares of degraded forest, mining, dry and wet lands rehabilitated/restored;
  • proportion of timber royalties going to resource owners; and
  • time taken to register land.

A review of the data shows limited progress in most of the indicators. The cost of environmental degradation keeps increasing, accounting for nearly 6% of GDP in 2006 (up from 5.5% in 2005), while hectares of degraded forest, mining, dry and wet lands rehabilitated or restored is not keeping pace with targets. The number of timber utilisation contracts awarded through competitive and transparent process in the area of natural forest and plantation timber also fell short of both the target and the 2005 level, while the number of social responsibility agreements (SRAs) signed followed the same pattern. Out of 103 SRAs (Consist of 67 for natural forest and 36 for plantation), only 18 could be signed (consisting of 4 for natural forest and 14 for plantation).

Significant progress has been made with respect to the proportion of timber royalties going to resource owners in both on-reserve and off-reserve areas in 2006. Also the time taken to register land improved significantly during the year, reducing from 12months in 2005 to about 7months in 2006. This has been attributed largely to the establishment of deed registries in Sekondi, Koforidua, Sunyani and Tamale.

Table 3.4:Restoration of Degraded Environment and natural Resource Management
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Cost of environmental degradation as a ratio to GDP (lands, forests, fisheries)5%Na5.5%6%1Target not achieved
2. Rate of deforestation(−1.3%) <10,00 ha/annum65,000 ha/annumCurrent Forest = 5,517,000ha (−1.7%)NaStatistics on current rate of deforestation not available
3. Number of Timber Utilisation Contracts (TUCs) awarded
a. Natural Forest:167 Consists of: Conversion to TUC’s = 100 Ratified TUC’s = 42 Next Comp. Bidding (Nat. Foests) = 256 TUCs signed and ratified by parliament4 TUCs signed and ratified by parliamentTarget not achieved
b. Plantation:3617 Plantation TUCs signedNa16 TUCs signedTarget not achieved

Competitive bidding for 27 TUCs of plantation timber to be held by end of march, 2007
4. The number of Social Responsibility Contracts (SRC) signed103 Consist of: SRA (Nat. Forests) = 67 SRA (Plantation) = 3653 Consist of: Nat. Forest replacement = 36 SRA (Plantation) = 178 Consist of: SRA (Nat. Forests) = 6 SRA (Plantation) = 218 Consist of: SRA (Nat. Forests) = 4 SRA (Plantatio n) = 14Target not achieved

Stakeholder consultation are on-going to facilitate the signing of SRAs
5. Hectares of degraded forest, mining, dry and wet lands rehabilitated/ restored
a. Forest20,000 ha16,000ha16,800ha17,500haTarget not achieved due to limited financial resource
b. Mining238ha by 2009168haNaNaData not available to assess progress. Technical document developed for labour intensive physical reclamation
6. Proportion of timber royalties going to resource owners50:50 for on-reserve royalties (i.e. 50% for forestry commission and 50% for resource owners)60:4060:4050:50Target achieved

(The sharing of royalties from timber resources have been reviewed in favour of resource owners both on- and off-reserve. Currently, the Forestry Commission receives 50% of timber royalties from forest reserves while the resource owners also receive 50%)
40:60 for off-reserve royalties60:4040:6040:60Target Achieved

(Similarly, the sharing of royalties outside forest reserves is now 40% for the Forestry Commission and 60% for the resource owners)
7. Statistical Overview of the Mineral Sector
a. Mineral Production
Gold (thousand ounces)2,5002,029.972,138.942,423.27Significant progress made toward target
Diamonds1,000.0905.341,065.92967.86
Bauxite760.00498.06606.70753.32
Manganese1,800.001,597.091,719.591,607.178
b. Labour
Large Scale22,00021,50521,91621,950Significant progress made toward target
Small Scale (legal & illegal)*600,000500,000540,000570,000
c. Foreign Direct Investments (in million U.S. $)1,000665.86744.050900.0Significant progress made toward target
d. Mineral Rights Granted (Mining Lease, Prospecting, Reconnaissance, Salt, Quarry, Clay, Sand Winning, Small Scale Gold/Diamond, Mica)200131152189Significant progress made toward target
7. Time to register land8mths36 mths12 mths7 mthsTarget exceeded

(The drastic reduction is due to the establishment of deed registries in four areas Sekondi, Koforidua, Sunyani and Tamale).
Source: MLFM, 2006
Source: MLFM, 2006

Key Policy Measures and Strategies:

Forestry Sub-Sector

The National Forest Plantation Development Programme which was launched in 2001, with the aim of restoring the forests cover of the nation and creating employment in the rural and depressed urban communities continued in 2006. The programme is currently being implemented with active involvement of communities, resource owners, private sector and civil society organisations using the taungya system and contract planting.

Under the programme, a total of 476 individuals were given loans for re-forestation under the Micro-Credit Investment Scheme. In addition, 60 communities from the ten regions, comprising 6 persons each were given grants under the Plantation Development Fund. A total of 7,508 individuals comprising 629 groups benefited from the Community Investment Fund for mushroom farming, oil-Palm processing, grass cutter rearing, gardening among others.

The Northern Savanna Biodiversity Conservation Project (NSBCP) also assisted 138 communities under its Alternative Livelihood Programme, of which, 45 benefited from mango plantations, 20 received low tillage equipment, 30 received small ruminants to rear and 43 communities were provided with beehives for the production of honey.

To promote the use of bamboo and rattan as an alternative and supplement to wood, training was organised for 172 persons in 4 communities in the management of bamboo natural stands propagation and harvesting. In addition, 159 persons were trained in bamboo and rattan furniture and craft making as well as construction skills.

Mining

As part of the measures to regulate and manage the development of the mineral resources of Ghana, the following achievements and activities were undertaken in 2006:

  • the old mining law, PNDCL 153 of 1986 was repealed and in its place a new minerals and mining Act 2006, Act 703 was passed by Parliament. This was done to reflect international best practices in the industry;
  • a draft minerals and mining regulation was prepared for review. This is to complement and give effect to the provisions of the new Minerals and Mining Act 2006, Act 703;
  • a workshop was held in September 2006 to discuss the draft minerals and mining policy of Ghana and to solicit inputs from stakeholders in the mining industry. Final document would be submitted to cabinet for approval;
  • a total of 189 mineral rights were granted, covering 29 prospecting license, 24 reconnaissance license, 32 quarry license, 97 sand winning license, 4 salt license, 2 mining lease and 1 gravel/sand;
  • the digital mapping of 25 towns was also completed and copies are available for property rating, preparation of settlement planning schemes by metropolitan, municipal and district assemblies, road construction and estate development, land management including land titling, and resolution of land disputes, investment planning and tourism promotion; and
  • in pursuance of the alternative livelihood programme to extend the frontiers of sustainable development in selected mining communities in the Wassa West District, a project document with budget estimates for the implementation of the Prestea -Huni Valley oil palm project was prepared. A total of 10,000 acres of oil palm plantation would be developed under the project. The target beneficiaries include; poor farm families, illegal miners etc. Among the objectives of the project are; poverty reduction through employment generation, stem the tide of rural-urban migration etc. This is expected to give direct employment to about 5,000 people.

Lands

As part of the Land Administration Project (LAP), 4 additional customary land secretariats have been established at Dormaa Ahenkro, Sandema, Odukpong Kpehe and Kete-Krachi. This is to provide support to the customary land owners to better administer their lands and also serve as local sources of information on such lands. Cabinet approved the legal and institutional reforms for land administration to create an efficient, effective and transparent system with the objective of establishing a unified one-stop-service land administration system. A committee comprising all the key stakeholders was constituted to draft the new laws.

The four Deed Registries registered a total of 4,257 deeds in 2006 and two more registries are expected to be established in Wa and Bolgatanga.

The inventory of State acquired/occupied lands in the Central Region has been completed with the exception of the lands covered by the Hemang acquisition. A total of 1,144 sites were covered out of which 346 were District Assembly properties (i.e. basic schools, lorry parks etc.). Field work on the Hemang lands acquisition restarted in August 2006. The procurement of private sector participants in the inventory of state acquired/occupied lands in the Eastern, Ashanti and the Brong Ahafo Regions is ongoing.

The verification of survey maps and parcel plans for systematic titling in two sections in Accra involving about 2,800 parcels has been completed. Satellite offices are being constructed in the pilot areas for the actual title registration exercise to begin. In addition, the Survey Department continued the aerial colour photographs and orthophoto mapping of the remaining 256 kilometres of coastline. A total of 20 Geodetic Reference Points to improve the quality of land surveying in the country were identified and monumented. Also, airborne geophysics for magnetic and radio metrics were completed for the Keta and the Volta River Basins.

Fisheries

In the fisheries sub-sector some of the major activities undertaken to improve the management of the fishery resource include the following:

  • nine observer missions to monitor operations of industrial vessels were conducted. The installation of transponders on Ghanaian registered vessels and their activation continued throughout the year. Seventeen additional vessels had transponders installed on them, bring the total number of vessels installed with transponders to 105. However, only 70 of these have been activated with 44 reporting regularly;
  • a committee to was set up to undertake feasibility studies on diminishing fish stocks of the Volta Lake, other reservoirs and water impoundments;
  • The introduction of Community Based Fisheries Management Committees (CBFNCs) as co-management concept to help manage fisheries resources at the community level. During the year under review, two additional bye-laws were passed bringing the total to sixteen out of the expected seventeen. Three of these by-laws have so far been gazetted and five others currently lodged with the Attorney-Generals Department for gazetting; and
  • About 131 committees and 27 Zonal Lake Management Committees were formed in the fishing communities along the shoreline of the Volta Lake in the Asuogyaman, Jasikan and Kpando Districts, with the committees trained in Alternative Livelihood Strategies in piggery, production of small ruminants, bee-keeping and other vocations.

Environmental Management

In the area of proper environmental management, the following activities took place in 2006:

  • the creation and promotion of environmental awareness in collaboration with the media during the celebration of World Environment Day, Africa Environment Day, World Day to Combat Desertification and Drought, International Day for Biological Diversity and the holding of Environmental Journalist Awards Night;
  • awareness creation and conservation of biodiversity at Boti area in the Eastern region in collaboration with the Yilo Krobo District Assembly;
  • coordinating the evaluation of the first phase performance of the Guinea Current Large Marine Ecosystem (GCLME) project;
  • organizational and institutional assessment of the environmental sub-sector as part of the Ghana Environment Sector Study;
  • coordinating of the preparation of the draft Plastic Waste Management Fund proposal.

Also the Environmental Protection Agency, executed its core functions of environmental monitoring compliance and enforcement of environmental laws and regulations. Various manufacturing industries, business undertakings and mining companies were licensed to start their operations after submitting environmental assessment reports for evaluation.

To date over 100 Environmental Impact Assessment Reports have been evaluated and permits issued. Natural resources management as well as chemicals control management activities were undertaken. The public was also educated on environmental issues. The agency also assisted 12 Metropolitan and Municipal Assemblies to prepare their Waste Management Plans.

3.2.5. Trade and Industrial Development

Status of Selected Indicators:

As part of the strategic growth framework of the GPRS II, the trade and industry sector was expected to play a complementary role, as well as act as catalyst towards the long term objective of an agro-industrial economy. Within this strategic objective, policy interventions implemented in the sector are expected to: (i) ensure proper integration of the nation’s production sector into the domestic market, (ii) enhance access to export markets, (iii) increase industrial output and improve the competitiveness of domestic industrial products, (iv) strengthen the legal, regulatory and institutional framework to support industrial production and trade, and (v) ensure the health, safety and economic interest of consumers. In this regard, the following key indicators were selected to monitor progress towards implementation of the policies:

  • percentage change in value of non-traditional exports (NTE);
  • average number of days for clearing goods from the nations ports;
  • manufacturing value added share in GDP;
  • share of manufacturing in total export;
  • composite index of competitive industrial performance (CIP); and
  • time taken to get duty drawback

Out of these five indicators, two exceeded their targets in 2006, while the status of the remaining could not be determined due to inadequate data or lack of initial target. The total value of non-traditional export amounted to U.S$892.88 million in 2006, constituting an increment of about 15% over the previous year’s figure of U.S$777.59, thereby exceeding the 10% target set for 2006. Subsequently the share of manufacturing in total export has also seen a significant improvement over the 2005 figure of 1.3%. However the manufacturing value added share of GDP declined in 2006, constituting only 8.8% compared to the 8.9% observed in 2005.

On the other hand, the average number of days for clearing goods from the nation’s ports improved from 4 days in 2005 to 2 days in 2006, thereby exceeding its target for 2006. The status of indicators on the time taken to get duty drawbacks as well as the composite index of competitive industrial performance (CIP) could not be adequately analysed because of lack of data.

Table 3.5:Promotion of Trade and Industrial Development
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Percentage change in non-traditional exports (NTE) = (Value in Million US$)10%16.5% (705.0)10.3% (777.59)15% (892.88)Target exceeded
2. Average number of days for clearing goods from the nations ports3days7days4days2days 6 hours at the airportsTarget exceeded
3. Industrial Sector performance:
  • a. Manufacturing value added share in GDP
Na9.0%8.9%8.8%Baseline target not available, but results are mix compared to previous year.
  • b. share of manufacturing in total export
Na1.6%1.3%14.2% (Prov.)
4. Time Taken to get duty drawback6wksNa6mnthsNaLack of data to evaluate indicator
Source: MOTIPPSI, 2006
Source: MOTIPPSI, 2006

Key Policy Measures and Strategies:

The following measures were undertaken in 2006 towards the attainment of the policy objective of the trade and industrial development:

As part of the Districts Industrialization Programme (DIP) a nucleus of 13 projects were established in the following districts; Atiwa, Asante Akyem South, Nkwanta, Sekyere East, Ejura Sekyedumase, Techiman, Birim South, Mfantsiman (N&C Foods/Coastal Grooves), Yilo Krobo, Atwima Nwabiagya, Amansie West, Upper Denkyira and Asante Akyem North.

Also the Ministry of Trade and Industry, PSD & PSI has facilitated the acquisition of the estate of Juapong Textiles Ltd and has negotiated with a Chinese textiles manufacturing company to manage the company which will be commissioned by the first quarter of 2007. The factory is expected to offer 250 jobs during the first month of re-opening.

In addition the acquisition of the old Pwalugu Tomato Factory is now complete under a private joint venture arrangement and has now been registered as the Northern Star Tomato Company Limited. The 500 ton per day tomato processing line has been installed and test runs conducted in August 2006 using local fresh tomatoes. The paste is currently being canned by Trusty Foods Limited under a sales agreement between the two companies. The factory will provide direct employment to 50 people, 1200 farmers and about 50 indirect labour.

The feasibility study on the proposed sugar project at Savelugu Nanton District has been commissioned and the government in conjunction with a private company has also identified other areas in the Northern Region with the requisite climatic conditions for establishment of the sugar plantation.

Under the PSI for Textiles and Garments, eight wholly-owned Ghanaian garment factories are being established, with four already in operation and employing 1,200 workers. The GTMC warehouse in Tema has also been acquired and awaiting refurbishment into garment factories. Nearly 1,100 people were provided with skills in clothing technology to support the factories. In the area of Oil Palm, 911,210 seedlings were planted between June 2005 and June 2006 in addition to about 2 million seedlings that was nursed for planting in 2007.

Also a tariff study of 200 companies to provide data to create a template for tariff analysis which will feed into any assessment of industry requests for specific tariff relief is being undertaken.

Three Export Trade Houses (ETH) namely Ghana Export Trade Company Ltd (Gextraco), Ghana Trade Centre (GTC) and Ghanextrade have been established to serves as commercial intermediaries between SME Suppliers and buyers located at different countries by helping to identify and select markets, evaluate client products and related materials, negotiate export contracts as well as providing promotional support to Ghanaian SMEs.

For the period January to October 2006, EDIF has provided to the Non-Traditional export sector financial support to the tune of ¢155.2 billion to help address the credit needs of exporters, particularly those in the Non-Traditional export sector. Sectors covered by EDIF’s credit facility include agro-processing, salt mining and processing, textiles and garments, aluminium and metal fabrication, wood, handicraft and pharmaceuticals whiles the grant facility covered fairs and exhibitions, research, market research, capacity building and project development.

The Free Zones Board as at the end of September 2006 had registered 21 companies in sectors including metal fabrication, plastics, agro-processing, textiles, jewellery and machines manufacture. The 21 companies are expected to generate about 1400 jobs.

Also, during the year, the National Board for Small Scale Industries (NBSSI) supported 1,000 MSEs with technical training to improve the packaging and quality of their products. Nearly 13 additional Business Advisory Centres (BACs) were established in Obuasi, Enchi, Half Assini, Asamankese, Odumasi, Adidome, Sogakope, Twifo Praso, Asikuma, Damango, Buipe, Bawku, and Jirapa and this brings the total of BACs established to 102. Nearly 160 tailor-made business improvement programmes have been organised for 4,200 entrepreneurs with 1,425 of them being male and the remaining 2,575 being female. Data on all loan facilities for MSEs in Ghana have also been compiled.

The GRATIS Foundation also trained 268 women in food processing, textile and agro processing, whiles 260 unemployed youth have undergone a 3-year Technical training in welding and fabrication and metal machining. The design of 2-ton per hour palm oil Production Plant has also been completed and ready for prototyping, in addition to a prototype cashew nut sheller machine fabricated.

The Ghana Export Promotion Council (GEPC) developed a Group Export Marketing scheme for 100 members of chilli and okro growers association at Abutia (Volta Region) and 150 members of chilli growers association at Sefwi Wiawso. Fifty boxes (2,160 kg) of exotic okro and chilies are exported weekly through a lead export firm. About 7 market access facilitation activities including trade exhibition, buyer-seller meetings and contact promotion Programmes were undertaken. This constituted a total confirmed orders of ¢20.24 billion (US$2,200,000) for fruits, vegetables, medicinal plants and seeds, garments, fish and wood products.

As part of assistance to the pineapple industry to introduce the new variety, MD2, GEPC facilitated the delivery of 4.8 million planting materials to members of Horticulture Association of Ghana and Sea-freight pineapple exporters group in 2006. In addition, two Ghanaian companies were assisted to secure confirmed orders of about ¢4.6 billion (US$500,000) for the export of medicinal plants and seeds.

The Ghana Standard Board (GSB) as part of their mandate has analyzed and standardized 997 products and has provided Health and Export Certificates to 618 export products. In order to facilitate trade and ensure public safety, 13,492 measuring devices were verified and 1,365 were calibrated. Also 3,346 tests were carried out on plastics, rubber, building and construction materials, food, drugs and cosmetics, toxicological and forensic samples/specimen, electrical cables, electrical fittings, electrical appliances, Textiles, garment and paper. The following activities were also undertaken:

  • 62,925 imported high risk goods inspected
  • 1,198 Health and Export Certification issued
  • 26 products had initial certification
  • 135 fish factories inspected
  • 392 fish exports inspected

3.2.6. Development of Transport Infrastructure: Road, Rail, Water and Air Transport

Status of Selected Indicators:

In addition to being a strategic support services sector to facilitate the productivity in agriculture and agro-industry, the sector is also expected, to integrate the rural economies with the urban economy through the improvement of the overall maintenance of the transport infrastructure, rehabilitation of farm-to-market roads, bridges and ferries, promotion of the adoption of Intermediate Means of Transport (IMT), encouraging general aviation and aviation support services, thereby lowering the transportation costs, lengthen vehicle life, save foreign exchange in fuel and spare parts imports, and generate savings in travel time.

To track progress toward implementation, the following indicators have been selected:

  • total funds disbursed for routine maintenance, periodic maintenance, reconstruction and upgrading works, relative to the maintenance needs of each modal network;
  • proportion/length of roads maintained/rehabilitated;
  • annual accident statistics for each transport mode;
  • passenger traffic and goods traffic by railways;
  • maritime traffic: goods loaded and unloaded;
  • total air freight and number of air traffic passengers;
  • road condition mix;

In the area of road transport, review of the data indicates that the total funds disbursed for routine maintenance, periodic maintenance, reconstruction and upgrading works, relative to the maintenance needs exceeded the target in 2006, as well as the level attained in 2005. The total length or proportion of roads maintained or rehabilitated in 2006 accounted for 75.6% in relation, falling below the 2006 target of 89% but exceeded 2005 level of 67%. In all, feeder road accounts for the bulk of all maintenance and rehabilitation works, constituting about 53%, followed by trunk road and urban road in that order.

The total national network size of roads currently stands at 48,381km, an increase of about 546km over the 2005 figure, though it fell short of the target set for 2006 by 33%. The condition report also indicates a road condition mix of 45% in good condition, 28% fair and 27% poor. This compared well with the 2005 condition mix which stood at 42% in good condition, 31% fair and 27% poor.

The increase in total national network size was accounted for by 5% increase in the network size of trunk roads which stood at 11,177km in 2005, but fell short of the target for 2006. The total urban and feeder road size did not changed in 2006, constituting 4,064km and 32,594km respectively. The condition report indicates that the condition mix for all the three road types improved during the year under review, but fell short of all targets. The major improvement was observed in the trunk road network, followed by feeder roads and the urban roads respectively.

On the annual accident rate, available data indicates that road accident increased from 11,305 in 2005 to 11,698 in 2006. This represents about 13% above the target set for 2006. However, fatalities resulting from these accidents declined from 1,778 in 2005 to 1,378 in 2006. This represents one fatality in every six accidents in 2005 to one fatality in every nine accidents.

Table 3.6a:Development of the Road Transport
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Total funds disbursed for routine maintenance, periodic maintenance, reconstruction and upgrading works, relative to the maintenance needs of the road network=53%Na($130.57mil) =54.9%($168.85mil = 93.3%Target exceeded
2. Proportion/length of roads maintained/Rehabilitated89%Na67%75.6%Target not met
Trunk Roads (in km):
a. Routine maintenance12,16813,074.5012,12712,825.1Target largely not met (Only one out of four indicators met and exceeded it)
b. Periodic maintenance293260.29281.31135.33
c. Minor Rehab & Reconstruction699223.67198.62166.86
d. Major Rehab & Reconstruction200180209.75142.18
Urban Roads (in km):
e. Routine maintenance3,4492,449.653,313.203,634.79Two out of four indicators met target (exceeded), No data on one.
f. Periodic maintenance531.17209.21240.36360.87
g. Minor Rehab. & Reconstruction36113.7332.056.18
h. Major Rehab. & Reconstruction13Na9Na
Feeder Roads (in km):
i. Routine maintenance26,58018,46317,11917,340Target not met (All six indicators below target)
j. Rehabilitation8001,1581,085557
k. Regravelling10030621450
l. Spot Improvement1,6492,0021601,162
m. Reconstruction20NaNaNa
n. Surfacing227186190176
3. Annual accident statistics for each transport mode (Road)10,33012,16411,30511,698Target not met
4. Road condition mix
National:64,131km47,600km47,835km48,381kmSteady Progress
Good=48%=40%=42%=45%
Fair= 30%= 30%= 31%= 28%
Poor= 22%= 30%= 27%= 27%
Trunk Roads:13,367km10,942km11,177km11,723kmSteady Progress
Good=48%=40%=42%=46%
Fair= 30%= 30%= 31%=29 %
Poor= 22%= 30%=26 %= 25%
Urban Roads:9,764Km4,064Km4,064Km4,064KmSteady Progress
Good=56%=41%=43%=46%
Fair= 21.9%= 31%=33%= 30%
Poor= 22.1%=28%=24%=24 %
Feeder Roads:41,000km32,594Km32,594Km32,594KmSteady Progress
Good= 46%= 30%= 30%=34 %
Fair= 34%= 17%= 17%=15 %
Poor= 20%=53 %=53 %= 51%
Source: MRT, 2006
Source: MRT, 2006

In the area of rail and maritime transport, data is not available to ascertain the level of funds disbursed, relative to its investment needs. However, available data indicates that both maritime traffic and passenger and goods traffic by rail has declined. Passenger traffic by rail which stood at 64, 000 (thousand passenger-km) in 2005 declined by 40% to 38,000 (thousand passenger-km) in 2006, while goods traffic by rail (in thousand tonnes-km) fell by 19% in 2006 from 223,980 (in thousand tonnes-km) in 2005. None of these two indicators attained their respective targets for 2006, the passenger traffic fell short of its targets by nearly 140%, while the good traffic fell short of the target by 27%.

On the other hand, the decline in good loaded in terms of maritime traffic was only marginal representing about 0.1%, while it fell short of its 2006 target by about 3%. In the case of maritime traffic (goods unloaded) the decline represents about 18% from the 2005 figure, while it fell short of its 2006 target by 14%. By far, the Tema port receives the highest number of vessels (constituting about 77%) as well as the highest number of the goods unloaded (constituting about 84%). The Takoradi port on the other hand receives the highest number of the goods loaded, representing about 74% share of 4,359mt in 2006.

