## _cr09237 ## Source details **Canonical URL:** [_cr09237](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09237.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09237.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09237.pdf.json) --- ### EXECUTIVE SUMMARY — OVERVIEW - Document: 2006 Annual Progress Report (APR) assessing implementation of Growth and Poverty Reduction Strategy (GPRS II, 2006-2009). - Structure: Seven chapters and five appendices covering Macroeconomic Performance and Economic Governance; Private Sector Competitiveness; Human Resource Development; Good Governance and Civic Responsibility; Linking GPRS II and the 2006 Budget; Implementing GPRS II at the District Level; Appendices on DACF, Budget initiatives, PRSC/MDBS, APRM, MDGs. - Key monitoring challenge: inconsistencies and timing differences in data from MDAs and MMDAs; inadequate updated data and missing baselines for many new indicators. - Participatory initiatives in 2006: - Dissemination of 2005 APR via two-day regional workshops nationwide. - Commencement of comprehensive evaluation of GPRS I. - Summary progress on GPRS II core indicators (Table 1.2): - Total indicators assessed: 159. - No. Achieved: 31. - Steady Progress: 19. - Not Achieved: 63. - Inadequate data: 46. ### 2.0 MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE - GDP and growth - GPRS II projected 2006 GDP growth: 6.11%. - 2006 Annual Budget target: 6.0%. - Actual 2006 GDP growth: 6.2%. - Sector growth in 2006: - Industry: 6.5% (noted elsewhere industrial growth 7.3% with electricity & water 23%). - Services: 7.3%. - Agriculture: actual 5.7% (GPRS II projected 5.2%; 2006 budget 6.6%); agriculture contribution ~35.8% of GDP. - Aggregate real GDP growth series entries (selected): 4.5; 5.2; 5.8; 5.0; 5.8; 5.9; 6.0; 6.2; 6.11. - Inflation, interest, exchange - Year-on-year CPI declined from 23.6% (2003) to 10.6% by 2006; end-period series include 10.5; 11.8; 14.8 in table context. - Bank of Ghana prime rate declined to 12.50% in 2006 (selected series show 18.50; 15.50; 12.50). - 91-Day Bills (Annual Av): 10.70 (2006 entry). - Cedi depreciation vs US$: 1.1% in 2006; vs British Pound 9.5%; vs Euro 7.8%. - Fiscal accounts and public debt - Domestic revenue (% of GDP): 23.87% in 2005; 22.3% in 2006; target 23.5%. - Overall budget balance: deficit ¢8,970.9 billion = 7.9% of GDP (2006); budget estimate 4.5% of GDP; 2005 deficit 2.7%. - Domestic primary balance: deficit 1.9% of GDP vs budget estimate 1.4% of GDP. - Public Domestic Debt (excluding certain BO.G holdings): ¢17,061.2 billion = 15.2% of GDP; increase from 11.5% in 2006 noted elsewhere. - Domestic debt stock (end‑Sept 2006) outstanding ¢10,818.1 billion; medium-term funding increased by ¢3,285.1 billion (43.6%). - External sector and reserves - Balance of payments: surplus US$178.8 million in 2006 vs surplus $84.34 million in 2005. - Gross international reserves: US$2 billion = 3.2 months of imports of goods and services. - Total medium and long-term external debt: US$6,347.9 million end-2005; reduced to US$2,143.79 million in 2006 due to 66% reduction under MDRI. - External debt service (% of exports): 5.8% in 2005; 3.17% in 2006; target 2.3%. - Poverty and social - Poverty (GLSS 5): 28.5% in 2005/06 vs 39.5% in 1998/99. - Extreme poverty: 18.2% in 2005/06 vs 26.8% in 1998/99. - Decomposition of change in poverty headcount (1998/99→2005/06): National total change -10.9; Growth -13.5; Redistribution +2.6. ### 3.0 PRIVATE SECTOR COMPETITIVENESS — FINDINGS (2006) - Policy priorities: private sector development; modernised agriculture; fisheries/aquaculture; environment/natural resource management; trade and industrial development; transport infrastructure; energy supply; science & technology; ICT; tourism; employment and safety nets. - Indicators and outcomes (selected exact figures) - Domestic credit to private sector (% of GDP): historical 13.1; 14.9; 18.0; target 19.6% by 2009 — assessed as "Substantial progress". - Ease of Doing Business rank: 2004 = 102; 2005 = 94; 2006 = 94; target within first 55 by 2009 — Slow Progress. - FDI net inflows (US$ million): 2005 = 144.97; 2006 = 434.50. - Number of days to register a Limited Liability Company: 2005 = 14; 2006 = 5; target 7 — Target exceeded. - Number of days to resolve a commercial dispute: 2004 = 195; 2005 = 185; 2006 = 90; target 175 — Target exceeded. - Agriculture and fisheries - Agriculture growth 2006 = 5.7%; contribution ~35.8% to GDP; cocoa sub‑sector growth 8.7% in 2006. - Crop yields: maize, cassava, plantain yields declined in 2006 vs 2005. - Fish farming surface area: 231.4 ha (2005) → 508.58 ha (2006); target exceeded. - Quantity of fish produced per hectare: target 2 Tons/ha/yr; achieved 1.5 (2006) — Target not attained. - Trade and industry - Non-traditional exports: US$777.59 million (2005) → US$892.88 million (2006) (≈15% increase); 2006 target 10% — Target exceeded. - Average days to clear goods from ports: 4 days (2005) → 2 days (2006) — Target exceeded. - Transport and energy - Proportion of roads maintained/rehabilitated: 75.6% in 2006; target 89%; 2005 level 67% — Target not met. - Rail passenger traffic: 64,000 (2005) → 38,000 (2006) (thousand passenger‑km) — decline of 40% in 2006. - Electricity household access: 45% (2005) → 48% (2006) — Target exceeded. - Load-shedding instituted August 2006; average hours of outage per consumer per year expected to exceed ≤100 hours/Year target. - ICT and tourism - Teledensity: 16.6% (2005) → 27.2% (2006) (25.5% mobile; 1.7% fixed) — Target exceeded. - Internet subscribers increased marginally by 0.05% in 2006 vs targeted 2% — Targets not achieved. - Tourist receipts: US$836.1 million (2005) → US$984.8 million (2006) — receipts increased ~18%. - Employment in tourism: 172,823 (2005) → 183,192 (2006) (about 6% increase). ### 4.0 HUMAN RESOURCE DEVELOPMENT — FINDINGS (2006) - Education — access and quality - Basic education enrolment growth 2006: - Kindergarten +9.8%; Primary +7.8%; JSS +8.8%. - Gross Enrolment Ratios (selected): - KG national GER: 54.58% (2003/04); 60.14% (2004/05); 85.30% (2005/06) — Target 64.5% — Exceeded. - Primary GER: 86.3% (2003/04); 87.50% (2004/05); 92.10% (2005/06) — Target 90.90% — Exceeded. - JSS GER: 70.20% (2003/04); 72.80% (2004/05); 74.70% (2005/06) — Target 75.63% — Steady progress. - Pupil‑Teacher Ratio (PTR) primary: 34.9:1 (2004/05) → 35.7:1 (2005/06) — target 34.1 — Slow progress. - School Education Assessment (SEA): 900,000 students in grades 2 and 4 assessed nationwide. - Health — access, coverage, HR - Outpatient per capita: 0.54 (2005) → 0.52 (2006); target 0.6 — Target not achieved. - Immunisation: Measles 82% (2005) → 85.1% (2006); Penta 3 = 84.2% (2006). - Supervised deliveries: 40.3% (2005) → 44.5% (2006) — target 60% — Slow progress. - Doctor‑population ratio: 1:16,000 (2005) → 1:10,641 (2006); target 1:10,500 — Significant progress (regional disparities remain: Northern 1:63,614; Upper West 1:44,317; Upper East 1:28,670). - Nurse‑population ratio: 1:1,800 (2005) → 1:1,636 (2006); target 1:1,500 — Steady progress. - NHIS registration: 22% (2005) → 38% (2006); total registered 7,673,998 (2006). - HIV/AIDS and malaria - HIV prevalence (sentinel): National 2.7% (2005) → 3.2% (2006); increases among adolescents and 25-29 age group noted. - ART: people in need 50,942 (2006); clients on ART as at December 2006 = 7,338 ≈ 14.4% of people in need. - Malaria control: - Children <5 ITN use: 26% (2005) → 32.3% (2006). - Pregnant women ITN use: 26.8% (2005) → 46.3% (2006). - IPT: about 230,269 pregnant women received 2 doses or more in 2006. ### 5.0 GOOD GOVERNANCE AND CIVIC RESPONSIBILITY — FINDINGS (2006) - Democracy, rule of law and decentralisation - Workshops, legislative actions and decentralisation steps implemented; Representation of Peoples’ Amendment Law enacted to enfranchise Ghanaians living abroad. - Recommendation/action: reduce Unit Committees from 16,000 to 5,000; membership from 15 to 7. - Cabinet endorsed District Development Fund (DDF) operationalisation plan for 2008. - Public safety and security - Police strength as at December 2006: 17,826. - Police‑citizen ratio: 1:1121 (Dec 2006) vs 1:1021 (2005) — worsening. - Police recruitment in 2006: 1,711 (520 women) recruited and trained. - DOVVSU: opened 23 new offices/desks; total 63 offices/desks. - Crime Q4 2006 vs Q4 2005: cases reported 44,994 → 57,741; % change 28.3. - Major crimes Q4 2006 vs Q4 2005: - Murder: 88 → 103 (+17.4%). - Robbery: 426 → 612 (+43.7%). - Rape: 143 → 173 (+21.0%). - Defilement: 487 → 643 (+32.0%). - Possessing narcotic drug: 126 → 186 (+47.6%). - Public sector reforms and anti‑corruption - Public Procurement Act 2003 (Act 663) implementation: 698 Entity Tender Committees; 109 Review Boards. - Public perception: 89% of respondents said corruption widespread; 