POST-INAUGURATION VIOLENCE
“Wrongdoing has no political colour, and I do not subscribe to the lawlessness of political party supporters simply because their party has been elected into office. When those incidents began, I instructed the then Inspector General of Police, John Kudalor, to apply the law, irrespective of political affiliation, to all lawbreakers. This instruction was also carried on to his successor, David Asante Appeatu. Both of them acted upon it, which helped to bring the situation under control.”
“It appears these events were predicated on some concept of equalisation, as they happened in 2009, and were repeated again in 2017. I condemn all such conduct, and I call on all political parties, especially the New Patriotic Party and the National Democratic Congress, to ensure that this is the last time such undignified acts occur during our periods of transition.
ECONOMY
Economic mismanagement led to IMF bailout
Notwithstanding the fact that the previous government had more than ten times the financial resources than any other government since independence, its mismanagement of our economy in the run up to the 2012 presidential and parliamentary elections resulted in a quagmire that necessitated the urgent intervention of the International Monetary Fund (IMF) in 2014.
All IMF targets missed
The Mahama government promised Ghanaians that the reckless public expenditure that characterized the 2012 election year would not be repeated in 2016. It is sad to note today the promises to the Ghanaian people were not kept. In fact, virtually all the targets under the IMF program, as at December 2016, have been missed.
Fiscal indiscipline & GH¢7 billion unaccounted for
Fiscal indiscipline, once again, reared its head in the 2016 election year. Total projected expenditure for 2016 was GH¢43.9 billion (26% of GDP) but actual expenditure amounted to GH¢50.3 billion (30.2% of GDP). It appears, from what we are finding out, that some GH¢7 billion of arrears and outstanding payments circumvented the very public financial management system that was put in place to prevent such occurrences. These expenditures are being currently audited.
Poor Revenue generation
Revenue performance for 2016 was poor. The total revenue target for our country was GH¢37.9 billion (22.7% of GDP), but the actual revenue came in at GH¢33.2 billion (19.9% of GDP).
Record fiscal deficit
The combination of higher expenditures and lower revenues than projected resulted in a significant increase in the budget deficit for 2016. As compared to a target of 5.3% under the IMF program, the fiscal deficit for 2016 was 9% of GDP on a cash basis, and 10.2% of GDP on a commitment basis (that is on the basis of expenditures undertaken but not yet paid for).
At the time Ghana entered into the IMF program to restore fiscal discipline, the fiscal deficit was 10.2% of GDP. It is very clear, therefore, that the Mahama government did not achieve the objectives set out in the programme.
Record Public Debt Stock
As at the beginning of 2009, Ghana’s total debt stock was GH¢9.5 billion. By the end of 2016, the debt had ballooned to GH¢122 billion. Ghana’s debt stock now stands at 74% of GDP, after all the previous denials to the contrary.
More debt was accumulated by the previous government in the last eight years than all other governments put together since independence! In fact, 92% of Ghana’s total debt stock was incurred in the last eight years under the previous government. The interest payments will amount to an estimated GH¢14.1 billion in 2017.
No Fiscal Space
After eight years of the previous government, there is practically no fiscal space left. The persistent resort to borrowing for any additional expenditures to meet the aspirations of our people is also not sustainable. We cannot continue this way with our public finances. I will not allow this economy to collapse under my watch. We will reduce significantly the fiscal deficit this year.
Lowest GDP Growth Rate in 23 years
Ghana’s economic growth has declined dramatically. Notwithstanding the record amount of financial resources at the disposal of the previous government, Ghana’s GDP growth in 2016 (including oil) is estimated at 3.6%. This is the lowest GDP growth in about 23 years.
Increase in bad loans
Ghana’s banking sector did not escape the economic decline of 2016 and has become increasingly fragile. Bad loans in the banking sector have risen significantly. Data from the Central Bank show that non-performing loans have risen sharply from 11.2% in May 2015 to 17.3% in December 2016.
What we will do?
We are going to have to implement some tough, prudent and innovative policies to get out of this financial cul-de sac and rescue this economy, restore fiscal discipline and debt sustainability as well as increase economic growth.
