Background

Under the Economic Growth Program, USAID/Ghana is increasing the competitiveness of the private sector to: 1) compete nationally, regionally and within the global marketplace; 2) improve the enabling environment for private sector development; 3) modernize the agricultural sector; and 4) strengthen the private sector's capacity to produce quality agricultural and agro-processed products.

 

USAID/Ghana Economic Growth Activities

Improving the enabling environment: The policy reform activity focuses attention on: 1) improving the macroeconomic management of policy reforms; 2) improving agricultural policy analysis; 3) promoting public-private dialogue of the impediments to policy/regulatory reform; and 4) removing barriers for agricultural commodities to enter into the market place. USAID supports access to credit by serving as a guarantee to loans at banks. This activity also improves the information and communication technology (ICT) regulatory framework.

Strengthening the capacity of the private sector to respond to market demands: USAID enhances the capacity of the private sector to conduct export business development training and to integrate smallholder farmers into the export supply chain. The focus is on the following priority areas: 1) improving the capacity of enterprises and smallholders to access markets through better market information, and meeting required food safety, health and phyto-sanitary standards; 2) increasing the production capacity of firms through the application of improved technologies and environmentally sound production practices; 3) improving the management capacity of firms by preparing business plans, strengthening accounting systems, accessing micro-credit, and adopting the use of information communications technology (ICT); 4) applying best practices in sustainable resource management in agriculture and eco-tourism; and 5) strengthening business associations to provide better services to their members.

Expanding and improving access to economic and social infrastructure: USAID is providing technical assistance and training to develop and implement a new gas regulatory framework for Ghana; promoting reform of the legal and regulatory framework for ICT; and developing innovative applications to improve market information for selected non-traditional exports.

Improving economic policy and the business environment: USAID is conducting land tenure research to support dialogues on policy reforms; strengthening multi-donor dialogue on public-private policy; establishing bio-safety law to field test genetically modified crops; and providing graduate training for economists and agricultural specialists.

Improving sustainable management of natural resources and biodiversity: USAID is supporting biodiversity conservation through a community-owned ecotourism activity and an agro-forestry program linked to cocoa production;supporting sustainable land use practices among smallholders; and growing organic products for the European market place.

Strengthening the financial services sector and increasing access to capital: USAID supports implementation of Ghana's Financial Sector Strategic Plan (FinSSP) by providing technical assistance and support of two long-term advisors - one to the Bank of Ghana and the other to the Ministry of Finance and Economic Planning/Debt Management Unit.

Highlights of USAID/Ghana Economic Growth Success Through 2005

• Reduced Lending Rates: The U.S. Treasury Debt Advisor contributed to providing more accurate public sector borrowing estimates, resulting in a decrease in government borrowing, and reducing the value of treasury bills.
  
  
• Increased Links to Market: To meet the stringent quality standards of the European Union, USAID initiated and facilitated the preparation of agricultural export protocols that comply with European standards.
  
  
• Provided Top-quality Products: With assistance from USAID, Ghanaian exporters provided top-quality products to the world market: 1) Dansak, a Ghanaian exporter shipped over 12 metric tons of papaya to Europe at competitive prices resulting in a 20 percent increase in profit for the company; and 2) Athena Foods Limited, a Ghanaian-owned company producing juices and concentrates for export to Europe and for the domestic market received technical and financial assistance through USAID that led to the company's expansion into the regional market. Athena Foods is now the major supplier of pineapple concentrates to Coca Cola in Nigeria for the production of 'Five Alive', a fruit drink.