Table 3.6b:Development of the Rail and Maritime Transport
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Total funds disbursed to the rail and maritime sub-sectors, relative to the investment needs
d. Rail=Na=Na=Na=NaLack of data to evaluate indicator
e. Maritime= Na= Na= Na= Na
2. Passenger traffic and goods traffic by railways
a. Passenger traffic (in 1000 passengers-km)93,00080,00064,00038,000Targets not achieved, and indicators showing downward trends
b. Good traffic (1000 tonnes-km)231, 000215,690223,980181,250
3. Maritime traffic: Goods loaded and unloaded (in 1000 tonnes)Targets not achieved, indicators showing downward trends
a. Goods loaded (in 1000 tonnes)4,5003,9074,3614,3592006 Traffic by Location (in 0000 tonnes):

Goods Loaded

Tema ‒ 1,117

Takoradi ‒ 3,241

Total ‒ 4,359

Goods Unloaded

Tema ‒ 7,788

Takoradi ‒ 1,477

Total ‒ 9,266

Total vessels

Tema ‒ 2,032

Takoradi ‒ 610

Total ‒ 2,642
b. Goods Unloaded (in 1000 tonnes)9,2008,7209,5248,038
Source: MPHR, 2006
Source: MPHR, 2006

Review of available data indicates that the total air freight, number of aircraft flying into the airspace, and the number of air traffic passengers have all increased. The number of air traffic passengers exceeded its target by about 1%, while the total air freight and the number of air craft movement fell short of their respective target by 2% and 4% respectively.

Table 3.6c:Development of the Air Transport sector
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Total air freight and number of air traffic passengers:
a. Total air freight in thousand tonnes50.546.947.249.5Fell short by 1%
- Loaded33.631.530.533.2
- Unloaded16.915.416.716.3
b. Number of air traffic passengers (arrival and departure) in thousand919.2705.4812.2926.6Targets exceeded
- Arrival446.6338.5382.2458.8
- Departure462.6366.9429.9467.7
c. Number of air craft movt (arrival and departure) in thousand14.410.612.513.8Fell short of target by 0.6
- Arrival7.25.26.26.9
- Departure7.25.46.36.9
Source: MOA, 2006
Source: MOA, 2006

Key Policy Measures and Strategies:

As a strategic support sector under the GPRS II, the following key activities were undertaken in 2006 under the key sub-sectors of road, rail, water and air transport.

Road Transport:

Phase II of the Institutional Reform Study of the transportation sector which includes the development of institutions and organizations needed for the road sub-sector is on-going. Also the final report on the urban transport study has been submitted and expected to be used in the development of a policy framework for the proposed Ghana Urban Transport Project.

The Axle Load Policy was approved by Cabinet and the action plan to implement the policy has been prepared. In addition a draft technical specification for road and bridge works was prepared to improve the construction of roads and bridges. A Committee of Experts has been constituted to study the recommendation for adoption.

A new Road Traffic Regulations prepared to operationalise the new Road Traffic Act 683, of 2004 has been submitted to Cabinet for approval.

In the trunk road sub-sector the highlights of progress in 2006 trunk include:

  • routine maintenance on a total road length of 4,049.60 km as at the end of August 2006, representing 51.5% of physical achievement of the annual programme;
  • periodic and minor rehabilitation of about 21% and 12%, respectively as at end of August, 2006;
  • completion of the following trunk road projects which started between 2002 and 2003:
    • Abuakwa–Bibiani Road (80km)
    • Construction of 6 Bridges (Lot 2) Nayoko & Ngane
    • Kasoa–Winneba–Ankamu Road (41km)
    • Manso Amenfi- Asankragua (34km)
    • Wenchi–Sampa Phase 1 (30km)
    • Kpando–Dambai Phase 2 (38km of Ngane 50km)
    • Ofankor-Nsawam (17 km)
  • installation of 5 weighbridges at Tema port and 2 weighbridges at Takoradi port are ongoing. When completed, commercial vehicles plying the trunk roads will be weighed to ensure that overloaded vehicles do not leave the ports to damage the roads.

Work commenced in 2006 on the following road projects:

  • Tetteh Quarshie–Madina
  • Achimota–Ofankor
  • Nsawam Bypass (Dualization)
  • Anwiankwanta–Assin Praso (full rehabilitation)
  • Bamboi–Tinga
  • Asankragwa–Enchi
  • Pantang–Peduase (dualisation)
  • Anyinam–Konongo Ph. II
  • Sogakope–Ho
  • Ho–Fume
  • Wenchi–Sampa
  • Kadjebi–Dzindzinso
  • Akropong–Adankwame Ph. 1
  • Kumasi–Barekese–Offinso
  • Ashanti & Brong Ahafo Roads (KfW Projects)
  • Mallam–Kasoa & Interchange

In feeder roads the highlights of progress include:

  • routine maintenance on a total of 9,750 km (37%) feeder roads out of 26,580 km for the year;
  • periodic maintenance activities on a total 1,342 km road network;
  • spot improvement and rehabilitation works on total road lengths of 827 km and 350 km respectively; and
  • 5 bridges under the AFD bridge programme were awarded on contract.

Currently the Department of Urban Roads (DUR) operates in 15 Metropolitan, Municipal and District Assembly areas. Highlights of progress in this sub-sector during the year include:

  • routine maintenance activities on about 2,620 km of Urban Roads from January to September 2006.
  • periodic maintenance involving mainly regravelling and drain construction on about 276 km of urban road network representing about 76% of the target.
  • Some of the on-going major rehabilitation and reconstruction projects include;
    • Tema & Sekondi-Takoradi roads (completed as at March 2006)
    • Kwame Nkrumah Circle–Achimota road (86% as at September 2006)
    • Asafo Market–UTC Interchange (70% completed as at September 2006)

The Ghana Road Fund was set up by an Act of Parliament to provide adequate and substantial financial resource to ensure regular maintenance of Ghana’s road network and road safety activities. The fuel levy is the major contributor to the fund, accounting for about 94% of total funds. The projected revenue for January-June 2006 was ¢602 billion while actual revenue realized from January-June 2006, is ¢526 billion, falling short of target by 12.6%. Some of the activities carried out by the Authority during the period under review include:

  • integration of Information Technology Systems into the operations of the DVLA;
  • completion of the installation of new vehicle testing equipment in Accra, Kumasi and Takoradi, including staff training to ensure efficient handling of these equipment;
  • establishment of a branch office at Weija as part of a broader exercise of decongesting the Accra Office. In addition, the new office has been acquired as the national headquarters of DVLA; and
  • the working procedures of the Authority has also been revised to make its operations more customer friendly.

In terms of road safety, the following activities were undertaking by the National Road Safety Commission (NRSC) during the year under review:

  • publicity in 6 Ghanaian languages on over-speeding, wrongful overtaking, unsafe driving, unsafe vehicles, fatigue, drink driving, non-use of seat belts and crash helmets, on the major radio and TV stations in the country;
  • production of a short road safety documentary specifically for public education;
  • road safety education for school children to ensure a sustained reduction in child pedestrian accidents and casualties; and
  • publication and distribution of over 20,000 copies of Road Safety materials to schools, libraries, institutions and the general public.

As part of Government’s programme to improve mass transportation:

  • the last batch of 150 of the 400 Yaxing buses from China were delivered during 2006 bringing their total bus fleet to 650; and
  • contracts were signed for the importation of the following types of buses to improve service delivery;
    • 63 Jonckeere VDL Buses under Belgium Government concessionary financing
    • 90 Tata buses under India EXIM financing
    • 150 VDL DAF bus chassis under Dutch Government concessionary financing for bus construction at the Neoplan Manufacturing Plant in Kumasi.

The Metro Mass Transit expanded its operational area to include Ho, Wa and Bolgatanga during the year. With the extension of services to these three regional capitals, the Metro Mass Transit now operates in all the 10 regional capitals. The Government’s policy on provision of free bus ride to schools for children by MMT is on course with nearly 4,427,055 school children benefiting from the services over the period January–September 2006. Over the same period nearly 39,875,253 passengers had patronized the MMT.

Maritime Sector

In the area of maritime transport the highlights of progress made in 2006 include:

  • ceding of nearly 75% of stevedoring operations and 100% of shore handling of conventional cargo to the private sector as part of the wider policy of encouraging private sector participation in port operations as well as transforming the Ghana Ports and Harbours Authority (GPHA) into a Landlord Port Authority;
  • the construction and commissioning a modern car terminal at the Port of Tema. GPHA is also developing a modern Container Terminal with the 1st Phase of the project at the Tema Port completed with the installation of state of the art equipment for faster and more efficient container handling to reduce ship turn around times. In addition, a modern container devanning terminal is under construction to receive all groupage containers and empty containers passing through the terminal;
  • a truck park has been commissioned to handle all loaded transit trucks awaiting documentation before leaving the port. This has reduced the congestion in Tema Port created by these trucks. Closed Circuit Television Systems (CCTV) has also been installed at both Ports to ensure that users of the ports and their cargo are secured;
  • the GPHA purchased two modern tug boats, the biggest in the sub-region. The tug boats named M/V Sakumo Lagoon and M/V Ankobra River were deployed to the Ports of Tema and Takoradi, respectively, to augment the marine equipment capacity of both Ports;
  • weighbridges has been installed at both Tema and Takoradi ports to ensure compliance with axle load limitations, check fraud and support national efforts in improving safety on the road;
  • the Ghana Maritime Authority (GMA) has been established and is operational. The Authority has prepared a draft Legislative Instrument (LI) on the construction, use and operation of commercial and pleasure boats on the inland waterways to regulate and improve safety; and
  • rehabilitation of the Volta Lake Transport Company’s (VLTC) “Uniflote” II Pontoon (Ferry A) under a serialized repair works was undertaken to enable VLTC continue the provision of transport services for communities along the Volta Lake.

Harbours and Railway

Highlights of progress made in this sub sector in 2006 include:

  • the delisting of the Ghana Railway Company Ltd (GRCL) from divesture to enable it pursue certain interventions to save the Company from total collapse;
  • 82% completion of phase I of the Accra-Tema Rail rehabilitation project, and the GRCL is expecting the delivery of Diesel Multiple Unit Systems (DMUS) to operate the commuter services on the rehabilitated Accra–Tema line;
  • technical and financial evaluation of tender documents for the commencement of feasibility study on the Tema–Akosombo Rail Line was conducted and the the feasibility studies for the extension of rail network to the north through to Burkina Faso is also in progress;
  • Layout and configuration of commercial seaports in Tema is in progress. Dredging works at the port completed and new container terminal constructed.;
  • Preparations for dredging other berths underway. Limited dredging completed in Takoradi;
  • 563,586 of transit cargo traffic recorded at Tema and Takoradi ports;
  • Maximum of 11.5 metres attained at Tema making it possible for larger containers to berth, which is expected to result in improved turn around time for vessels and reduced freight cost. Similar benefits are expected arise out of the dredging exercise at the Takoradi port;
  • Landlord concept being implemented to encourage private sector investment in port services. Port services being ceded to private sector operators. GPHA to retain only 25% of stevedoring services;
  • Annual traffic growth rate of 6% on the average recorded at Ghanaian ports, as compared to target of 3.2%;
  • Measures have been undertaken to decongest the port of Tema and Takoradi; and
  • Promotion of plans to establish inland port at Boankra in collaboration with Shippers Council.

Air Transport Sector

In the area of air transport the Kotoka International Airport (KIA) phase II rehabilitation project continued in 2006 with the completion of the additional works on the terminal building. These included provision of Flight Information Display Systems, Baggage Information Display Units, Closed Circuit Television (CCTV), Public Address System and Common User Terminal Equipment (CUTE), with the view of facilitating passenger handling in the departure and arrival halls. Also a Very Small Aperture Terminals (VSAT) were installed at vantage points to improve navigation, communication and surveillance in the Accra Flight Information Region (FIR).

The GCAA the Civil Aviation Act of 2004 (Act 678) was passed by Parliament, decoupling the airport management from the GCAA. The decoupling is expected to give effect to an Airport Company that will be responsible for the planning, development, operations and maintenance of all airports in the country, while the new GCAA will handle safety regulations and air navigation services.

The policy of introducing competition in the ground handling activities at the KIA was continued in 2006. A second operator Aviation Handling Services was licensed to do both terminal and ramp handling services in 2006.

3.2.7. Energy Supply to Support Industry and Households

Status of Selected Indicators:

The broad policy interventions outlined to achieve this overall goal include: (i) ensuring increased access to modern forms of energy to the poor and vulnerable; (ii) modernising and expanding power infrastructure; (iii) improving the regulatory environment in the power sector, (iv) ensuring full cost recovery for power supply and delivery while protecting the poor; and (v) ensuring productive and efficient use of energy and minimising the environmental impacts of energy supply and consumption through increased energy efficient technologies.

The following indicators were adopted for tracking performance within the sector:

  • per capita consumption of energy per annum;
  • average number of hours of electricity outage per consumer per year;
  • percentage reduction in transmission and distribution losses; and
  • percentage of households covered by electricity supply.

The year 2006 was a particularly difficult year for the energy sector as it was characterised by shortage in power supply and high prices of crude oil and petroleum products. The power supply shortage was largely the result of low water inflows into the Akosombo Dam which limited the generation of power from the Akosombo Power Station. The global dynamics of petroleum products consumption as well as instability in key oil producing countries impacted strongly on the prices of crude oil and petroleum products. These developments created severe stress on the national economy.

Review of the indicators show that only one achieved the set targets in 2006. The percentage of households with access to electricity supply increased, from 45% in 2005 to 48% and exceeded the 2006 target. There was a marginal decrease in the per capita consumption of petroleum products due to a decrease in demand as a result of sharp increases in petroleum prices experienced during the year, while the per capita consumption of LPG increased from 0.0033 in 2005 to 0.0040 in 2006.

Data for the average number of hours of electricity outage per consumer per year is not available for 2006. However, expectations are that the target of 100 hours per consumer per year was not achieved due to a load-shedding programme which started in August 2006. On efficiency of electricity generation, distribution losses reduced from 25.4% in 2005 to 24.3% in 2006. However transmission losses increased from 3.28% to 3.56% over the same period due to over-aged equipment.

Table 3.7:Energy Supply to Industry and Households
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Per capita consumption of energy per annum (in Tonnes of Oil Equivalent (TOE)
a. Electricity0.29360.03700.0414NaThere was a marginal decrease in indicator level for Petroleum due to a decrease in demand as a result of sharp increases in petroleum prices experienced during the year in review.

However, there was an increase in the use of LPG.
b. PetroleumNa0.08020.08060.0798
c. LPGNa0.00310.00330.0040
2. Average number of hours of electricity outage per consumer per year≤100 hours/Year143122N/aData not currently available for 2006
3. Percentage reduction in transmission and distribution losses:
a. Transmission2.8%2.98%3.28%3.56%Target were not met due to over aged equipment
b. Distribution21%25.65%25.44%24.32%
4. Percentage of households covered by electricity supply47%42%45%48%Target exceeded
Source: MOE, 2006
Source: MOE, 2006

Key Policy Measures and Strategies:

The difficulties experienced in the year resulted in the implementation of an extensive nationwide load management programme at the end of August 2006. The programme led to a reduction of about 300 MW which is about 21% of the current power demand of 1,400 MW. In response to this situation, repair of the generating equipment at the Aboadze Thermal Plant which reduced the capacity of the power plant was “fast tracked”. This has enabled the restoration of the plant to its full generating capacity.

As part of the energy efficiency measures, the Ministry of Energy and the Energy Commission and the utilities have commenced the procurement of the more efficient Compact Fluorescent Lamps (CFLs) to replace high power consuming incandescent lamps in the system.

The Energy Commission and Energy Foundation began a massive public education campaign on energy efficiency and appliance labelling standards to encourage consumers to use only energy efficient appliances.

Significant progress has been made on the West Africa Gas Pipe-line Project. These include:

  • completion of the laying of the entire length of the high-pressure pipeline;
  • pipelines connecting Tema and Takoradi to the main pipeline were laid;
  • the pipeline connecting Lome and Cotonou was completed; and
  • construction of the Regulatory and Metering stations at Tema and Takoradi was commenced.

The Energy Commission has completed the development of a policy framework for the Natural Gas Secondary Market (SGM). The Master Plan for the Development of the SGM in Ghana was also completed. The technical and operational rules of practice which are required to be enforced uniformly throughout the country for safe, reliable, economic and efficient operations of the natural gas industry have been prepared. These include:

  • Natural Gas Distribution and Sale (Standards of Performance) Regulations
  • Natural Gas Distribution and Sale (Technical & Operational) Rules.
  • Natural Gas Transmission Utility (Standards of Performance) Regulations
  • Natural Gas Transmission Utility Operational Regulations
  • Occupational Health & safety Regulations

The Environmental Impact Assessment (EIA) of the Bui hydro project which has the potential to expand the existing hydro power capacity by an additional 400 MW was completed. The requisite public consultation process is on-going. The funding modalities are currently being discussed.

In order to make Ghana an attractive destination for investments in hydro carbon exploration, the review of the fiscal and regulatory framework for petroleum exploration and production business in Ghana was initiated in 2006. The pace of petroleum exploration activities in Ghana was intensified in 2006 with Parliament ratifying four Petroleum Agreements, including:

  • GASOP Oil for exploration and development of West Cape Three Point.
  • Amerada Hess for exploration and development of Deep Water Tano/West Cape Three Point Sites;
  • Tullow Oil Ghana Limited and Sabre Oil and Gas Limited for exploration, development and production of Shallow Waters West Tano; and
  • Tullow Oil Ghana Limited, Sabre Oil and Gas Limited and Kosmsos Energy Ghana Limited for exploration, development and production of Deep Waters West Tano.

Under the Rural Electrification Project, 198 communities were connected to the national grid under various electrification programmes during the year under review.

3.2.8. Science and Technology for Increased Productivity and Development

Status of Selected Indicators:

The major goal of interventions in this broad policy area is to establish an efficient research system which contributes to national development objectives. It is envisaged that the promotion of a science and technology culture at all levels of the society and the mastery of known and mature technologies and their application in agriculture and industry will accelerate economic growth and social transformation.

To monitor progress towards this objective an indicator on the percentage changed in public expenditure on science and technology research have been selected, but data is currently not available to support any meaningful analysis. Indicative figures suggest however that government spent about US$3, 258,260.90 (constituting about 0.03% of GDP) in 2006 on the three main public institutions engaged in science and technology research, namely the Ministry of Environment and Science, CSIR and Ghana Atomic Energy Commission (GAEC). This represents only 5.3% of the total investment budget of the Ministry of Education Science and Sport.

Table 3.8:Science and Technology Development
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicato r Level at 2006Progress towards target
1. Percentage change in Research and Development expenditure (Public)NaNaNaNaData not available to evaluate the indicator

2006 Public Expenditure (investment and Services):

Institution

MES ‒ US$363,695.65

CSIR ‒ US$510,108.70

GAEC ‒ US$2,384,456.50

TERTIARY ‒ US$

Total ‒ US$3,258,260.90 (0.03% of GDP)
Source: MOESS, 2006
Source: MOESS, 2006

Key Policy Measures and Strategies:

The agricultural research-oriented institutes of the CSIR intensified the development of varieties of improved crops and cereals early maturing pest and drought-resistant. The Crops Research Institute (CRI) and Savannah Agricultural Research Institute (SARI) continued to release new varieties of peanuts, cowpea, soya beans, sorghum and millet. The GAEC completed the establishment of a Tissue Culture Laboratory for large scale multiplication of a wide range of planting materials.

The Biotechnology and Agricultural Research Institute (BNARI) of GAEC continued to collaborate with a private company, Bio Plantlets Limited for the multiplication of the MD2 pineapple plants for distribution to farmers.

In collaboration with the Cocoa Research Institute, the GAEC has developed Gamma Mutation Breeding which is resistant to Swollen Shoot Disease, with about 25 farmers utilizing this technology on a pilot basis.

The GAEC established the School of Nuclear and Allied Sciences (SNAS) during the year, to train the required human resources for the Commission and other institutions in the country, and as a regional training centre for other Member States in Africa.

The National Nuclear Research Institute intensified the use of Non-Destructive Testing techniques to detect leakages in storage tanks for mining firms, Bulk Oil Storage and Transport (BOST) and other institutions namely the Tema Oil Refinery (TOR), Aboadze Thermal Plant, the Oil Storage Tanks at Buipe and Bolgatanga and the West Africa Gas Pipe-Line Project.

3.2.9. Developing Information and Communication Technology (ICT)

Status of Selected Indicators:

The Information Communication Technology sector is treated both as a support service as well as potential growth point. It is envisaged to be a pivotal tool to improve governance, accountability and transparency, development of human resource potential, in addition to facilitating e-transactions.

The thrust of policy is to: (i) enhance the development of ICT Infrastructure; (ii) promote development of e-strategies in key sectors of the economy; (iii) promote the use of ICT in Education; (iv) promote the use of ICT in productive activities; and (v) build the necessary capacity and strengthen the legal and institutional framework to support ICT.

The following indicators have been adopted to monitor and assess progress within the sector:

  • size of the ICT industry
  • teledensity/penetration rate
  • the level of access to the internet

In 2006 the teledensity was estimated to be about 27.2%, comprising of 25.5% mobile and 1.7% fixed line. This compares favourably with the 2005 level of 16.6%, comprising of 14.9% mobile and 1.7% fixed line. Overall, the teledensity or the penetration rate of telephones has improved over the 2005 level, as well as exceeding the target set for 2006.

Available data on internet access indicate that the proportion of internet subscribers increased marginally by 0.05% instead of the 2% targeted for 2006. The number of schools with internet access increased marginally from 53 (including 46 Senior Secondary Schools, and 7 Teacher Training Institutions) in 2005 to 58 (including 50 Senior Secondary Schools, and 8 Teacher Training Institutions) in 2006.

Data on the size of the ICT industry is currently not available, it is however planned to reach US$750million by the year 2011.

Table 3.9:Information, Communication and Technology Development
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Size of the ICT industryUS $750 million by 2011NaNaNaData not available to evaluate the indicator
2. Teledensity/Penetration rate:20%6.9%16.6%27.2%Target exceeded
a. Fixed Line1.6%1.7%1.7%
b. Mobile5.4%14.9%25.5%
3. Internet Access
a. Subscribers1.5million in 2005 ≥2% per annum0.05%0.05%0.05%Targets not achieved (Progress is slow)
b. Providers (total number)Na232729
c. Number of school with internet accessNa

Na
Na

Na
46 (SSS)

7 (Teacher Training)
50 (SSS)

8 (Teacher Training)
Source: MOC, 2006
Source: MOC, 2006

Key Policy Measures and Strategies:

A number of important actions were taken towards the implementation of indicative programmes outlined in the Ghana ICT Policy for Accelerated Development (ICT4AD) and the pro-investment National Telecommunications Policy to create the necessary environment for effective deployment of ICT by the private and public sectors.