23% said government intention to fight corruption was very high; 46% said commitment low. - Women’s empowerment - Domestic Violence Act 2007 (Act 732) passed. - “Women in Local Governance Fund” launched March 2006; 1,783 women aspirants given minimum amounts to contest District Assembly elections. - Women representation: Members of Parliament 25 out of 230 (11%). ### 6.0 LINKING THE 2006 BUDGET TO GPRS II — ALIGNMENT AND FINANCING OUTCOMES - Approved 2006 budget to implement GPRS II: US$2,194.4 million. - GPRS II thematic approved shares: Private Sector Competitiveness 40.5%; Human Resource Development 35.8%; Good Governance and Civic Responsibility 21.4%. - Revised GPRS II costing framework total: US$2,066.41 million (Private Sector Competitiveness 751.88; Human Resource Development 1,110.69; Good Governance 203.84). - Actual realizations (excluding DPs BOP/Budget Support) - GoG actual releases: US$815.4 million. - DPs Sector & Investment Support realized: US$743.2 million. - Total resources available for GPRS II implementation: US$1,558.67 million. - Distribution of US$1,558.67 million: - Private Sector Competitiveness: 37.0% (US$575.31 million). - Human Resource Development: 43.0% (US$669.58 million). - Good Governance and Civic Responsibility: 20.0% (US$313.56 million). - Observed misalignments - GoG releases: Private Sector Competitiveness 26.8% (vs 36.4% planned); Good Governance 31.5% (vs 9.9% planned). - DPs: 48.0% of their sector & investment support went to Private Sector Competitiveness. - Donor inflows and HIPC/MDRI - Total projected donor inflows ¢6,251.815 billion; actual donor disbursements ¢3,810.465 billion. - HIPC releases were 58% of planned spending. - MDRI: total medium/long‑term external debt reduced from US$6,347.9 million (end‑2005) to US$2,143.79 million (2006); MDRI account approx ¢1.9 trillion at end‑Sept 2006. ### 6.7 DISTRIBUTION OF EXPENDITURES BY ITEMS & POVERTY SPENDING - Discretionary expenditures (selected figures) - Personal Emoluments: 2004 Actual 35.1; 2005 Actual 37.0; 2006 Actual 38.7 (¢ billion entries preserved). - Investment (total): 2004 Actual 29.4; 2005 Actual 30.8; 2006 Actual 33.3. - Foreign‑financed investment (2006): 28.41% of discretionary expenditures. - Poverty reduction spending - Total poverty reduction expenditure: 2006 Actual ¢12,374.03 billion; increased 49.9% and exceeded planned budget by 3.24%. - Poverty reduction spending as % of total government spending in 2006: 34.86%. - Sources: about 57% from Government discretionary budget. - Main allocations: Basic Education; Primary Health Care; Agriculture; Rural Water; Feeder Roads; Rural Electrification. - HIPC and MDRI application (selected) - Planned HIPC 2006: ¢2,277.74 billion; actual releases ¢1,322.64 billion. - MDRI allocations total ¢2,000,230.20 million cedis in Table 6.11 with 47.2% to poverty reduction and 52.8% to growth enhancing measures. ### 7.0 IMPLEMENTING THE GPRS II AT THE DISTRICT LEVEL — FINDINGS AND DATA ISSUES - District planning and M&E - All District Assemblies drafted District Medium Term Development Plans (DMTDPs) consistent with GPRS II. - Guidelines for District M&E Plans developed and piloted in 2006. - GhanaInfo database launched July 2005; 60 officers from MDAs trained Dec 2005–Jan 2007; regional roll‑out and workshops conducted. - District financing and DACF - Total DACF releases since 1994 to 2006: ¢4,363.180 billion. - DACF 2006 allocation: 1,046.872 (million? billion? preserved as presented); DACF accounted for nearly 49% of district revenue. - Internally Generated Revenue (IGF) share: 14% of total district revenue. - Total regional 2006 totals (selected): GOG 149,394; GRANTS 198,263; DONOR GRANTS 289,631; RECEIPTS FROM HIPC FUND 846,910; DACF IGF 244,721 (figures preserved as reported). - Data collection problems at district level - Many district reports cover only 6 months; inconsistencies in DACF returns; limited capacity to process data; new indicators without baselines. - District HIPC utilisation and projects - HIPC receipts by region total 829,938 (million cedis) across 138 districts; HIPC‑funded projects total 2,303 (Education 1,139; Health 398; Water 144; Sanitation 622). ### SUMMARY OF POLICY RECOMMENDATIONS (SELECTED) - Fiscal and macroeconomic management - Sustain macroeconomic stability and prudent fiscal policy: public expenditure management; external and non‑tax revenue mobilisation; financial sector development; fiscal policy monitoring. - Expand BPEMS to remaining MDAs and regions; consolidate sub‑consolidated funds for comprehensive reporting and fiscal decentralisation. - Revenue administration and local government finance - Accelerate computerisation of IRS and revenue administration; implement measures to improve MMDAs’ capacity to generate revenue; review obsolete fees and charges. - Financial sector reform - Deepen capital markets: list 2‑ and 3‑year bonds on GSE; establish IFSC; implement Central Securities Depository. - Promote competition and efficiency to narrow interest rate spreads and increase access to financial services. - Private sector competitiveness and agriculture - Accelerate implementation of Trade Sector Support Programme (TSSP); continue measures to reduce days to register businesses and resolve commercial disputes. - Increase extension, technology dissemination, mechanisation, irrigation expansion and credit to agriculture; address declining share of credit to agriculture (4.8% in 2006). - Energy and transport - Develop comprehensive plan to ensure constant energy supply to industry and households; address transmission & distribution losses (transmission 3.56% 2006; distribution 24.32% 2006). - Scale up road maintenance to meet 89% target; review rail interventions for bulk transport potential. - Human resources, health and social protection - Address health personnel attrition; improve NHIS management and coverage; investigate HIV prevalence increase (2.7% → 3.2%); scale up ART (7,338 on ART = 14.4% of need, end‑2006). - Strengthen M&E systems, improve data collection and timeliness; require sector APRs by end‑February to enable NDPC national APR by April. - District capacity and fiscal decentralisation - Enhance district planning and financial management training; operationalise composite budgeting; enforce DACF utilisation guidelines for development only; fine‑tune HIPC allocation guidelines for equity and poverty targeting. - Governance and rule of law - Increase police recruitment (~15% recommended) to improve police–citizen ratio; implement affirmative action and gender budgeting; strengthen procurement transparency and anti‑corruption measures. - Monitoring & data - Harmonise reporting formats across MDAs and CAGD to align with GPRS thematic areas; synchronise MDA/MMDAs reporting cycles with APR timeframe; institutionalise district M&E and GhanaInfo integration. *Source: _cr09237 - EXECUTIVE SUMMARY and chapters/excerpts (PDF)._* ### EXECUTIVE SUMMARY .................................................................................................. xii ### EXECUTIVE SUMMARY ### CHAPTER ONE: INTRODUCTION - 1.1 BACKGROUND - 1.2 CHALLENGES TO DATA COLLECTION IN THE MONITORING AND EVALUATION OF THE GPRS II - 1.3 KEY ACTIVITIES FOR THE MONITORING AND EVALUATION OF THE GPRS - 1.3.1 Dissemination of 2005 APR - 1.3.2 Evaluation of the GPRS I - 1.3.3 GhanaInfo Database - 1.4 SUMMARY OF PROGRESS – GPRS II CORE INDICATORS ### CHAPTER TWO: MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE - 2.1 INTRODUCTION - 2.2 TRENDS IN SELECTED MACROECONOMIC AND ECONOMIC GOVERNANCE INDICATORS - 2.2.1 Real GDP Growth Rate - 2.2.2 Trends in Inflation - 2.2.3 Interest Rates - 2.2.4 The Government Budget - 2.2.5 Developments in the External Sector - 2.2.6 Domestic Debt Stock/GDP and Domestic Debt Service - 2.3 TRENDS IN SELECTED POVERTY INDICATORS - 2.4 DEVELOPMENTS IN THE MACROECONOMIC AND ECONOMIC POLICY ENVIRONMENT - 2.4.1 Management of Fiscal Policy - 2.4.2 Monetary Policy - 2.4.3 International Trade Policy - 2.5 SUMMARY OF POLICY RECOMMENDATIONS ### CHAPTER THREE: PRIVATE SECTOR COMPETITIVENESS - 3.1 INTRODUCTION - 3.