VZCZCXYZ0010
RR RUEHWEB

DE RUEHAR #0395/01 0851438
ZNR UUUUU ZZH
R 251438Z MAR 08
FM AMEMBASSY ACCRA
TO RUEHC/SECSTATE WASHDC 6323
INFO RUEHSA/AMEMBASSY PRETORIA 2045

UNCLAS ACCRA 000395 
 
SIPDIS 
 
FROM AMBASSADOR BRIDGEWATER 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: OTRA OVIP PREL PGOV ECON AMGT GH
SUBJECT: GHANA: SCENE SETTER FOR CODEL FRANK'S VISIT TO GHANA MARCH 
29-30, 2008 
 
¶1.  Mr. Chairman and Honorable Members of Congress:  Our entire 
mission joins me in extending to you a very warm welcome to Ghana. 
We hope your visit here helps inform you and the committee members, 
and look forward to supporting your objectives. 
 
¶2. SUMMARY: After celebrating 50 years of independence in 2007, 
Ghana is preparing to hold Parliamentary and Presidential elections 
in December 2008.  At that time, Ghanaians will choose a successor 
to President John A. Kufuor.  In addition to holding independence 
celebrations in 2007, Ghana hosted the African Union (AU) Summit and 
co-hosted with the United States the Sixth African Growth and 
Opportunity Act (AGOA) Forum.  From January 20-February 10 Ghana 
hosted 16 teams from around the African continent in the African 
Nations Cup soccer championship.  Mere days after Ghana took a 
somewhat disappointing third place in the soccer championship, 
President Bush visited Ghana.  He reinforced the bilateral 
relationship, highlighted existing trade and development programs 
and announced funding for health programs.  Considerable press 
attention also focused on President Bush's emphatic denial of rumors 
regarding a possible U.S. military presence in Ghana with the newly 
formed U.S. Africa Command (AFRICOM).  In April, Ghana will host 
UNCTAD, which will bring thousands of participants to Accra. 
 
¶3.  (U) Ghana has made impressive progress in democratic and 
economic development but challenges remain in such areas as poverty 
reduction, lack of adequate infrastructure, particularly in the 
power sector, and narcotics trafficking (cocaine and heroin).  Ghana 
has a goal of achieving middle income status by 2015.  U.S. 
interests center on support for Ghana's democracy, promotion of 
poverty reduction and shared prosperity, private sector development, 
security cooperation, and enhanced people-to-people and cultural 
ties.  Ghana is a reliable partner in peacekeeping, conflict 
resolution, counter-terrorism and economic development.  As evidence 
of Ghana's leadership role on the continent, President Kufuor 
recently completed his tenure as President of the African Union and 
Ghana completed its term as a non-permanent member of the UN 
Security Council.    END SUMMARY. 
 
2007 AND 2008: IMPORTANT YEARS FOR GHANA 
---------------------------------------- 
 
¶3. (SBU) Ghana is now gearing up for its December 2008 Presidential 
and legislative elections.  President Kufuor cannot seek another 
term under Ghana's constitution.  The 2007 independence celebrations 
provided an opportunity for many Ghanaians to celebrate the 
country's many achievements over the last 50 years, as well as to 
reflect on ways to meet the challenges that remain. 
 
POSITIVE STEPS FORWARD 
---------------------- 
 
¶4. (SBU) Ghana is relatively stable, with an apolitical military, a 
generally good record on human rights, and a lively, free media. 
After 15 years of democratic governance, Ghanaians are committed to 
democracy.  Ghana has held four consecutive free and fair national 
elections.  While parliament is weak and the main parties are 
increasingly polarized, there is political space for the opposition 
and almost half of parliamentary seats are held by the main 
opposition National Democratic Congress (NDC) party.  Civil society, 
particularly religious associations, is well organized. 
 
¶5.  (U) Politics is increasingly focused on the 2008 election which 
promises to be a close race between the NDC and the ruling New 
Patriotic Party (NPP).  The NPP defeated the NDC in the two previous 
elections by thin margins.  In December, the ruling New Patriotic 
Party (NPP) selected Nana Akufo Addo, former Minister of Foreign 
Affairs, as its candidate from among 17 aspirants, and the National 
Democratic Convention (NDC) has selected 2000 and 2004 party 
flag-bearer, and former Vice President in the Rawlings 
administration, Professor John Atta Mills to contest once again for 
the presidency.  The People's National Convention (PNC) has chosen 
Dr. Edward Mahama who also ran in the 2004 election.  The Convention 
People's Party (CPP) selected as its candidate, Dr. Paa Kwesi Ndoum, 
former Minister for Public Sector Reform and the lead official in 
developing Ghana's MCC Compact.  In 2004, the NPP received 53.4% of 
votes, the NDC received 43.7% of votes, the PNC received 1.9% of 
votes and the CPP received 1% of votes. 
 