In the immediate term, targeted legislative, policy and institutional reforms will have to be undertaken to unleash the suppressed potential of the economy and allow Ghanaian entrepreneurship to rise and thrive, domestically and internationally.
We have no choice but to reduce the budget deficit and cut waste in all sectors of public life.
We will complete the formalisation of the economy. The process for a comprehensive national identification system and a property titling system have begun, and will be completed within a year. That will boost confidence in our country and increase investment from nationals and foreigners. Then we will be able to generate jobs.
We must boost the confidence of the private sector to invest in the economy.
AGRICULTURE
The starting point in turning round our fortunes must be with agriculture. The state of agriculture in our country right now is not good. Yet, agriculture provides the best opportunity to use modern methods to change the lives of many, within the shortest possible time.
Planting for Food & Jobs
We aim to popularize farming by encouraging many people to take it up as a full or part time activity. A National Campaign, “PLANTING FOR FOOD AND JOBS”, will be launched to stimulate this activity. An amount of 125 million Canadian dollars has been secured from Canada, a friend of our nation, to support the initiative. This Campaign will be anchored on the pillars that will transform agriculture:
the provision of improved seeds,
the supply of fertilizers,
the provision of dedicated extension services,
a marketing strategy
and the use of e-Agriculture.
The District Assemblies will be tasked to identify and register progressive farmers in each of the 216 districts.
1-Village-1-Dam
We have decided to embark upon a programme to provide water to enable all-year farming. We are calling it the one-village, one-dam policy. The three northern regions, in particular, will benefit from the availability of water to enable all-year farming, so that the enforced yearly migration can be minimized and food production become more predictable.
Increased investment in agriculture
We will increase in public investment in agriculture, starting from the first budget. We must reverse the unfortunate trend of the past eight years, which saw a regular decrease in public investment in the sector that provides a living for the majority of our people.
Food processing
Food processing has been the first step towards industrialization in virtually every country, and it is time for us to take it seriously. Not only will it serve to cut down on the wastage of crops during the high season, it will provide more jobs and expand farming business. Food processing will also save time in the preparation and cooking of our local foods, and there will be better control on the hygiene in the process.
JOBS
The most critical challenge, inherited by this NPP government, is the very high, unprecedented level of unemployment, particularly among the youth. We can argue on what the official rate of unemployment is, but we can all see the desperation of our young people. They want to work, but there are no jobs and some of them are being driven to unacceptable behaviour. We have a veritable time bomb on our hands.
Industrial Transformation
To address this challenge, the government is embarking on one of the most comprehensive programmes for industrial transformation ever to be introduced in our country.
The key elements of government’s industrial transformation are:
restoration and maintenance of a stable macro-economy
monetary and fiscal measures which will lead to a reduction in interest rates and reduction in the tax burden on enterprises
provision of reliable, affordable power to enterprises and homes
setting up of a stimulus package to support existing Ghanaian industries and improve their competitiveness
implementation of the initiative, through public-private partnerships, to establish at least one industrial enterprise in each of the 216 Districts in the “One District, One Factory” policy
development of strategic anchor initiatives as new pillars of growth for the Ghanaian economy, including the establishment of petrochemical industries; an iron and steel industry; an integrated aluminum industry; the expansion of the domestic production of pharmaceuticals; the establishment of a vehicle assembly and automotive industry; the production of industrial salt; the establishment of garment and textiles enterprises; and the manufacture of machinery, equipment and component parts
establishment of a multi-purpose industrial park in each of the ten regions
implementation of a comprehensive programme for SME development
establishment of an industrial sub-contracting exchange to link large scale companies with SMEs
implementation of an aggressive programme for export development, targeting, primarily, regional and continental markets
enhancement of domestic retail market infrastructure and the active promotion of the marketing and distribution of domestically produced goods
improvement of the business environment through regulatory and other reforms, and
establishment of a permanent consultative forum for public-private sector dialogue.
RAILWAY
The Takoradi to Paga railway, connecting the Eastern and Western corridors, will be initiated this year to open up our country and provide access to our landlocked neighbours.