The following legal and regulatory activities were carried out in 2006 to create an effective ICT enabling environment in Ghana:

    • drafting of E-Legislation Bills for consideration by Cabinet;
    • hosting of stakeholders workshops for Electronic Transactions Bill, Telecom Bill, NCA & NITA Bills;
    • preparing of Government interoperability draft policy framework document and hosting the first stakeholder forum to receive inputs to enrich the document;
  • the process of privatizing the Ghana Telecom begun. The privatization process is estimated to be completed by June 2007 to pave way for massive capital injection into GT.
  • a new Radiosonde equipment was installed and commissioned at Tamale Airport in March 2006 to facilitate prompt weather forecast to serve the aviation industry. In addition, the Climate Database Management System was upgraded and has enhanced processing and archiving of historical meteorological data and improved service delivery to clients.
  • GICTeD facilitated the development of ICT Capacity Building data document through the administration of ICT status questionnaire at 66 MDAs and 30 SOEs. The analysis of the questionnaire will enable GICTeD facilitate capacity development programmes to equip all MDAs with core ICT personnel.
  • also various policies, guidelines, rules and regulations for carrying out postal and courier business were drafted and are being reviewed with stakeholder participation. 50 firms operating postal and/or courier services have been identified to be brought under the regulatory framework to ensure high-level performance. Exclusive license for the provision of reserved postal services in Ghana was granted to Ghana Post.
  • in the course of 2006, about 4,000 persons were trained in various ICT skills at the Advance Information Technology Institute–Kofi Annan Centre of Excellence in ICT (AITI-KACE).
  • a week’s workshop on Interconnection Agreement for Telecommunication Operators and other relevant stakeholders was also held in March 2006 to enhance understanding of emerging interconnection issues.
  • the Ghana Telecommunication University College (GTUC) was formally inaugurated as a tertiary institute for ICT and Telecom focused learning in 2006. GTUC trained 120 technicians in short term courses in Information Technology and Telecommunication engineering by end June 2006.
  • GIFTEL was established to facilitate the extension of communications services to underserved and unserved areas of the country. GIFTEL is providing common facilities to be used by all telecom operators under Universal Access to Telecommunications Projects. Ten underserved areas were approved for extension of telecom access, including Tokope (G/Accra), Twifo Mampong (Central), Donkorkrom (Eastern) Dadieso (Western), Odumase (Ashanti), Damanko (Volta), Daboya (Northern), Gwollu (U/West), Fumbisi (U/East) and Kwame Danso (B/A).
  • the programmeme on the use of ICT to promote an all-inclusive information and knowledge society to benefit the rural areas, the CIC concept was developed and the following accomplished.
    • 72 CIC Infrastructure completed and equipped.
    • 6 people were trained as Trainers of ‘Trainers’
    • 49 CIC coordinators trained in technical and managerial competencies.
    • extension of LAN/WAN Connectivity/equipment to 50 CICs undertaken.
    • a sensitization workshop was held for District Chief Executives to enable them pursue the objective of ICT knowledge development through the CIC concept.
    • a co-ordination arrangement was set up between the MoC, the Ministry of Information and National Orientation, the Ministry of Local Government, Rural Development and Environment to facilitate the harmonisation of technical and operational programmes of the CICs.
  • a concessionary loan facility of $30 million was secured to support the project meant to transform Voltacom’s Fibre Optic assets into a national Communications Backbone Infrastructure network to provide open access Communication Backbone. So far the design stage of the project was completed and a legal instrument is being considered.
  • the Technology Park Project to be located at the Free Zone enclave was commenced with the following activities accomplished:
    • funding for the Technology Park was approved by the World Bank under MSME
    • a project management document for Technology Park was completed
  • also a the construction of centralized data centre and the development of a secondary data centre with disaster management and data recovery facilities to enhance security of information and data was initiated. The study phase for the centralized data backup centre was completed and the design phase of the project is in progress.

3.2.10. Developing the Tourism Sector for Revenue and Employment Generation

Status of Selected Indicators:

The broad policy thrust for the tourism sector is to realise the potentials of the sector by making Ghana a competitive and quality tourism destination whilst preserving the country’s cultural, historical and environmental heritage. Some of the key policy interventions expected to be implemented include: (i) promoting tourism as a major source of national revenue; (ii) promoting domestic tourism to foster national cohesion as well as redistribution of income; (iii) promoting sustainable and responsible tourism in such a way to preserve historical, cultural and natural heritage; and (iv) enhancing the capacity and strengthen the legal and institutional framework to support tourism industry.

Among the key indicators selected to track progress towards implementation are:

  • percentage increase in tourist arrivals; and
  • percentage change in investment (stock tourism facilities) in the tourism sector.

Available data indicates that Ghana ranks 10th in terms of tourist arrivals in Africa and considered a serious emerging market with high potentials on the continent. The percentage changed in tourist arrival declined marginally in 2006 and fell short of its target, total receipt accounted for about 18% over its level in 2005, generating nearly 183, 192 jobs in the process, which is nearly 6% more than the jobs generated in 2005.

An assessment of the percentage change in stock of investment indicates that with the exception of car rental companies, all the remaining indicators fell short of the 2006 targets, showing a declining trend in some cases. In all 1,736 formal establishments were licensed in 2006 including 1,406 for accommodation and 330 for catering. Nearly 370 accommodation and catering units in the formal sector were re-inspected and subsequently licensed. While about 949 informal establishments were licensed, comprising of 24 accommodation and 925 catering units. The number of formal travel /trade operators licensed also amounted to 410 (including 350 travel and tours and 60 car rental companies).

Table 3.10:Developing the Tourism Sector for Employment and Revenue Generation
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Percentage increase in tourist arrivals16%Total arrivals=372,82313%11.8%Target is not achieved

RECEIPTS (US $ Million):

2005 =836.1

2006 =984.8

EMPLOYMENT:

2005 =172,823

2006 =183,192
2. Percentage change of investment (stock of tourism facilities) in the tourism sectorTarget not achieved

(With the exception of car rental companies, all the remaining indicators fell short of targets, showing a declining trend in some cases)
a. Accommodation Establishments (Hotels, Guest houses, lodges etc)15.26%2.0%2.3%4.5%
b. Catering Establishment (Restaurants, fast food joints etc)10.09%−18.5%24.5%−32.8%Inspections were conducted for 2,225 accommodations and catering units in the formal sector.

The following is the breakdown of accommodation and catering units in the formal sector that were licenses:

a) Formal Establishments (A&C)Licensed

i) Accommodation ‒ 1406 (Rooms -19967, Beds ‒ 28006)

ii) Catering ‒ 330

370 accommodation and catering units in the formal sector were re-inspected and subsequently licensed.

b) Formal Travel l Trade Operators Licensed ‒ 410

inspected Travel & Tour

i) Travel & Tours ‒ 350

ii) Car Rental ‒ 60

2 Charter Flights were licensed in 2006 i.e.

i. ANTRAK Airlines Limited ‒ Route (Accra -Duss ‒ Accra)

MICON Travels & Tours ‒ Route (Port of Spain/George Town ‒ Accra ‒ George Town/ Post of Spain)

c) Informal Establishments Licensed

i) Accommodation 24 viz:

• Hostels ‒ 12

• Homestays ‒ 10

• Tourist homes ‒ 2

ii) Catering 925 viz:

• Drinking Bars ‒ 574

• Traditional Catering ‒ 344

• Snack bars ‒ 6
c. Travel Agents and Tour Operations Establishment9.17%−4.1%31.0%−5.9%
d. Car Rental companies12.94%−7.7%10.4%13.2%
Source: MOTDR, 2006
Source: MOTDR, 2006

Key Policy Measures and Strategies:

The following activities were carried out in line with the objective of the tourism sector in 2006:

  • Four major international promotional activities were undertaken to market Ghana as a tourism destination;
  • the 31st Africa Travel Association (ATA) congress was hosted in Accra;
  • the International Exhibitions and Fairs abroad were embarked on to market Ghana’s tourism potential;
  • the Second hang and paragliding festival to boost domestic and international tourism was organised;
  • about 1,042 personnel from the private sector were trained in Front Office and Food and Beverage Service management, in addition to 8 regional sensitization workshops held for 400 traditional caterers (Chop Bar) and drinking bar operators. This is expected to improve service delivery in hotels, restaurants and encourage tourists to enjoy our dishes;
  • work on almost all the remaining 21 receptive facilities is near completion, with about 90% of the facilities commissioned and out sourced to the private sector to manage professionally;
  • new tourist attractions in the country including the Presbyterian Cemetery at Osofoman, Mayera, the Samsam Cave & Sacred Grove at Achioto, Samsam and the Guoko Sacred Groove at Pokuase were also identified during the year;
  • in collaboration with other MDAs, land banks and land use plans for tourist sites are being identified and documented. Workshops were held with District Assemblies for briefing on the acquisition of receptive facility lands and the proper development of these sites. Land owners are being sensitized to release lands for tourist operations; and
  • a mechanism to accurately capture data of tourist arrivals has now been established.

3.2.11 Employment Generation and Improvement and Expansion of Safety Nets

Status of Selected Indicators:

Employment generation and social protection of the vulnerable and the excluded is central to the GPRS II. It is pursued as a cross-sectoral development strategy. This is to ensure that employment expands along with production and that the benefits of growth are widely shared. The broad employment sector strategies include to: (i) develop the institutional capacity of the MMYE for Employment Policy Management; (ii) develop and implement a national employment policy; (iii) develop and implementing policy and strategies to strengthen tripartism and social protection; (iv) develop and implement a fully functioning system that provides labour market information and statistics to support relevant decision making; (v) the adoption of a national policy for enhancing productivity and income in both formal and informal sectors; and (vi) the integration of employment strategies in sectoral policies.

The following indicators were used for assessing performance under the strategy:

  • the number of new jobs created by sector
  • social protection expenditure as percentage of GDP
  • number of labour disputes.

A significant finding from the review indicates that 200,000 jobs were created in 2006 (including 78,195 placed in the youth employment programme). This is about 60% higher than the total number of jobs created in 2006. The sectoral breakdown indicates that about 85% of the jobs came from the services sector. Within the services sector, education accounted for 28.4% of the total vacancies, wholesale and retail trade 11.03% and Transport, Storage, and Communication 9.2%. The industrial sector, led by manufacturing accounted for 14.2% with agriculture accounting for less than 1%.

Within industry, the total number of labour disputes recorded in 2006 amounted to 6632 (about 20% higher than the number recorded in 2005). Lack of baseline data makes it difficult to fully assess performance for the period. Similarly no meaningful analysis could be made on the social protection expenditures due to inadequate data.

Box 5.2:Industrial disputes in 2006 and institutions involved

Some of the institutions involved in industrial disputes were

  • Meteorological Services Department
  • Customs, Excise and Preventive Service
  • The thirty-two (32) Unions under the Public Services Workers’ Union
  • Barclays Bank of Ghana Limited
  • Environmental Protection Agency
  • National Association of Graduate Teachers (NAGRAT)

The Labour Commission also successfully resolved industrial disputes comprising both individual and collective disputes. About 80% of the cases were fully settled, the remaining 20% cases are in the process of settlement.

Table 3.11:Employment Generation and Expansion of Social Safety Net
INDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
1. Number of Labour DisputesNaNa548663Lack of baseline data to evaluate indicator, but indicator showed a worsening trend.
2. The number of new jobs created by sector200,000Na125,000200,000Target was achieved

78,195 jobs created under the youth employment programme alone, in all 10 regions as at 31 December, 2006

Employment figures as at December are as follows:

REGIONS

Ashanti ‒ 6,437

Brong Ahafo ‒ 6432

Central ‒ 6,391

Greater Accra ‒ 5056

Northern ‒ 1,5614

Upper East ‒ 8,530

Upper West ‒ 8,488

Volta ‒ 7,574

Eastern ‒ 7,000

78,195

Employment figures by

SECTORS:

Agric Biz ‒ 13,069

Comm. Edu Tech ‒ 20,021

Comm. Protect ‒ 300

Aux. Nursing ‒ 10,500

Waste & s’tion ‒ 4,550

Internship ‒ 2,800

Trades & vocations

ICT–Na

Other modules ‒ 26,760

(Forestry, Rev. Mobi, Volu. Teachers, etc) Programme Staff ‒ 195
3. Social Protection Exp as percentage of GDP24.42%NaNaNaLack of data to evaluate indicator. Department of Social Welfare Budget for 2006 =19.28 billion Cedis
Source: MMYE, 2006
Source: MMYE, 2006

Key Policy Measures and Strategies:

The following activities were carried out in line with the objective of the sector under the GPRS II:

  • the National Youth Employment Programme which has the objective of economic empowerment of the youth was officially launched on October 3, 2006.
  • work started on developing a draft National Employment Policy and Labour Market Information System. Priority area addressed in the policy document include:
    • - defining constraints to employment generation
    • - promoting employment generation potential of economic sectors such as agriculture, manufacturing, construction
    • - development of Action Plans for implementation
    • - Human Resource Development and employment linkages
  • the Ministry of Manpower, Youth and Employment in collaboration with the Ghana Statistical Service, trained field personnel to collect reliable and accurate data on employment. This data is being processed and actual figures on employment are expected to be ready soon.
  • welfare programmes in the areas of child welfare, the disadvantaged and excluded and HIV/AIDS were implemented in 2006. The achievements include: 134 cases of adoption handled, 739 child welfare services provided, 44,044 Persons with Disability trained in various vocations nationwide, and 85 juvenile and related child cases handled.
  • the National Social Protection Strategy (NSPS) is undergoing a final review to enable programme implementation in 2007.
  • the Tripartite Committee was re-constituted to strengthen its capacity to deal with labour-related matters. It concluded work on the determination of a minimum wage for 2007 and the Central Management Board and the Appellate Body also handled issues related to wages and salaries.
  • the Ministry of Manpower, Youth and Employment (MMYE), through the Management Development and Productivity Institute (MDPI) conducted productivity measurement indices for 10 manufacturing companies and 5 financial institutions using the Value Added Concept.
  • the MMYE collaborated with other MDAs in a number of programmes and activities including the:
    • - implementation of the Labour Act, in collaboration with other stakeholders and finalisation of a legislative Instrument for gazetting and subsequent publication.
    • - training 828 co-operative groups with a total membership of 13,200 in basic cooperative management techniques
    • - inspection 1,922 factories and offices and 30 Industrial Hygiene Surveys conducted to determine Safety Standards
    • - passage of Persons with Disability Act, 2006 which provides for the integration of Persons with Disability (PWD’s) into the mainstream society in the areas of education, employment, and health care was passed.
    • - passing of Technical Vocational and Education Training (TVET) Act by parliament
    • - commencement of the implementation of the on-the-job training programme which is to ensure that the youth are employed and trained to improve their access to acquiring appropriate experience in administration, finance and economy, job and technical skills, marketing and ICT and tourism. So far a management board and implementation teams has been established.

3.3 Summary of Policy Recommendations

The environment for doing business and the competitiveness of the private sector improved during the year, in spite of challenges posed by the energy crisis. The rising global market prices of fuel and the electricity crisis appear to have had limited negative impact on the competitiveness and overall output of the economy. The Bank of Ghana Composite Index of Economic Activities (CIEA), the World Bank CPIA scores for competitiveness, and the AGI Business Climate Survey all point to a competitive business environment and increasing business confidence among actors. The sector, which continues to pose a challenge to the emerging business environment, is however the infrastructure sector including electricity, ICT and transport which still constitute the bulk of cost of production. Continuous effort in addressing the constraints in this area will further enhance the environment for doing business and reduce constraints to productivity.

The other constraints which require attention is lack of adequate and accurate data to comprehensively track the level of activity in the economy, especially in the informal sector which employs nearly 90% of the populace. No meaningful assessment could be made on some of the indicators selected to track progress towards implementation because of inadequate and timely data. It is recommended that the M&E systems of the various MDAs be strengthened to make it more responsive to the current data needs for effective policy formulation, monitoring and evaluation. Also interventions in the agriculture and the environment and natural resources sectors need to be intensified to ensure that set targets on selected indicators are achieved. The specific recommendation for the various policy areas are as follows:

3.3.1. Private Sector Development

Significant progress was made in this policy area, with most of the indicators pointing at the right direction. Most of the activities except those under the policy objective “increased competence and capacity” received significant action during the year. Effort should however be made to accelerate the pace of implementation of activities related to this policy objective.

3.3.2. Modernised Agriculture

Progress in this policy area was limited to the broad outcomes, with the indicators on underlying fundamentals pointing at the wrong direction. Productivity in the crops sub sector did not register significant improvement during the year. This does not however appear to pose major threat to food security since the per capita production of most of staples registered an improvement. Effort should be made to enhance productivity through increased extension and technology dissemination coverage, mechanisation services for land preparation, credit facilities for agricultural inputs, and the institutionalisation of effective environmental assessment in agricultural development, with particular focus on appropriate land management practices, soil fertility, and water quality in peri-urban irrigation.

The analysis indicates that access to agriculture credit declined during the year, and the effort to transform agriculture from subsistence to commercial is not yielding much result. The land area under irrigation did not improve, increasing the risk associated with agriculture. To reduce this risk and keep the agenda of modernizing agriculture on track, there is the need to accelerate the pace of interventions outlined under for the sector in the GPRS II. This notwithstanding, agriculture sector grew at 6.2% compared to the 5.24% envisaged under the GPRS II, and created employment for about 92% of households in the rural areas.

3.3.3. Modernised Fishing and Aquaculture Development

The prospect for the sector is bright as most of the interventions prescribed under the GPRS II received attention during the year under review. However, the pace of implementation of interventions under aquaculture development needs to be accelerated in order to make it possible to achieve the 700,000mt of fish requirement for the country in the long-run.

3.3.4. Restoration of degraded environment and Natural Resource Management

Limited progress was made in this policy area as most of the indicators monitored showed a significant shortfall or decline. The cost of environmental degradation to GDP appears to be worsening, and hectares of degraded forest rehabilitated/restored did not achieved target. Efforts should be made at improving on environmental governance and incorporating sound environmental practices in the planning and implementation of national policies. Another major challenge to monitoring this sector is the lack of accurate and reliable data to evaluate the performance of the sector. For instance regular data on rate of deforestation is still difficult to obtain. It is recommended that the MDAs responsible for issues of environment and natural resource management should collaborate to develop an efficient database of relevant indicators to help in tracking progress towards achieving environmental governance and natural resource management.

3.3.5 Promoting Trade and Industrial Development

The performance of most of the indicators in this policy area is on-track against set targets. However the area of weakness is the manufacturing sector, where the manufacturing value added share of GDP appears to be on the downward trend. It is therefore important for the MDAs responsible to collaborate and dialogue with the private sector with the view to identifying the structural constraints for early resolution. Efforts should also be made to develop instruments to track the extent of competitiveness of the industrial sector, which is measured by the composite index of competitive industrial performance (CIP). This is significant in determining the level of competitiveness of our domestic industries in the global environment.

3.3.6 Transport Infrastructure: Road, Rail, Water and Air Transport

Though most of the targets in the road sector were not met, they registered a positive and significant improvement over the 2005 levels. Efforts should be made to address these resource constraints and capacity related issues in order to accelerate the pace of road infrastructural development which is central to the growth agenda. Significantly, the annual road accident rate worsened in 2006. It is therefore important to intensify the appropriate mix of interventions under the road safety programme to bring down the accident rate to an acceptable level.

Under the rail and maritime transport sectors, all the indicators are experiencing a downward trend, in addition to the fact that their respective targets were not met. It is important to review the current interventions, particularly in the rail sub-sector for immediate scaling up in view of the huge potential for bulk transport of goods and passengers.

3.3.7 Energy Supply to Support Industry and Households

Inspite of the crisis experienced by the sector during 2006, the percentage of households with access to electricity continue to expand at the rate higher than the average for the previous years. Per capita energy consumption continues to improve. However the comprehensive plan to resolve the nation’s energy problems should take into consideration the long term objective of ensuring that energy is constantly available to support the activities of the industrial and services sectors.

3.3.8 Science and Technology to Support Productivity and Development

The critical challenge to assessing this policy area is the lack of adequate data to track progress towards implementation. Science and Technology development is central to attainment of the overall goal of accelerated growth and becoming a middle income country by 2015. It is therefore recommended that the relevant MDAs make an effort to develop instrument to track the key indicators including the percentage change in R&D expenditures (disaggregated into public and private) on systematic basis.

3.3.9 Developing Information and Communication Technology (ICT)

Some significant progress was made, though progress on internet access is still slow. As a strategic support service to the growth agenda it is important to accelerate the pace of implementation of interventions to make internet access to business and households relatively easy and cheaper.

3.3.10 Developing the Tourism Sector for Revenue and Employment Generation

Most of the indicators in this policy area are on-track towards achieving set targets. A major concern is how the activities of the music and film industries have been integrated into the plan of work of the responsible MDAs. One of the priority interventions in the GPRS II is to develop the Music and Film industries into growth and employment points, as well as preserving the country’s culture. It is recommended that the relevant MDAs explore the possibility of incorporating some of the activities outlined in the GPRS II policy area in their programme of work.

3.3.11 Employment Generation and Improvement and Expansion of Safety Nets

The sector is on track as most of the interventions prescribed under the GPRS II received attention during 2006. However, issues of vulnerability and exclusion are not adequately addressed, particularly in the area of data availability and disaggregation. For instance data on social protection expenditures is currently not available to determine the adequacy or otherwise of resources going to activities for the vulnerable and excluded.

STATUS OF INDICATORS ‒ 2006

Table 3.12:Summary of Status of Private Sector Competitiveness Indicators, 2004–2006
AREA OF FOCUSINDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
PRIVATE SECTOR DEVELOPMENT4. Ease of Doing Business rankWithin the first 55 countries in the world by 2009Na10294Slow Progress toward target, with high prospect for improved business environment. The Bank of Ghana Composite Index of Economic Activities (CIEA) indicates that economic activities are on the increase, showing the confidence of economic agents in the economy.
5. Complementary Indicator: Composite Index of Economic Activities (CIEA)
CIEA–Nominal Movement =Na188.96%225.39%285.69%
CIEA–Year-on-Year growth (Nominal) =Na14.26%19.28%26.8%
CIEA–Real Movement =Na144.91%160.43%140.17%
CIEA–Year-on-Year growth (Real) =Na7.98%10.71%−12.6%
6. FDI net inflows (in millions of US$)Na139.27144.97434.50No baseline target, but there was a significant improvement over the previous year’s level
7. Private fixed investment (as % GDP)17.6%NaNaNaLack of data to evaluate indicator
8. Number of days to register a Limited Liability Company7145Target exceeded
9. The number of days to resolve commercial disputes17519518590Target exceeded
10. Domestic credit to the private sector as ratio of GDP19.6% by 200913.1%14.9%18.0%Substantial progress towards target
MODERNIZED AGRICULTURE11. Change in yield of selected traditional crops and productivity of livestocks.Targets not achieved

(Only one out of the six crops selected attained target)

Yield of all the selected staple crops declined, except rice.