¶6.  (SBU) The economy has performed generally well under the Kufuor 
administration.  Sound macro-economic policy accompanied by major 
debt relief, large inflows of donor resources and relatively high 
cocoa and gold prices have been key to the steady improvements in 
the real GDP growth, which was more than 6 percent in 2006 and 2007, 
lower inflation and reductions in poverty.  In October 2007 Ghana 
became the first sub-Saharan country other than South Africa to 
successfully enter international capital markets by issuing a $750 
million sovereign bond.  In 2008, Ghana will be the first 
sub-Saharan African country to meet the Millennium Development Goal 
of reducing poverty by 50 percent. 
 
¶7.  (U) USAID provides significant support for Ghana's development, 
averaging about $40 million annually 2004-2007 in addition to $22 - 
$25 million in food aid prior to FY 2007.  While food aid is being 
phased out, additional support for malaria and education under the 
special Presidential Initiatives has increased overall funding for 
USAID to approximately $73 million in FY 2008.  Ghana's strong 
performance was recognized in 2006 with the signing of a five-year, 
$547 million Compact with the Millennium Challenge Corporation.  The 
Compact has three main components: enhancing profitability of small 
farmers; reducing transportation costs affecting agricultural 
commerce through improvements in transportation infrastructure; and 
expanding basic community services and strengthening rural 
institutions. 
 
DIFFICULT CHALLENGES REMAIN 
--------------------------- 
 
¶8. (SBU) Despite Ghana's democracy and stability, politics is deeply 
polarized, political power is highly centralized, and democratic 
institutions are weak.  Corruption is a serious problem and Ghana 
faces human rights challenges relating to child labor and human 
trafficking.  Ghana also faces a range of security challenges, 
including a rise in violent street crime and vigilante justice, 
sometimes violent chieftaincy disputes, a proliferation of small 
arms, and a growing problem with narcotics trafficking. 
 
¶9.  (U) Economically, Ghana is vulnerable to external price shocks 
in cocoa and gold, which account for about 65 percent of exports. 
It remains heavily dependent on foreign aid and remittances. 
Infrastructure necessary to support growth is poor, particularly 
power generation and water supply.  Last year's energy crisis, with 
scheduled 12-hour power outages every second day, has subsided 
somewhat, but concerns over long-term energy policies remain.  The 
impact of the discovery in 2007 of potentially commercially viable 
oil reserves in Ghanaian waters is a wild card in Ghana's energy and 
economic future. 
 
¶10.  (SBU) Social indicators such as maternal and infant mortality 
rates are well below levels in the 1980s but remain high and have 
not changed significantly in ten years.  Access to education has 
grown but quality is lacking.  Many Ghanaians do not feel they have 
benefited from the country's macroeconomic success.  According to 
the Center for Democratic Development's 2005 Afrobarometer survey, 
53 percent of respondents thought their standard of living had 
declined over the previous year, compared to 38 percent in a similar 
survey in 2002. 
 
GHANA IN THE WORLD 
------------------ 
 
¶11. (U) Ghana has been playing an increasingly significant and 
positive global leadership role.  It is an active member of the 
Economic Community of West African States (ECOWAS), chaired the 
African Union in 2007, and just concluded a term as a non-permanent 
member of the UN Security Council.  Ghana is a major contributor of 
troops to UN Peacekeeping Missions and currently has personnel 
serving in Liberia, Cote d'Ivoire, Democratic Republic of the Congo, 
and Lebanon.  Ghanaian elder statesman and former UN Secretary 
General Kofi Annan recently helped broker a fragile power-sharing 
agreement in Kenya.  Ghana prefers multilateral solutions to global 
problems and has a history of committed African leadership, based on 
consensus among players. 
 
GHANA AND THE U.S. 
------------------ 
 
¶12. (SBU) Our bilateral relations are exceptionally good, and 
Ghanaians and citizens of the U.S. share a love of democracy, human 
rights, educational opportunity, free enterprise, peace and 
stability.  There is a deep reservoir of goodwill toward the United 
States and a genuine appreciation of our role and contributions to 
this society.   Approximately 3000 Ghanaian students are studying in 
the United States and the Mission nominates many strong candidates 
for International Visitor Programs that enhance professional 
development.  Ghana, in partnership with AFRICOM, has made great 
strides in developing its maritime domain awareness, improving its 
commercial port security and safeguarding its territorial waters. 
Africa Partnership Station, a six-month U.S. deployment to the Gulf 
of Guinea, recently wrapped up training in Ghana, providing courses 
to nearly one-third of the Ghana Navy.  We look forward to welcoming 
you to experience a bit of Ghana's successes and challenges first 
hand. 
 
BRIDGEWATER