ENERGY
The most difficult problem that has dogged this nation in the past five years, has been in the energy sector. It has caused havoc in small, medium and large enterprises. It has disrupted families and businesses and brought many organizations to their knees.
Gargantuan debt overhang in the sector.
We inherited a heavily indebted energy sector, with the net debt reaching $2.4 billion as at December 2016. I have to point out the alarming fact that 800 million US dollars of this debt is owed to local banks, which threatens their stability and that of the whole financial sector.
Indeed, the huge indebtedness of the energy sector constitutes the single major hurdle to Ghanaians enjoying reliable and affordable electricity supply.
Cost
We produce power from Akosombo at three US cents per kilowatt hour. The marginal price charged for businesses is an effective 42 cents, more than ten times the average tariff in West Africa. This makes it very difficult to start or run a business here and be competitive.
Reduction of taxes
We will improve on transparency in tariff setting, and introduce a new tariff policy that will reclassify consumer categories in order to protect lifeline and strategic industrial consumers. We will also reduce significantly some of the levies and taxes on the tariffs.
Review of power purchase agreements
As at the end of 2016, the Electricity Company of Ghana (ECG) had signed 43 Power Purchase Agreements (PPA), whilst a further 23 were under discussion. Government is conducting a review of all the Power Agreements entered into by the predecessor government in order to prioritize, renegotiate, defer or cancel outright, if necessary, in the national interest.
Government will enforce the procurement law. We will insist on open and competitive bidding for power capacity procurement. This will not only reduce the cost of power projects and ensure value for money, but will also address the problem of unplanned procurement.
Ghana Compact II programme
The implementation of Ghana’s commitments has faced some challenges due to disagreements between stakeholders, particularly between labour, ECG and the Millennium Development Authority (MiDA).
We need further dialogue on the key issues that have generated these disagreements. We are aware that these discussions should be concluded urgently in order to arrive at the decisions that will allow for its implementation. We expect that all stakeholders will discuss these issues dispassionately and transparently, to ensure that all concerns are adequately addressed.
EDUCATION
The success of all our plans and all our aspirations depends on our ability to educate our young people, and provide the opportunity for lifelong education to the adult population. Education is the key; education holds the key to the rapid development of our country; it holds the key to a better understanding and accommodation with our environment; it equips us with the skills required to deal with the world; education holds the key to the prosperous and happy Ghana we all want and deserve.
Free SHS
In case there is anyone left in this country who has not heard yet, the Free SHS starts with the 2017/2018 entrants into the public SHS.
TVAET
We shall embark upon a vigorous expansion and re-equipping of Technical, Vocational and Agricultural schools and align all TVAET under the Ministry of Education to ensure standardization.
ICT, Math & Science
The teaching of mathematics and science will take pride of place in all schools, as we aim to make understanding of the scientific basis of life a central plank in our schools. We will, thus, make the use of ICT a central feature of our national life.
Teachers
My government shall place teachers at the centre of quality education, and encourage professionalism among them. There will have to be some legislative reforms to ease some of the bottlenecks at the district level of supervision.
Teacher Trainee Allowances
Teacher trainee allowances will be restored when the Minister of Finance comes to read the budget. We keep our promises, just as we shall ensure that our sports development is hinged on the revival of school sports.
HEALTH
Mr. Speaker, we have to be healthy if we are to make a success of the plans and aspirations we have.
NHIS
The NHIS remains the best option we have devised to ensure that as many people as possible have access to health care in our clinics and hospitals. The scheme is not in a good state, and there are too many providers that are owed money. They are threatening to opt out and stop offering their services to the most vulnerable in our society. We shall restore the National Health Insurance Scheme to good health.
Nursing Trainee Allowances
The Minister for Finance will restore the allowances to trainee nurses in the budget.
WOMEN
Government will work with Parliament to pass the Affirmative Action Bill to increase women’s involvement in decision making at all levels, and enable us to achieve our objective of 30 per cent participation of women in public appointments.