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES, AND STRATEGIES IN 2006 - 3.2.1 Private Sector Development - 3.2.2 Modernised Agriculture - 3.2.3 Fisheries and Aquaculture Development - 3.2.4 Restoration of Degraded Environment and Natural Resource Management - 3.2.5 Trade and Industrial Development - 3.2.6 Development of Transport Infrastructure: Road, Rail, Water and Air Transport - 3.2.7 Energy Supply to Support Industry and Households - 3.2.8 Science and Technology for Increased Productivity and Development - 3.2.9 Developing Information and Communication Technology (ICT) - 3.2.10 Developing the Tourism Sector for Revenue and Employment Generation - 3.2.11 Employment Generation and Improvement and Expansion of Safety Nets - 3.3 SUMMARY OF POLICY RECOMMENDATIONS - 3.3.1 Private Sector Development - 3.3.2 Modernised Agriculture - 3.3.3 Modernised Fishing and Aquaculture Development - 3.3.4 Restoration of degraded environment and Natural Resource Management - 3.3.5 Promoting Trade and Industrial Development - 3.3.6 Transport Infrastructure: Road, Rail, Water and Air Transport - 3.3.7 Energy Supply to Support Industry and Households - 3.3.8 Science and Technology to Support Productivity and Development - 3.3.9 Developing Information and Communication Technology (ICT) - 3.3.10 Developing the Tourism Sector for Revenue and Employment Generation - 3.3.11 Employment Generation and Improvement and Expansion of Safety Nets ### CHAPTER FOUR: HUMAN RESOURCE DEVELOPMENT - 4.1 INTRODUCTION - 4.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGY IN 2006 - 4.2.1 Education - 4.2.2 Training and Skills Development - 4.2.3 Health - 4.2.4 HIV/AIDS Prevention - 4.2.5 Malaria Control - 4.2.6 Population Management - 4.2.7 Safe Water and Sanitation - 4.3 SUMMARY OF POLICY RECOMMENDATIONS - 4.3.1 Education - 4.3.2 Health - 4.3.3 Water and Sanitation - 4.3.4 Population Management ### CHAPTER FIVE: GOOD GOVERNANCE AND CIVIC RESPONSIBILITY - 5.1 INTRODUCTION - 5.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGIES IN 2006 - 5.2.1 Strengthening the Practice of Democracy and the Rule of Law - 5.2.2 Enhancing Decentralisation - 5.2.3 Protecting Rights under the Rule of Law - 5.2.4 Public Safety and Security - 5.2.5 Public Policy Management and Public Sector Reforms - 5.2.6 Fighting Corruption and Economic Crimes - 5.2.7 Empowerment of Women - 5.2.8 Enhance Development Information Management - 5.2.9 Promoting Evidence Based Decision-Making - 5.3 SUMMARY OF POLICY RECOMMENDATIONS - 5.3.1 Improving public Safety and Security - 5.3.2 Promoting Rights under the Rule of Law - 5.3.3 Decentralisation - 5.3.4 Studies ### CHAPTER SIX: LINKING THE 2006 BUDGET TO GPRS II - 6.1 INTRODUCTION - 6.2 THE BUDGET PREPARATION PROCESSES AND THE GPRS II - 6.3 THE MACROECONOMIC FRAMEWORK OF THE 2006 BUDGET AND THE GPRS II - 6.4 ALIGNMENT OF 2006 SPENDING PRIORITIES WITH GPRS II COSTING FRAMEWORK - 6.5 SECTORAL DISTRIBUTION OF DISCRETIONARY BUDGET EXPENDITURE - 6.6 DONOR SPENDING AND GPRS PRIORITIES - 6.7 DISTRIBUTION OF EXPENDITURES BY ITEMS - 6.8 SPENDING ON POVERTY REDUCTION - 6.8.1 Discretionary Spending - 6.8.2 HIPC Funds - 6.8.3 Multilateral Debt Relief Initiative (MDRI) - 6.9 SUMMARY OF POLICY RECOMMENDATIONS ### CHAPTER SEVEN: IMPLEMENTING THE GPRS II AT THE DISTRICT LEVEL - 7.1 DISTRICT DEVELOPMENT PLANS AND M&E SYSTEMS FOR GPRS II - 7.2 MONITORING AND EVALUATION OF DMTDPS - 7.2.1 Monitoring Indicators - 7.2.2 The need to Institutionalise District M&E Systems - 7.3 FINANCING THE IMPLEMENTATION OF DISTRICT DEVELOPMENT PROGRAMMES - 7.3.1 Sources of Revenue for Financing Development Programmes at the District Level - 7.4 SUMMARY OF POLICY RECOMMENDATIONS ### APPENDICES - APPENDIX I: REVENUE GENERATION PERFORMANCE OF DISTRICT ASSEMBLIES – 2006 - APPENDIX II: ACHIEVEMENTS OF 2006 BUDGET INITIATIVES - APPENDIX III: STATUS REPORT ON POVERTY REDUCTION SUPPORT CREDIT (PRSC) 2006 AND THE MULTI-DONOR BUDGETARY SUPPORT (MDBS) 2006 - APPENDIX IV: STATUS REPORT ON THE IMPLEMENTATION OF THE POA OF THE AFRICAN PEER REVIEW MECHANISM (APRM) *Source: _cr09237 - EXECUTIVE SUMMARY (PDF).* ### APPENDIX V: STATUS AT A GLANCE: GHANA PROGRESS TOWARDS ### APPENDIX V: STATUS AT A GLANCE: GHANA PROGRESS TOWARDS ACHIEVINGTHE MILLENNIUM DEVELOPMENT GOALS, 2006 ### Overview and Purpose - This document is the fifth in a series of Annual Progress Reports (APRs) and the first on the assessment of progress made in the implementation of policies outlined in the Growth and Poverty Reduction Strategy (GPRS II, 2006-2009). - The APR for 2006 has been conducted from an assessment of the status of indicators and targets, adopted for monitoring and evaluating the achievements and impacts of key policy and programme interventions undertaken during the year. - The document is presented in seven chapters with five appendices providing assessments on programmes such as the Multi Donor Budget Support (MDBS), the linkage between the 2006 Annual Budget and the GPRS II, performance towards the attainment of the Millennium Development Goals (MDGs) and the African Peer Review Mechanism (APRM). ### Structure (Chapters) - Chapter One: Introduction - Chapter Two: Macroeconomic Performance and Economic Governance - Chapter Three: Private Sector Competitiveness - Chapter Four: Human Resource Development - Chapter Five: Good Governance and Civic Responsibility - Chapter Six: Linking the GPRS II and the 2006 Budget - Chapter Seven: Implementing the GPRS II at the District Level ### Data and Monitoring Challenges - Data used in preparing this report were sourced from sector ministries, departments and agencies (MDAs), and metropolitan, municipal and district assemblies (MMDAs) which have different reporting cycles and this presented significant challenges to the preparation of the APR on timely basis. - The different reporting timelines of MDAs and MMDAs need to be synchronised with the timeframe for the development of the APR in order to enhance the analytical framework for presenting more realistic results on the assessment of policies and issues under the various thematic areas. - The inadequacy of updated data in general and unavailability of established baselines and targets, especially on many of the new indicators selected to track progress, pose another challenge to the effective monitoring of the implementation of the GPRS II. - Recommendation: MDAs must fully incorporate the new indicators into their respective M&E system to resolve this situation in subsequent years. ### Participatory Initiatives in 2006 - Two important initiatives were conducted in 2006 in line with the participatory process of formulating, monitoring and evaluating the GPRS II: - Dissemination of the 2005 APR in a series of two-day regional workshops organised nationwide with objectives to: - enhance public awareness on the 2005 APR; - obtain feedback on progress made in implementing GPRS I policies and programmes; and - collect data for the development of subsequent APRs. - Commencement of a comprehensive evaluation of the GPRS I designed to: - assess its general impact on the socio-economic development of the country; - assess the Poverty Reduction Strategy Programme (PRSP) approach and its impact on various variables of development management; and - provide inputs for strengthening the M&E of the GPRS II and future development programming in the country. *Source: APPENDIX V: STATUS AT A GLANCE: GHANA PROGRESS TOWARDS ACHIEVINGTHE MILLENNIUM DEVELOPMENT GOALS, 2006* ### 2.0 MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE ### 2.0 MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE ### Macroeconomic performance (2006) - GDP growth: projected 6.11% in the GPRS II; actual growth 6.2% in 2006. - Sector growth contributions: - Industry: 6.5% growth. - Services: 7.3% growth. - Agriculture: projected 5.2% in GPRS II; actual 5.7% in 2006; contributed about 35.8% to GDP. - Inflation: year-on-year CPI declined from 23.6% (2003) to 10.6% by 2006; still above single digit target in GPRS II. - Domestic revenue generation (percent of GDP): 23.87% in 2005; 22.3% in 2006; below projected target of 23.5%. - Overall budget balance: deficit of ¢8,970.9 billion, equivalent to 7.9% of GDP; budget estimate was 4.5% of GDP; 2005 deficit was 2.7%. - Domestic primary balance: deficit of 1.9% of GDP against budget estimate deficit of 1.4% of GDP. - Exchange rate movements: cedi depreciated by 1.1% against the dollar in 2006; British pound and Euro strengthened against the cedi due to international developments. - Underlying exchange stability factors: improved private remittances through formal channels, increased foreign exchange liquidity, sound fiscal and monetary policies, build-up in external reserves. ### External sector and reserves - Balance of payments (BOP): surplus of US$178.8 million in 2006 compared to surplus of $84.34 million in 2005. - Gross international reserves: increased to US$2 billion; adequate to cover 3.2 months of imports of goods and services. ### External and public debt - Total medium and long-term external debt: US$6,347.9 million as of end-2005; reduced to US$2,143.79 million in 2006 due to a 66% debt reduction facility under MDRI. - External debt service (percent of exports of goods and services): 5.8% in 2005; 3.2% in 2006; target was 2.3%. - Public Domestic Debt (excluding ¢4,952.3 billion interest bearing revaluation stock and other long-term stocks held by Bank of Ghana): ¢17,061.2 billion or 15.2% of GDP, having increased from 11.5% in 2006. ### Poverty and social indicators - Poverty (GLSS 5): proportion described