VZCZCXRO0367
PP RUEHMA RUEHPA
DE RUEHAR #0832/01 2370848
ZNR UUUUU ZZH
P 250848Z AUG 09
FM AMEMBASSY ACCRA
TO RUEHC/SECSTATE WASHDC PRIORITY 8165
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 02 ACCRA 000832 
 
SIPDIS 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ETRD GH
SUBJECT: GHANA PROMOTES REGIONAL INVESTMENT HUB TO CODEL BUTTERFIELD 
 
¶1.  (SBU) Summary: During an August 17-19 visit to Ghana, CODEL 
Butterfield discussed ways to strengthen bilateral cooperation on 
trade and investment with Government of Ghana (GOG) leaders. 
President Mills underlined Ghana's commitment to removing investment 
obstacles, and said Ghana aspires to remain an example of 
responsible governance and economic development.  The Foreign 
Minister noted that the global economic downturn has adversely 
affected Ghana by reducing investment, decreasing remittances, and 
destabilizing commodity prices.  The Ministers of Finance and Trade 
urged greater U.S. investment in agriculture, and called for 
American companies to use Ghana as a regional hub, given the 
country's stable political environment.  The Trade Minister praised 
the Millennium Challenge Corporation's (MCC) investment in 
agricultural infrastructure, but said MCC procurement procedures 
were "tedious," and urged greater flexibility.  On managing future 
oil revenue, the Finance Ministry said GOG efforts are focused on 
ensuring transparency, accountability and capacity in the energy 
sector.  The Codel also participated in a roundtable discussion with 
business and government leaders, discussing mechanisms to stimulate 
Ghanaian competitiveness as well as increased trade and investment 
between the two countries.  End Summary 
 
President Mills: Ghana Seeks Partnership for Development 
 
¶2.  (SBU) On August 18, CODEL Butterfield, comprised of Chairman 
G.K. Butterfield (NC), Representative Sheila Jackson-Lee (TX), 
Representative Lacy Clay (MO), Representative Gwen Moore (WI), and 
Representative Steve Cohen (MO), accompanied by Ambassador 
Teitelbaum and staffers, met with President John Evans Atta-Mills, 
Minister of Foreign Affairs Alhaji Muhammed Mumuni, Chief of State 
Protocol, Ambassador Ken Kanda, and Secretary to the President, 
James Babaku-Mensah at Osu Castle. 
 
¶3.  (SBU) Representative Butterfield expressed appreciation for the 
GOGQs hospitality and friendship and commended Ghana for its 
effective democratic governance.  He noted the long history of 
strong relations between the U.S. and Ghana, as evidenced by 
President Obama's recent visit.  He underscored that while America 
currently faces its own domestic challenges, the U.S. could not 
overlook the importance of relations with Africa.  He expressed his 
belief that America's policy toward Africa must include both aid and 
foreign direct investment.  Representative Butterfield concluded by 
pledging U.S. commitment to partnering with Ghana in its development 
and to stimulating investment in "the emerging market of West 
Africa." 
 
¶4.  (SBU) Minister Mumuni warmly welcomed the Codel and echoed the 
delegation's wish that the countries continue their partnership for 
economic growth and development.  Minister Mumuni highlighted the 
long history of beneficial relations between the U.S. and Ghana, 
noting the numerous visits by sitting U.S. Presidents to Ghana.  He 
expressed concern that the recession in the West was negatively 
affecting Ghana by reducing investment levels, decreasing 
remittances and causing unstable commodity prices.   He welcomed the 
delegation's efforts to work together on attracting foreign direct 
investment (FDI) to Ghana. 
 
¶5.  (SBU) In welcoming the delegation, President Mills recalled the 
long history of U.S. assistance to Ghana, expressing his gratitude 
for the American Peace Corps volunteers who arrived after Ghana's 
independence in 1957 and filled a void left by departing British 
teachers.  He called President Obama's selection of Ghana for his 
first sub-Saharan Africa visit a "great honor," recognizing that 
Ghana's multi-party democracy sets an important example throughout 
Africa.  President Mills committed to removing obstacles to foreign 
investment, creating an atmosphere in which investors can operate 
freely while earning profits.  He welcomed the U.S. as a development 
partner and said that Ghana should serve as an example for the rest 
of Africa in both responsible governance and economic development. 
 
 
Ministers for Finance and Trade See Bright Economic Future and Seek 
Investment in Agriculture and Energy 
 
¶6.  (SBU) CODEL Butterfield met with Kwabena Duffuor, Minister of 
Finance and Economic Planning, Hannah Tetteh, Minister of Trade and 
Industry, Professor Newton Kusi, Acting Chief Director, Ministry of 
Finance, Mr. William Kofi Larbi, Chief Director, Ministry of Trade, 
Mr. George Gyan Baffour, Deputy Finance Minister, and Dr. Joe 
Amoako-Tuffour, Tax Advisor, Ministry of Finance at the Finance 
Ministry.  Representative Butterfield expressed the desire to 
encourage direct U.S. investment in Ghana and promote 
mutually-beneficial trade.  He noted his observation of a new 
attitude in Africa, whereby leaders sought less aid and more 
investment, and expressed hope that the U.S. and Ghana would build a 
partnership for growth and development. 
 
