VZCZCXYZ0157
PP RUEHWEB

DE RUEHC #0300/01 0631512
ZNR UUUUU ZZH
P 031512Z MAR 08
FM SECSTATE WASHINGTON DC
TO RHMCSUU/DEPT OF HOMELAND SECURITY WASHINGTON DC
FM AMEMBASSY ACCRA
TO RUEHC/SECSTATE WASHDC PRIORITY 6208
RUEHZK/ECOWAS COLLECTIVE

UNCLAS ACCRA 000300 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: PGOV PREL ECON GH
SUBJECT: PRESIDENT KUFUOR DELIVERS FINAL STATE OF THE NATION 
ADDRESS 
 
¶1. SUMMARY:  ON FEBRUARY 14, 2008, PRESIDENT KUFUOR DELIVERED HIS 
FINAL STATE OF THE NATION ADDRESS TO PARLIAMENT, FOCUSING ON THE 
GOVERNMENT'S POSITIVE ECONOMIC ACHIEVEMENTS SINCE HE CAME TO OFFICE 
IN 2001. HE SAID HIS GOVERNMENT HAD BROUGHT A PERIOD OF ACCELERATED 
GROWTH, LARGELY ACHIEVED THROUGH MACRO-ECONOMIC STABILITY, WHICH HAS 
SET THE STAGE FOR GHANA'S "LOOMING" INDUSTRIALIZATION. HE EMPHASIZED 
MACRO-ECONOMIC GAINS COUPLED WITH VIGOROUS INFRASTRUCTURAL 
DEVELOPMENT, RURAL DEVELOPMENT CENTERED ON MODERNIZED AGRICULTURE, 
ENHANCED SOCIAL SERVICE DELIVERY, GOOD GOVERNANCE, AND PRIVATE 
SECTOR DEVELOPMENT. HE ALSO HIGHLIGHTED GHANA'S HIGHEST-EVER 
INTERNATIONAL SOCCER RANKING OF 14TH IN THE WORLD, THE RECENT 
DISCOVERY OF OIL, AND THE MILLENNIUM CHALLENGE ACCOUNT COMPACT OF 
$547 MILLION. IN DISCUSSING THE UPCOMING ELECTIONS, PRESIDENT KUFUOR 
EMPHASIZED THE CREDIBILITY OF THE ELECTORAL COMMISSION AND THE ROLE 
THE JUDICIARY PLAYS IN RESOLVING DISPUTES, MAKING AN IMPLICIT 
REFERENCE TO KENYA.  HE STRUCK A PARTISAN NOTE BY EXPRESSING HOPE 
THAT HIS PARTY WOULD WIN AGAIN AND FAILED TO MENTION SIGNIFICANT 
CHALLENGES TO HIS GOVERNMENT, INCLUDING THE GROWING THREAT FROM 
NARCOTICS TRAFFICKING, ENERGY SHORTFALLS, AND CORRUPTION.  THE 
SPEECH PROVOKED STRONG AND NOISY REACTIONS FROM THE MINORITY AT 
TIMES, AND WHILE THE PRESIDENT PROFESSED TO WANT TO ELICIT AN 
"EFFUSION OF LOVE FROM BOTH SIDES," ITS TONE WAS NOT CONCILIATORY 
AND WAS CONSISTENT WITH KUFUOR'S PREVIOUS PARTISAN ADDRESSES TO 
PARLIAMENT.  END SUMMARY. 
 
¶2. MACRO-ECONOMY:  PRESIDENT KUFUOR'S INDICATED THAT THE DECISION TO 
"GO HIPC" (HIGHLY INDEBTED POOR COUNTRIES) HAD HELPED GHANA ACHIEVE 
MACRO ECONOMIC STABILITY AND RESCUED THE NATION FROM THE HIGH RATE 
OF INFLATION AND INTEREST RATES, THE INDEBTEDNESS OF TEMA OIL 
REFINERY, AND WEAKNESS OF THE CEDI THAT PREVAILED IN 2001. HE 
POINTED TO THE SUCCESSFUL FLOATING OF THE $750 MILLION EURO BOND IN 
LONDON, ABILITY TO WITHSTAND HEAVY FUEL PRICE SHOCKS, THE SUCCESSFUL 
RE-DOMINATION OF THE CEDI, AND A CURRENT GDP OF OVER 6.5% AS 
INDICATORS OF THE STRENGTH OF THE MACRO-ECONOMY. [NOTE: GDP GROWTH 
WAS 6.3% IN 2007. END NOTE] GIVEN  THESE INDICATORS, SAID KUFUOR, 
GHANA WAS ON TRACK TO MEET THE MILLENNIUM DEVELOPMENT GOAL OF 
HALVING POVERTY BY 2015. 
 