as poor 28.5% in 2005/06 vs 39.5% in 1998/99. - Extreme poverty: 18.2% in 2005/06 vs 26.8% in 1998/99. - Millennium Development Goal 1 (halving poverty): "most likely to be met if growth of the economy continues to remain high." --- ### Private sector competitiveness (overview of GPRS II medium-term policies) - Key policy interventions prioritized: - promoting the development of the private sector; - modernisation of agriculture; - development of the fisheries industry including aquaculture; - restoration of the degraded environment and improvement in natural resource management; - promotion of trade and industrial development; - development of transport infrastructure including road, rail, water and air transport; - improvement in energy supply to industry and households; - promotion of science and technology to enhance productivity and development; - promotion of Information and Communication Technology (ICT); - development of the tourism sector for revenue and employment generation; - increased employment generation and improvement and expansion of social safety nets. ### 3.1 Private Sector Development (2006 outcomes) - Indicators that exceeded targets in 2006: number of days to register a business, volume of domestic credit to private sector (ratio of GDP), number of days to resolve commercial disputes. - Positive impacts: improved business environment, increased FDI net inflows, higher economic activity compared to 2005. ### 3.2 Modernised Agriculture - Agriculture growth: 5.7% in 2006; contribution about 35.8% to GDP; exceeded GPRS II target of 5.2% but below 2006 budget expectation of 6.6%. - Crop yields: maize, cassava, and plantain yields declined in 2006 from 2005 levels. - Livestock production: increased by an average of 4% over 2005. - Food security: per capita production of key staple foods showed progress; at least 50% of selected products exceeded targets. - Commercial farming target: projected target of 2.5 in 2006 not met. - Risks and trends: share of credit to agriculture by Deposit Money Banks and percentage of cultivated lands under irrigation continue to decline. ### 3.3 Fisheries and Aquaculture Development - Marine fisheries: estimated 3.6% growth in 2006 following a decline in 2005. - Fish farming surface area: increased from 231.4ha in 2005 to 508.58ha in 2006; exceeded 2006 target. ### 3.4 Restoration of Degraded Environment and Natural Resource Management - Cost of environmental degradation: nearly 6% of GDP in 2006 (up from 5.5% in 2005). - Rehabilitated/restored hectares of degraded forest, mining, dry and wet lands: did not meet targets for 2006. - Benefit sharing from natural resource exploitation: proportion of timber royalties going to resource owners in on-reserve and off-reserve areas achieved target for 2006. - Time to register land: improved from 12 months in 2005 to about 7 months in 2006. ### 3.5 Trade and Industrial Development - Non-traditional exports: U.S$777.59 million in 2005; U.S$892.88 million in 2006 (about 15% increase); exceeded 10% target for 2006. - Average days to clear goods from ports: improved from 4 days in 2005 to 2 days in 2006; exceeded 2006 target. ### 3.6 Transport Infrastructure - Road maintenance and rehabilitation: - Total length/proportion of roads maintained or rehabilitated in 2006: 75.6%; target 89%; 2005 level 67%. - Feeder roads accounted for 53% of maintenance and rehabilitation works. - Total national road network length: 48,381km (increase of about 546 km over 2005). - Road condition mix: 45% good, 28% fair, 27% poor (2005: 42% good, 31% fair, 27% poor). - Rail and maritime traffic: - Rail passenger traffic: 64,000 (thousand passenger-km) in 2005; declined by 40% to 38,000 (thousand passenger-km) in 2006. - Rail goods traffic (thousand tonnes-km): fell by 19% in 2006. - Maritime goods unloaded: declined by about 18% from 2005; goods loaded declined marginally by about 0.1% from 2005. - Air transport: - Total air freight, number of aircraft flying into airspace, and number of air traffic passengers increased. - Number of air traffic passengers exceeded target by about 1%. - Total air freight and aircraft movements fell short of targets by 2% and 4% respectively. ### 3.7 Energy Supply to Industry and Households - 2006 energy sector context: shortages in supply and increases in crude oil and petroleum product prices. - Electricity supply deficit: load-shedding instituted in August 2006; resulted in increase in average number of hours of electricity outage per consumer per year. - Household electricity access: increased from 45% in 2005 to 48% in 2006. ### 3.8 Science and Technology - Data limitations: appropriate indicators and sufficient data not available for objective assessment. - Government expenditures on three main public institutions (Ministry of Environment and Science, CSIR, GAEC): US$3,258,260.90 in 2006 (about 0.03% of GDP); represents 5.3% of the total investment budget of the Ministry of Education Science and Sports. ### 3.9 Information and Communication Technology (ICT) - Teledensity (penetration rate): about 27.2% in 2006 (25.5% mobile; 1.7% fixed) vs 16.6% in 2005 (14.9% mobile; 1.7% fixed); exceeded 2006 target. - Internet access: proportion of internet subscribers increased marginally by 0.05% in 2006 instead of targeted 2%. - Schools with internet access: increased from 53 in 2005 (including 46 Senior Secondary Schools and 7 Teacher Training Institutions) to 58 in 2006 (including 50 Senior Secondary Schools and 8 Teacher Training Institutions). ### 3.10 Tourism - Regional ranking: Ghana ranks 10th in Africa in tourist arrivals. - Volume of tourist arrivals: percentage change declined marginally in 2006 and fell short of target. - Tourism receipts: increased by about 18% over 2005. - Employment in tourism: nearly 183,192 jobs generated in 2006, about 6% more than in 2005. ### 3.11 Employment and Safety Nets - New jobs generated in 2006: 200,000 new jobs vs 125,000 in 2005. - Unemployment rate: declined from 11.1% in 2005 to 10% in 2006. - Attributions: National Youth Employment Programme and improved business environment attracting private investment. --- ### 4.0 HUMAN RESOURCE DEVELOPMENT ### 4.1 Education — Access and Quality - Basic education enrolment growth (2006): - Kindergarten: 9.8% increase. - Primary school: 7.8% increase. - Junior Secondary School (JSS): 8.8% increase. - Gender parity index (GPI): relatively stable at kindergarten and primary levels; improved at JSS level. - Teacher training and deployment: - Proportion of trained to untrained teachers continues to decline. - Pupil:Teacher Ratio (PTR) at primary level: 34.9:1 in 2004/05 to 35.7:1 in 2005/06. - PTR declines recorded in deprived regions and districts due to pupil teacher-upgrading programme. - School Education Assessment (SEA): nationwide SEA administered for first time; 900,000 students in grades 2 and 4 assessed. ### 4.2 Health — Access, Coverage, and Human Resources - Outpatient per capita (utilisation of clinical services): 0.54 per capita in 2005; 0.52 per capita in 2006. - Immunisation coverage: - Measles immunisation: 82% in 2005; 85.1% in 2006. - Penta 3 vaccine: 84.2% of children immunized in 2006. - Polio: no reported cases of wild polio virus since September 2003. - Measles: no reported deaths since 2003. - Antenatal care (ANC): over 80% of pregnant women have access to antenatal care services. - Supervised deliveries: increased from 40.3% in 2005 to 44.5% in 2006 (increase of 4.2 percentage points). - Guinea worm cases: cumulative total of 4136 cases in 2006; increase of about 6% over 3,981 cases in 2005. - Doctor-population ratio: 1 doctor per 10,641 persons in 2006 (improved from 1:16,000 in 2005). - Regional disparities (worst ratios): Northern 1:63,614; Upper West 1:44,317; Upper East 1:28,670. - Nurse-population ratio: 1 nurse per 1,636 persons in 2006 (improved from 1:1,800 in 2005); marked regional disparity persists. - National Health Insurance Scheme (NHIS) registration: proportion of population registered increased from 22% in 2005 to 38% in 2006. - Growth in registrants exempted from payment (children under 18; persons over 70). - Regional dynamics: three northern regions experienced fastest growth in registration between 2005 and 2006; Greater Accra remains region with lowest proportion of NHIS registrants. - HIV prevalence note: HIV Sentinel Survey report indicated mean HIV prevalence among adolescents and the 25-29 year age group increased between 2005 and [text cuts off]. *Content unit: _cr09237 - 2.0 MACROECONOMIC PERFORMANCE AND ECONOMIC GOVERNANCE* ### 2006. The results suggest renewed emphasis on the HIV/AIDS campaign and devising new ### _cr09237 - 2006. The results suggest renewed emphasis on the HIV/AIDS campaign and devising new ### Reducing the impact of HIV/AIDS related vulnerability, morbidity and