Information on livestocks unavailable
Maize =0.39−0,050.01−0.08
Rice (milled) =1.17- 0.03- 0.020.02
Cassava =0.57- 0.480.56- 0.56
Yam =0.490.640.580.11
Plantain =1.50.341.61−0.38
Cocoa =0.10Na0.460.46
Poultry =0.11Na0.11Na
Sheep =0.05Na0.03Na
Goat =0.04Na0.04Na
Cattle =0.01Na0.01Na
12. percentage of cultivated lands under irrigation0.33Na0.26%0.21%Target not attained

Regional distribution:

Ashanti ‒ 188

Brong Ahafo ‒ 236

Central ‒ 386

Greater Accra ‒ 5,147

Northern ‒ 690

Upper East ‒ 3,690

Upper West ‒ 115.5

Volta ‒ 3,463

Eastern ‒ 603

Western ‒ 60

Total ‒ 14,928.5
(Area developed for irrigation/ha)(23,500)(19,000)(14,928.5)
13. The Share of Credit to Agriculture, forestry and Fishing by Deposit Money Banks (excluding Cocoa)≥10%8.1%6.2%4.8%Target not achieved
4. Per capita production of key staple foods (crops), livestock and fish; (in kg/Annum, except * which is in live animal/annum)
Maize =45.0555554At least 50% of target attained (Five out of eight selected staple crops, as well as two out of five of the selected livestock and fish products exceeded their respective targets)
Rice (milled) =25.071111
Sorghum =15.0141414
Millet =8.0797
Cassava =400.0464445436
Yam =180.0185182194
Plantain =110113130131
Cocoa =21.0Na15.333.5
Poultry* =1.7Na1.491.52
Sheep* =0.17Na0.160.15
Goat* =0.21Na0.200.18
Cattle* =0.07Na0.070.63
Fish =0.022Na0.210.29
14. Percentage change in export volume and value of non traditional crops.
PawpawTarget was substantially not achieved (With the exception of volume of Banana exported, all the targets set for the selected non-traditional crops were not attained)
Volume = (3,751,947Kgs in 2004)20095.77−14.40−54.0
Value = (US$1,226,695 in 2004)20066.49−11.85−35.0
Mango
Volume = (375,911Kgs in 2004)40060.388.33−52.0
Value = (US$163,850 in 2004)40051.59−17.88−34
Pineapple
Volume = (71,804,617Kgs in 2004)40059.05−74.41196
Value = (US$13,316,459.48 in 2004)40053.49−42.0733.0
Banana
Volume = (725,365Kgs in 2004)150099.5353.941,830
Value = (US$208,938 in 2004)1500−7.82119.651,291
15. Farm Household incomes60%--61%Target exceeded in 2006
Non-farm Household income40%39%
16. Ratio between subsistence crop/livestock and commercial crop/livestock farming2.5--3.16Target not achieved
17. Percentage increase in agro-processing and agro-business enterprises and micro-enterprises registrationNaNaNaNaData not available to evaluate the indicator
FISHERIES DEVELOPED5. Total Fish Production (mt)
a. MarineNa352405.19322,789.48334,409.9No Initial target for assessment

Regional distribution (Kg):

Ashanti ‒ 9,378.1

Brong Ahafo ‒ 1,167.5

Central ‒ 376.36

Greater Accra–Nil

Northern–Nil

Upper East–Nil

Upper West–Nil

Volta–Nil

Eastern ‒ 8,411

Western ‒ 544

Total ‒ 19,876.96
b. Inland Capture fisheriesNaNaNa14,481
c. Harvesting of PondsNa3,5006,90019.877
d. ImportNaNa166,003.1165,559.7
6. Quantity of fish produced per hectare of pond per year2 Tons/ ha/yr1.31.51.5Target not attained
7. Total surface water Area under fish farming250ha200231.4508.58Target exceeded

Disaggregations:

Total # of Ponds = 3,472

Functional ponds = 3,234

Total # of farmers = 1,597
RESTORATION OF DEGRADED ENVIRONMENT AND NATURAL RESOURCE MANAGEMENT8. Cost of environmental degradation as a ratio to GDP (lands, forests, fisheries)5%Na5.5%6%3Target not achieved
9. Rate of deforestation(−1.3%) ¼10,00 ha/annum65,000 ha/annumCurrent Forest = 5,517,000ha (−1.7%)NaStatistics on current rate of deforestation not available
10. Number of Timber Utilisation Contracts (TUCs) awarded
a. Natural Forest:167

Consists of: Conversion to TUC’s = 100 Ratified TUC’s = 42 Next Comp. Bidding (Nat. Foests) = 25
6 TUCs signed and ratified by parliament4 TUCs signed and ratified by parliamentTarget not achieved
b. Plantation:3617 plantation TUCs signedNa16 TUCs signedTarget not achieved

Competitive bidding for 27 TUCs of plantation timber to be held by end of march, 2007
11. The number of Social Responsibility Contracts (SRC) signed103

Consist of: SRA (Nat. Forests) = 67 SRA (Plantation) = 36
53

Consist of: Nat. Forest replaceme nt = 36 SRA (Plantation) = 17
8

Consist of: SRA (Nat. Forests) = 6 SRA (Plantation) = 2
18

Consist of: SRA (Nat. Forests) = 4 SRA (Plantation) = 14
Target not achieved

Stakeholder consultation are on-going to facilitate the signing of SRAs
12. Percentage change in resource spent for Corporate Social Responsibility, including alternative livelihood programmesNaNaNaNaData not available to evaluate the indicator
13. Hectares of degraded forest, mining, dry and wet lands rehabilitated/ restored
a. Forest20,000 ha16,000ha16,800ha17,500haTarget not achieved due to limited financial resource
b. Mining238ha by 2009168haNaNaData not available to assess progress. Technical document developed for labour intensive physical reclamation
c. Dry and wetlandNaNaNaNaLack of data to evaluate indicator
14. Proportion of timber royalties going to resource owners50:50 for on-reserve royalties (i.e. 50% for forestry commission and 50% for resource owners)60:4060:4050:50Target achieved

(The sharing of royalties from timber resources have been reviewed in favour of resource owners both on- and off-reserve. Currently, the Forestry Commission receives 50% of timber royalties from forest reserves while the resource owners also receive 50%)
40:60 for off-reserve royalties60:4040:6040:60Target Achieved

(Similarly, the sharing of royalties outside forest reserves is now 40% for the Forestry Commission and 60% for the resource owners)
7. Statistical Overview of the Mineral Sector
a. Mineral Production
Gold (thousand ounces)2,5002,029.972,138.942,423.27Significant progress made toward target
Diamonds1,000.0905.341,065.92967.86
Bauxite760.00498.06606.70753.32
Manganese1,800.001,597.091,719.591,607.178
b. Labour
Large Scale22,00021,50521,91621,950Significant progress made toward target
Small Scale (legal & illegal)*600,000500,000540,000570,000
c. Foreign Direct Investments (in million U.S. $)1,000665.86744.050900.0Significant progress made toward target
d. Mineral Rights Granted (Mining Lease, Prospecting, Reconnaissance, Salt, Quarry, Clay, Sand Winning, Small Scale Gold/Diamond, Mica)200131152189Significant progress made toward target
18. Time to register land8 mths36 mths12 mths7 mthsTarget exceeded

(The drastic reduction is due to the establishment of deed registries in four areas Sekondi, Koforidua, Sunyani and Tamale).
PROMOTING TRADE AND INDUSTRIAL DEVELOPMENT19. Percentage change in non-traditional exports (NTE) = (Value in Million US$)10%16.5% (705.0)10.3% (777.59)15% (892.88)Target exceeded
20. Average number of days for clearing goods from the nations ports3 days7 days4 days2 days 6 hours at the airportsTarget exceeded
21. Industrial Sector Performance:
a. Manufacturing value added share in GDPNa

Na

Na
9.0%

1.6%

Na
8.9%

1.3%

Na
8.8%

14.2% (Prov.)

Na
Baseline target not available, but results are mix compared to previous year.
b. share of manufacturing in total export
c. composite index of competitive industrial performance (CIP)
22. Time Taken to get duty drawback6 wksNa6 mnthsNaLack of data to evaluate indicator
TRANSPORT INFRASTRUCTUR E: ROAD, RAIL, WATER AND AIR TRANSPORT23. Total funds disbursed for routine maintenance, periodic maintenance, reconstruction and upgrading works, relative to the maintenance needs of each modal network=53%

= 4 %

= Na
= Na

=Na

= Na
=38%

= Na

= Na
=%

= Na

= Na
Lack of data to evaluate indicator
a. Road Transport
b. Rail & Water
c. Air
24. Proportion/length of roads maintained/Rehabilitated89%Na67%75.6%Target not met
Trunk Roads (in km):12,16813,074.5012,12712,825.1
a. Routine maintenance293260.29281.31135.33Target largely not met (Only one out of four indicators met and exceeded it)
b. Periodic maintenance699223.67198.62166.86
c. Minor Rehab & Reconstruction200180209.75142.18
d. Major Rehab & Reconstruction
Urban Roads (in km):3,4492,449.653,313.203,634.79Two out of four indicators met target (exceeded), No data on one.
e. Routine maintenance531.17209.21240.36360.87
f. Periodic maintenance36113.7332.056.18
g. Minor Rehab. & Reconstruction13Na9Na
h. Major Rehab. & Reconstruction
Feeder Roads (in km):26,58018,46317,11917,340Target not met (All six indicators below target)
i. Routine maintenance8001,1581,085557
j. Rehabilitation10030621450
k. Regravelling1,6492,0021601,162
l. Spot Improvement20NaNaNa
m. Reconstruction227186190176
n. Surfacing
25. Annual accident statistics for each transport mode (Road)10,33012,16411,30511,698Target not met
26. Passenger traffic and goods traffic by railways
a. Passenger traffic (in 1000 passengers-km)93,00080,00064,00038,000Targets not achieved, and indicators showing downward trends
b. Good traffic (1000 tonnes-km)231,000215,690223,980181,250
27. Maritime traffic: Goods loaded and unloaded (in 1000 tonnes)Targets not achieved, indicators showing downward trends

2006 Traffic by Location (in 0000 tonnes):

Goods Loaded

Tema ‒ 1,117

Takoradi ‒ 3,241

Total ‒ 4,359

Goods Unloaded

Tema ‒ 7,788

Takoradi ‒ 1,477

Total ‒ 9,266

Total vessels

Tema ‒ 2,032

Takoradi ‒ 610

Total ‒ 2,642
a. Goods loaded (in 1000 tonnes)4,5003,9074,3614,359
b. Goods Unloaded (in 1000 tonnes)9,2008,7209,5248,038
28. Total air freight and number of air traffic passengers:
a. Total air freight in thousand tonnesTargets not achieved
- Loaded50.546.947.249.5
- Unloaded33.6

16.9
31.5

15.4
30.5

16.7
33.2

16.3
b. Number of air traffic passengers (arrival and departure) in thousand919.2705.4812.2926.6Targets exceeded
- Arrival446.6338.5382.2458.8
- Departure462.6366.9429.9467.7
c. Number of air craft movt (arrival and departure) in thousand14.410.612.513.8Fell short of target by 0.6
- Arrival7.25.26.26.9
- Departure7.25.46.36.9
29. Road condition mix
National:64,131km47,600km47,835km48,381kmTarget not met
Good=48%=40%=42%=45%
Fair= 30%= 30%= 31%= 28%
Poor= 22%= 30%= 27%= 27%
Trunk Roads:13,367km10,942km11,177km11,723kmTarget not met
Good=48%=40%=42%=46%
Fair= 30%= 30%= 31%=29 %
Poor= 22%= 30%=26 %= 25%
Urban Roads:9,764Km4,064Km4,064Km4,064KmTarget not met
Good=56%=41%=43%=46%
Fair= 21.9%= 31%=33%= 30%
Poor= 22.1%=28%=24%=24 %
Feeder Roads:41,000km32,594Km32,594Km32,594KmTarget not met
Good= 46%= 30%= 30%=34 %
Fair= 34%= 17%= 17%=15 %
Poor= 20%=53 %=53 %= 51%
ENERGY SUPPLY TO SUPPORT INDUSTRY AND HOUSEHOLDS30. Per capita consumption of energy per annum (in Tonnes of Oil Equivalent (TOE)There was a marginal decrease in indicator level for Petroleum due to a decrease in demand as a result of sharp increases in petroleum prices experienced during the year in review.

However, there was an increase in the use of LPG.
a. Electricity0.29360.03700.0414Na
b. PetroleumNa0.08020.08060.0798
c. LPGNa0.00310.00330.0040
31. Average number of hours of electricity outage per consumer per year¼100 hours/ year143122N/aData not currently available for 2006
32. Percentage reduction in transmission and distribution losses:Target were not met due to over aged equipment
a. Transmission2.8%2.983.28%3.56%
b. Distribution21%25.65%25.44%24.32%
33. Percentage of households covered by electricity supply47%42%45%48%Target exceeded
SCIENCE AND TECHNOLOGY TO SUPPORT PRODUCTIVITY AND DEVELOPMENT34. Percentage change in Research and Development expenditure (Public)NaNaNaNaData not available to evaluate the indicator

2006 Public Expenditure (investment and Services):

Institution

MES–US$363,695.65

CSIR–US$510,108.70

GAEC–US$2,384,456.50

TERTIARY–US$

Total–US$3,258,260.90 (0.03% of GDP)
DEVELOPING INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)35. Size of the ICT industryUS $750 million by 2011NaNaNaData not available to evaluate the indicator
36. Teledensity/Penetration rate:20%6.9%16.6%27.2%Target exceeded
a. Fixed Line1.6%1.7%1.7%
b. Mobile5.4%14.9%25.5%
37. Internet Access1.5 million in 2005 ¾2% per annum0.05%0.05%0.05%Targets not achieved (Progress is slow)
a. SubscribersNa232729
b. Providers (total number)NaNa46 (SSS)50 (SSS)
c. Number of school with internet accessNaNa7 (Teacher Training)8 (Teacher Training)
DEVELOPING THE TOURISM SECTOR FOR REVENUE AND EMPLOYMENT GENERATION38. Percentage increase in tourist arrivals16%Total arrivals=372,82313%11.8%Target is not achieved

RECEIPTS (US $ Million):

2005 =836.1

2006 =984.8

EMPLOYMENT:

2005 =172,823

2006 =183,192
39. Percentage change of investment (stock of tourism facilities) in the tourism sectorTarget not achieved
a. Accommodation Establishments (Hotels, Guest houses, lodges etc)15.26%2.0%2.3%4.5%(With the exception of car rental companies, all the remaining indicators fell short of targets, showing a declining trend in some cases)
b. Catering Establishment (Restaurants, fast food joints etc)10.09%−18.5%24.5%−32.8%Inspections were conducted for 2,225 accommodations and catering units in the formal sector.
c. Travel Agents and Tour Operations Establishment9.17%−4.1%31.0%−5.9%The following is the breakdown of accommodation and catering units in the formal sector that were licenses:
d. Car Rental companies12.94%−7.7%10.4%13.2%

a) Formal Establishments (A&C)Licensed

i) Accommodation ‒ 1406 (Rooms -19967, Beds ‒ 28006)

ii) Catering ‒ 330

370 accommodation and catering units in the formal sector were re-inspected and subsequently licensed.

b) Formal Travel l Trade Operators Licensed ‒ 410

inspected Travel & Tour

i) Travel & Tours ‒ 350

ii) Car Rental ‒ 60

2 Charter Flights were licensed in 2006 i.e.

i. ANTRAK Airlines Limited–Route (Accra–Duss–Accra)

. MICON Travels & Tours–Route (Port of Spain/George Town–Accra–George Town/ Post of Spain)

c) Informal Establishments Licensed

i) Accommodation 24 viz:

• Hostels ‒ 12

• Homestays ‒ 10

• Tourist homes ‒ 2

ii) Catering 925 viz:

• Drinking Bars ‒ 574

• Traditional Catering ‒ 344

• Snack bars ‒ 6
EMPLOYMENT GENERATION AND IMPROVEMENT AND EXPANSION OF SAFETY NETS40. Number of Labour DisputesNaNa548663Lack of baseline data to evaluate indicator, but indicator showed a worsening trend.
41. The number of new jobs created by sector200,000Na125,000200,000Target was achieved

78,195 jobs created under the youth employment programme alone, in all 10 regions as at 31 December, 2006

Employment figures as at December are as follows:

REGIONS

Ashanti ‒ 6,437

Brong Ahafo ‒ 6432

Central ‒ 6,391

Greater Accra ‒ 5056

Northern ‒ 1,5614

Upper East ‒ 8,530

Upper West ‒ 8,488

Volta ‒ 7,574

Eastern ‒ 7,000

78,195

Employment figures by

SECTORS:

Agric Biz ‒ 13,069

Comm. Edu Tech ‒ 20,021

Comm. Protect ‒ 300

Aux. Nursing ‒ 10,500

Waste & s’tion ‒ 4,550

Internship ‒ 2,800

Trades & vocations

ICT–Na

Other modules ‒ 26,760

(Forestry, Rev. Mobi, Volu. Teachers, etc)

Programme Staff ‒ 195
42. Social Protection Exp as percentage of GDP24.42%NaNaNaLack of data to evaluate indicator.

Department of Social Welfare Budget for 2006 =19.28 billion Cedis

Chapter Four Human Resource Development

4.1 Introduction

The main goal of Human Resource Development in the GPRS II is to ensure that Ghana produces a knowledgeable, well-trained and healthy population with adequate capacity to support the accelerated economic growth and poverty reduction. The following broad policy areas have been identified as the key pillars of the country’s comprehensive human resource development programme.

  • Education;
  • Training and skills development;
  • Access to health care;
  • Malaria control;
  • HIV/AIDS prevention and treatment;
  • Safe water and Sanitation;
  • Population management; and
  • Housing and slum upgrading.

This section of the report is an assessment of progress made towards attaining the targets set out in this thematic area, using selected key indicators on human resource development relevant to the broad policy areas identified above.

4.2 Status of Selected Indicators, and Key Policy Measures and Strategy in 2006

4.2.1 Education

The following policy objectives were identified under the strategy to improve educational outcomes necessary for ensuring quality human resource for accelerated economic growth and poverty reduction:

  • increase access to and participation in education and training, with greater emphasis on gender and geographical equity;
  • improve the quality of basic education; and
  • enhance delivery of educational services.

i. Increase access to and participation in basic education, with emphasis on gender and geographical equity

Status of Selected Indicators:

Indicators on gross enrolment ratio; net enrolment rate; and survival rates were used to assess progress on this policy objective.

(a) Gross Enrolment Ratio (GER)

The GER is an indicator of participation in the educational system and measures the number of pupils/students at a given level of schooling-regardless of age- as a proportion of the number of children in the relevant age group. Table 4.1 provides a summary of the trends in enrolment growth and survival rates for the period 2003 to 2006.

Table 4.1:Trends in Gross Enrolment Ratios in Basic Schools, 2003/04 to 2005/06
Gross Enrolment RatioTarget 20062003/20042004/20052005/2006Progress towards target
Kindergarten:
National64.5%54.58%60.14%85.30%Exceeded
Northern26.20%29.28%30.80%
Upper East25.60%28.56%30.90%
Upper West19.30%21.94%30.90%
Deprived districts42.10%47.95%50.40%
Primary:
National90.90%86.3%87.50%92.10%Exceeded
Northern77.60%70.50%72.70%76.20%Significant progress
Upper East84.29%77.10%80.40%84.40%Target achieved
Upper West81.54%74.10%77.30%81.05%Target achieved
Deprived districts70.06%80.12%84.30%
Junior Secondary School:
National75.63%70.20%72.80%74.70%Significant progress
Deprived Districts
Source: Ministry of Education and Sports, 2006 Preliminary Education Sector Performance Report

Note: Data in table are adjusted EMIS figures

Source: Ministry of Education and Sports, 2006 Preliminary Education Sector Performance Report

Note: Data in table are adjusted EMIS figures

Overall, data indicates that school enrolment growth in GER has continued to be positive across all levels of basic education. In addition, the 2006 national GER targets for the sub-sector were also achieved.

Kindergarten:

There was a significant growth in enrolment at this level of education. The GER for pre-schools increased from 60.14% in 2005 to 85.30% in 2006. This represents an increase of 41.8% in gross enrolment. However, there remains significant geographical disparity in access to pre-school education. The three northern regions and the deprived districts have significantly lower enrolment ratios at this level of education than the national average. The number of public kindergarten schools increased from 5,205 in 2004/05 to 7,818 in 2005/06. Efforts to accelerate the mainstreaming of pre-schools into the basic education system in these areas may need to be intensified.

Primary:

Significant progress was recorded in enrolment at the primary level of education. Enrolment increased from 87.3% in 2005 to 92.10% in 2006. There was an increase of 4.8% in Gross Enrolment at this level of education during the year. However, this analysis indicates that about 9 % of the eligible school going population is still not accessing formal education at the primary level.

The increase in enrolment is due largely to the impact of the capitation grant policy introduced in 2005 and the expansion in the coverage of the school feeding programme initiative (see the section on policy measures below).

Junior Secondary School (JSS):

There has been steady increase in GER at the JSS level. The GER increased from 70.2% in 2003/04 to 74.7% in 2005/06. This represents an increase of 4.5%. Compared with 2004/05 figure, there was an increase of 2.6% in JSS Gross Enrolment in 2005/06.

(b) Net Enrolment Rate (NER)

Information in Table 4.2 below suggests significant improvements in net enrolment ratios at both the primary and JSS levels of education over the years.

Table 4.2:Trends in Net Enrolment Rates in Basic Schools, 2003/04 to 2005/06
Net Enrolment RateTarget 20062003/20042004/20052005/2006Progress towards target
Primary:
National61.70%55.60%59.10%69.20%Target exceeded
Northern49.00%52.40%65.40%
Upper East53.20%55.50%69.00%
Upper West49.70%54.50%70.00%
Deprived Districts
Sex
Male56.50%60.00%69.80%
Female54.70%59.30%68.10%
Junior Secondary School:
National----------70.30%74.50%
Deprived districts
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report

Note: Data in table are adjusted EMIS figures

Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report

Note: Data in table are adjusted EMIS figures

The NER at the primary level increased from 59.1% in 2004/05 to 69.2% in 2005/06, indicating a percentage increase of 17.1%. This means that there were more appropriately aged children enrolled in primary school in 2006 than the previous years. Except for the northern region, the NER for the other two deprived regions (Upper East and Upper West) do not deviate much from the national average of 69.2%. The NER for JSS also increased by 5.97% from 70.3% in 2004/05 to 74.5% in 2005/06.

By gender disaggregation, the data indicates slightly higher primary level NER for males (69.8%) than females (68.1%).

(c) Survival Rates:

This indicator measures the proportion of pupils/students which remains and completes school after enrolment. Table 6.3 presents the proportion of pupils who complete school after enrolment.

Table 4.3 indicates that a significant proportion of pupils at the primary level of education do complete school once enrolled. However, there was marginal decrease in survival rate of 7.6% between 2005 and 2006. Analysis of non-completion rate by grade indicates that non-completion occurs mostly at Grades 1 to 4. This issue needs to be investigated to identify reasons behind some children not completing school after enrolment.

Table 4.3:Trends in Survival Rates in Basic Schools by Gender, 2003/04 to 2005/06
Survival RatesTarget 20062003/20042004/20052005/2006Progress towards target
Primary
National84.43%83.20%82.60%75.60%Slow progress
Males85.50%85.10%84.70%78.40%Slow progress
Females83.26%81.10%80.30%72.40%Slow progress
Junior Secondary School
National87.90%86.00%85.50%86.60%Significant progress
Males88.70%88.00%88.50%87.40%Significant progress
Females87.00%83.70%82.90%85.60%Significant progress
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report,

Note: Data in table are adjusted EMIS figures

Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report,

Note: Data in table are adjusted EMIS figures

The survival rate at the JSS level appears to be stabilized around 86% between 2004 and 2006. Here again the factors behind the 14% of students who fail to complete JSS has to be investigated-whether it is school based, financial or driven by socio-cultural factors.

(d) Gender Parity:

The goal of ensuring parity in basic education has a targeted Gender Parity Index of 1 for all levels of basic education by year 2009. The Gender Parity Index measures the ratio of between boys and girls’ enrolment rates, the balance of parity being 1.

Table 4.4 indicates that gender parity grew at all levels of basic education between 2005 and 2006. This was the result of various enrolment drives implemented, including the introduction of the Capitation Grant Scheme and School Feeding Programme (see policy measures below).

Table 4.4:Trends in National Gender Parity Index (GPI) in Basic Education Sector, 2003/2004-2005/2006
Gender Parity Index2003/20042004/20052005/2006Target 2006Progress toward target
KG0.980.981.031.00Steady progress
Primary0.930.930.951.00Steady progress
JSS0.880.880.930.94Steady progress
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report

Key Policy Measures and Strategies:

Key policy measures implemented in 2006 to improve enrolment growth in the basic schools sub-sector included the construction/rehabilitation of classrooms: strengthening the capitation grant initiative: and expanding the coverage of the school and feeding programme.

Construction/Rehabilitation of Classrooms:

According to the 2005 Educational Sector Performance Report, many classrooms in the country are overcrowded and a number of them are in unsatisfactory physical conditions. To meet the targets of universal primary education by 2015, the implementation of programmes for expanding the physical facilities in basic schools continued in 2006. During the year, construction works on 65 (6-unit) classroom blocks commenced, while work on another 85 classroom blocks were at various stages of completion.

The Capitation Grant:

The Capitation Grant Scheme, which was piloted in 40 most deprived regions in 2004 became fully operational in 2005. The scheme continued to be implemented in 2006 to encourage participation and increase the school attendance rate. An amount of ¢129.5 billion was disbursed as Capitation Grant for pupils in public basic schools during the year.

The School Feeding Programme:

The objectives of the School Feeding Programme are to enhance school enrolment; encourage attendance; ensure retention; and improve the nutritional and health status of children.

The number of schools which benefited from on-site feeding increased from the 10 pilot schools (in deprived districts) in 2005 to 138 schools 2006. In addition, 42,232 girls were assisted through the Take Home Ration for Girls (P4-JSS3) programme.

ii. Improve Quality of Education and Enhance Delivery of Educational Services

Status of Selected Indicators:

Progress towards achieving the objectives of improving the quality of education and enhance the delivery of educational services are measured by the following indicators:

  • the proportion of students passing the National Assessment Exams (BECE) with good grades.
  • percentage of trained to untrained teachers in basic schools.
  • Pupil: teacher Ratio.

The status of these indicators is as follows:

(a) BECE Examination 2006:

The Basic Education Certificate Examination (BECE) is administered at the end of the basic education cycle to assess the eligibility of pupils to progress on to second cycle education. An aggregate grade between 6 and 30 is required to enable a pupil to enter second cycle education. Table 4.5 provides information on proportion of pupils gaining the required grades in 2006 by selected deprived areas and by gender.

Table 4.5:Examination Entrants Gaining Aggregate Score of 6-30, 2006
Percent gaining required aggregate
National62.6%
Deprived Areas
Northern47%
Upper East55%
Upper West55%
Gender (National)
Male65.3%
Female59.3%
Source: The West Africa Examination Council, 2006
Source: The West Africa Examination Council, 2006

Table 4.5 indicates that the quality of education received by pupils vary widely in different regions and also by gender. The proportion of pupils obtaining the required BECE aggregate is below the national average in all the three northern regions. In addition, more males obtained the required aggregate than their female counterparts. This suggests the need for strengthening of efforts to ensure equity in the delivery of quality basic education. The analysis also indicates that a significant proportion (37.4%) of JSS graduates do not qualify to enter the next level of education.

(b) Percentage of Trained Teachers:

The quality of teaching and learning depends, largely on the proportion of the trained teachers among the teaching staff. Increases in enrolment as a result of provision of the capitation grant to all basic schools, and the introduction of the school feeding programme in selected schools have undoubtedly intensified the demand for trained teachers.