¶3. OIL DISCOVERY:  KUFUOR HIGHLIGHTED THIS AS THE BIGGEST EVENT OF 
THE YEAR. HE ESTIMATED THE FIND TO BE OVER 3 BILLION BARRELS AND 
SAID IT COULD COME ON LINE WITHIN THE NEXT TWO TO THREE YEARS. THE 
FOCUS, SAID KUFUOR, IS NOW ON DEVELOPING A REGULATORY FRAMEWORK THAT 
WILL MAKE THE SECTOR PROFITABLE FOR THE ENTIRE SOCIETY, INDICATING 
THAT IT COULD PROVIDE FUNDS REQUIRED FOR DEVELOPMENT AND LESSEN 
DEPENDENCY ON DONORS. [NOTE: THIS IS GHANA'S FIRST DISCOVERY OF OIL 
IN COMMERCIAL QUANTITIES. WHILE WE HAVE SEEN ESTIMATES OF 170 
MILLION BARRELS PROVEN RESERVES AND UP TO 1.3 BILLION BARRELS IN 
RECOVERABLE RESERVES, KUFUOR'S ESTIMATE MAY BE OF PROBABLE RESERVES. 
RECOVERABLE RESERVES ARE ROUGHLY 40% OF PROBABLE RESERVES. END 
NOTE]. 
 
¶4. EDUCATION:  THE PRESIDENT EMPHASIZED EFFORTS TO REHABILITATE 
SCHOOLS FROM ELEMENTARY TO TERTIARY LEVEL AND THE LAUNCHING OF NEW 
PROGRAMS AIMED AT INCREASING PUPIL ENROLMENT. GHANA'S EDUCATION 
REFORM PROGRAM INCLUDED THE PROVISION OF FREE COMPULSORY UNIVERSAL 
BASIC EDUCATION FROM AGE FOUR TO SIXTEEN. THE GOVERNMENT ALSO 
LAUNCHED A SCHOOL FEEDING PROGRAM TO COMPLEMENT FREE BASIC EDUCATION 
INITIATIVE. THE PRESIDENT INDICATED THAT SPECIAL EMPHASIS WOULD BE 
GIVEN TO SCIENCE, MATHEMATICS, AND INTERNET TECHNOLOGY, PARTICULARLY 
AT THE SECONDARY LEVEL. THIRTY-EIGHT TEACHER TRAINING COLLEGES ARE 
BEING UPGRADED WITH FIFTEEN BEING DESIGNATED TO FOCUS ON SCIENCE, 
MATHEMATICS AND TECHNOLOGY. DISTANCE LEARNING, COUPLED WITH IMPROVED 
CONDITIONS OF SERVICE, ARE BEING USED TO IMPROVE THE QUALITY OF 
TEACHING. THE PRESIDENT LAUDED THE EMERGENCE OF PRIVATE TERTIARY 
EDUCATION INSTITUTIONS THAT ARE EMERGING TO SUPPORT GOVERNMENT 
EFFORTS. [NOTE: WHILE THERE HAS BEEN A SIGNIFICANT INCREASE IN PUPIL 
ENROLMENT AS A RESULT OF THE VARIOUS INITIATIVES LAUNCHED, QUALITY 
OF EDUCATION REMAINS A SIGNIFICANT CONCERN WITH ONLY A MODEST 
PERCENTAGE OF SIXTH GRADERS READING AT GRADE LEVEL. END NOTE] 
 
