This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 ACCRA 000345 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON GH PGOV PREL SOCI
SUBJECT: GHANA'S PRESIDENT KUFUOR DELIVERS STATE OF NATION 
ADDRESS 
 
 ¶1. Summary:  President Kufuor's January 31 State of the 
National address reemphasized his government's commitment to 
human resource development, private sector development and 
good governance. It highlighted the GOG's macroeconomic 
successes while pressing for passage of the Representation of 
the People bill which will enable overseas Ghanaians to vote. 
 His and the ruling NPP party's support for this bill has 
greatly heightened political tensions in Ghana. End Summary. 
 
Economic Successes 
------------------ 
 
¶2.  (U)  In his annual State of the Nation address delivered 
on January 31, 2005, President Kufuor highlighted the his 
government's macroeconomic successes as "the toast of the 
international community."  For the first time ever, the GOG 
submitted the 2006 budget before the end of the calendar 
year, as required by the constitution.  Annual GDP growth is 
6 percent but needs to be 8 percent for Ghana to achieve 
middle income status by 2015.  In the past two years, $7 
billion in GOG debt was canceled and the government created 
250,000 new public sector jobs.  (Note:  we calculate that 
GDP growth is between 5-6 percent and debt relief will total 
around $4.5 billion, not the $7 billion figure he used.  End 
note.)  Kufuor highlighted the GOG's revival of the VALCO 
aluminum plant.  (Note:  Kaiser Aluminum sold its share to 
the GOG after an investment dispute.  End note.)  Kufuor also 
cited other new investments:  Fruitier of France, 
Anglogold-Ashanti and Newmont mining companies, Maersk (which 
plans to build a large container terminal in Takoradi), and a 
consortium of investors looking at reviving Ghana's railway 
system. He hoped the Millennium Challenge Account (MCA) and 
the West African Gas Pipeline (WAGP) would be on stream this 
year. 
 
Human Resources and the Private Sector . 
-------------------------------------- 
 
¶3.  (U)  Kufuor highlighted three priorities:  human resource 
development, private sector development, and good governance. 
On human resource development, he detailed the GOG's support 
for teacher training and social service delivery, including 
affordable housing. On private sector development, he noted 
that a venture capital fund is now operational, and that a 
contract for a national identity card is about to be awarded. 
 While the private sector is the "main engine" for growth, 
the GOG would step in when needed to safeguard national 
interest, as it did with VALCO and the telecommunications and 
textile sectors.  The 2007 50th anniversary jubilee requires 
a focus on more tourism infrastructure. 
 
Governance 
---------- 
 
¶4.  (U)  Ghana is proud to be at peace and to be the first 
country to undergo a peer review under the NEPAD African Peer 
Review Mechanism (ARM), Kufuor said.  He acknowledged a 
perception that the GOG was not doing enough to fight 
corruption.  He responded that the GOG has quadrupled the 
budget for anti-corruption institutions since 2001.  In an 
unusual move for a president, he had offered to appear before 
the Commission on Human Rights and Justice (CHRAJ) to respond 
to a corruption charge, but the accuser failed to prosecute 
the charge. The media should take corruption allegations to 
the police or to the Office of Accountability, Kufuor said. 
He criticized "certain websites" for their negative coverage, 
which was undermining Ghana's international image, adding "we 
must be careful not to let people who do not subscribe to the 
tenets of democracy take advantage of the freedoms guaranteed 
thereunder to subvert democracy."  Kufuor also stressed his 
priority of refurbishing Flagstaff House as a replacement for 
Christianborg Castle, the current seat of government, using a 
concessional loan from the Government of India. 
 
5  (U) Kufuor also affirmed it was time to move ahead with 
the Representation of the People (Amendment) Bill, which will 
enable Ghanaian citizens living abroad to vote. Parliament 
could debate the law and the Electoral commission could 
decide when and how to implement it, but this law had been 
discussed since 1996 and should be passed, he said, adding 
that those who opposed the law "must have an unwholesome 
motive to the protest, to which the country should be 
alerted."   He also endorsed passage of the Whistleblower and 
Freedom of Information bills. 
 
Comment 
------- 
 
¶6.   (SBU)  The President underscored the continuity in his 
priorities and his economic successes, but was short on new 
ideas and sharpened Ghana's political divide. His attack on 
the Ghanaweb website reflects some growing concern about 
intimidation of the media. Many in the opposition question 
Kufuor's priority focus on relocating the presidency using a 
large Indian loan, saying it is too expensive and 
unnecessary.  Kufuor's strong support for the Representation 
of the People bill (backed by strong body language from him 
and his party leaders during the speech) brought angry jeers 
from the opposition in parliament, who shouted "we want 
peace."  They view the bill as an attempt by the ruling party 
to rig the 2008 elections. This major controversy could 
distract the GOG from its economic and political agenda (as 
we will report septel.) 
BRIDGEWATER