Table 4.6 indicates that there is inadequate supply of trained teachers in basic schools, with only about 3 in 10 of Kindergarten teachers trained, while the primary school level has been registering consistent decline in the proportion of trained teachers. This is in spite of various initiatives being implemented to increase the number of trained teachers in primary schools (see policy measures below).

Table 4.6:Trends in Percentage of Trained Teachers in Basic School, 2003–2006
Target 20062003-042004-052005-06Progress towards target
Kindergarten37.40%37.90%32.70%33.10%Slow progress
Primary
National81.3%73.90%72.40%70.80%Slow progress
Northern81.3%52.2%51.6%54.3%Slow progress
Upper East81.3%74.8%70.3%74.0%Slow progress
Upper West81.3%77.1%78.5%82.6%Exceeded
Deprived districts81.3%55.3%53.2%55.9%Slow progress
JSS87.10%84.20%83.50%85.50%Slow progress
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report

The deployment of teachers to deprived regions and districts also continue to pose critical challenges to the education sector. This is demonstrated in the large discrepancy between the percentage of trained teachers at the national level and at the northern region and deprived districts (Table 4.6). The analysis calls for renewed emphasis on teacher recruitment, training and deployment.

(c) Pupil: Teacher Ratio (PTR):

The PTR is a key input indicator used as proxy for assessing the quality of education. The associated policy objective is to achieve a national PTR of 35:1 at the primary level and 25:1 at the JSS level, as these levels are expected to be optimal for ensuring quality education.

Table 4.7 indicates that PTR at the primary level increased from 34.9 in 2004/05 to 35.7 in 2005/06, indicating an increase in the workload of teachers for the period. However, declines in PTR were recorded in the deprived regions and districts over the period under review. These declines in the deprived areas are due to the attraction of more pupil teachers to the teaching profession as a result of the pupil teacher-upgrading programme implemented during the year (see policy measures below).

Table 4.7:Trends in PTR- Basic Schools, 2003/04 to 2005/06
Target 20062003/20042004/20052005/2006Progress towards target
Primary
National34.13434.935.7Slow progress
Northern region35.038.640.238.0Slow progress
Upper East44.058.957.448.0Slow progress
Upper West35.046.249.040.0Steady progress
Deprived districts35.039.541.9
Junior Secondary School
National20.218.619.019.4Slow progress
Northern region20.224.025.422.9Steady progress
Upper East20.225.125.124.9Slow progress
Upper West20.220.324.122.0Slow progress
Deprived districts20.220.922.022.5Steady progress
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report.
Source: Ministry of Education, Science and Sports, 2006 Preliminary Education Sector Performance Report.

Key Policy Measures and Strategies:

Policy measures implemented in 2006 to improve the quality of teaching and enhance delivery of educational services included:

Teacher Deployment:

  • closing the equity gap in the supply of teachers, conscious effort was made to deploy more teachers the three deprived Northern regions;
  • provision of incentive packages to attract teachers to more remote areas;
  • the posting of a total of 18,900 Service Personnel to teach in basic schools in rural areas; and
  • the continuation of the District Sponsorship Scheme for trainee teachers. Ninety-eight percent of the 9,000 trainee teachers enrolled in 2006 were sponsored by District Assemblies.

Teacher Upgrading:

  • In 2006, 5,689 untrained teachers benefited from the Untrained Teacher Training Programme. The programme is aimed at improving the quality of education delivery through the upgrading of untrained teachers.

Distribution of Textbooks:

  • To ensure equity in the distribution of textbooks, the core textbooks policy ratio of 1:1 was fully implemented and monitored during 2006.

4.2.2 Training and Skills Development

The need to address the lack of training and marketable skills among the youth, especially those who have never been to school or who have dropped out of school was addressed. The strategy is to provide skills training and entrepreneurial know-how to the unemployed youth to enhance their access jobs in the labor market.

i. Provision of Skills and Entrepreneurial Training

The indicator used to assess progress on this policy measure is the proportion of youth benefiting from skills/entrepreneurial training. The status of this indicator is presented below:

A National Youth Employment Programme (NYEP) was launched in 2006. The programme aims at generating half a million jobs in 3 years (2006-2009). To achieve this target, the Government made provision from the DACF, GETFund, NHIS, Road Fund, HIPC, and a percentage from 2006 estimates of MDAs to support the implementation of the programme.

The NYEP envisages a youth employment target of 175,000 in 2006. Table 4.8a provides information on the target achievement by region. At the national level, the NYEP recorded modest achievement in creating employment for 45% of the number of youth registered under it in 2006. However, the programme achieved significant results in the deprived northern and western regions (Table 4.8a). The breakdown of employment by work module is as shown in Table 4.8b

Table 4.8a:Regional Youth Employment, 2006
RegionNo. of Youth RegisteredActual Number of Youth EmployedPercent Employed
Ashanti24,3226,43726%
Brong Ahafo19,8686,43232%
Central13,0166,39749%
Eastern19,1007,00037%
Gt. Accra22,3635,05622%
Northern21,59515,61471%
Upper East13,2718,53064%
Upper West12,5908,48867%
Volta18,0947,57441%
Western10,0876,66766%
National174,67078,19545%
Source: Ministry of Youth and Employment, 2006.
Source: Ministry of Youth and Employment, 2006.
Table 4.8b:Employment Classification, 2006
Employment ModulesNo. of Youth RegisteredActual Number of Youth EmployedPercent
Agriculture74,87013,06917%
Commercial/Technical14,00020,021143%
Community project8,5003004%
Auxilliary Nursing10,85010,50097%
Waste and Sanitation8,5004,55064%
Internship10,2002,80027%
Trade and Vocation8,500------------------
ICT8,500------------------
Other (Forestry, teaching revenue mobilization etc.)30,00026,76089%
Programme Management Staff76019526%
National174,67078,19545%
Source: Ministry of Youth and Employment, 2006.
Source: Ministry of Youth and Employment, 2006.

4.2.3 Health

The overall goal of the health sector is to ensure that every Ghanaian has access to good quality health and nutrition services. To achieve this goal, the health sector policy objectives continue to be focused on: bridging the equity gaps in access to quality healthcare and nutrition services; ensuring sustainable financial arrangements that protect the poor; and strengthening efficiency in health service delivery.

Progress made towards achieving the health sector targets set out in the GPRS II is presented below.

i. Bridge Equity Gaps in Access to Quality Health Care and Nutrition Services

Status of Selected Indicators:

The 2006 review of the health sector performance indicate that almost all the sector-wide indicators have been slowly improving for the past 5 years. Access to health services is however still limited. This could be attributed to a number of factors including socio-cultural, geographical, financial barriers and service delivery constraints. These barriers have resulted in poor utilisation of health facilities in both urban and rural areas, particularly among the poor and vulnerable groups of the population.

The status of some selected indicators within the sector is as follows:

Table 4.9a:Basic Health Indicators, 1993-2006
Indicator1993 DHS1998 DHS2003 DHS2006 MICS2006 TargetProgress towards target
Infant mortality rate per 1000 live births6657647150Slow progress
Under five mortality rate per 1000 live births11910811111195Slow progress
Under five who are malnourished (underweight)27%25%22.0%18%20%Significant progress
Maternal Mortality Ratio214214NaNaNaCurrent MMR has not been established
Source: GDHS, 1988-2003: Multiple Indicator Cluster Survey (MICS), Preliminary Report, 2006
Source: GDHS, 1988-2003: Multiple Indicator Cluster Survey (MICS), Preliminary Report, 2006

Reduce Child Mortality:

Progress in the reduction of under-five mortality has been very slow with a reduction rate of 119 per 1000 births in 1993 to 111 per 1000 in 2006. This may reflect time lags between interventions and outcomes and/or improved levels of reporting as a result of increased sensitization of women health issues. Given the current trends it is unlikely that the MDG target of reducing under-five mortality by two-thirds can be met without significant efforts to strengthen the supportive environment.

Children under five years who are Malnourished (Underweight):

Available data indicate that the proportion of underweight children as well as the incidence of wasting and stunting among children has generally improved, but slow (Figure 4.1). The proportion of malnourished children under five years old reduced from 25% in 1998 to about 18% in 2006 (Table 4.9a). This figure represents about 2% decline over the target of 205 set for the 2006.

Figure 4.1:Trends in the Nutritional of Children in Ghana, 1998-2006

Maternal Mortality Ratio:

Various interventions have been initiated to improve maternal health and reduce the high level of maternal mortality. Though current data is not available, maternal mortality remains high and appears to have declined by only a quarter between 1990 and 2000. With this slow performance it appears that the MDG of improving maternal health by reducing maternal mortality rate by three quarters by 2015 may not be achieved.

The status of other key indicators selected to track progress towards achieving the objective of improved service output and level and distribution of health resources is summarized in Table 4.9b below.

Table 4.9b:Summary of Achievements of Selected Health Sector Output Indicators, 2004-2006
Indicator2006 Target2004 Level2005 Level2006 LevelProgress towards target
Outpatient per capita0.60.520.530.52Slow progress
Immunisation Coverage:
- Penta 385%75.0%85.0%84.2%Slow progress
- Measles90.0%78.0%82.0%85.1%Slow progress
- Antenatal Care Coverage99.0%89.2%88.7%88.4%Slow progress
Supervised Deliveries60.0%37.8%40.3%44.5%Slow progress
Guinea Worm Cases0727539814136Slow progress
Source: MOH 2006 Health Sector Programme of Work Reviews
Source: MOH 2006 Health Sector Programme of Work Reviews

Outpatient per Capita:

This indicator is a proxy for measuring physical access to health care and nutritional services. Table 4.9b reveals that utilisation of clinical services is low and decreased from the 2005 level of 0.54 per capita to 0.52 per capita in 2006. Among the number of factors that may account for the low utilisation of health services are population growth and inadequate from the private sector.

Coverage of Immunisation:

Significant progress was made with regard to the immunisation of children during the year. 85.1% coverage of measles was achieved in 2006. In addition 84.2% of children were immunized with Penta 3 vaccine. The sector is making progress in its effort to eradicate polio. Since September 2003, there has not been any reported case of wild polio virus and this is mainly due to the successful NIDs and improved routine immunisations in the country. Measles elimination is also under way. Since 2003, there has not been any reported case of death from measles.

Antenatal Care (ANC):

The coverage of antenatal care has remained relatively high. Over 80% of pregnant women have access to antenatal care services. However, we note that the proportion of ANC coverage decreased marginally from 88.7% in 2005 to 88.4% in 2006.

Supervised Deliveries:

Supervised delivery is the percentage of deliveries attended by skilled health personnel irrespective of the outcome (This excludes deliveries conducted by traditional birth attendants). There was an increase of 4.2% in the overall coverage of supervised delivery nationwide from 40.3% in 2005 to 44.5% in 2006.

Guinea Worm Cases:

Efforts to eradicate guinea worm infections continued in 2006. A cumulative total of 4136 cases were recorded in 2006. This represents about 6% increase of the 2005 cases of 3,981. Thus guinea worm eradication efforts need to be intensified.

ii. Ensure Sustainable Financial Arrangements that Protect the Poor

Act 650 of 2003 provides for the establishment of a National Health Insurance Scheme with the main objective of removing financial barriers which limits access to health care and nutritional services, particularly by the poor and vulnerable sections of the population.

Available data available indicates that the proportion of the population registered under the scheme increased from 22% in 2005 to 38% in 2006.

Table 4.10a summarizes information on category of registrants of the NHIS. The table indicates that a significant growth in the proportion of registered members exempted from payment under the NHIS scheme (children under 18 years of age; persons over 70 years of age). There was a modest decrease in the percentage of indigents registered (from 2% in 2005 to 1.84% in 2006).

Table 4.10a:NHIS Registration Coverage by Category of Registrants, 2005 and 2006
Category2005 Registrants2006 Registrants
Numberas % of Registeredas % of PopulationNumberas % of Registeredas % of Population
Total Registered4,400,279227,673,99838
Total membership3,223,35473.215.86,130,06379.930
Informal sector615,45014.03.011,410,58218.46.9
SSNIT contributors468,09211.02.3767,09310.03.8
Categories of exempted persons:
SSNIT pensioners43,2081.00.21105,6521.40.52
Children under 18 years1,751,17539.88.63,069,97640.015
Aged: 70 and over266,4216.11.3535,6256.982.6
Indigents79,0082.00.4140,9941.841.8
Total Exempt3,223,35459.3134,619,3406023
Total ID Card bearers1,388,662436.83,947,33451.4419.3
Source: NHIS Annual Progress Report, 2006
Source: NHIS Annual Progress Report, 2006

The level of subscriptions to the NHIS reveals that the three northern regions registered the fastest growth in the proportion registered between 2005 and 2006. The Greater Accra region remains the region with the lowest proportion of NHIS registrants (Table 4.10b).

Table 4.10b:Percent NHIS Registration Coverage by Region, 2005 and 2006
RegionEstimated Population% of Population Registered in 2005% of Population Registered in 2006
Upper West963,4487.8530.00%
Upper East561,86610.7332.00%
Northern1,790,41718.7340.00%
Brong Ahafo1,968,20530.1461.00%
Ashanti3,924,92528.4344.00%
Western2,042,75321.3435.00%
Central1,687,31122.4244.00%
Gt. Accra3,576,31217.0219.00%
Eastern2,274,45318.3137.00%
Volta1,636,46228.0636.00%
TOTAL20,425,65222.0038.00%
Source: NHIS Annual Progress Report, 2006
Source: NHIS Annual Progress Report, 2006

iii. Strengthening Efficiency in Health Service Delivery

The level and distribution of health care resources is important for ensuring equity in access to quality health services. The health sector continues to be plagued with shortage of key health professionals and inequitable distribution of the available staff. This is largely due to the exodus of health professionals in search of greener pastures in other countries.

Tables 4.11a through 4.11c indicate the level and distribution of selected human resource indicators in the health sector.

Table 4.11a:Selected level of health resource indicators, 2004-2006
Indicator2004 level2005 level2006 level2006 TargetAchievement
Doctor to Population Ratio1: 17,7731: 16,0001: 10,6411: 10,500Significant progress
Nurse to Population Ratio1: 1,5131: 1,8001: 1,6361: 1,500Steady progress
Source: MOH 2006 Health Sector Programme of Work Reviews
Source: MOH 2006 Health Sector Programme of Work Reviews
Table 4.11b:Doctor: Population Ratio by Region, 2006
RegionEstimated PopulationDoctor to population ratio
Ashanti4,165,4481:7,169
Brong Ahafo2,093,0231:24,337
Eastern2,428,8551:19,125
Central1,837,5531:24,178
Greater Accra3,350,0741:3,706
Northern2,099,2461:63,614
Upper East1,060,7901:28,670
Upper West664,7551:44,317
Volta1,885,5121:20,720
Western2,218,8861:22,413
National21,804,1431:10,641
Source: MOH 2006 Health Sector Programme of Work Reviews
Source: MOH 2006 Health Sector Programme of Work Reviews

Doctor- Population Ratio:

The doctor-population ratio in the country is improving steadily. Currently, there is one doctor to 10,641 of the population. This represents significant improvement over the 2005 performance of 1: 16,000 (Table 4.11a). The improvement could be attributed to the implementation of retention policies including enhancement of salaries for doctors and the establishment of the Ghana College of Physicians and Surgeons, which provides post-graduate training for doctors. At the regional level, the three most deprived regions-Northern, Upper West, Upper East has the worst doctor: population ratio (Table 4.11b).

Nurse: Population Ratio:

The nurse-population ratio in 2006 was one nurse per 1,636 populations, which is an improvement on the ratio of one nurse to 1,800 populations in the previous year but still below the 2006 targets.

The regional distribution of nurses (Table 4.11c) indicates marked regional disparity, with the indicator ranging from a low level in the Gt. Accra region to a very high level in the Brong Ahafo region.

Table 4.11c:Nurse: Population Ratio by Region, 2006
RegionEstimated PopulationNurse to Population Ratio
Ashanti4,165,4481:2579
Brong Ahafo2,093,0231:3007
Eastern2,428,8551:1707
Central1,837,5531:1729
Greater Accra3,350,0741:727
Northern2,099,2461:2684
Upper East1,060,7901:2092
Upper West664,7551:1458
Volta1,885,5121:1620
Western2,218,8861:2199
National21,804,1431:1636
Source: MOH 2006 Health Sector Programme of Work Review
Source: MOH 2006 Health Sector Programme of Work Review

Increase Health Expenditure as Total of Government Expenditure:

The proportion of non-wage recurrent expenditure on health in 2006 slightly declined from the 2005 performance of 14.5% to 14%.

Key Policy Measures and Strategies

Health sector programmes implemented in 2006 to bridge the equity gaps in access to quality healthcare and nutrition services; ensure sustainable financial arrangements that protect the poor; and strengthen efficiency in health service delivery include:

  • abolishing the “Additional Duty Hours Allowances” and replacing it with a more rationalised scheme of remuneration of health workers;
  • recruitment of additional health professional trainees;
  • increasing the number of district Mutual Health Insurance Schemes (DMHIS) from 123 in 2005 to 142 in 2006. Currently 136 of the schemes are providing benefits for members. An amount of ¢22.1 billion was disbursed to provide administrative and logistic support to keep the schemes functional;
  • the establishment of a data centre to enhance the processing of ID cards for registered members to enable them access health care under the scheme. To manage the increasing demand for registration and ID card issuance, DMHIS engaged 650 National Service Personnel to help register and process ID cards for insured members;
  • the disbursement of ¢255.9 billion in subsidies to cover the payment of claims for health care services provided to indigents and the categories of persons exempted from payment; and
  • the intensification of public education on the benefits of health insurance.

4.2.4 HIV/AIDS Prevention

GPRS II recognizes the serious threat posed by HIV/AIDS to the socioeconomic development of the country through its potential impact on human capital development, productivity, and social services delivery. This section reports on progress towards the policy objective of curbing the spread of HIV/AIDS infection and achieving the Millennium development goal of combating HIV/AIDS, malaria and other diseases by 2015.

i. Reduce New HIV Infections

Prevention is a key strategy for curbing the HIV/AIDS epidemic. Preventing new HIV infection, particularly among the youth (aged 15 to 29) is critical for managing the menace. Table 4.12 shows increase in HIV prevalence for adolescents and the 25-29 year age group. The results suggest renewed emphasis on the HIV/AIDS campaign and devising new and innovative strategies to target the youth.

Table 4.12:HIV Prevalence by age group, 2005 and 2006
Age Group20052006Percentage Increase
National2.7%3.2%0.5%
15-190.8%1.4%0.6%
20-242.4%2.4%0.0%
25-293.6%4.2%0.6%
Source: Ghana Aids Commission; NAACP, 2006
Source: Ghana Aids Commission; NAACP, 2006

ii. Reduce the impact of HIV/AIDS related vulnerability, morbidity and mortality

To reduce HIV/AIDS related vulnerability, mobility and mortality, the following activities were carried out in 2006:

  • advocacy sessions held with the regional House of Chiefs concerning the economic, socio-cultural and legal impacts of the epidemic;
  • a national Policy Guidelines on Orphans and Vulnerable Children (OVC) was developed and implemented as response to OVC;
  • the media was supported to scale up targeted HIV/AIDS messages;
  • voluntary counselling and treatment services were made available at 243 public and NGO sites, while 104 sites provided PMTCT services across the country; and
  • the administration of the Antiretroviral Therapy (ART) is progressing steadily. There are currently 46 sites which provide ART. The breakdown is as follows:
    • - 2 teaching hospitals,
    • - 10 regional hospitals,
    • - 14 district hospitals,
    • - 5 private self-financing,
    • - 2 uniformed service facilities

Table 4.13 provides information on clients benefiting from ART as at December 2006. There were 50,942 people who needed ART in 2006. The 7,338 clients on ART in 2006 thus account for approximately 14.4% of people in need of Antiretroviral Combination Treatment who received it in that year.

Table 4.13:Clients on ART as at December, 2006
MaleFemaleTotal
Adults2,6784,3927,070
Pediatrics151117268
Total2,8294,5097,338
Source: Ghana Aids Commission, 2006
Source: Ghana Aids Commission, 2006

4.2.5 Malaria Control

In Ghana, malaria is the single most important cause of mortality and morbidity especially among children under five years and pregnant women. It accounts for about 44.5% of all outpatient illnesses, 36.9% of all admissions and 19% of all deaths in health institutions in Ghana. The disease is responsible for a substantial number of miscarriages and low birth weight babies among pregnant women. Among this group, malaria accounts for 13.8% of Out Patient Department (OPD) attendance, 10.6% of admissions and 9.4% of deaths. About 800,000 children under the age of five die from malaria every year. Progress made towards malaria control in 2006 is summarised as follows:

i. Promote Multiple Malaria Prevention Measures

Two key multiple malaria prevention interventions were implemented in 2006 under the Malaria Control Programme to reduce the incidence of the disease. These were:

(a) Scaling up the distribution of Insecticide Treated Nets (ITNs)

The use of ITNs has been shown to be effective against malaria. There has been an increase in the use of ITNs over the period between 2004 and 2006. Table 4.14 below shows the increase in ITN use from 2004 to 2006 by known high-risk groups for malaria.

Table 4.14:ITN Use by High Risk Category, 2004-2006
200420052006
Children under 5 years9.12632.3
Pregnant women7.826.846.3
Source: Malaria Control Programmeme Report, 2006.
Source: Malaria Control Programmeme Report, 2006.

The report notes a decrease in under-five malaria case fatality rate from 2.4% in 2005 to 2.1% in 2006 (against a target of 2% set for the year). The decrease may be partly attributed to the increasing use of ITNs and other effective interventions.

As poor environmental sanitation also contributes to the high incidence of malaria closer collaboration between the MOH and agencies responsible for environmental sanitation in the fight against the disease needs to be strengthened.

(b) Implementing Intermittent Preventive Treatment (IPT) Policy

Malaria is accounts for miscarriages and low birth weights among pregnant women. To prevent these poor health outcomes, IPT prescribes chemoprophylaxis for all women during pregnancy. In 2006, all district health facilities implemented the IPT policy. About 230,269 pregnant women received 2 doses or more of the treatment in 2006.

4.2.6 Population Management

Population management has strong linkages with economic growth and sustainable social development. Uncontrolled population growth can contribute to slowing down or even cancel out the gains of economic growth. The following policy objectives were pursued toward improving the management of the country’s population growth in 2006:

  • promoting access to and utilisation of family planning services; and
  • promoting compulsory and universal birth registration.

i. Promote Access to and Utilisation of Family Planning Services

Family planning is a key determinant of maternal health and plays an important role in fertility reduction. The level of contraceptive use indicates progress towards the achievement of the family planning objectives of improving the reproductive health of women and reducing fertility. The various rounds of Ghana Demographic and Health Survey (GDHS) have all revealed high unmet need for family planning services. Current DHS data on contraceptive prevalence is not available for this report, however, estimates based on previous results indicate modest progress in access to and use of family planning services (Table 4.15).

Table 4.15:Summary of population management indicator achievements
Indicator2004 status2005 status2006 status
Total fertility rate4.44.24.2
Contraceptive prevalence rate26.0%28.5%30.0%
Source: Population Council, 2006.

N.B: Figures for TFR and CPR are estimates based on the GDHS 2003 results.

Source: Population Council, 2006.

N.B: Figures for TFR and CPR are estimates based on the GDHS 2003 results.

ii. Promote Compulsory and Universal Birth Registration

Birth registration is important for ensuring the right of a child to a name and nationality. Data on births, together with those of deaths and migration, are used in the study population change.

Data in Table 4.16 shows that the efforts to register births in Ghana has had mixed results. Although the proportion of births registered increased between 2004 and 2005, a decrease was recorded between 2005 and 2006. What is clear from the table is that a significant proportion of births in Ghana remain unregistered.

Table 4.16:Coverage of Births and Deaths Registration, 2004-2006
Indicator2004 status2005 status2006 status
Coverage of birth registration51%67%54%
Coverage of death registration24%24%23%
Source: Births and Deaths Registry, 2006.
Source: Births and Deaths Registry, 2006.

4.2.7 Safe Water and Sanitation

Inadequate access to safe water and sanitation is a perennial problem in rural and urban areas of the country. Poor access to safe water and lack of adequate environmental sanitation lead to poor health outcomes and low productivity, which in turn deepens poverty. GPRS II has therefore prioritized access to safe water and environmental sanitation as strategic policy areas to be tackled in its efforts to develop the human resources of the country. The key policy objectives in this sector include:

  • accelerating the provision of safe drinking water in rural and urban communities.
  • accelerating the provision of adequate sanitation in rural and urban communities.
  • improving environmental sanitation.