¶5. HEALTH:  THE PRESIDENT HIGHLIGHTED EFFORTS TO REHABILITATE 
REGIONAL HOSPITALS AND DISTRICT HEALTH POSTS AND TO IMPROVE THE 
CONDITIONS OF SERVICE FOR HEALTH WORKERS. LITTLE DETAIL WAS PROVIDED 
BEYOND A SUGGESTION THAT THE NEW FOCUS WOULD BE ON PREVENTATIVE 
MEDICINE. THE NATIONAL HEALTH INSURANCE SCHEME WAS SHOWCASED AS ONE 
OF THE GOVERNMENT'S MAJOR CONTRIBUTIONS TO QUALITY AND AFFORDABLE 
HEALTH CARE. CURRENTLY, 48% OF THE POPULATION IS ESTIMATED TO BE 
ENROLLED, AND IT IS ENVISAGED THAT THE ENTIRE POPULATION WILL BE 
ENROLLED IN FIVE YEARS. HIV/AIDS PREVALENCE LEVELS DROPPED FROM 2.6% 
IN 2006 TO 2.25% IN 2007 WITH VOLUNTARY COUNSELLING AND TESTING 
OPERATING IN ALL 138 DISTRICTS OF THE COUNTRY COUPLED WITH 48 
ANTI-RETROVIRAL SITES. [NOTE: HIV PREVALENCE HAS BEEN STABLE BETWEEN 
2% AND 3% FOR PREGNANT WOMEN SINCE 1994. THIS IS AN ACHIEVEMENT, BUT 
MINOR FLUCTUATIONS CITED REPRESENT ONLY SAMPLING BIAS AND NOT REAL 
CHANGES. END NOTE] TO PROVIDE SAFE WATER, THE GOVERNMENT HAS ALSO 
FOCUSED ON THE PROVISION OF BORE-HOLES AND HAND-DUG WELLS COUPLED 
WITH MAJOR REHABILITATION WORKS ON URBAN WATER SUPPLY SYSTEMS. THIS 
SHOULD LEAD TO A REDUCTION OF GUINEA WORM INFESTATIONS AND OTHER 
WATER-BORNE DISEASES. [NOTE: NO MENTION WAS MADE OF GHANA'S GENERAL 
STAGNANT PERFORMANCE ON MAJOR HEALTH INDICATORS INCLUDING THE INFANT 
MORALITY RATE. END NOTE] 
 
¶6. INFRASTRUCTURE:  KUFUOR EMPHASIZED THAT THE GOVERNMENT'S FOCUS IS 
ON FACILITATING THE MOVEMENT OF PEOPLE, GOODS, AND SERVICES WHILE 
PROMOTING SOCIAL-CULTURAL INTERACTION. THE PRESIDENT SUGGESTED THAT 
THE ROAD SECTOR WAS EXPERIENCING AN UNPRECEDENTED LEVEL OF 
DEVELOPMENT. THIS INCLUDED ROADS TO LINK FARM GATES TO MARKET 
CENTRES WITH $100 MILLION RELEASED TO FOCUS ON THE SIX COCOA GROWING 
AREAS OF THE COUNTRY. EFFORTS ARE UNDERWAY TO IMPROVE THE ROADS 
CONNECTING ACCRA WITH NEIGHBOURING COUNTRIES AND TO REDUCE TRAFFIC 
CONGESTION AND IMPROVE PUBLIC TRANSPORTATION IN THE MAJOR POPULATION 
CENTERS. $90 MILLION IS BEING SET ASIDE FROM THE EURO-BOND PROCEEDS 
TO LEVERAGE EFFORTS TO REHABILITATE THE RAIL SYSTEM EXTENDING TO THE 
NORTH OF THE COUNTRY. THIS INITIATIVE IS EXPECTED TO GENERATE 
THOUSANDS OF JOBS AND REVIVE OLD RAILWAY TOWNS.  THE TEMA AND 
TAKORADI PORTS ARE BEING MODERNIZED AND EXPANDED WITH THE HOPE THAT 
GHANA WILL BECOME THE PREFERRED ENTRY PORT IN THE ECOWAS SUB-REGION. 
THE TAKORADI, TAMALE, AND KUMASI REGIONAL AIRPORTS WERE ALL UPGRADED 
FOR THE JUST ENDED AFRICA CUP OF NATIONS SOCCER TOURNAMENT AND 
ENJOYED A SURGE IN DIRECT INTERNATIONAL FLIGHTS. THE GOVERNMENT AIMS 
TO MAKE INFORMATION TECHNOLOGY AVAILABLE TO LARGE SECTORS OF THE 
SOCIETY AND IS PURSUING A NATIONAL COMMUNICATIONS NETWORK TO PROVIDE 
OPEN ACCESS TO BROADBAND CONNECTIVITY. THE GOVERNMENT IS ALSO 
PROMOTING A COMPETITIVE TELECOM MARKET. 
 