mortality - Activities implemented in 2006 included advocacy sessions; development and adoption of National Policy Guidelines on Orphans and Vulnerable Children (OVC); Voluntary Counseling and Treatment Services; PMTCT services nationwide; administration of Antiretroviral Therapy (ART) and Antiretroviral Combination Treatment to approximately 14.4% of people in need. - The media was supported to scale-up targeted HIV/AIDS messages. - Policy implication: renewed emphasis on the HIV/AIDS campaign and devising new and innovative strategies to target the youth. ### Malaria control: interventions and outcomes in 2006 - Two key interventions under the Malaria Control Programme: - Scaling up the Distribution of Insecticide Treated Nets (ITNs) - Proportion of children under five years using ITN increased from 26% in 2005 to 32.3% in 2006. - Proportion of pregnant women using ITN increased from 26.8% to 46.3% during the period. - Implementing Intermittent Preventive Treatment (IPT) Policy - All district health facilities implemented the IPT policy in 2006. - About 230,269 pregnant women received 2 doses or more of the treatment in 2006. - Impact noted: malaria contributes to miscarriages and low birth weights; IPT chemoprophylaxis targeted to prevent these outcomes. ### Population management - Policy focus: enhance access to and utilisation of family planning services; promote compulsory and universal birth registration. - Family planning: Estimates based on previous DHS results indicate modest progress in access to and use of family planning services. - Birth registration: - Level of registered births decreased from 67% in 2005 to 54% in 2006. - A significant proportion of births in Ghana remain unregistered. ### Water and sanitation - Policy thrust: increase access to safe water and adequate sanitation in rural and urban communities. - Access to safe drinking water: - Rural population access increased from 52.0% in 2005 to 53.18% in 2006. - Urban population access increased from 55% to 56.0% during the period. - Sanitation: - Reliable data limited; 2003 CWIQ indicates only 55% of the population had access to adequate sanitation, with marked regional variations. - Solid waste disposal: three of the four largest cities (Accra, Kumasi and Takoradi) exceeded targets set for 2006. ### Housing and slum upgrading - Access to safe and affordable housing: - Available data shows only about one in ten Ghanaians had access to secure housing in 2004 and the situation had barely improved as at 2006. - Slum conditions: - About one in five Ghanaians live in what are classified as slum areas with poor access to basic infrastructure including water, electricity supply, proper drainage system, and poor sanitation. ### Good governance and civic responsibility — objectives and progress - Medium term policy focus areas: - deepen democracy; - improve the institutional, legislative and policy environment; - promote gender equity; - improve citizen responsibility to the state; - adopt evidence-based decision-making; - harness the development potential of traditional authorities. Key achievements and statistics: - Strengthening Parliament: workshops on DCE/MCE–MP tensions, parliamentary practices, oversight for MDGs; budgetary allocation to Parliament increased in 2006. - Elections: Two successful by-elections and district assembly elections in 2006; Representation of Peoples’ Amendment Law enacted to enfranchise Ghanaians living abroad; Election Fund policy yet to be implemented. - Civic advocacy: civil society participated in the Consultative Group meeting on the GPRS II (April 2006); liberalisation of media led to new newspapers and radio stations; a Peoples’ Assembly was held in Sunyani. - Decentralisation and MMDAs: - Workshops on organization structures, transfer of functions/resources and financing of Districts. - Integration of four decentralized departments of the Ministry initiated. - Recommendation to reduce Unit Committees from 16,000 to 5,000 and membership from 15 to 7. - MLGRDE introduced strategies to increase internally generated revenue from a minimum of 14% to 65%. - Cabinet endorsed the District Development Fund (DDF) and its operationalisation plan for the 2008 fiscal year. - Access to justice: capacity building for Judiciary; about 70 Attorneys participated in international conferences, workshops and seminars; Legal Aid Scheme and FIDA ran sensitization clinics in 5 regions. - Public safety and security: - Joint police-military patrols and training improved security perceptions. - Police recruitment: policy of recruiting 2,000 new entrants annually continued; in 2006 a total of 1711(520 women) were recruited and trained. - Total strength of the Ghana Police Service as at December, 2006 increased to 17,826. - Police-citizen ratio as at December 2006 stood at 1:1121 (compared to 1:1021 in 2005). - DOVVISU: Police Administration opened 23 new offices/desks; Unit now has 63 offices/desks. - Neighbourhood Watch Committees established nationwide. - Crime: fourth quarter 2006 showed an increase of 28.3% of total cases reported compared to the same period the previous year. - Border security: Border Patrol Units established; joint patrols by Immigration and CEPS; increased metal detectors and scanners; common border check-points operationalised with Burkina Faso, Togo and La Cote d’Ivoire. - Public sector management and reform: - Substantive Chief Directors appointed/confirmed; training on conflict resolution, HR management, policy formulation. - Organizational analysis and redesign completed and implemented; performance monitoring system developed; new staffing and internal training plan developed. - Service Delivery Improvement Programme (SDIP) components initiated: Client Service Units; Business Process Reviews; President’s Excellence Awards Programme (PEAP). - Anti-corruption and procurement: - Continued implementation of Public Procurement Act 2003 (Act 663); increase in published tenders. - 109 Review Boards set up in MDAs and MMDAs; many MDAs report difficulties with Entity Tender Committees. - Public perception of corruption in procurement remains high. - Women’s empowerment: - Nationwide public education and sensitization on Domestic Violence; Bill passed into law (Domestic Violence Act 2007 (Act 732)). - “Women in Local Governance Fund” launched March 2006; after training, 1,783 women aspirants were given a minimum amount to prepare for District Assembly elections. - Affirmative Action Policy pursued to increase women in administrative and political leadership. - Gender budgeting study commissioned by the Ministry of Women and Children’s Affairs. - Development information management: - Government seeking single messaging and workflow system throughout MDAs; single ICT standard under Ministry of Communications (MoC). - Evidence-based decision-making: - Ghana Statistical Service completed Ghana Living Standards Survey 5 (GLSS 5). - NDPC and GSS trained and created awareness on use of the GhanaInfo Data Base. ### Linking the GPRS II and the 2006 budget — alignment and financing outcomes - Budget alignment activities: workshops to improve MDAs understanding of the MTEF process and linking GPRS II to the Budget. - Misalignment drivers: - Unanticipated or unprogrammed government expenditures not reflecting GPRS II spending priorities. - Donor inflows not based on GPRS II costing framework priorities. - Controller and Accountant General Department yet to align budgetary data format with GPRS thematic areas. - Thematic allocation and actual spending (2006): - Actual expenditure of $562.3 million in the private sector competitiveness thematic area was below GPRS II and budgetary allocations, but constituted about 45.7% of actual spending (highest for 2006) due to increased donor spending in this area. - Resource allocations to human resource development activities constituted 38.9% of the total budgetary outlay (lower than the 53.7% in the GPRS II resource allocation requirement). - Good Governance and Civic Responsibility was projected to receive 9.9% under GPRS II but actually received 16.2% of the budgetary allocation. - Donor inflows and sectoral distribution: - Total projected figure of ¢3,810.465 billion in donor inflows was below the budgeted figure of ¢6,251.815 billion. - Bulk of donor disbursements channeled to infrastructure sector (40.8%). - In the economic sector, agriculture and energy were major recipients of donor funding. - Education and health took 99.6% of allocations to Social sector, with a bias towards Education. - Poverty reduction and pro-poor spending: - About 57% of total poverty reduction expenditure was provided from the Government discretionary budget. - Direct spending to poverty reduction related activities increased by 49.9% to ¢12,374 billion and exceeded planned spending in the Budget by 3.24%. - This