PERSONS WITH DISABILITY
The time has come to enforce the Disability Act and ensure its compliance, which will begin with access to public buildings for the physically challenged. The Minister for Local Government will also see to the implementation of a District Integrated Social Services programme for children, families and vulnerable adults.
SECURITY SERVICES
PEACEKEEPING ALLOWANCES
We have decided peacekeeping soldiers should be paid their allowances at post, and not on their return. I am glad to say that this new regime of payment has been applied to the case of The Gambian deployment.
PAYMENT OF ARREARS
The outstanding arrears of $13 million for all peacekeeping personnel have been cleared by government, and the contingents in the Gambia have been paid all their allowances in full.
HOUSING
Overcrowded and inappropriate accommodation for personnel, inability to pay food and utility bills, and threats from providers to cut supplies; these are the everyday stories in all departments and our armed forces face the same problems. It is a regrettable state of affairs that will not continue under my administration.
POLICE
The police are the first line of security and protection for the citizens. We must have an efficient police service that has the confidence and support of the people. We must get a more professional police service, where recruitment and training practices are of acceptable international standards. We shall continue recruitment into the police service, with the aim of meeting the U.N ratio of 1 police officer to 500 civilians, and also ensuring gender equity.
DEVELOPMENT IN FREEDOM
“I have an unshakable and undying belief in freedom and the democratic process, and in their capacity to inspire rapid development. Development in freedom should remain our moral anchor. That is the Ghanaian way and that is the Akufo-Addo way.”
SPECIAL PROSECUTOR
The office of the Special Prosecutor has been shown to work in other places, and I shall be bringing legislation before the House for its rapid establishment. I am satisfied that the Office will be established in a manner consistent with the Constitution. In like manner, I shall propose for legislation amendments to the current asset declaration regime to make it more effective.
SEPARATION OF POWERS
My personal belief in and adherence to the concept of the separation of powers is well-known, and I do not intend to interfere in any way in the affairs of Parliament or the Judiciary. All three arms of government, the Executive, the Judiciary and the Legislature need to take cognisance of the clear desire of the people of Ghana for change. All three branches must change the way we do things. I ask this Honourable House to take a candid look at itself and consider changing the way it conducts its business, if needs be.
PUNCTUALITY
Over the years, it has become acceptable practice that official functions invariably start and close late. We invite people to functions for 9am and start at 10am. I have heard some offer the preposterous excuse that there is something cultural about not paying attention to time. Mr Speaker, let us show that we acknowledge that change has, indeed, come by being punctual to functions. I intend to set a personal example.
ENVIRONMENT
The other area of our lives in which we can and should start making a change is the care of the environment.. We are in danger of destroying our blessed country. Ours is a beautiful country. If we claim to love our country, we must take care of the lands, the trees, the water bodies, the animals. They are part of what makes Ghana. The change we have voted for demands that we adopt better and sustainable sanitation habits, and learn to protect and preserve our environment.
NATIONAL CONSENSUS
It is important for us to have a conversation on how we name things that are of national importance to us all. I speak of the seat of the Presidency and Founder’s’ Day. In my view, it is not right that, 60 years after independence, these matters are still at large. It does not inure to the dignity of the Ghanaian Republic that such matters have become subject to political football.
CONCLUSION
We all know where we want Ghana to be, and we are aware we are not where we want to be or ought to be. We also know of the big dreams of our forefathers to build a self-reliant and self-sustaining nation that would take pride of place amongst the comity of nations.
We will put in place policies that will deliver sustainable growth and cut out corruption.
We will set upon the path to build a Ghana that is not dependent on charity; a Ghana that is able to look after its people through intelligent management of the resources with which it has been endowed.
This new Ghana will be defined by integrity, sovereignty, a common ethos, discipline, and shared values. It is one where we aim to be masters of our own destiny, where we mobilise our own resources for the future, breaking the shackles of the Guggisberg economy and a mindset of dependency, bailouts and extraction.
Ghana will be a country where we focus on trade, not aid, a hand-up, not a hand-out. It is a country that recognises the connectedness of its people and economy to those of its neighbours.
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