¶7. ENERGY:  PRESIDENT KUFUOR ACKNOWLEDGED THAT THE HIGH COST OF 
CRUDE OIL, COUPLED WITH PERIODIC DROUGHT THAT REDUCES GHANA'S HYDRO 
RESOURCES HAS PROVIDED A SIGNIFICANT CHALLENGE FOR THE GOVERNMENT. 
WHILE THE COUNTRY FACED AN ENERGY CRISIS LAST YEAR THAT LED TO A 
LOAD-SHEDDING EXERCISE, THE GOVERNMENT HAS DEVELOPED A SHORT TO 
MEDIUM AND LONG TERM POLICY TO SOLVE THE PROBLEM. THIS INCLUDES A 
MIX OF THERMAL AND HYDRO ENERGY GENERATION. THE BUI DAM, ONE OF THE 
LONG TERM STRATEGIES, IS SCHEDULED TO BE OPERATIONAL IN 2012 WHILE 
SMALLER DAMS ARE BEING DEVELOPED. THE WEST AFRICA GAS PIPELINE WAS 
HIGHLIGHTED AS ONE OF THE LEGACIES OF THIS GOVERNMENT. THE PRESIDENT 
EXPRESSED GREAT CONFIDENCE THAT THE GOVERNMENT'S ENERGY POLICY WOULD 
BE SUFFICIENT TO MEET GHANA'S ENERGY REQUIREMENT FOR 
INDUSTRIALIZATION. 
 
¶8. PRIVATE SECTOR: THE PRESIDENT EMPHASIZED THE IMPORTANCE OF THE 
PRIVATE SECTOR IN GENERATING EMPLOYMENT, AND NOTED THAT THE 
GOVERNMENT HAS PUT MEASURES AND LAWS IN PLACE TO FACILITATE GROWTH. 
THIS INCLUDED CAPACITY BUILDING PROGRAMS, LOAN GUARANTEES AND ACCESS 
TO CREDIT. HE POINTED TO SUBSTANTIAL INVESTMENTS IN MINING, THE 
SERVICE INDUSTRY, COMMERCE, TOURISM, HOTEL DEVELOPMENT, AND THE 
FINANCIAL SECTORS AS SIGNS OF GROWTH. HE HIGHLIGHTED A NEW 
ELECTRONIC FINANCIAL SYSTEM, TREMENDOUS GROWTH IN REAL ESTATE, AND 
POSSIBILITIES FOR A DEVELOPED BAUXITE INDUSTRY. HE POINTED 
SPECIFICALLY AT THE ACQUISITION OF VALCO AS BEING CRITICAL TO MOVING 
GHANA TOWARDS INDUSTRIALIZATION. IT WOULD BE PART OF A BAUXITE 
INDUSTRY THAT WOULD INCLUDE BOTH UPSTREAM AND DOWNSTREAM PROCESSING 
AND WOULD FULFIL A DREAM STARTED BY KWAME NKRUMAH WITH THE BUILDING 
OF AKOSOMBO DAM. [NOTE: VALCO IS CURRENTLY CLOSED AS IT IS DEPENDENT 
ON LOW COST ELECTRICITY TO BE EFFICIENT. END NOTE] HE INDICATED THAT 
200,000 JOBS HAD BEEN CREATED IN 2007 UP FROM 120,000 IN 2006. THE 
NATIONAL YOUTH EMPLOYMENT PROGRAM HAS BEEN RESPONSIBLE FOR 108,000 
JOB PLACEMENTS FOR YOUTH SINCE OCTOBER 2006. 
 