amount constituted about 34.86% of total government spending in 2006. - Poverty related expenditures mainly allocated to Basic Education, Primary Health Care, Agriculture, Rural water, Feeder Roads and Rural Electrification. - HIPC funds supplemented pro-poor discretionary spending across all GPRS II thematic areas; actual releases from the HIPC fund constituted only 58% of planned spending. - Outcomes attributed to expenditures: - Positive results in education, malaria control, eradication of measles and polio, HIV/AIDS and coverage for rural water supply. *Source: _cr09237 - 2006. The results suggest renewed emphasis on the HIV/AIDS campaign and devising new* ### 7.0 IMPLEMENTING THE GPRS II AT THE DISTRICT LEVEL ### 7.0 IMPLEMENTING THE GPRS II AT THE DISTRICT LEVEL ### District planning and M&E arrangements - All District Assemblies have completed drafting District Medium Term Development Plans (DMTDPs) consistent with the GPRS II national goals and objectives. - Guidelines for District M&E Plans were developed and issued by the NDPC to assist District Assemblies to develop district M&E Plans; the objective is to institute an effective and efficient system for tracking implementation of programmes, projects and activities and to generate timely reports for other stakeholders. - The guidelines were successfully piloted at training sessions held in 2006. ### District financing and revenue performance - Revenue sources for financing district development programmes: central government transfers, grant facilities from development partners, and internally generated revenues by district assemblies. - The District Assemblies’ Common Fund (DACF) remains the dominant reliable source of funding for implementation of district development programmes. - Total releases of funds from the DACF to all districts since its establishment in 1994 amounts to ¢4,363.180 billion. - Internally generated revenue remains very low and constitutes only 14% of the total revenue base of district assemblies. - Only two regions were able to generate internal revenue equivalent to a fifth of their total revenue accruals. ### Capacity constraints and required institutional measures - Persistent weak capacities of district assemblies to generate adequate internal revenues need to be addressed through: - training programmes on modalities for enhancing internally generated revenues; - effective monitoring of performance; - institution of appropriate incentive schemes, including enforcement of appropriate penalties. ### Data collection, M&E and GhanaInfo - Primary data sources for the APR: sector ministries, departments and agencies (MDAs), and metropolitan, municipal and district assemblies (MMDAs). - Key data collection problems identified: - inconsistencies in some data collected; - limited capacities of MDAs to meet diverse M&E needs and reporting requirements of stakeholders; - inadequate financial and human resources for M&E at various governance levels; - new indicators without baseline or current data to support realistic target-setting and monitoring; - differences in annual reporting cycles adopted by MDAs. - Specific MMDA-level issues: - most district reports cover only 6 months despite requirement to submit monthly trial balances to MLGRDE; - deficiencies in quality of data at district level due to limited capacity to process data; - inconsistencies in DACF returns at both MLGRDE and the DACF causing difficulties in analysis and reconciliation. - Other thematic data challenges: - macroeconomic data reported as provisional and from different cutoff periods (MoFEP and BOG data as at February 2007 covered transactions through 3rd quarter of 2006; CAGD data up to November 2006); - classification differences between MoFEP (tracking releases by GPRS II thematic groupings) and CAGD (traditional functional classifications) complicate reconciliation of releases and actual expenditures; - non-availability of data for several Private Sector Development indicators due to new indicator selection; - Good Governance and Civic Responsibility information largely descriptive and dependent on secondary sources, reflecting difficulty in identifying quantitative tracking indicators. - GhanaInfo database: - launched by NDPC and GSS in July 2005 as a comprehensive national socio-economic database compiled of indicators for planning and policy formulation; - 2006 activities included training of PPMED staff, regional roll-out of GhanaInfo, workshops on general data collection, statistical literacy, and orientation/updating of GhanaInfo; - sixty officers from MDAs were trained during the period December 2005 to January 2007; - regional roll-out introduced GhanaInfo to RPCUs and exposed regions to operational modalities; - GSS units collected data for GhanaInfo and participated in a 3-day off-site workshop with about forty-five participants to share field data collection challenges; - workshops on statistical literacy were held for staff of GSS, NDPC, Media and Religious bodies and Civil Society Organisations; - Ministry of Roads and Transport is collaborating with GSS to set up a database on transport indicators; workshops organized and a budget presented for implementation. ### Summary of data collection policy recommendations - Review accounting systems of the MMDAs to identify bottlenecks impeding efficient reporting. - Harmonise reporting formats issued to MDAs from the Office of the President, the Office of the Head of Civil Service and the NDPC. - Require MDAs to prepare sector Annual Progress Reports (APRs) that feed into the GPRS II APR. - Ensure sector APRs are prepared and submitted by the end of February to enable NDPC meet the deadline for production of the national report not later than April each year; realign reporting timelines of all MDAs to the national APR development timeframe. ### APR objectives and monitoring framework - Objectives of the 2006 Annual Progress Report (APR): - provide a single source of information on progress in implementing the GPRS II; - identify weaknesses likely to hinder achievement of GPRS II goals and objectives; - propose policy recommendations to address shortcomings. - The 2006 APR assesses: - the set of core indicators in the GPRS II M&E Plan, including additional indicators identified; - linkage between the 2006 Annual Budget and the GPRS II; - policy initiatives prioritised in the 2006 Annual Budget; - follow-up on 2005 APR recommendations; - the Multi-Donor Budget Support (MDBS) programme; - performance towards the Millennium Development Goals (MDGs) and the African Peer Review Mechanism (APRM). ### Summary of progress on GPRS II core indicators (Table 1.2) - Macroeconomic Stability: No. Achieved 7; Steady Progress 4; Not Achieved 7; Inadequate data 6; Total 24. - Private Sector Competitiveness: No. Achieved 15; Steady Progress 6; Not Achieved 27; Inadequate data 20; Total 68. - Human Resource Development: No. Achieved 6; Steady Progress 1; Not Achieved 24; Inadequate data 5; Total 36. - Good Governance and Civic Responsibility: No. Achieved 3; Steady Progress 8; Not Achieved 5; Inadequate data 15; Total 31. - Total across thematic areas: No. Achieved 31; Steady Progress 19; Not Achieved 63; Inadequate data 46; Total 159. ### Macroeconomic performance highlights relevant to district-level implementation - GPRS II target for real GDP growth: projected to rise from 6% to 8% by 2015. - 2006 growth figures: - GPRS II projected 2006 growth 6.11%; - 2006 Annual Budget target 6.0%; - Actual 2006 GDP growth 6.2%. - Sectoral performance: - Agriculture projected under GPRS II at 5.2% and targeted at 6.6% in the 2006 Annual Budget; actual agricultural growth 5.7%. - Cocoa sub-sector growth 8.7% in 2006 vs target 3.0% under GPRS II. - Fishing sub-sector growth 3.6% in 2006 (from negative 1.2% in 2005). - Agriculture share of GDP declined from 36.0% in 2005 to 35.8% in 2006 and contributed 2.1% to overall GDP growth. *Source: _cr09237 - 7.0 IMPLEMENTING THE GPRS II AT THE DISTRICT LEVEL* ### 1. Per capita GDP (in US$) ### 1. Per capita GDP (in US$) ### Macroeconomic aggregates and per capita indicators - Nominal GDP (million $): 538; 434.0; 8862.52; 492.4; 9234.44; 572.0; 12277.63 - Population (in million): 21.0; 20; 20.52; 21.05 - Summary performance note: Target exceeded ### Real GDP growth rate and sectoral growth (real sectoral growth rate in %) - Aggregate real GDP growth (year series from table): 4.5; 5.2; 5.8; 5.0; 5.8; 5.9; 6.0; 6.2; 6.11 - Broad sectoral growth rates (selected years / rows in source): - Agriculture: 6.1%; 5.8%; 5.9%; 6.2%; 6.1% (table entries include 4.4; 6.1; 7.5; 4.8; 6.5; 6.5; 6.2; 5.7; 5.24) - Industry: 5.24; 6.11; 5.75; 6.1%; 7.0; 4.8; 4.9; 5.9%; 4.1; 7.7; 6.9; 6.2% (table entries include 4.7; 5.1; 5.1; 5.2; 5.8; 5.6; 6.4; 7.3; 6.11) - Services: 5.8%; 5.9%; 5.75; 5.9%; 6.2%; 5.7; 