This section reports on progress towards the achievements of water and environmental sanitation targets in 2006.

i. Accelerate the Provision of Safe Water in Rural and Urban Communities

Efforts to improve proportion of the Ghanaian population with access to safe drinking water continue to yield positive results, although at a slow pace (Table 4.17a). Access continued to improve in both rural and urban communities in 2006. The percentage of rural population with access to safe drinking water increased marginally from 52.0% in 2005 to 53.18% in 2006; access was much better for the urban population, which increased from 55% to 56.0% during the same period under review.

Table 4.17a:Summary of Indicator Achievements in Water Sub-Sector
IndicatorTarget for 2006Indicator status 2004Indicator Status 2005Indicator status 2006Progress towards target
Percentage of rural population with access to safe water sources57.7%51.7%52.0%53.18%Slow progress
Percentage of urban population with access to safe water sources59.0%54.5%55.0%56.0%Slow progress
Source: 2006 CWSA Annual Report: 2006 Ghana Water Company Annual Report.
Source: 2006 CWSA Annual Report: 2006 Ghana Water Company Annual Report.

Table 4.17b provides a regional breakdown of access to safe drinking water. The regional figures reveal marked differences in access to safe water in both urban and rural areas. In rural areas, access ranges from a low of 36% in the Central and Western regions to a high of 67% in the Upper West region. With regard to the urban areas, access range from a low of 12% in Upper West region to a high of 73% in the Greater Accra region.

Table 4.17b:Rural-Urban Potable Water Coverage by Region, 2006
RegionEstimated Rural PopulationPercent CoveredEstimated Urban PopulationPercent Covered
Ashanti2,365,24463.06%2,034,55543%
Brong Ahafo1,739,29951.69%602,84317%
Central1,498,27548.55%1,113,93944%
Eastern1,832,65250.54%955,04218%
Greater Accra583,33548.86%3,320,11373%
Northern1,851,71458.13%559,73130%
Upper East1,006,07851.27%171,83436%
Upper West650,27767.20%112,35812%
Volta1,430,89948.58%574,17135%
Western1,440,87641.85%730,98244%
National14,396,74953.18%10,175,56956%
Source: 2006 CWSA Annual Report: 2006 Ghana Water Company Annual Report.
Source: 2006 CWSA Annual Report: 2006 Ghana Water Company Annual Report.

ii. Accelerate the Provision of Adequate Sanitation in Rural and Urban Communities

Measuring progress towards the achievement of sanitation indicator targets continue to be compromised by lack of reliable data (see GPRS I APRs). Currently the most reliable source of data is the 2003 CWIQ, which has already been reported on in the 2004 APR (the 2003 CWIQ indicated that only 55% of the population has access to adequate sanitation with marked regional variations)

There is the need the need for a national study to be conducted to establish baselines for indicators in this sector and establish data management framework to support monitoring and evaluation of this sector.

Table 4.18 presents data on solid waste disposal for four of the five biggest cities in Ghana. The data seem to suggest significant progress in the management of solid waste in the cities. All the cities exceeded their targets concerning the proportions of solid waste generated and properly disposed off.

Table 4.18:Summary of Indicator Achievements in the Sanitation sub-sector
Indicator2006 target200420052006Progress towards target
Percentage of rural population with access to adequate sanitation.NaNaNaNaLack of reliable data
Percentage of urban population with access to adequate sanitation.NaNaNaNaLack of data
Proportion of solid waste generated and properly disposed of:
Kumasi89.069.0%83.0%85.0%Steady progress
Accra.95.086.783.583.3Slow progress
Takoradi53.559.4%61.7%75.9%Exceeded
Source: Ministry of Local Government, 2006
Source: Ministry of Local Government, 2006

4.3 Summary of Policy Recommendations

The following recommendations are made on key issues which need to be addressed so as to improve the efficient delivery of policies and programmes being implemented under this thematic area:

4.3.1 Education

  • There is the need to deepen the incentive framework for attracting enrolment in science, technology and mathematics courses on the supply of skills required to accelerate growth.
  • The quality of teaching, especially in the North and deprived areas should be enhanced.
  • The provision of school infrastructure and other teaching and learning facilities needs to be accelerated to reduce pressure on the existing infrastructure as a result of increasing enrolment arising out of the introduction of the Capitation Grant.
  • The School Feeding Programme and the Capitation Grant Scheme should be sustained and consideration given to decentralising its financing and management.
  • Formal training is mainly supply-driven, non-competency based and is largely incapable of adjusting quickly to the skill requirements of the labour market. It is therefore important to strengthen the link between education and skills development, and the labour market.
  • The level of funding of technical and vocational education still remains low and constitutes only 1.2% of total educational sector funding. This has the potential to undermine the development and quality of manpower required to support private sector’s role in leading accelerated growth. Effort should be intensified to seek and allocate additional resources to fund the technical and vocational skills training component of human resource development.

4.3.2 Health

  • Measures to address the high rate of attrition (brain-drain) of qualified health personnel in the sector should be designed and implemented.
  • Effort should be made to increase the coverage and efficient management of the NHIS in order to sustain the initiative.
  • Health sector wage policy need to be analysed and its effect on the quality of health care delivery evaluated.
  • Effort should be intensified in re-focusing policies and resources towards promoting preventive health care instead of curative health care.
  • The causes of the apparent surge in the prevalence rate of HIV/AIDS from 2.7% in 2005 to 3.2% in 2006 need to be investigated and measures develop to reverse this trend on a sustainable basis.
  • The factors for the apparent increase in under five and maternal mortality rates requires further studies.
  • There is the need to conduct a study into the causes of the apparent increase in Guinea worm cases.

4.3.3 Water and Sanitation

  • Service providers should upgrade their systems to ensure regularity and improved quality of water supply especially in urban areas.
  • There is the need to evolve measures to deal with the management of plastic waste, particularly in the cities on a more permanent basis.
  • A system for adequate data collection on sanitation on a regular basis should be set up. In this direction a national study to establish appropriate baselines to support the assessment of the status of progress towards accelerating the provision of adequate sanitation in rural and urban communities.

4.3.4 Population Management

  • The issue of lack of adequate data on population for planning and policy formulation needs to be addressed jointly by all stakeholders in the generation and use of statistical data for planning, monitoring and evaluation.

HUMAN RESOURCE DEVELOPMENT

STATUS OF INDICATORS ‒ 2006

Table 4.19a:Summary of Status of Indicators in Education, 2004–2006
POLICY OBJECTIVEINDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
Increase access to and participation in education and training.Gross Enrolment Ratio:
- Kindergarten64.5%54.58%60.14%75.20%Exceeded
- Primary90.90%86.3%87.50%92.10%Exceeded
- JSS75.63%70.20%72.80%74.70%Steady progress
Net Enrolment Rate:
- Kindergarten
- Primary61.7055.60%59.10%68.80%Exceeded
- JSSNa29.50%70.30%74.50%Significant progress
Survival Rates:
- Primary84.43%83.20%82.60%75.605Target not achieved
- JSS87.90%86.00%85.50%86.60%Steady progress
Bridge Gender in access to educationGender Parity Index:
- Kindergarten1.000.980.981.03Steady progress
- Primary1.000.930.930.95Steady progress
- JSS0.940.880.880.93Steady progress
Improve the quality of educationProportion of students passing national assessment Examinations (BECE)60%61.30%62%Target exceeded
Percentage of trained teachers:
- Kindergarten37.40%37.90%32.70%33.10%Steady Progress
- Primary77.70%73.90%72.40%70.80%Target not achieved
- JSS87.10%84.20%83.50%85.50%Steady progress
Implement skills and entrepreneurial training for the unemployed youthProportion of the youth benefiting from skills/entrepreneurial training.45%NaNaNa
Table 4.19b:Summary of Status of Indicators in Health, 2004–2006
POLICY OBJECTIVEINDICATORTarget in 2006Indicator Level at 2004Indicator Level at 2005Indicator Level at 2006Progress towards target
Increase access to healthcare and nutritional servicesOutpatient per capita0.60.520.540.52Target not achieved
Vaccination coverage
-Penta90.0%72.9%85%84%Target not achieved
-Measles90.0%78%81%79%Target not achieved
Supervised deliveries60%37.8%40.3%44.5%Steady progress
Incidence of guinea Worm2000727539814136Target not achieved
Improve quality of health servicesPopulation: doctor ratio1: 10,5001: 17,7731: 16,0001: 10,380Significant progress
Population: nurse ratio1:1,5001: 1,5131: 1,8001:1,578Steady progress
Health expenditure as percentage of GDP***12.0%16.8%***
Ensure financial arrangement that protect the poorNHIS coverage of indigentsNa79,008 (2.0%)140,994 (1.8%)
Reduce new HIV infectionsHIV prevalence among pregnant women
National2.7%3.2%
15-190.8%1.4%
20-242.4%2.4%
25-293.6%4.2%
Prevent and control MalariaMalaria case fatality in children under five years.22.72.42.1Steady Progress
ITN coverage of at risk groups
-Children under five569.12632.3Target not achieved
-Pregnant women567.826.846.3Significant progress

Chapter Five Good Governance and Civic Responsibility

5.1 Introduction

The emphasis of GPRS II on accelerated economic growth calls for a corresponding realignment of the governance benchmarks. These include the institutionalisation and implementation of policies and legislation that protect property rights, promote savings and fidelity to contractual agreements, and the creation of an overall environment that boost investor confidence. Additionally, the quality of managing fiscal policy, monetary policy and international trade have a strong bearing on efficient use of public resource, restrain inflationary pressures and increase international competitiveness of the economy.

Measures on the following issues which still present challenges to good governance are being implemented under the GPRS II over the period 2006 -2009:

  • strengthening the process of democratisation
  • improving the existing institutional, legislative and policy environment
  • promoting evidence-based decision making
  • ensuring gender equity
  • fostering greater civic responsibility
  • integrating traditional authorities into formal institutional structures for governance.

Priority policy initiatives which have been identified in this connection, include the following: strengthening parliament, enhancing decentralisation, protecting rights under rule of law, ensuring public safety and security, managing public policy, empowering women and vulnerable groups, enhancing development communication, ensuring good corporate governance, increasing access to information, and promoting civic responsibility.

This section of the APR is a review of progress made on the thematic area under the broad categories of political, economic, and corporate governance, as well as evidence-based decision making.

5.2 Status of Selected Indicators, and Key Policy Measures and Strategies in 2006

5.2.1 Strengthening the Practice of Democracy and the Rule of Law

i. Strengthen Parliament

As part of the process of strengthening the institutional capacity of Parliament in the discharge of its oversight responsibilities a number of capacity building workshops were held for parliamentarians in 2006. The Public Accounts and Finance Committees were trained and resourced with the assistance of UNDP. Members of Parliament also underwent education and sensitisation workshops that were designed to a) reduce the tension that exists between DCEs/MCEs and MPs; b) promote good parliamentary practices and c) help the leadership of Parliament discharge its role with regard to the MDGs.

Budgetary allocation to Parliament has increased but the issue of enhancing the capacity of parliament to initiate private members bills is still outstanding.

ii. Ensure Free and Credible Elections

The implementation of policy of consolidating democracy through free and credible elections continued in 2006. The Electoral Commission conducted two successful by-elections and district assembly elections in 2006. The Representation of Peoples’ Amendment Law was enacted to facilitate the participation of all Ghanaians, irrespective of place of residence, in national elections.

Even though action is yet to be taken on the policy objective of creating an Election Fund which will constitute a resource pool to be equitably accessed by all political parties, government is exploring the possibility of establishing this facility.

iii. Foster Civic Advocacy to Nurture the Culture of Democracy

The level of civil society participation in the policy formulation process increased in 2006. A platform was offered to civil society to participate in the Consultative Group meeting on Ghana held in April 2006. The continued maintenance of the enabling environment for the liberalised operations of the media led to the emergence of new newspapers and new radio stations across the country. The active involvement of the media has significantly contributed to the promotion of transparency and accountability in governance.

The tradition of the President presenting himself to an open interactive public assembly in a selected region of the country annually to answer questions and receive comments and suggestions was continued in 2006.

The Ministry of Finance and Economic Planning has now opened up the budget making process to citizens’ participation by inviting memoranda and suggestions for consideration in the formulation of the national budget. The objective is to promote civic ownership and participation in the process of economic governance.

5.2.2 Enhancing Decentralisation

i. Redefine type of decentralisation

The implementation of the decentralisation programme remains a challenge as the policy framework is still weak. However a National Decentralisation Action Plan (NDAP) been developed to guide the implementation and monitoring of the programme. The implementation of the programme is yielding some significant result in the area of political decentralisation from the district level to the sub-district or unit committee level. Progress in the areas of administrative and fiscal decentralisation has however not been encouraging. The focus of policy is to accelerate the pace of implementing reform agenda agreed on decentralisation and to deepen civic ownership and commitment through consultative fora and dialogue.

ii. Expand decision-making capacity of MMDAs

A three day workshop was organised by the Local Government Service in collaboration with the Ministry of Public Sector Reform, Office of Head of Civil Service, the Ministry of Local Government Rural Development and Environment.

The main objective was to accelerate the decentralisation implementation programme. The following issues were discussed at the workshop:

  • - organisation structures;
  • - management and legal issue;
  • - reporting relationships; and
  • - the timing of the implementation programmes.

A Regional level training of trainers workshop on the Local Government Service was held to:

  • (i) build the capacity of 4 key officials of all the Regional Co-ordinating Council as trainers (on the structural changes envisaged);
  • (ii) elicit feedback and support on the Local Government Service from the Regional participants;
  • (iii) initiate a general process of information sharing, communication etc. of all stakeholders on the decentralisation policy framework; and
  • (iv) building bridges to stakeholders, facilitation and co-ordination to enhance effective and efficient change management.

The focus of discussions was on issues relating to the establishment of the Departments of the Assemblies, the integration of line departments, the transfer of functions and staff to the MMDAs, and financing of the districts.

The integration of the four decentralized departments of the Ministry of Local Government, Rural Development and Environment (Community Development, Births and Deaths, Parks and Gardens and Town and Country Planning) was initiated in the year.

iii. Ensure Proper Functioning of Sub-District Administration Structures

Recommendations on reforming the sub-district structures have been made and are under review. It is recommended that the number of Unit Committees be reduced from 16,000 to 5,000 while the membership of each committee is to be reduced from 15 to 7.

iv. Re-examine Constitutional Provision of Appointing District Chief Executives

A constitutional amendment is required for the implementation of this policy measure. Government considers the propose amendment as premature and proposes to subject the issue of electing District Chief Executives to further discussions.

v. Strengthen MMDA Revenue Generating Capabilities

The MLGRDE introduced specific strategies to increase internally generated revenue as a proportion of total revenue from the current maximum of 14% to 65%. The strategies include:

  • fixing and gazetting of rates generally;
  • setting performance targets for the leadership of MMDAs and involving them in the monitoring of the system;
  • rotate revenue collectors every six months;
  • ensure security of value books; and
  • strengthening partnership of Metropolitan and Municipal Assemblies, commercial banks and the private sector in the collection of local government revenues.

As part of the preparations towards scaling up the implementation of the composite budgeting process, the core staff of all Metropolitan, Municipal and District Assembly participated in a series of training sessions on district composite budgeting. The Ministry of Finance and Economic Planning and MLGRDE are in the process of validating the Composite Budget Guidelines.

Cabinet endorsed concept of a District Development Fund (DDF) and the proposal for its operationalisation in the 2008 fiscal year. The MLGRDE completed the final draft of the design report and the implementation manual on the Functional Organisational Assessment Tool (FOAT) to guide the effective management of the fund.

5.2.3 Protecting Rights under the Rule of Law

i. Increase the capacity of the Legal Sector, enhance speedy and affordable access to justice

About 70 Attorneys participated in various conferences, workshops and seminars. An Information and Communication Technology Training was also conducted for Attorneys at the Kofi Annan International Peacekeeping and Training Centre (KAIPTC) as part of the programme of the court computerisation programme.

The programme of improving the logistic and facility situation of the legal sector was continued. Twenty five saloon cars and four cross-country vehicles were procured for the sector as part measures towards improving conditions of service and reversing the high turnover of state Attorneys. Frequent staff turnovers have accounted for the slow pace of the dispensation of justice.

Additionally sixty seven computers (60 desktops and 7 laptops), six photocopiers, and one overhead projector were also procured for the sector in 2006.

In the area of physical infrastructure, government released ¢15.6 billion (out of the budgeted ¢30.0billion) for the Law House Construction Project. The amount has aided the completion of the basement car park.

In pursuit of the programme to make justice available to citizens in the regions, the Ministry of Justice is constructing and in some cases, rehabilitating residential and office buildings in the regions. Additionally, work started for the construction and rehabilitation of residential and office buildings

ii. Promote the provision of legal aid to the poor

The Legal Aid Scheme in collaboration with FIDA undertook sensitization clinics in 5 selected regions to promote awareness on the availability of legal aid services. The perennial problems of inadequate allowances for lawyers and low coverage still remain. Less than 25% of cases assigned to lawyers are successfully completed every year. It is estimated that the percentage for 2006 of legal aid cases completed in 2006 is about 18%.

5.2.4 Public Safety and Security

i. Improve internal security

The security situation in the country improved in 2006 following the establishment of joint police-military patrols. A batch of 10 police officers attended a joint police-military training course on internal security package at the Army Junior Staff College. The Ghana Armed Forces and the Ghana Police conducted joint anti-armed robbery patrols on a daily basis.

ii. Increase national capacity to ensure safety of life and property

Recruitment and Training:

The Ghana Police Service continued to implement the policy of recruiting 2,000 new entrants annually to augment the strength of the establishment. In 2006, a total of 1,711 persons (30% of who were women) were recruited and trained by the Police Administration to acquire the basic officer skills in policing required to perform professionally and efficiently.

In absolute terms, the manpower level of the Ghana police Service continues to increase annually. The total strength of the Ghana Police Service as at December, 2006 increased to 17,826. The police citizen ratio as at December 2006 stood at 1:1121 (compared to 1:1021 in 2005). The slight decline in the ratio is a result of the marginal growth in Ghana’s population.

The distribution of new recruits trained at national and regional centres is presented in Table 5.1.

Table 5.1:Number of Police Recruits Trained at National and Regional Training Centres in 2006
REGIONSCHOOLNO. OF RECRUITSMALEFEMALE
AccraNPTS403217186
KoforiduaPTS330214116
WinnebaPTS195195-
BolgatangaPTS20913970
HoPTS150150-
KumasiPTS424276148
TOTAL17111191520

It is worth noting that as part of its training plan, a total of 133 Cadet Officers (out of which 40 were females) graduated from the police College, Accra and were commissioned into the senior officers’ Corps as Assistant Superintendents of Police.

As part of its human resource capacity building programme, a number of police personnel were exposed to a series of refresher courses within and outside the country. About 50 senior police officers were trained in the conduct of police enquiry and 8 senior officers attended a course in improving public safety. The distribution of personnel by rank is presented in Table 5.2

Table 5.2:Ghana Police Service Personnel Structure
S/NRANKNUMBER
1.Inspector General of Police1
2.Deputy Inspector–General2
3.Commissioner3
4.Deputy Commissioner24
5.Assistant Commissioner58
6.Chief Superintendent116
7.Superintendent129
8.Deputy Superintendent217
9.Assistant Superintendent402
10.Chief Inspector / RSM1,496
11.Inspector / DSM2,040
12.Sergeant3, 682
13.Corporal1, 576
14.L/Corporal2, 575
15.Constable5, 565
Total17,826

Improving Gender Equity:

An important issue which is being pursued by the police administration is promoting gender balance in the service which currently is skewed in favour of males by adopting gender sensitive pragmatic policies. Currently there are a total of 3,130 police women as against 14,696 policemen, with a female-male ratio of 1:5.

The best represented female rank is the Deputy Inspector-General of police (DIGP). The most skewed rank is the deputy superintendent of police (DSP) which has a ratio of 1:13 in favour of men. A total of 130 female and 822 male constituted the officer corps with a ratio of 1:7. The ratio of female-male in the other ranks is 1:5.

Table 5.3:Gender Ratio of the Ghana Police Service
RANKFEMALEMALERATIOTOTAL
Inspector-General of Police11
Deputy Inspector-General of Police111:12
Commissioner of Police121:23
Deputy Commissioner of Police2221:1124
Assistance Commissioner of Police9491:558
Chief Superintendent of Police151011:7156
Superintendent of Police101191:12129
Deputy of Superintendent of Police152021:13217
Assistance Superintendent of Police773251:4402
Chief Inspector of Police1531,3431:91,496
Inspector of Police2441,7961:72,040
Sergeant5333,1491:63,682
Corporal3531,2231:31,576
Lance Corporal3122,2031:72,515
Constable1,4054,1601:35,565
TOTAL3,13014,69617,826

Budgetary resources were provided for the accommodation, maintenance of service vehicles, ration and uniforms and for the purchase of communication equipment, new vehicles and other logistics for the service. The following construction projects were undertaken:

  • construction of drains at Police Headquarters building;
  • renovation of Koforidua training school Block 6;
  • construction of 32 unit hostel block at the police headquarters, Accra; and
  • completion of a UN Documentation Centre at the Police Headquarters.

Support for Victims of Domestic Violence:

The Domestic Violence Victims Support Unit (DOVVISU) continues to open more offices in all police districts with the establishment 23 new offices and desks. The Unit now has 63 offices and desks across the country.

Table 5.4:Offices and Personnel of DOVVISU
Police RegionsNumber of Personnel
Accra Region69
Tema Region18
Ashanti Region41
Brong Ahafo Region24
Western Region31
Central Region15
Volta Region29
Eastern38
Northern17
Upper East11
Upper West15
Total308

Other activities were undertaken by the Unit to enhance service delivery. Four workshops were organised for 160 personnel of the Unit on the management of victims of abuse with sponsorship by the UNICEF/UNDP. Advocacy fora were organised in 8 districts of the Volta region for opinion leaders, stakeholders, assembly members, the media, traders, farmers, among others on gender based violence during the opening of the new offices in the region. A two-day Partners’ Review programme was organised to finalise a Strategic Plan for the Unit. A series of preventive outreach programmes was also held in schools and communities to sensitize school children and community members on child abuse and other related offences in the Upper East, Upper West and Northern Regions.

Neighbourhood Watch Committees:

In 2006, the police services strengthened its relationship with the communities through the establishment of Neighbourhood Watch Communities across the country to complement the efforts of the police in combating crime. As a result of this initiative, citizens volunteered information which greatly facilitated the combating of crimes. Police patrols were increased in communities, crime-prone areas and highways.

The Crime Situation in the Country:

The general crime situation in the country during the fourth quarter of the year 2006 showed an increase of 28.3% of the total cases reported as compared to that of the same period in the previous year.

Table 5.5:Status of General Crime Management by Cases(2005 and 2006)
CrimeOCT–DEC. 2005OCT–DEC. 2006% CHANGE
Cases reported44,99457,74128.3
Cases rejected1,3721,4314.3
Valid cases43,62256,31029.1
Cases sent to court5,7497,12223.9
Cases of conviction1,6602,73064.5
Cases acquittal216209−3.2
Cases pending trial3,8734,1838.0
Cases completed4,5243,484−23.0
Cases under investigation33,34945,70437.0

The major crime indicators of the fourth quarter of the year 2006 as compared to that of the previous year showed a significant increase especially in narcotic drug offences, robbery and cases of defilement. Trends in the incidence of major offences reported to the police during the fourth quarter of the years 2005 & 2006 are depicted in Table 5.6 and figure 5.1 below.

Table 5.6:Incidence of Major Crimes(2005 and 2006)
CrimesOCT–DEC. 2005OCT–DEC 2006% CHANGE
Murder8810317.4
Robbery42661243.7
Rape14317321.0
Defilement48764332.0
Possessing narcotic drug12618647.6

Figure 5.1:Major Crimes Recorded

(2005 and 2006)

iii. Forestall External Aggression

Border Patrol Units have been established to assist in reducing the incidence of cross-border crimes, especially smuggling goods, and trafficking in arms and human beings. Joint border patrols mounted by the Immigration Services and Customs, Excise and Preventive Service (CEPS) have also been introduced. The number of metal detectors and scanners at the border has also been increased. The ceding of the Preventive Service domain of CEPS to the Immigration Service is being discussed by government.

Common check-points have been instituted at the international borders with Burkina Faso, Togo and La Cote d’Ivoire. There has been increased sharing of intelligence and vital information on cross-border crimes and criminals in the West Africa zone.

5.2.5 Public Policy Management and Public Sector Reforms

i. Increase the capacity of the public and civil service for accountable, efficient, timely and effective performance and service delivery

The outstanding issue of consolidating staff positions in the MDAs was resolved with the appointment and/or confirmation of 35 Chief Directors in their positions. Comprehensive skill training was given to these officers on a range of issues including conflict resolution, human resource management, policy formulation, among others. Organizational analysis and redesign have been completed and implemented; performance monitoring system has been developed; and a new staffing and internal training plan have been developed and is being implemented.