¶9. AGRICULTURE:  AGRICULTURE WAS IDENTIFIED AS LEADING ELEMENT 
WITHIN THE PRIVATE SECTOR, EMPLOYING A LARGE PART OF THE POPULATION 
AND HAVING THE POTENTIAL TO LEAD INDUSTRIALIZATION. THE PRESIDENT 
STRESSED EFFORTS TO MODERNIZE THE SECTOR THROUGH MECHANIZATION AND 
IRRIGATION. HE IDENTIFIED THAT "OUTLOOK" AND FINANCIAL CONSTRAINTS 
WERE THE BIGGEST CHALLENGES TO TRANSFORMING THE SECTOR. HE 
HIGHLIGHTED EFFORTS TO PROVIDE IMPROVED PLANTING MATERIALS, 
EXTENSION SERVICES, AND MICRO-CREDIT TO FARMERS. HE ALSO INDICATED 
THAT THE SECTOR HAD ATTRACTED LARGE SCALE COMMERCIAL FARMERS. ON 
COCOA, HE EMPHASIZED THE 740,000 TONS PRODUCED IN THE 2005/2006 CROP 
YEAR AS IT IS GHANA'S LARGEST EVER, WHILE NOT MENTIONING RECENT 
PRODUCTION TOTALS. HE SAID GHANA'S TARGET WAS TO REACH 1 MILLION 
TONS IN THE NEXT COUPLE YEARS WITHOUT ARTICULATING HOW THAT TARGET 
WOULD BE ACHIEVED. GHANA'S FOCUS WILL BE ON VALUE-ADDED TO THE 
SECTOR. HE SAID CURRENTLY OVER 30% OF COCOA BEANS ARE PROCESSED 
LOCALLY, SINGLING OUT BARRY CALLEBAUT AND CARGILL AS EXAMPLES OF 
INTERNATIONAL COMPANIES INVOLVED. 
 
¶10. MILLENNIUM CHALLENGE ACCOUNT:  THIS WAS THE ONE DONOR PROGRAM 
THAT THE PRESIDENT HIGHLIGHTED, EMPHASIZING THAT THE $547 MILLION 
TOTAL WAS THE LARGEST MCC COMPACT TO DATE. [NOTE: BOTH MOROCCO'S 
($697 MILLION, SIGNED IN AUGUST 2007) AND TANZANIA'S ($698 MILLION, 
SIGNED A FEW DAYS AFTER THE ADDRESS) COMPACTS ARE LARGER. END NOTE] 
THE PRESIDENT INDICATED THAT THIS MAY PROVIDE THE "LONG-AWAITED 
OPPORTUNITY TO TRANSFORM AND MODERNIZE THE RURAL ECONOMY THROUGH 
MECHANIZATION." 
 
¶12. PUBLIC SECTOR:  THE PRESIDENT SAID THE GOVERNMENT WAS REFORMING 
THE PUBLIC SECTOR TO BE "VERY PROFESSIONAL AND VERY SUPPORTIVE OF 
THE PRIVATE SECTOR." PUBLIC/PRIVATE PARTNERSHIPS WERE HIGHLIGHTED AS 
THE NEW PARADIGM. HE ALSO TOUCHED BRIEFLY ON EFFORTS TOWARD PUBLIC 
SECTOR PAY REFORM, THE WORK OF THE FAIR WAGES AND SALARIES 
COMMISSION, AND NATIONAL LABOUR COMMISSION. 
 
¶13. GOOD GOVERNANCE:  THE PRESIDENT FOCUSED ON THE AFRICA PEER 
REVIEW MECHANISM. HE INDICATED THAT THEIR MOST RECENT REPORT IN 
 