7.3; 6.5 (table entries include 4.7; 4.7; 4.7; 5.1; 5.4; 5.4; 5.5; 6.5; 5.75) - Sub-sector specifics from Table 2.2 (2002–2006, selected entries): - Crops and livestock (series): 5.2; 5.3; 5.4; 6.0; 6.0; 6.2; 6.0; 6.11 - Cocoa (series): -0.5; 16.4; 29.9; 13.2; 13.2; 12.2; 8.7; 2.99 - Forestry & Logging (series): 5.0; 6.1; 5.8; 5.6; 5.6; 5.6; 2.6; 3.86 - Fishing (series): 2.8; 3.0; 3.5; 3.6; 3.6; 3.6; 3.6; 3.9 - Mining & Quarrying (series): 4.5; 4.7; 4.5; 4.9; 3.0; 6.3; 3.0; 3.22 - Manufacturing (series): 4.8; 4.6; 4.6; 5.5; 5.5; 5.0; 4.2; 5.53 - Electricity & Water (series): 4.1; 4.2; 3.7; 4.5; 6.6; 4.0; 23.0; 6.11 - Construction (series): 5.0; 6.1; 6.6; 7.0; 7.0; 7.5; 8.2; 6.11 - Transport, Storage & Communication (series): 5.7; 5.8; 5.6; 6.0; 6.0; 6.0; 7.2; 6.11 - Wholesale & Retail Trade (series): 5.6; 5.0; 4.9; 6.1; 6.1; 6.2; 7.5; 6.11 - Finance & Insurance (series): 5.5; 5.2; 4.8; 5.6; 5.6; 5.7; 7.6; 6.06 - Government Services (series): 3.6; 4.0; 4.4; 4.3; 5.0; 5.0; 5.7; 5.13 - Community, Social & Personal Services (series): 4.4; 4.1; 4.2; 4.3; 4.2; 4.2; 5.54 - Producers of private non-profit services (series): 3.1; 3.3; 3.5; 3.8; 3.8; 3.8; 4.5; 4.92 - Performance notes: - Industrial growth was a contributory factor to the GDP growth rate of 6.2%. - Industrial growth recorded 7.3% with electricity and water (23%) being major contributors, exceeding GPRS II and Annual budget targets (6.1% and 6.4% respectively). - Mining & Quarrying and Manufacturing underperformed relative to projections. - Construction grew at 8.2%, attributed to increased road construction and infrastructural projects. - Industrial share of GDP rose from 24.7% in 2004 to 25.4% in 2006; still below GPRS II target of 26.7% for 2006. - Agriculture share was expected to decline from 36% in 2005 to 34.6% in 2006, actual was 35.8%. - Services sector share of GDP remained around 30%. ### Inflation, interest rates, and monetary indicators - End-year inflation (CPI, end-period): 10.4%; 11.8; 14.8; 10.5 - Narrative: Inflation rate fell from 23.6% in 2003 to 10.6% in 2006; still higher than single digit GPRS II target for 2006. - Annual average and end-of-period series (Figure 2.1): Annual Average: 25.2; 32.9; 14.8; 26.7; 12.6; 14.4; 10.9; End of Period: 40.5; 21.3; 15.2; 23.6; 11.8; 14.9; 10.5 (years 2000–2006 shown in figure) - Interest rates (selected indicators and years): - Bank of Ghana Prime Rate (selected): Na; 18.50; 15.50; 12.50 - Demand Deposits (Annual Av.): Na; 7.50; 7.13; 7.13 - Savings Deposits (Annual Av.): Na; 9.50; 6.38; 4.75 - Lending Rates (Annual Av.): Na; 28.75; 26.00; 24.25 - 91-Day Bills (Annual Av): Na; 17.08; 11.45; 10.70 - Narrative detail: Central Bank’s prime rate declined in 2005 from 15.5% to 12.5% in 2006; 91-day Treasury bill dropped from 11.5% in 2005 to 10.7% in 2006; average savings deposit rate declined from 6.4% in 2005 to 4.8% in 2006; average lending rate declined from 26.0% in 2005 to 24.3% in 2006. - Nominal exchange rate depreciation (cedi/$): Between 0.4% - 4%; series entries: -2.2; -0.9; -1.1; summary: Target met - Gross international reserves (months of imports): ≥3months target; 3.04; 3.8; 3.2 — Target exceeded - Foreign remittance as percentage of GDP: Na; 14.5%; 16.8%; 15.5% — Steady progress - External debt service as percentage of exports of goods and services: 2.3% target; 5.36%; 5.81%; 3.17% — Steady progress ### Fiscal accounts and public debt - Domestic revenue (excluding grants) as % of GDP: 23.5% target; 23.9%; 23.9%; 22.7% — Slow progress - Narrative: Domestic revenue declined from 23.9% to 22.3% in 2006, just below 2006 target of 23.5%. In 2006 domestic revenue was ¢25,360.1 billion against a budget estimate of ¢26,438.8 billion. - Overall total government receipts in 2006: ¢41,357.1 billion versus budget estimate ¢43,468.2 billion. - Total revenue and grants in 2006 amounted to ¢31,917.7 billion against 2005 outturn ¢28,256.4 billion — a 13% increase over 2005, partly due to MDRI receipts of ¢1,980.4 billion. - Budget deficits and financing: - Budget deficit (overall): entries show ≤4% target; 3.2; 8.85; 2.7; 7.2; 4.9; 7.7 — Slow progress (table implies deficits as % of GDP and other figures) - Overall budget balance outturn: deficit equivalent to 7.7% of GDP (2006) compared to budget estimate of 4.5% of GDP. - Domestic primary balance: deficit of 1.9% of GDP vs budget estimate deficit of 1.4% of GDP. - Fiscal anchor — domestic debt-to-GDP ratio: 10.1% against a target of 8.7% for 2006; estimated to have risen to 13.8% by end of 2006, up from 10.8% at end of 2005. - BOG financing of deficit / Domestic revenue (excl. grants) target <10%: 1.57; -8.79; -0.8 — Target met - Domestic Debt Stock (public domestic debt excluding certain revaluation stock): ¢17,061.2 billion or 15.21% of GDP; increase of ¢3,420.2 billion or 25.2% over ¢13,631.0 billion in 2005. - Domestic debt service (by end-September 2006): ¢11,396.1 billion (redemption ¢9,554.0 billion; interest ¢1,842.1 billion) compared to ¢15,133.1 billion during same period in 2005 — reduction of ¢3,737.0 billion (24.7%) over 2005 level. - Causes of fiscal slippage noted: - Decline in revenue to GDP ratio due primarily to tax exemptions on imports. - One-third increase in deficit attributed to public sector pay increases and energy subsidies. - Lower-than-projected receipts from tax revenues and divestiture proceeds; delays in Multi-Donor Budget Support inflows; unanticipated transfers to SOEs (TOR and VRA). ### External sector developments - Exchange rate movements (2006): - Cedi depreciation against major currencies: 9.5% vs British Pound; 7.8% vs Euro; 1.1% vs US dollar. - Underlying stability reasons: improved private remittances through formal channels, forex market liquidity, build-up in external reserves. - International recognition event: first euro-cedi bond issued offshore by AfDB (October 2006) — noted in narrative. - Balance of Payments: - Provisional BOP surplus: US$178.8 million compared to surplus of $84.34 million in 2006 (source text wording). - Foreign reserves: - Gross international reserves reached US$2 billion, providing cover for 3.2 months of imports of goods and services. - External debt (medium and long-term): - End-2005: US$6,347.9 million. - 2006: reduced to US$2,143.79 million due to 66% reduction under MDRI. - Composition (2006): Multilateral debt ~US$1,359.2 million (63.4% of total external debt; World Bank ~44.3% of multilateral); Bilateral debt ~US$610.49 million (28.5%); Commercial debt ~US$174.1 million (8.1%). - External debt service as % of exports of goods and services: declined from 5.8% in 2005 to 3.17% in 2006 (target 2.3%). ### Social indicators and poverty trends - Incidence of extreme poverty (target 26% by 2015): baseline 39.5% (1998/99); GLSS 5 (2005/06) shows poverty rate 28.5% — Significant progress. - Poverty headcount (national and locality breakdowns): - National poverty: 39.5% (1998/99) → 28.5% (2005/06) - National extreme poverty: 26.8% (1998/99) → 18.2% (2005/06) - Poverty incidence by locality (selected entries, 1998/99 vs 2005/06): - Accra: Poverty 4.4 → 10.6; Extreme Poverty 1.9 → 5.4 - Urban Coastal: Poverty 31.0 → 5.5; Extreme Poverty 19.0 → 2.0 - Urban Forest: Poverty 18.2 → 6.9; Extreme Poverty 10.9 → 2.9 - Urban savannah: Poverty 43.0 → 27.6; Extreme Poverty 27.1 → 18.3 - Rural Coastal: Poverty 45.6 → 24.0; Extreme Poverty 28.5 → 11.5 - Rural Forest: Poverty 38.0 → 27.7; Extreme Poverty 21.1 → 14.6 - Rural Savannah: Poverty 70.0 → 60.1; Extreme Poverty 59.3 → 45.4 - ALL (national): Poverty 39.5 → 28.5; Extreme Poverty 26.8 → 18.2 - Poverty incidence by region (selected entries, 1998/99 vs 2005/06): - Western: Poverty 27.3 → 18.4; Extreme Poverty 13.6 → 7.9 - Central: Poverty 48.4 → 19.9; Extreme Poverty 31.5 → 9.7 - Greater Accra: Poverty 15.2 → 11.8; Extreme Poverty 2.4 → 6.2 - Volta: Poverty 37.7 → 31.4; Extreme Poverty 20.4 → 15.2 - Eastern: Poverty 43.7 → 15.1; Extreme Poverty 30.4 → 6.6 - Ashanti: Poverty 27.7 → 20.3; Extreme Poverty 16.4 → 11.2 - Brong Ahafo: Poverty 35.8 → 29.5; Extreme Poverty 18.8 → 14.9 - Northern: Poverty 69.2 → 52.3; Extreme Poverty 57.4 → 38.7 - Upper East: Poverty 88.2 → 70.4; Extreme Poverty 79.6 → 60.1 - Upper West: Poverty 83.9 → 87.9; Extreme Poverty 68.3 → 79.0 - ALL (national): Poverty 39.5 → 28.5; Extreme Poverty 26.8 → 18.2 - Decomposition of change in poverty headcount (1998/99 to 2005/06): - Share of change due to Growth and Redistribution: - National total change: -10.9; Growth: -13.5; Redistribution: +2.6 - Urban total change: -8.6; Growth: -8.6; Redistribution: 0.0 - Rural total change: -10.4; Growth: -13.8; Redistribution: +3.4 - Social analysis notes: - Declines in poverty and extreme poverty were more evenly distributed than in earlier periods (1991/92 to 1998/99). - Exceptions: city of Accra (poverty increased) and Upper West region (poverty rose). - Central and Eastern regions experienced largest declines in poverty, linked to President’s Special Initiatives on Cassava, pineapples, and Oil palm and increased exports of pineapples and cocoa. - Economic growth, notably in cocoa production, and sectoral employment increases contributed to poverty reduction. - If income inequality in rural areas had not worsened relative to urban areas between 1998/99 and 2005/06, rural poverty reduction would have been stronger. ### Policy implementation and institutional developments (selected) - BPEMS generated and reconciled fiscal reports issued monthly within 4 weeks: - - - Delayed rolled out - Removal of secondary reserves: Removed — Target met - Computerization of the inter-bank foreign exchange market: Ongoing — Slow progress - Establish credit referencing bureau: Bill in Parliament — Steady progress - Availability of diversified financial institutions providing alternative financial services to bank products: ongoing — Steady progress *Source: _cr09237 - 1. Per capita GDP (in US$), 2006 Budget Statement/MoFEP (data and tables as provided in the source content).