The Ministry of Public Sector Reform (MPSR) initiated action on the following three components of its Service Delivery Improvement Programme (SDIP):

  • the creation of Client Service Units (CSUs);
  • the institution of Business Process Reviews (BPRs); and
  • the President’s Excellence Awards Programme (PEAP).

Specific activities undertaken on each of these components are discussed below.

Client Service Units:

Client Service Units or Customer Care Centres have been established in the 23 Ministries, Departments and Agencies (MDAs) listed in Table 8

Table 5.7:MDAs with Client Service Units
  • Land Title Registry;
  • Survey Department;
  • Lands Commission;
  • Town and Country Planning;
  • Driver and Vehicle Licensing Authority (DVLA);
  • Registrar General’s Development;
  • Passport Office;
  • Births and Deaths Registry;
  • Public Workers Department;
  • Accra Metropolitan Assembly (AMA);
  • Bureau of Ghanaian Languages,
  • Non Formal Education Division
  • Department of Social Welfare and Community Development;
  • Department of Cooperatives;
  • Rent Control Office;
  • Minerals Inspectorate Division;
  • Ghana Maritime Authority;
  • Office of the Head of Civil Service;
  • Ministry of Public Sector Reform;
  • Controller and Accountant General’s Department;
  • Public Records and Archives Administration Department;
  • State Protocol Department; and

These Units are equipped with the appropriate software and hardware for information management by MDAs on their respective corporate mandates and addressing client service delivery concerns. The Client Service Units at the various MDAs have also been provided with upgraded office facilities.

Six (6) Training sessions in effective Customer Care Management and Complaints handling software as well as refresher courses were organised for Client Service Units (CSU) officers. Bi-monthly meetings for the Desk Officers gave them the opportunity to share experience as well as one on one discussion during the quarterly Monitoring and Evaluation exercise.

The Desk Officers were also taken through a Monitoring and Evaluation Framework to enable them gain the requisite skills in providing the Ministry with relevant tracking reports.

As part of the reform programme, CSU activities have started in 10 Districts namely Ewutu-Efutu Senya, Gomoa, Akwapim South, Komenda Edina Eguafo Abirim, Dangme West, Ga West, Ga East, Yilo Krobo, Mfantsiman and Manya Krobo.

The CSU concept was also extended to the Head Offices of the Value Added Tax Service, Customs, Excise and Preventive Service, Internal Revenue Service and the Ministry of Finance and Economic Planning. Charters have been printed and distributed to the Customs, Excise and Preventive Service and Internal Revenue Service.

A Memorandum of Understanding which spells out the relationship between the implementing agencies and the coordinating Ministry was signed with the 25 MDAs to facilitate the processes of mainstreaming the CSU activities so as to ensure the sustenance of the initiative.

Business Process Review:

Activities and Outcomes:

  • Project Implementation Teams (PITs) were established in 12 MDAs to serve as change agents for continuous business review and process renewal. The PITs were equipped with change management training and terms of reference developed to guide their effort;
  • The implementation of the strategy which was developed for both institution-specific and system-wide recommendations commenced in 2006. A summary of key initiatives which were undertaken is as follows:
    • - facilitating the adoption of new Visions, Missions and Organizational Structures for Public Utilities and Regulatory Commission, Forestry Commission, Ghana Atomic Energy Commission and National Communications Authority;
    • - the commencement of the development of websites for Internal Revenue Service, National Communications Authority, Public Utilities and Regulatory Commission, Driver & Vehicle licensing Authority, Birth and Dearth Registry and Ghana Standards Boards.

Review of Business Processes of Twelve (12) MDAs:

The purpose for conducting the reviews is to reduce costs and risks, induce efficiency and strengthen competitiveness for improved public sector service delivery. Twelve (12) MDAs were selected by the Oversight Committee for the pilot implementation. The institutions are listed in Table 5.8.

Table 5.8:MDAs Participating in Pilot Business Process Review
  • Internal Revenue Service
  • Value Added Tax Service
  • Driver and Vehicle Licensing Authority
  • Birth and Death Registry
  • Forestry Commission
  • Ghana Shippers Council
  • Ghana Atomic Energy Commission
  • Public Utilities and Regulatory Commission
  • Environmental Protection Agency
  • National communications Authority
  • Food & Drugs Board
  • Ghana Standard Board
  • Current business processes of the twelve (12) MDAs were reviewed in line with global best practices in service delivery;
  • Future processes were mapped out in line with national vision and development goals;
  • Supporting requirements were determined for each streamlined process. These included:
    • - service delivery targets to be met each year for the next five years on the implementation of the recommendations;
    • - technology solutions to meet service delivery targets;
    • - HR practices to support new processes;
    • - physical improvement;

President’s Excellence Awards Programme:

As part of the service delivery improvement initiative, the Ministry instituted the President’s Excellence Awards Programme. The purpose of the Awards is to promote standards of excellence and reward innovation in the Ghana public services. The Award Winners were selected through a transparent national application / nomination process.

The 2006 Award winners–Ministry of Health (Public Health Unit) and the Community Water and Sanitation of the Ministry of Water Resources Works and Housing)–in two categories were selected and announced at a ceremony in Accra in December 2006.

ii. Deepen pluralistic involvement in support of poverty reduction and growth

The holding of the National Economic Dialogue (NED) annually offered citizens and groups of varying political opinions to make an input into national agenda of poverty reduction and growth. A study commissioned by the APRM Governing Council revealed that 43% of Ghanaians were of the view that the extent to which government involved them in public discussions on major policy issues in 2006 was very high/high compared to 34% for year 2005 (Figure 5.2).

Figure 5.2:Citizen Opinion on the extent to which the government facilitates discussions on major policy shifts

Respondents, however, lamented the fact that the National Economic Dialogue (NED) was poorly organised in 2005 and not at all in 2006. Government’s attention seems to be focused on the organization of the Ghana Investment Advisory Council (GIAC) meetings to the detriment of the NED.

5.2.6 Fighting Corruption and Economic Crimes

Considering the large proportion of public resources which are spent by MDAs on procurement, priority is given to the effective implementation of procurement plans that allows for transparency, efficiency and fairness in the application of public funds. Following the passage of the Public Procurement Act (Act 663) in 2003, there is evidence of increasing openness attested to by the increase in the numbers of tenders published in the newspapers.

The Act provides for the establishment of Entity Tender Committees (ETCs) at national and sub-national levels. As at June 2006, a total of 698 Entity Tender Committees were established in MDAs and MMDAs. In addition, 109 Review Boards were set. It is noteworthy that most public institutions now apply the recommended procedures in their procurement activities. Many MDAs, however, report difficulties in the functioning of the ETCs as the new Law imposes a number of administrative and logistic requirements to support the effective functioning of the procurement process. A major difficulty is also faced by the entities in aligning the new procurement processes those of the Development Partners.

The level of public perception of corruption in the process of public procurement is still high within civil society. Despite governments attempt to strengthen the legal and institutional frameworks for fighting corruption, with the enactment of the Whistleblowers Act, the Public Procurement Act, The Financial Administration Act, the Internal Audit Agency Act, a study conducted in 2006 under the auspices of the APRM Governing Council revealed that almost 89% of respondents said that corruption was widespread in Ghana. Respondents were of the opinion that corruption was more widespread in the public sector (89%) than in the private sector (56%).

Asked to what extent government was fighting corruption, respondents noted that while the necessary legislation had been put in place, the resources to implement them were lacking. To this extent, 23% replied that government intention to fight corruption was very high, while 46 % said commitment was low.

5.2.7 Empowerment of Women

i. Enforce existing laws protecting women’s rights

The Department of Women at the Ministry of Women and Children Affairs carried out public education and sensitization on the Domestic Violence Bill. This was done nationwide to solicit public opinion and suggestions on the Bill. The Department assisted in educating and lobbying Parliament on the Bill and the effects of violence on family life. This resulted in the Bill has since received going through the second reading stage in Parliament.

Domestic Violence Bill passed

At the time of preparing this report, Parliament passed the Domestic Violence Bill. It is now the Domestic Violence Act 2007 (Act 732)

ii. Enhance Women’s Access to Economic Resources and Promote Women in Public Life

The Ministry of Women and Children’s Affairs launched a “Women in Local Governance Fund” in March 2006, on International Women’s Day. An independent board (with members from MDAs, CSOs and NGOs) was set up to manage the fund. The secretariat of the board is in the Department of Women. Out of the funds raised, and in collaboration with partners, the Department carried out capacity building and training for female aspirants to local assemblies. After training, 1,783 women aspirants were given a minimum amount to help them contest in the District Assembly elections held in September 2006. Radio programmes were also run to create awareness for voters to vote for women. The effect was a marginal increase (2.3% from year 2002) in the number of women in the newly inaugurated Assemblies.

The Department has started preparing a directory on eminent women in Ghana. This is to produce a well documented information base on women in leadership positions, and to identify capable women and lobby for appointments to leadership positions. There are plans to publish a book on eminent women and subsequently showcase them through the institutionalization of awards ceremonies, etc. This will be a tool to encourage women to strive to achieve positions of eminence.

Government is earnestly pursuing an Affirmative Action Policy which is aimed at increasing the proportion of women in administrative and political leadership. The details in Table 5.9 indicate a gradual increase in the number of women appointed to leadership positions.

Table 5.9:Women in Administrative and Political Leadership as at April 2007
POSITIONTOTALMALE% OF TOTALFEMALE% OF TOTAL
Chief Director352983617
Supreme Court Judges131077323
High Court Judges272385425
Members of Parliament230205892511
District Assembly Appointee1,9561,4017255528
District Assembly Elected4,8304,2548857611
Source: Department of Women, MOWAC, 2006
Source: Department of Women, MOWAC, 2006

iii. Analyse budgets and national development policies from a gender perspective

The Ministry of Women and Children’s Affairs commissioned a scoping study on the practice of gender budgeting in Ghana. It analysed the extent of gender sensitivity of Government’s annual budgets since 2001. The recommendations from that study will assist in further promoting gender budgeting in the country

Gender Analysis of all development programmes is being implemented on programme by programme basis. The Gender Desks created at the MDAs have not been able to effectively influence public policy. Where gender concerns have been taken on board, it has been at the instance of civil society advocacy. However, the GPRS II and the ICT for Accelerated Development have been engendered.

5.2.8 Enhance Development Information Management

i. Promote the development of modern Management Information System including E-governance

The objective here is to improve the efficiency and effectiveness of information dissemination by adopting one messaging and workflow system throughout MDAs whilst adopting a single standard for ICT within government under the auspices of the Ministry of Communications (MoC).

5.2.9 Promoting Evidence Based Decision-Making

i. Strengthen the data base for policy formulation and decision-making

The Ghana Statistical Service completed the conduct of the Ghana Living Standards Survey 5. The NDPC in collaboration with the GSS also undertook training and awareness creation on the use of the statistical package, Ghana Info Data Base. The ground has thus been prepared to support improved future evidence-based policy making, planning, and monitoring and evaluation.

5.3 SUMMARY OF POLICY RECOMMENDATIONS

5.3.1 Improving public Safety and Security

The international standard of one policeman to five hundred citizens will not be achieved at the current recruitment rate. Indeed the ratio is worsening because of a faster growth rate of the population. The number of recruits into the police service will therefore have to be increased by about 15% to cater for the increasing population size.

The policy of increasing the presence of women in the Police Service needs to be done within a well defined Gender Policy. At present, it is done largely at the discretion of officers.

5.3.2 Promoting Rights under the Rule of Law

A more aggressive and encompassing policy on Affirmative Action needs to be introduced to cover the many spheres of governance life in which women are under-represented.

Improving resource allocation on the basis of gender considerations is critical for the achievement of gender equity. A policy of gender budgeting is becoming more critical in resource allocation because of the growing feminisation of poverty in Ghana.

A fund (similar to the one established by civil society to support women aspirants for district assembly membership) to increase women’s representation in public life should be established. Policies to protect children from the worst forms of child labour should be formulated and implemented.

5.3.3 Decentralisation

There is the need to define the type and nature of decentralisation that the country is pursuing. The policy of universal adoption of composite budgeting needs immediate implementation. It makes for a more efficient use of financial resources available to districts. Government stands to benefit immensely if this policy is adopted.

5.3.4 Studies

It is recommended that studies be conducted to determine:

  • a) the rate of reduction in the acquisition of small arms;
  • b) corruption perception among the public; and
  • c) citizen compliance with rules and regulation.

GOOD GOVERNANCE AND CIVIC RESPONSIBILITY

STATUS OF IND ICATORS ‒ 2006

Table 5.10:Summary of Status of Indicators on Good Governance and Civic Responsibility, 2005–2006
AREA OF FOCUSINDICATORRationale for IndicatorIndicator Level at 2005Indicator Level at 2006Progress Towards Target
OVERARCHING INDICATORS• Percentage increase in budgetary allocation to parliamentIncreased expenditures on providing offices, logistics and research capabilities for MP,C5.8 billion (80% of Approved Budget)-for Ministry of Parliamentary AffairsC 6.03 billion (100 % of approved budget)
• Percentage of all courts computerisedNumber of courts computerised in relation to all courtsComputerisation initiated. Coverage is less than 30%. Sod cut for the construction of 12 Storey Law House60 desktop computers and 7 laptops and other office equipment procured and distributed to Attorneys across the country
• Reduction in rate of infraction of rules and regulationMeasure of decline in cases of breach of public rules and regulationsAround 12,000 offenders are put in police custody every dayThe daily offender put away rate has dropped below the previous figure 12,000
STRENGTHENING PRACTICE OF DEMOCRACY AND RULE OF LAW1. Number of Private members bills introduced or laws drafted by ParliamentDetermines a strengthened legislative capacity of parliamentAll laws are currently drafted outside parliamentParliament still lacks the mandate and institutional capacity to draft its own bills
2. Reduce the number of Ministers appointed from ParliamentIndicates growing independence of Parliament from Executive controlMinisters and Deputy ministers are around 88Number of Ministers at the same level as previous year. It is considered the optimum number required for the discharge of state responsibilities
3. Amount voted for establishing an Election Fund as a proportion of total cost of electionsElection Fund from Government BudgetElection fund not establishedElection Fund has not been established.
4. Amount allocated to NCCE as proportion of Sector ExpenditureIncreased proportion of national resources to NCCEBelow 1 %Amount voted for the NCCE has reduced in relation to the previous year’s estimate
5. National Identification CardNumber of citizens with NI cardPassage of NI BillThe NI Authority mounted a broad based education campaign to raise public awareness on the relevance of NIS
DECENTRALISATION6. Timely preparation, implementation and monitoring of fully costed District Development PlansAllows for improved capacity of MMDAs to plan and implement programmes. Also makes room for CSO involvement in tracking expenditureGuidelines developed for used by MMDAs to produced Medium Term Development Plans (MTDPs)All Districts have submitted Medium Term Development plans (MTDPs) to NDPC. Most Districts are implementing their MTDPs
7. %age increase in the number of professional staff hired at the local government levelReports degree of autonomy gained MMDAs to hire staff at local government levelProfessional staff are currently transferred from the centreThe design of the Functional and Organisational Assessment Tool (FOAT) has been completed and is being piloted in UE, Northern, Ashanti, Eastern, Central and Western Regions to help MMDAs in recruitment processes.
8. Rate of increase in the number of districts employing Composite budgeting approachNumber of District practicing Composite Budgeting25 Districts are currently practising Composite BudgetingMLGRDE in collaboration with MFEP has issued a guideline to all MMDAs for the preparation and implementation of district composite budget as part of the fiscal decentralisation programme.
9. Operationalise Local Government Service ActDetermines the creation and functioning of all institutions and policies contained in the Actthe Local Government Council and its Secretariat were establishedLG Service Council is working on a) the establishment of the Department of District Assemblies, b) the integration of line departments and central government agencies into the Department of the Assembly and c) the preparation of legislative instrument to transfer functions, resources and staff to the MMDAs.
MANAGING PUBLIC POLICY10. Change in public sector wage in real termsPublic sector salary increaseMinimum Daily wage of $1.50Minimum wage is holding at $1.50
11. Percentage of MDAs and SAs on Integrated Payroll and Personnel DatabaseDetermine completion of IPPD Database for all MDAs and SAs30% of MDAs and SAs are on IPPDRefer to MPSR report
12. Corruption Perception IndexShows achievements in combating corruption in public expenditure managementGeneral perception is that corruption pervades all facets of public transactionsCorruption Perception is still high. Transparency International Report. Civil Society reports suggest high incidence of corruption in public procurement
13. Annual National DialogueConvening of a forum on national policyOne national forum per yearNED was not held. People’s Assemblies were held by the President and Ministers
14. Number of Performance Contracts completed by MDAsDetermines progress made in Public Sector ReformsNumber of MDAs and SAs have signed performance contracts(Check with MPSR)
PUBLIC SAFETY AND SECURITY15. Police citizen ratioMeasures number of police officers serving a given population1:9251:1121. This represents a worsening of the ratio as a result of high population and low recruitment rates
16. Reduction in rate of small arms acquisitionMeasures rate of decline of small arms acquisitionUnavailable
17. Rate of decline in cases of worst forms of child labour, child trafficking and child abuseStatistics on incidence of worst forms of child labour, child trafficking and child abuseGSS indicates that 242,000 children are engaged in child labourData was gathered in 5 Districts in Ashanti in a survey conducted by UST with funding from ILO-IPEC. GSS has also developed an instrument for collecting data on Child Labour. ILO has also supported NCCE to undertake a National Opinion and Attitudes Survey on Child Labour.
18. Rate of decline in armed robberies, rape and murderMeasures improvements in public safety with relation to major crimesData show relative increases in these major crimesStatistics from the Police is unavailable
19. Social Protection Policy formulatedAn approved national policy document on Social ProtectionNot availablePolicy formulated by MMYE.
WOMEN EMPOWERMENT20. Proportion of national budget allocated to women issuesTo determine mainstreamed expenditure allocations to women’s issues as a proportion of total discretionary budget0.14% of Discretionary Expenditure allocated for women’s issuesProportion of discretionary budget allocated to women’s issues has increased marginally to 0.2%.
21. Proportional increase of women Chief Directors, Judges and women in Parliament and District Assemblies,Percentage increase of women in administrative and political leadershipWomen Chief Directors less than 2%, Women Judges less than 5% and Women in Parliament less than 15%Proportions have registered only marginal changes at the level of the chief directors. The number of women judges and MPs have remained the same and those at the assemblies have increased marginally
22. Additional institutional and legal aid support given to victims of domestic violenceExamines Rate of expansion of DOVVSU s in all districts and increases in number of victims receiving legal aidDOVVSUs present in all ten regions and only 10 police districtsDOVVSU offices in all regions
ENHANCING DEVELOPMENT COMMUNICATION23. Freedom of Information BillPassage of Freedom of Information Bill into lawBill in ParliamentBefore Cabinet and Parliament for further study.
24. Number and type of citizen reports on policy and programme implementationCitizen report cards and other reports on use of public resources and on policy implementationHIPC Watch by Send Foundation, Community Voices by IPA, Budget, Reports by ISODEC Participatory M&E by NDPCCivil Society contributions informed budget formulation. Reports on service delivery have been written by CSOs and are in the public domain.
ECONOMIC GOVERNANCE25. Reduce deviation from original budget of composition of expenditure by MDAsCalculates degree of variation between allocations and actual expendituresBudget deviation index at 2004 is 18%Data not available
26. BPEMS generated and reconciled fiscal reports issued monthly within 4 weeksReports on BPEMS implementationCurrently reports are late for more than 8 weeks
CORPORATE GOVERNANCE27. Number of capacity building programmes on business ethicsReports on number type and content of campaignRequires a full survey
28. Corporate Governance Score CardsReports issued by citizen groups on quality of service and on corporate social responsibilityNo civil society report on corporate governance are available
PROMOTING EVIDENCE BASED DECISION-MAKING29. Statistical Master planProduction of a Statistical Master planGSS is in the process of completing the Master plan
30. Publication of Annual Progress ReportAnnual Progress Report on GPRSIICompleted

Chapter Six Linking the 2006 Budget to GPRS II

6.1 Introduction

This chapter analyses the extent to which the 2006 budget is linked to the priority policies and strategies in the three thematic areas of the GPRS II. The actual discretionary allocations are compared with targets set out in the strategy.

The total estimated funding requirements for the implementation of programmes drawn from the GPRS II is ¢73.374 trillion (US$8.063 billion) over the period 2006–2009. The breakdown by thematic areas is as follows:

  • Private Sector Competitiveness: ¢25.981 trillion (US$2.859 billion),
  • Human Resource Development: ¢40.298 trillion (US$4.475 billion), and
  • Good Governance and Civic responsibility: ¢7.096 trillion (US$0.780 billion).

Funding was expected to be generated from both domestic and external sources. Budgetary resources constitute an average of 35% of GDP for financing 78% of the US$8.063 billion required to implement the GPRS II. This is made up of domestic revenue (23% of GDP), grants from bilateral and multilateral sources (5.5% of GDP) and divestiture receipts, programme loans and exceptional financing arrangements (6.5% of GDP).

Other sources include savings from HIPC, Multilateral Debt Relief Initiative (MDRI) and the receipt for the implementation of the Millennium Challenge Account (MCA). The issuing of sovereign bonds, and the mobilization of domestic savings through the long term savings scheme and the Venture Capital Funds was targeted to provide additional resources for the implementation of GPRS.

The total funding requirement for the first year is estimated at US$2,066.42 million, with 36.4%, 53.7% and 9.9% going to Private Sector Competitiveness, Human Resource Development and Good Governance respectively.

Financing the GPRSII from the budgetary resources required a close linking and alignment of the Budget with the thematic areas of GPRS II as was started under the GPRS I, namely Private Sector Competitiveness, Human Resource Development and Good Governance and Civic Responsibility so as to be able to finance the activities and programmes envisaged under the GPRS.

Financing the GPRS II from budgetary resources requires a close alignment of allocation of resources with the thematic areas of the GPRS II so as to ensure adequate funding of priority targeted in the strategy. The objective for aligning the budget to the GPRS II was to ensure consistencies in:

  • the assumptions and projections made in the macroeconomic framework of the budget and that of the GPRS II;
  • the distribution of total budgetary allocations and actual spending by thematic areas of the GPRS II;
  • sectoral distribution of Government of Ghana’s (GoG) resources;
  • sectoral distribution of development partner resources;
  • the distribution of resources by functionally classified items of expenditure (i.e., personnel emoluments, administration, service, and investment); and the level of government expenditures allocated to poverty reduction programmes and projects.

6.2 THE BUDGET PREPARATION PROCESSES AND THE GPRS II

Consistent with the policy of enhancing the functional alignment of the national budget to the goals, policies and objectives prioritized in the GPRS II, a number of activities were undertaken in 2006:

  • workshops were organised to improve MDAs understanding of the MTEF process as well as linking the GPRS II to the Budget;
  • within each priority area, MDAs were required to show the progress made in achieving targets set in the GPRS and the remaining gaps up to 2006;
  • MDAs were required to incorporate poverty reduction policies of the GPRS II into their Strategic Plans;
  • after the annual budget is approved by Parliament through the Appropriations Act the CAGD issues a general warrant to each Ministry indicating the maximum amount of money that can be spent during the year for each item;
  • the CAGD executes payments but its reporting format is not aligned with the GPRSII thematic areas;
  • a software for budget preparation based on the thematic areas of the GPRSII has been installed at the MoFEP. This facilitates the comparison of budgetary ceilings with actual releases.

6.3 The Macroeconomic Framework of the 2006 Budget and the GPRS II

The macroeconomic framework of the GPRS II closely guided those assumed in the 2006 Budget. The overall objective of the GPRS II is the doubling the size of the economy within the next decade and bringing the per capita income of the average Ghanaian to middle income level.

The accelerated growth of the economy will be attained through the sustenance of policies of good fiscal and monetary management, continued macroeconomic stability, support to promoting a vibrant private sector, vigorous human resource development and the deepening good governance and civic responsibility.

Macroeconomic policies outlined for implementation under GPRS II are consequently designed to sustain and enhance the gains in macroeconomic stability attained under GPRS I. These include:

  • prudent fiscal policy management;
  • the maintenance of a monetary policy that is flexible enough to respond to external shocks, promote growth and ensure price stability;
  • the management of real interest rates that enhance effective mobilization of savings and make credits affordable to the private sector; and
  • maintaining relatively stable real exchange rates that effectively supports Ghana’s performance in international trade.