JANUARY 2008 INCLUDED PLANS TO STEM CONFLICT ARISING FROM LAND 
DISPUTES, STRENGTHEN THE OVERSIGHT ROLE OF PARLIAMENT, ESTABLISH 
TRADE DESKS THROUGHOUT GOVERNMENT MINISTRIES AND INCREASE CAPACITY 
FOR MULTILATERAL TRADE ISSUE ANALYSIS, AND STRENGTHEN TAX 
ADMINISTRATION. THE ONLY REFERENCE TO FIGHTING CORRUPTION WAS HIS 
MENTION OF PARLIAMENT'S PUBLIC ACCOUNT'S COMMITTEE HOLDING PUBLIC 
HEARINGS FOR THE FIRST TIME IN 2007, SAYING THAT THE FIGHT AGAINST 
CORRUPTION HAD FOUND A "NEW ALLY" IN PARLIAMENT. THE ATTORNEY- 
GENERAL'S DEPARTMENT, HE SAID, WOULD STUDY THE RECOMMENDATIONS FROM 
THE COMMITTEE AND PROSECUTE CASES THAT REQUIRED PROSECUTION. ON LAW 
ENFORCEMENT, HE INDICATED THAT THE POLICE SERVICE HAS INCREASED BY 
10,132 STAFF SINCE 2001, BRINGING THE TOTAL TO 26,115. HE POINTED 
OUT THAT THIS WAS STILL BELOW THE UN RECOMMENDED LEVEL OF POLICE TO 
CITIZEN RATION OF 1:500. KUFUOR ENCOURAGED COMMUNITIES TO FORM 
VOLUNTEER PROTECTION UNITS BUT CAUTIONED AGAINST INSTANT JUSTICE. HE 
HIGHLIGHTED THAT GHANA HAD ITS FIRST FEMALE CHIEF JUSTICE, 
INDICATING THAT THE GOVERNMENT HAD GOOD GENDER REPRESENTATION 
THROUGHOUT, THOUGH LACKING GENDER BALANCE. HE SAID THAT THE MINISTRY 
OF WOMEN AND CHILDREN HAD BEEN ESTABLISHED TO ADDRESS THIS ISSUE. 
FINALLY, HE DISCUSSED THE IMPORTANT ROLE THAT PARLIAMENT PLAYS WHILE 
STRUGGLING WITH LIMITED OFFICE SPACE AND STAFF FOR MEMBERS OF 
PARLIAMENT. HE ACKNOWLEDGED THAT THE $25 MILLION LOAN PROMISED IN 
2001 FOR MUCH NEEDED OFFICE SPACE HAD NOT MATERIALIZED, PROMISING 
THAT NEW RESOURCES WOULD BE PROVIDED IN THE COMING YEAR. 
 
¶14. FOREIGN RELATIONS:  THE PRESIDENT EMPHASIZED THE LARGE NUMBER OF 
INTERNATIONAL CONFERENCES HELD IN GHANA AND PRESIDENT BUSH'S VISIT 
AS INDICATORS OF THE RESPECT THAT GHANA COMMANDS CURRENTLY. HE ALSO 
HIGHLIGHTED GHANA'S ROLE AS CHAIR OF THE AU OVER THE PAST YEAR AND 
TWICE CHAIR OF ECOWAS OVER THE PAST SEVEN YEARS. 
 
¶15. NATIONAL HERITAGE:  THE PRESIDENT HIGHLIGHTED THAT FLAGSTAFF 
HOUSE, THE PRESIDENTIAL MANSION DURING NKRUMAH'S FIRST REPUBLIC, WAS 
BEING RE-BUILT TO HOUSE THE NEXT PRESIDENT. THIS IS COUPLED WITH THE 
REFURBISHMENT OF THREE PRESIDENTIAL RETREATS, ALSO FROM NKRUMAH'S 
FIRST REPUBLIC. HE ALSO EMPHASIZED THE FOUR STADIUMS BUILT AS A 
RESULT OF THE JUST ENDED AFRICA CUP OF NATIONS SOCCER TOURNAMENT. 
 