¶7.  (SBU) Minister Duffuor acknowledged that Ghana seeks greater 
foreign investment, and stated that Ghana concurrently seeks 
continued aid in building capacity.  He noted that while Ghana has 
 
ACCRA 00000832  002 OF 002 
 
 
faced economic challenges over the past year, including fiscal and 
current account deficits, a drop in gold prices, and arrears in debt 
service payments, Ghana's economy is steadily improving and faces a 
"very bright" middle-term outlook.  Minister Duffuor noted that 
Ghana is carefully preparing to deal with expected oil revenues and 
will not abandon other sectors of the economy as oil production 
increases.  He encouraged foreign investment in three specific 
sectors: gas, agro-processing, and salt production. 
 
¶8.  (SBU) Minister Tetteh expressed gratitude for the Millennium 
Challenge Corporation's investment in agricultural infrastructure 
and for USAID's technical assistance in trade and investment policy. 
 She welcomed additional American investment in agriculture, noting 
that while 60 percent of Ghanaians work in agriculture, the sector 
represents only 30 percent of GDP.  She highlighted the need for 
capital investment, human capacity-building, and technology 
transfer.  Minister Tetteh also encouraged further investment in 
Ghana's cocoa sector, an industry that already sees investment from 
a leading U.S. agricultural firm, Cargill.  The Minister called for 
American companies to use Ghana as their regional hub, noting the 
country's political stability, respect for law and order, and 
skilled workforce. 
 
¶9.  (SBU) Dr. Amoako-Tuffour reviewed the government's efforts to 
prepare for future oil revenues, noting that the GOG's primary goal 
is to promote transparency, accountability, and capacity building in 
the energy sector.  He indicated the government was focused on 
developing the institutional structures and regulations to support 
the oil industry and to provide both incentives and protection for 
investors.  He also noted that the government is consulting with 
other countries on how to manage the projected revenues and ensure 
that the revenues transfer into other sectors of the economy. 
 
¶10.  (SBU) Representative Jackson-Lee inquired about the process for 
using oil revenues to improve services such as the public education 
system.  Deputy Minister Baffour responded that there are several 
proposals under review, including a planned Heritage Fund to direct 
a portion of oil revenue to social development projects. 
Jackson-Lee also asked for feedback on the Millennium Challenge 
Corporation's effectiveness in Ghana.  Minister Tetteh responded 
that the MCC program in Ghana is a success, but that a "tedious" 
procurement process makes it time consuming to get money allocated. 
 She recommended that greater flexibility be introduced into the 
procurement process, awarding contracts to certain local firms who 
might not be the lowest cost provider but would gain valuable 
capacity-building experience.  Representative Jackson-Lee extended a 
formal invitation for GOG officials to visit Houston and meet with 
energy industry leaders. 
 
¶11.  (SBU) Representative Butterfield asked if Ghana is currently 
receiving revenues from oil exploration.  Minister Duffuor responded 
that Ghana is not seeing any oil revenues at present. 
 
¶12.  (SBU) Representative Moore asked how U.S. and European 
agricultural subsidies impact Ghana's agricultural sector.  Minister 
Tetteh responded that subsidies hinder Ghana's competitiveness and 
that Ghanaian farmers seek greater protection.  Minister Tetteh also 
noted that Ghana requires investment in infrastructure to improve 
farmer efficiency, which will in turn mitigate the effects of 
foreign subsidies.  Representative Moore also inquired about Ghana's 
ability to borrow money from the international capital markets. 
Minister Duffuor noted that since the cost of borrowing from capital 
markets is higher than from international financial institutions 
(IFIs), and since the IFIs imposed few conditions on their loans, 
Ghana would continue to seek capital from the IFIs. 
 
¶13.  (SBU)On August 18, Codel members participated in an economic 
forum organized and sponsored by the Business Council for 
International Understanding (BCIU).  The Ghana Competitiveness Forum 
involved participants from Ghanaian government (both Ministerial and 
operational levels), traditional leadership (King Adamtey I), 
Ghanaian private enterprise as well as U.S. private sector 
businesses.  Ambassador Teitelbaum and representatives from MCC and 
FCS also participated.  Among the topics discussed were: increasing 
U.S.-Ghana trade, encouraging sustainable and diversified growth in 
Ghana, supporting increased involvement by U.S. and Ghanaian small 
and medium enterprises in future business opportunities in both 
countries, and ensuring diversified growth in Ghana. 
 
Representative Jackson-Lee Meets with Former President Rawlings 
 
¶14.  (SBU)Representative Sheila Jackson-Lee also held a separate 
meeting on August 18 with former President Jerry Rawlings. 
Representative Jackson-Lee recognized Rawlings' contributions to 
Ghana's democracy and sought his views on both development and 
conflict resolution in Africa.  Rawlings gave a brief tour d'horizon 
but particularly expressed his concerns over stability in Nigeria. 
 
¶15.  (U)CODEL Butterfield has cleared this message. 
 
TEITELBAUM