President Akufo-Addo has reassured Ghanaians and the international community that the country's economy is on a strong recovery path.
During the presentation of credentials to nine newly appointed diplomats at the Jubilee House, the President highlighted significant economic strides and the resilience shown by Ghanaians in overcoming recent global adversities.
"In the face of these adversities, Ghana has shown remarkable resilience," President Akufo-Addo declared. "We have embarked on a comprehensive strategy to revive our economy, and I am pleased to note that our efforts are bearing fruit."
The President cited an impressive growth rate of 4.7% in the first quarter of 2024, surpassing the IMF's forecast of 3.1%. This growth, driven by the industrial sector's 6.8% expansion and a 4.1% rise in the agricultural sector, underscores the effectiveness of the government's economic policies. President Akufo-Addo also emphasized the significance of Ghana's successful debt restructuring initiatives.
"We have completed three major debt restructuring operations," he noted, highlighting the substantial relief achieved through domestic debt restructuring, external bilateral debt restructuring, and negotiations with commercial bondholders.
The domestic debt restructuring, which achieved a high participation rate of almost 95%, reduced coupon rates from 21% to 9% on average and extended maturities. This provided the government with much-needed breathing space and set the domestic debt-to-GDP ratio on a clear downward trend, expected to reach 55% by 2028.
The President also outlined the successful negotiations with external bilateral creditors, which resulted in a cash flow relief of approximately $2.8 billion. This relief, spanning from 2023 to 2026, allows the government to reallocate funds towards critical infrastructure and development projects that had been stalled due to financial constraints.
"Our economic recovery is strongly on course," the President affirmed, attributing this progress to both governmental initiatives and the resilience of the Ghanaian people. He praised the collective effort and unyielding spirit demonstrated by Ghanaians during these challenging times.
The Ghana CARES 'Obaatampa' Programme, launched in 2021, continues to play a pivotal role in the nation's economic strategy. This ambitious program focuses on supporting commercial farming, building the light manufacturing sector, developing engineering and ICT industries, fast-tracking digitalization, and creating jobs for young people.
"The Ghana CARES 'Obaatampa' Programme sets out our roadmap towards the strong revitalization of the Ghanaian economy," President Akufo-Addo explained. "Each of you must help and contribute to the success of this programme, by facilitating, amongst other things, as much foreign investment into the country as you can."
As Ghana continues to navigate the challenges posed by global events such as the COVID-19 pandemic and the ongoing conflict in Ukraine, the President remains optimistic about the nation's economic future. He reiterated his previous statement made during the height of the pandemic, emphasizing the government's focus on reviving the economy rather than prioritizing economic growth over public health.
"If you will recollect, I did say, at the height of the pandemic, that we knew how to bring the economy back to life, but did not know how to bring people back to life," President Akufo-Addo reminded the audience.
"This remark was made to justify the extraordinary expenditures that Government was forced to make during the pandemic to afford relief and protection to the population. I believe, in all humility, that the nation is today appreciative of the validity of my statement, as our economic recovery is strongly on course."
President Akufo-Addo's confidence in Ghana's economic revival is further supported by the ongoing efforts to attract foreign investment and strengthen international cooperation.
The newly appointed diplomats are expected to play a crucial role in promoting Ghana's economic agenda on the global stage. "Your primary responsibility is to promote the image of Ghana as a stable, peaceful, and forward-looking country," the President told the new envoys.
"This entails engaging with your host nations to foster strong bilateral relationships, attract investments, and advocate for the interests of Ghana."
With these promising indicators and a comprehensive economic strategy in place, Ghana is well-positioned to achieve sustainable growth and development.