¶16. ELECTIONS 2008: KUFUOR INDICATED THAT HIS TIME IN OFFICE WAS 
COMING TO AN END, AND CAUTIONED AGAINST NEGATIVE CAMPAIGNING. HE 
DREW ATTENTION TO GHANA'S ELECTORAL COMMISSION'S REPUTATION 
INTERNATIONALLY FOR NEUTRALITY AND PROFESSIONALISM, INDICATING THAT 
GHANA HAD HELD FOUR SUCCESSFUL ELECTIONS SINCE 1992 THAT HAVE 
BROUGHT WITH EACH A SERIES OF IMPROVEMENTS TO THE SYSTEM. HE WENT 
FURTHER TO STRESS THE ROLE THAT THE JUDICIARY CAN PLAY IN ADDRESSING 
PERCEIVED PROBLEMS IN THE ELECTORAL PROCESS, STRESSING THAT THERE 
WAS NO NEED TO CONTEMPLATE OTHER MEANS OF REDRESSING PERCEIVED OR 
ANTICIPATED WRONGS. 
 
¶17. COMMENT:  RESPONSE TO THE STATE OF THE NATION ADDRESS IS HEAVILY 
INFLUENCED BY WHICH SIDE OF THE POLITICAL DIVIDE ONE SITS. 
GOVERNMENT REPRESENTATIVES LAUDED THE PRESIDENT'S SPEECH AS HIS MOST 
BRILLIANT EVER, WHILE THE MINORITY LABELLED IT HEAVILY 
SELF-PROMOTING, PARTISAN AND MISLEADING. BOTH THE MINORITY AND THE 
MEDIA COMMENTATORS HIGHLIGHTED THE PRESIDENT'S FAILURE TO DISCUSS 
GHANA'S GROWING NARCOTIC PROBLEM AND CONTINUED WEAKNESS IN THE 
ENERGY SECTOR. WHILE GHANA HAS ENJOYED MACRO-ECONOMIC STABILITY, 
SIGNIFICANT GROWTH, AND POVERTY REDUCTION OVER THE PAST SEVEN YEARS, 
WIDESPREAD PROSPERITY REMAINS ELUSIVE, INEQUALITY IS INCREASING, AND 
BUILDING A DIVERSIFIED ECONOMIC BASE STILL SEEMS DISTANT. GHANA 
CONTINUES TO BE HEAVILY DEPENDENT ON THE PRICE OF GOLD AND COCOA. 
THE PRESIDENT'S SPEECH FAILED TO ACKNOWLEDGE THE FITCH'S RECENT 
DOWNGRADING OF GHANA'S SOVEREIGN 'B+' CREDIT RATING TO STABLE FROM 
POSITIVE, THE RE-EMERGENCE OF SIGNIFICANT DEBTS AT TEMA OIL 
REFINERY, OR CURRENT FISCAL INDISCIPLINE THAT IS THREATENING THE 
MACRO ECONOMY. FURTHERMORE, THE ENERGY SITUATION HAS NOT BEEN 
SOLVED, AND THE HIGH COST OF ENERGY WILL CONTINUE TO CONSTRAIN 
INDUSTRY. WHILE GHANA IS BELATEDLY ADDRESSING GENERATION NEEDS, A 
SUSTAINABLE SOLUTION WILL REQUIRE COST RECOVERY TARIFFS, IMPROVED 
TRANSMISSION INFRASTRUCTURE AND MANAGEMENT, AND REFORM OF 
DISTRIBUTION SYSTEM. NONETHELESS, PRESIDENT KUFUOR'S READINESS TO 
STEP DOWN AFTER TWO TERMS CONTINUES THE TRADITION SET BY PRESIDENT 
RAWLINGS AND IS A STRONG EXAMPLE FOR THE CONTINENT. THIS COUPLED 
WITH KUFUOR'S EMPHASIS ON GHANA'S RECENT HISTORY OF CREDIBLE 
ELECTIONS AND EFFORTS TO DISSUADE AGAINST ACTIONS THAT COULD LEAD TO 
A REPETITION OF WHAT IS TAKING PLACE IN KENYA IS IMPORTANT FOR THE 
UPCOMING 2008 ELECTIONS. GHANA'S RECENT ENTRY TO INTERNATIONAL BOND 
MARKET AND OIL DISCOVERY PRESENT REAL OPPORTUNITIES PROVIDED THAT 
THEY ARE MANAGED WELL. AT THE SAME TIME, THEY PRESENT NEW RISKS FOR 
CORRUPTION AND MISMANAGEMENT AND HENCE, MERIT ATTENTION. END 
COMMENT. 
 
BRIDGEWATER