President Akufo-Addo says his government, over the last 21 months, has ensured stability and adequate supply of power in the country, in the place of the erratic power situation that it inherited.
Speaking at the Financial Times Africa Summit, in London, on Monday, 8th October, 2018, President Akufo-Addo indicated that his government, over the same period, has also ensured a reduction in tariff rates, with domestic consumers enjoying tariff reductions of up to 17.5% and a 30% reduction for industry to stimulate industrial activity.
“In addition, a review of 24 power purchase agreements, which has led to the termination of 11 power deals and the rescheduling of 8 others, has enabled us to save the government treasury about $7 billion in excess capacity charges over a 13-year contract period,” the President said.
His government, he told the forum, has issued 7-year and 10-year cedi-denominated bonds, totaling GH¢4.7 billion, which have halved the $2.4 billion energy debt it inherited.
“Ghana, as a result, is today a net exporter of electricity. I was in Ouagadougou, capital of Burkina Faso, last Friday, for the inauguration, with the President of Faso, His Excellency Roch Marc Christian Kabore, of the Bolgatanga (capital of Ghana’s Upper East Region) to Ouagadougou Power Interconnection Project, which will see, daily, up to 100 megawatts of power supplied directly to Burkina Faso from Ghana,” President Akufo-Addo added.
Time for economic transformation
After 25 years of a stable and free, democratic nation, with a strengthening market economy, President Akufo-Addo indicated that Ghana, today, has the best opportunity, since independence, to undertake a deliberate and meaningful transformation of her economic structure, and set it on the road to modern development.
As a relatively new entrant in the league of oil-producing countries, President Akufo-Addo indicated that Ghana has the perfect occasion to transform the structure of her economy through industrial and value-added commercial activities.
“We are determined to use our oil revenues to create assets, not waste it on consumption and accumulate debt,” he said.
Additionally, President Akufo-Addo told the forum of his government’s desire to developing strategic industries out of Ghana’s abundant natural resources of bauxite and iron ore.
“We have established, by statute two months ago, a public commercial corporation, the Ghana Integrated Bauxite/Aluminium Development Corporation, to assemble the relevant financial resources for the full exploitation and development of the entire value chain, in Ghana, of our large bauxite deposits,” he said.
By the same token, President Akufo-Addo indicated that “we have decided to exploit our substantial iron ore and manganese deposits, situated in the Western and Northern regions of our country, to build an integrated steel industry to serve the needs of our country and region. We are seeking suitable partners for both ventures.”
His Government, President Akufo-Addo assured, will ensure that businesses are up and running, having access to the capital, and, at the same time, maintain macroeconomic stability, an efficient bureaucracy, a strong adherence to the rule of law, and a fair and equitable social system in health and education provision.