The macroeconomic targets set in the 2006 budget were:

  • real GDP growth of at least 6% per annum;
  • reduction of end of period inflation rate to single digit of between 7-9% by end of year;
  • average inflation rate of 8.8%;
  • international reserves of 4 moths import cover;
  • domestic primary surplus of 1.4% of GDP; and
  • overall budget deficit of 4.5 % of GDP

Table 6.1 compares the macroeconomic targets set out in the GPRS I1 to those projected in the 2006 Budget, as well as the actual outturn. The macroeconomic objectives set out in the GPRS II include:

  • GDP growth of 6.11%; and
  • reduction of inflation to single digit

In terms of actual performance in 2006:

  • The GPRS target of 6.11% GDP growth was exceeded in 2006 with a growth rate of 6.2%;
  • Although inflation rates fell significantly in 2006, the single digit target was not realized. Inflation as at the end of 2006 stood at 10.5%. The single digit rate targeted was difficult to attain in view of the high and increasing world oil prices in the world’s crude oil market; and
  • Sectoral growth rates of output targeted by the GPRS II in 2006 were all exceeded in the 2006 fiscal year.
Table 6.1:The GPRS and Budget Macroeconomic Framework
Macroeconomic indicatorsGPRS 2004 targetsBudget 2004Status 2004GPRS 2005 targetsBudget 2005Status Actual 2005GPRS II 2006Budget 2006Actual 2006
Real GDP growth (%)5.05.25.85.05.85.96.116.06.2
Inflation:
Annual (%)8.0>10%12.66.0NaNaNa8.8Na
End of period (%)7.0>10%11.85.013.514.8Na7-910.5
Stock reserves (months imports cover)2.83 months3.83.14.03.6Na4.03.0
Domestic primary surplus as % of GDP2.61.70.72.52.43.4Na(1.4)(1.9)
Budget deficit as % of GDP1.61.73.20.62.21.96Na4.57.9
Sectoral growth (%):
Agriculture4.86.07.54.86.56.55.246.65.7
Industry5.25.25.15.25.85.66.116.27.3
Services5.14.74.75.15.45.45.756.5
Ratio of revenues (excluding grants) to GDP (%)22.522.523.822.324.624.9Na
Sources: MOFEP, Budget Statements, GPRS I Document, Bank of Ghana NA not available
Sources: MOFEP, Budget Statements, GPRS I Document, Bank of Ghana NA not available

6.4 Alignment of 2006 Spending Priorities with GPRS II Costing Framework

The Ministry of Finance and Economic Planning (MoFEP) now allocates and releases resources on the basis of the GPRS thematic areas. This is a departure from the previous practice where expenditure releases were reported by cost centre only. The ensuing analysis is based on the 2006 approved budget allocations and fund releases, as well as an overview of the Development Partners resource envelope in 2006.

Within the framework of the revised investment plan5 put forward by government during the 2006 Consultative Group (CG) for Ghana Annual Partnership Meeting, the approved budget to implement GPRS II in the first year (2006) was US$2,194.4 million, with 40.5%, 35.8% and 21.4% budgeted for Private Sector Competitiveness, Human Resource Development thematic and Good Governance and Civic Responsibility pillars respectively. The amount was a little higher than the initial cost anticipated in the GPRS II costing framework for the year, which was estimated at US$2,066.42 million (see Table 6.2). The anticipated sources of funding included US$1,460.9 million from GOG (including the statutory funds) and US$733.5 million from DPs (excluding BOP support to BOG and Budget Support, which together amounted to US$441.18 million). However the analysis of the actual releases shows that only US$815.4 million of projected GOG resource was realized, while DPs Sector and Investment Support amounted to US$743.2 million.

Table 6.2:Alignment of 2006 Spending Priorities with GPRS II Costing Framework, Categorized into GoG and DPs(in millions of $)
GPRS II Thematic AreasGPRS II Resource Allocation for 2006GoG Actual ReleasesDPs Actual ReleasesTotal Resources (GoG + DP)
Value%Value%Value%Value%
Private Sector Competitiveness751.8836.4%218.3326.8%357.048.0%575.3136.9%
Human Resource Development1,110.6953.7%340.3041.7%329.344.3%669.5843.0%
Good Governance and Civic Responsibility203.849.9%256.6131.5%56.97.7%313.5620.1%
MDRI0.230.23
HIPC Contingency0.000.00
GRAND TOTAL2,066.41100%815.5100.0%743.2100.0%1,558.67100.0%
Table 6.3:Alignment of 2006 spending priorities with Approved Budget–DPs Inclusive(Million $)*
GPRS II Thematic AreasGoGDPs**Statutory FundsTotal
Budget ApprovedReleases%Projected InflowsReleases%Budget ApprovedReleases%Budget ApprovedReleases%
Private Sector Competitiveness300.356.918.9442.8357.080.6145.8161.5110.7888.9575.364.7
Human Resource Development126.484.967.1258.3329.3127.5401.1255.463.7785.8669.685.2
Good Governance and Civic Responsibility215.3110.151.132.556.9175.4222.2146.565.9470.0313.666.7
MDRI0.20.20.00.20.2100.7
HIPC Contingency49.50.00.049.50.00.0
GRAND TOTAL642.0251.839.2733.5743.2101.3818.9563.668.82,194.41,558. 771.0

Figures includes item 3&4 only

DPs’ figures excludes BoP and budget support amounting to US$117.04 million and US$324.14 million respectively. If added together, the total DP support becomes US$1,176.37 million for the year 2006

Figures includes item 3&4 only

DPs’ figures excludes BoP and budget support amounting to US$117.04 million and US$324.14 million respectively. If added together, the total DP support becomes US$1,176.37 million for the year 2006

Overall, nearly US$1,558.67 million (excluding DPs BOP support to BOG and Budget Support) was made available for the implementation of GPRS II in 2006 out of which about 37% went to the implementation of policies, programmes and projects under the Private Sector Competitiveness thematic area, 43% to the Human Resource Development and 20% to the Good Governance and Civic Responsibility thematic area. This reveals some level of misalignment of resource allocation which could be traced to both GOG and the DPs.

Of the total GOG resources, only 26.8% went into the Private Sector Competitiveness thematic area instead of the 36.4% anticipated under the GPRS II costing framework, while about 31.5% went to the Good Governance and Civic Responsibility area instead of the 9.9% anticipated. The shortfall in planned resource allocation to Private Sector Competitiveness thematic area and the Human Resource Development, reflected in the increases in resources to the Good Governance and Civic Responsibility area.

In the case of the DPs Sector and Investment Support, nearly 48% went to Private Sector Competitiveness only to the disadvantage of the Human Resource Development thematic area. However resource allocation to the Good Governance and Civic Responsibility area fell short of the 9.9% anticipated (see Table 6.2 & Figure 6.1).

Figure 6.1:Alignment of Resources to GPRS II Thematic Areas, 2006

Overall DPs’ total resource envelope (including budget support and BOP support) amounted to US$1,176.47 million in 2006 (representing about 90.1% of the US$1,306.25 million projected inflows in 2006), out of which, about US$743.19 million was Sector and Investment Support. The actual release indicates a shortfall of US$129.78, which is equivalent to 9.9% (see Figure 6.2).

Figure 6.2:DPs’ Projections against actual releases 2003–2006

Table 6.4 gives more detailed information on the GPRS II approved budget and releases to the key areas of focus in the three thematic areas. If the CAGD reporting formats were aligned to the GPRS, it would have been more interesting to compare the budgeted, the releases and the actual expenditures. Table 6.4 is thus limited to the approved budget and releases from the MoFEP for the financial year 2006.

Table 6.4:Functional Distribution of Total (GoG and Donor) Expenditure: 2001-2006 (%)
GPRS 2003 Target2003 BudgetGPRS 2004 TargetBudget 2004GPRS 2005 targetBudget 2005Budget 2006Actual 2006*
Administration14.214.8413.317.113.313.414.516.2
Ministry of Local Government Rural Development2.752.362.245.72.6
Ministry of Finance2.232.152.412.05.2
General Govt. Services3.533.23.0
Economic9.79.0610.38.910.310.338.59.7
Ministry of Food & Agriculture3.913.033.42.32.1
Infrastructure17.215.5319.110.919.116.817.311.6
Social38.138.6734.338.834.337.445.148.0
Ministry of Education26.8526.6523.228.132.2
Ministry of Health10.8911.1513.216.213.1
Public Safety11.529.011.99.06.96.49.7
Utilities2.72.693.22.53.21.721.00
Revenue Agencies3.083.02.72.00
Contingency6.94.6210.98.910.910.74.94.8
Grand Totals100100100100100100100
Total ¢billion13,005.418,528.229,483.922,475.5
Sources: Computed from Appropriation Acts, Budget Statements 2002-2005, Report of Financial Statements on the Consolidated Fund, CAGD

Cumulative Actual GOG-31st December 2006

Sources: Computed from Appropriation Acts, Budget Statements 2002-2005, Report of Financial Statements on the Consolidated Fund, CAGD

Cumulative Actual GOG-31st December 2006

Under the private sector competitiveness thematic area, much of the resources were released to finance transport infrastructure, modernizing agriculture, promoting trade and industrial development, energy supply to support industries and households and development of ICT. Resources released from the approved budget for human resource development were channelled into education, skills and manpower development, health and urban development, housing and slum upgrading. Much of the releases from the approved budget for good governance and civic responsibility was also directed at enhancing decentralisation, public policy management and public sector reforms, management and strengthening democracy (Table 6.5).

Table 6.5:Summary of GPRS II Approved Budget and Releases for the Financial Year, 2006(in million US$)
GoGStatutory FundsTotal
Thematic/Key Focus Area/Policy/MDABudget ApprovedReleasesVariance% ReleaseBudget ApprovedReleasesVariance% ReleaseBudget ApprovedReleasesVariance% Release% of Total
1235=2-36789101112131415
HIPC Contingency0.000.000.000.0049.500.0049.500.0049.500.0049.500.000.0
MDRI0.000.000.0082.790.230.230.00100.70.230.230.00100.0.0
1 PRIVATE SECTOR COMPETITIVENESS300.2956.88243.4118.94145.83161.45−15.63110.7446.12218.33227.7948.926.8
Private Sector Development42.401.8240.584.292.177.19−5.02330.7544.56939.0135.5620.21.1
20Rural development based on modernized agriculture26.0223.212.8089.2326.015923.212.8089.22.8
21Modernized Fishing Methods And A Developed Aquaculture0.100.030.0826.280.10330.030.0826.20.0
22Restoration Of Degraded Environment And Natural Resource Management2.922.050.8770.1912.578.993.5871.5115.480611.034.4571.31.4
23Linking To Other Sectors: Promoting Trade And Industrial Development4.413.740.6884.610.000.51−0.514.41484.240.1796.10.5
30Transport Infrastructure: Road, Rail, Water and Air Transport170.2315.75154.479.25124.34123.590.7499.4294.5625139.35155.2247.317.1
31Energy Supply to Support Industry and Households36.372.0734.305.693.2617.48−14.22536.1339.633819.5520.0849.32.4
32Science And Technology To Support Productivity and Development1.373.82−2.45277.950.001.09−1.091.37484.91−3.53357.0.6
40Developing Information And Communication Technology (ICT)2.050.801.2638.781.631.630.001003.68192.4312665.90.3
41Developing the Tourism Sector for Revenue and Employment Generation8.982.886.1032.091.050.001.05010.03462.887.1528.70.4
42The Music Industry For Growth And Job0.210.020.1810.40.030.000.0300.23890.020229.00.0
50Employment Generation And Improvement And Expansion of Safety Nets4.970.434.558.570.000.20−0.204.97120.634.3412.70.1
70Life Cycle Related Vulnerability And Exclusion0.240.220.0194.440.770.770.001001.00961.000.0198.70.1
80Environment Related Factors in Vulnerability and Exclusion0.030.05−0.02167.040.02890.05−0.02166.80.0
2 HUMAN RESOURCE DEVELOPMENT126.4084.8741.5367.14401.14255.43145.7163.7527.55340.30187.2564.541.7
90Education42.3127.4514.8664.89191.66154.0137.6680.35233.97181.4652.5177.622.3
100Skills And Manpower Development7.295.311.9772.940.150.56−0.41383.617.435.871.5679.00.7
110Sports Development0.471.16−0.70249.063.834.06−0.23106.084.305.23−0.93121.60.6
120Health23.7738.93−15.16163.78186.2778.65107.6142.20210.04117.5992.4556.014.4
150Hiv/Aids0.320.160.1748.630.320.160.1748.60.0
160Population Management0.560.250.3045.430.560.250.3045.40.0
170Water And Environmental Sanitation44.214.0140.209.0719.2417.072.1788.763.4521.0742.3833.22.6
180Urban Development, Housing And Slum7.487.59−0.11101.460.001.09−1.097.488.67−1.20116.1.1
3 GOOD GOVERNANCE AND CIVIC RESPONSIBILITY215.25110.08105.1744.66222.24146.5375.7165.9437.50256.61180.8858.731.5
191Institutional Strengthening And Coordination Of Public Institutions and Non-State Actors0.010.07−0.06562.360.010.07−0.06560.30.0
192Access To Rights And Entitlements0.320.130.18422.721.351.3749.683.041.481.5548.90.2
193Childhood Related Vulnerabilities (Access to Rights and Entitlement)0.070.040.0264.420.070.040.0264.40.0
194Environment Related Factors In Vulnerability and Exclusion (Conflict Management)0.020.010.0226.820.020.010.0226.80.0
210Strengthening Practice Of Democracy18.1610.547.6258.0318.1610.547.6258.01.3
211Enhancing Decentralisation4.683.700.9879.13138.63120.1718.4586.69143.30123.8719.4386.415.2
220Protecting Rights Under Rule Of Law14.973.9111.0626.131.630.930.7057.3316.604.8511.7529.20.6
221Improved Access To Rights And Entiltements0.070.040.0361.130.000.000.000.070.040.0361.20.0
230Public Safety And Security101.8164.3137.5052.168.616.472.1375.22110.4170.7839.6364.18.7
231Public Policy Management And Public Sector Reforms68.9823.4645.5234.0168.736.6862.049.72137.7130.14107.5721.93.7
240Women Empowerment0.280.230.0583.511.090.540.54501.370.780.5956.90.1
241Gender-Related Experiences in Vulnerability and Exclusion (Access to Tights and Entitlements)0.060.020.0526.090.000.000.000.060.020.0526.10.0
260Development Communication0.450.080.3717.120.000.000.000.450.080.3717.10.0
270Promoting Civic Responsibility0.230.070.1630.460.000.000.000.230.070.1630.50.0
280Fiscal Policy Management4.683.301.3870.540.8510.37−9.531,222.245.5313.68−8.15247. 21.7
310Good Corporate Governance0.350.070.2820.610.000.000.000.350.070.2820.60.0
320Promoting An Evidence-Based Decision Making0.120.090.0377.610.000.000.000.120.090.0377.60.0
GRAND TOTAL641.95251.83390.1239.22818.94563.65255.2968.821460.89815.48645.4155.8100.

6.5 Sectoral Distribution of Discretionary Budget Expenditure

Table 6.4 shows the Functional Distribution of Total (GoG and Donor) Expenditure. The broad sector targets in the budget for 2006 show a close link with the actual expenditure for the year.

Expenditures on the administration sector have consistently declined over the period from 34% in 2001 to 13.47% in 2005. The actual expenditure for administration in 2006 was 16.2%, which is higher than the budget target of 14.5%

The Social Service sector benefited from increased budget allocations during the period 2003-2005. In 2006, the actual expenditure of 48.0% for the social sector was higher than the budgetary target of 45.1%. This increase all things being equal translated into an increase in the provision of social services to the vulnerable and excluded and increase in spending on education, health and water and sanitation.

In the economic sector, the actual spending of 9.7% was higher than the projected budgetary target of 8.5% for 2006

There has been significant decline in share of the discretionary budgetary provision to infrastructure sector. Actual spending in the sector for 2006 was only 11.6% compared with a budgetary allocation of 17.3% for the year.

Expenditure on Public Safety increased to 9.7% in 2006, exceeding the projected budgetary allocation of 6.4%

Table 6.6 shows GoG budgetary expenditures for the 2001-2005 periods and the actual spending for 2006. It must be noted that 54.5 % of GoG expenditure is spent on the Social sector, with Education being the largest sub-sector.

Table 6.6:Functional Distribution of Total GOG Expenditure 2002-2005 (%)
Classification2001200220032004 Budget2005 BudgetGPRS II 2006Budget 2006Actual 2006*
Administration41.525.816.418.214.6-13.916.4
Ministry of Local Government Rural Development2.41.71.81.631.4-1.41.4
Ministry of Finance2.94.01.91.691.8-1.65.2
General Govt. Services27.88.304.2-4.53.7
Economic5.36.85.45.34.4-4.76.8
Ministry of Food &Agriculture1.42.31.71.361.7-1.82.0
Infrastructure4.43.73.84.64.5-5.35.6
Social37.247.445.842.744.4-50.854.5
Ministry of Education28.435.333.431.6930.9-36.637.5
Ministry of Health0.010.311.29.7712.2-13.113.7
Public Safety11.015.314.814.310.0-12.011.7
Utilities--3.63.02.5-2.00
Revenue Agencies--4.13.73.9-4.10
Contingency0.51.06.18.315.7-6.75.0
Grand Total100100100100-100
Total billions cedis12693.8-14670.318688.2
Source: Computed from Appropriation Acts, Budget Statements 2002-2005, Report of Financial Statements on the Consolidated Fund, CAGD

Cumulative Actual GOG-30tth November 2006

Source: Computed from Appropriation Acts, Budget Statements 2002-2005, Report of Financial Statements on the Consolidated Fund, CAGD

Cumulative Actual GOG-30tth November 2006

6.6 Donor Spending and GPRS Priorities

In 2006, total donor disbursement of ¢3810.465 billion was below the budgeted figure of ¢6251.815 billion. The bulk of disbursements was channeled to the infrastructure sector which in 2003 benefited from more than 50% of total inflows. For the year under review, actual disbursement to the infrastructural sector was 40.83% with the biggest share going to Roads constituting 25.6% of Donor funding. (Table 6.7)

Table 6.7:Functional Distribution of Total Donor Spending: 2001-05
Classification2005 Budget Billion cedis2005 Budget % of Total2005 Disbursements Billions cedis2005 Disbursements % of Total2006 Budget2006 Disbursem ents
Administration648.96611.1561.3811.8411.914.95
Ministry of Local Government Rural Development233.4734.0283.115.764.268.61
Ministry of Finance214.8243.786.901.775.365.06
General Govt. Services130.8692.2144.442.541.561.12
Economic1,351.11223.21058.7121.5619.4423.93
Ministry of Food & Agriculture422.3317.2481.719.806.6912.68
Infrastructure2,537.65643.52,013.9741.047.3540.83
Social Services1,288.42422.11,254.7525.5420.2715.89
Ministry of Education375.1636.4490.399.906.545.84
Ministry of Health900.85415.4758.8914.4513.4210.02
Public Safety8.2770.142.620.051.080.08
Utilities-----
Revenue Agencies-----
Contingency-----
Grand Totals (%)100100.0100.0100.0
¢ Billion5,834.4354,911.42 Grants–2445.28 Loans–2466.146251.8153810.465 Grants ‒ 1769.330 Loans ‒ 2041.134
Source: Computed from MoFEP Budget Statements, 2001-2006 and data from Budget Division.
Source: Computed from MoFEP Budget Statements, 2001-2006 and data from Budget Division.

Donor funding of the Administration sector has seen consistent declines over the period from 17.5% in 2001 to 11.84% in 2005 but increased significantly to 14.95% in 2006, which is higher than the budget allocation. Within the Administration sector, Local Government, Office of Government Machinery, Finance, Audit Service. NDPC and the Information Ministry were the beneficiaries.

Within the Economic sector MOFA and Energy were the major recipients of donor funding. Education and Health together took 99.6% of allocations to the social sector, although the bias was towards Education.

6.7 Distribution of Expenditures by Items

Table 6.8 shows that although the sectoral allocations may broadly reflect GPRS priorities, personnel emoluments constitute the largest component of discretionary expenditures. These expenditures increased in 2006 both as a percentage of total discretionary expenditures and as a percentage of GDP. Allocation to Administration and Service declined over the period.

Table 6.8:Utilisation of Discretionary Payments ¢ billion
ITEM2004 Planned2004 Actual2004 Actual2005 Planned2005 Actual2005 Actual2006 Planned2006 Actual2006 Actual
% of total exp.% of total exp.% of total GDP% of total exp.% of total exp.% of total GDP% of total exp.% of total exp% of total GDP
Personal Emoluments44.335.18.736.937.08.933.938.79.5
Administration and Service18.211.93.011.011.02.77.67.71.9
Service7.84.71.24.14.11.03.82.850.7
Investment24.929.47.330.930.87.439.8433.38.22
Domestic Financed8.26.11.56.16.11.512.494.881.2
Foreign Financed16.623.35.824.824.76.027.3528.415.9
Utility price subsidies0.611.22.81.51.80.42.734.61.1
HIPC financed Expenditure8.19.52.36.86.91.76.186.41.6
Others
Total100100100100100100
(¢ billion)14,982.619,773.279,803.723,560.923,454.897,018.029,47528,350.7114,903.2
Source: MFEP, Budget Statements 2002-2006
Source: MFEP, Budget Statements 2002-2006

In 2006, allocation for Investment increased from 30.8% to 33.3% of discretionary expenditures and from 7.4% to 8.22%of GDP. While domestic investment declined from 12.49% to only 4.88%, donor funding increased to 28.41% from 27.35% of total expenditure.

Donor investment still accounts for a greater part of the nation’s investment expenditure thus rendering development efforts extremely susceptible to the vagaries of donor resource flows.

It appears that resources released to finance the GPRS II are inadequate and there is a need to increase investments that will result in growth and employment creation and could contribute to poverty reduction substantially.

6.8 Spending on Poverty Reduction

Government spending on Poverty Reduction is targeted at the under-privileged. This is reflected in the transfer of resources for the provision of the basic necessities of life. Reduction of poverty requires the infusion of resources not to the broad sectors of the economy but giving priority to specific targeted areas of benefit to the poor. Programmes and projects implemented under this expenditure are mostly in the social and economic sectors.

The spending on poverty has come from three main sources:

  • (a) Discretionary Government Spending
  • (b) HIPC funds
  • (c) Multilateral Debt Relief Initiative Funds

6.8.1 Discretionary Spending

About 57% of total poverty reduction expenditure was from government discretionary budget. There has been a consistent increase in the allocation of resources over the years in relation to these activities. In 2005, the last year of GPRS I the Government increased poverty spending significantly from ¢6,122.61 billion in 2004 to ¢8,256.01 billion that is by about 34.8%. However in 2006, direct spending to poverty reduction related activities increased significantly by 49.9% to ¢12,374 billion. (Table 6.9)

Table 6.9:Government Spending on Poverty Reduction
2003 Budget2003 Actual2004 Budget2004 Actual2005 Budget2005 Actual2006 Budget2006 Actual
Total poverty reduction exp. ¢ billion4059.284278.745456.216122.618,014.938,256.0111,985.2112374.03
Total govt. expenditure ¢ billion1571215744.1019507.8021765.1025,052,04023,948.6234677.135493.2
Total poverty red. Exp. as % of total Govt exp.25.8327.1827.9728.1331.9934.4734.5634.86
BASIC EDUCATION
Basic education exp. ¢ billion1911.282356.522605.372969.763,029.773,708.824187.664707.89
Education Expenditure ¢ billion3300.594049.134512.655289.765331.876,601.477357.849074.81
Basic education as % of education Exp.57.9158.2057.7356.1556.8256.1856.9151.88
% of Total poverty Spending47.155.0747.7548.5037.8044.9034.938.05
PRIMARY HEALTH CARE
Primary Health Care Exp.826.20633.541205.321088.201988.801,749.952664.511982.64
Health sector exp.¢ billion1124.941061.211550.921622.023203.642,915.694019.783482.93
PHC AS % of Health sec exp73.4459.7077.7267.0962.0860.0266.2856.92
% of Poverty Spending20.318.8122.0917.7724.8021.2022.216.02
POVERTY FOCUSED AGRIC
Poverty Focused Agric Exp. ¢ billion141.89109.51132.68145.05205.33175.91351.72484.40
Agric. Sector Exp. ¢ billion157.40114.27146.91150.34217.32205.07382.5517.77
Poverty Agric. As % of Sector Exp.90.1595.8390.3196.4894.4885.6991.9593.56
% of Poverty Spending3.52.562.42.42.562.132.933.91
RURAL WATER
Rural Water Exp. ¢ billion108.8641.42140.86111.99160.27117.67142.67186.54
Works & Housing exp. ¢ billion156.9889.95225.11228.64264.05238.23243.93366.70