* ### 2.4 DEVELOPMENTS IN THE MACROECONOMIC AND ECONOMIC POLICY ### 2.4 DEVELOPMENTS IN THE MACROECONOMIC AND ECONOMIC POLICY ENVIRONMENT ### 2.4.1 Management of Fiscal Policy - Objective: realise strategic objectives under macroeconomic and economic governance via policy measures implemented in 2006. - Improving Expenditure Management - Implemented BPEMS modules (general ledger, accounts payable and purchase ordering) in the eight pilot MDAs and achieved uninterrupted connectivity of pilot MDAs through Fibre Optic Wide Area Network. - Integrated Personnel and Payroll Database (IPPD2): - June 2006: used to pay salaries of Health Sector Structure (HSS) workers after new pay structure introduction. - July 2006: migration of Pension Payment and Audit Service Payroll. - October 2006: remainder of Ghana Government Payroll including some pilot subvented agencies migrated to IPPD2. - Cash management re-aligned: - Regional Treasuries service MDAs at regional level; District Treasuries service Departments and Agencies at district level. - Each Ministry has one Consolidated Fund sub-account for national level operations. - One Consolidated Fund sub-account created for each of the 10 Regional Coordinating Councils. - 138 Consolidated Fund sub-accounts opened for each of the District Assemblies. - Departmental allocations for MDAs are lodged into respective sub-consolidated fund bank accounts. - Public Procurement Board actions: - Developed Standard Tender Documents and Manuals for Entity Tender Committees. - Re-assessed 100 entities for adherence to Public Procurement Act provisions. - Prepared a margin of preference document to support local businesses. - Developed and launched a website in 2006. - Controller and Accountant General’s Department established Financial Monitoring Units at Headquarters and Regional Directorates. - Public Expenditure Monitoring Unit (MoFEP) capacity strengthened to track fund releases and ensure expenditures align with budget estimates and growth targets. - Less progress enforcing budget controls over State Owned Enterprises (SOEs): State Enterprises Commission (SEC) receives only individual SOE reports and does not consolidate or prepare SOE account reports for MoFEP. - Chart of Accounts - Central Government and District Assembly Charts of Accounts reviewed and harmonised into a common chart to facilitate comprehensive and timely financial reporting. - Promote Effective Debt Management - Key objectives for domestic debt management in 2006: - lowering of borrowing costs; - containing the growth of the domestic debt; - lengthening the maturity profile of domestic debt to reduce rollover/refinancing risk; - improvement in Public Sector Borrowing Requirements (PSBR) determination and daily/weekly forecasting; - continuing improvement in the efficiency of Government debt financing through public auctions and stable issuance. - Monitor Size of Domestic Debt - Average Treasury Bill Rate fell from 13.79% in September 2005 to 10.37% in September 2006. - Volume of refinancing fell from ¢19.9 trillion to ¢11.0 trillion (or from ¢383.0 billion to ¢211.0 billion per week). - Completion of electronic linkage of Government Accounts at Bank of Ghana (BoG) to MoFEP and CAGD improved PSBR forecasting; daily account balances and outstanding bills factored into weekly PSBR. - Restructure Domestic Debt Stock - Medium-term funding increased by ¢3,285.1 billion or 43.6%; balance outstanding as at end-September 2006: ¢10,818.1 billion compared to ¢7,533.0 billion in September 2005. - Listing of 2-year fixed rate treasury note and 3-year fixed rate treasury bond on Ghana Stock Exchange (GSE) in October 2006. - Reduce Stock of Domestic Debt - Planned expenditures from HIPC relief funds for 2006: ¢2,277.74 billion, of which ¢455.5 billion was applied to offset domestic debt. - As at end-September 2006 total domestic debt payments amounted to ¢96.98 billion. - Improve Fiscal Resource Mobilization - Operations with National Security Agencies to curtail revenue leakages in ten MDAs; prosecutions for illegal operators (false vehicle licensing, false passport, business registration certificate and birth certificates). - IRS measures: - Implemented Venture Capital Tax Incentive. - Corporate tax rate reduced from 28% in 2005 to 25% in 2006. - Extended Loss Carry Forward to agro-processing, tourism and ICT industries. - One-off Amnesty on penalties and sanctions for self-disclosure of unreported taxes for the first 6 months of the year. - Re-launched tax stamp programme in September 2006. - Personal income tax bands expanded and modified; taxation of overtime income fully implemented. - VAT Service: - Operationalised VAT Refunds Scheme; by July 2006, 654 refunds processed. - Initiated Flat Rate Scheme (FRS) at 3.0% of sales value for the informal sector as programmed in the 2006 budget. - Revenue administration automation: - IRS automation pilot: Tanzania version of ITAX software to be adapted and staff trained. - Automation of transit regime launched on trial in September 2006; expected full operation by beginning of 2007. - Strengthen MMDAs for improved tax collection: - MoFEP released ¢4.8 billion to 16 MDAs for revenue enhancement measures (revenue monitoring, training, equipment, public education, compliance improvement). ### 2.4.2 Monetary Policy - Improve Liquidity Management - Year-on-year growth rate of reserve money at end of third quarter: 32.3% compared with 19.3% in third quarter 2005. - Seasonally adjusted, annual growth in reserve money at end of review period: 16.4% (below 32.3% actual series). - Annual growth rate of broad money supply including foreign currency deposits (M2+) in 2006: 39.1% compared to 18.6% in third quarter 2005. - Broad money excluding foreign currency deposits (M2) increased by 39.1% in 2006, compared to 22.5% in September 2005. - Improve Institutional, Legal and Regulatory Framework - Reviewed law on Collateral Enforcement and Truth in Lending. - Bills prepared/submitted and status in 2006: - Credit Reporting Bill (passed in 2006); - National Insurance Bill (passed in 2006); - Foreign Exchange Bill (passed in 2006); - Central Securities Depository Bill (in Parliament); - Apex Bank Regulations (in Parliament); - Insolvency Bill (passed in 2006). - Expected outcome: increased private sector access to more capital, more diversified sources of capital, and greater access to financial services including micro finance. - Deepen the Capital Market - Investors shifting from short-term to medium-term instruments; current yield curve limited to 3 years. - Ministry of Finance listed 2 and 3 year medium term bonds on Ghana Stock Exchange to develop secondary market. - Preparatory work on establishment of an International Financial Services Centre in advanced stages. - SEC consolidated MOU with Nigeria’s capital market regulator; MOU with Financial Services Board (FSB) of South Africa to be signed before year end. - September 2006: Securities and Exchange Commission approved listing of Ecobank Transnational Incorporated (ETI) on Ghana Stock Exchange; ETI simultaneously listed on Ghana, Nigeria and Cote d’Ivoire exchanges (3 cross-listed stocks on GSE). - Strengthen the Financial Sector - MoFEP established a Financial Services Division for policy formulation and financial sector development. - National Identification System: numbering of houses and naming of streets commenced. - Bank of Ghana abolished secondary reserve requirement for banks during the year. - From January 1, 2007 all bank and non-bank financial institutions directed to publish and disclose the Annual Percentage Rate (APR) of interest for loans including processing and administration fees. - Financial sector deregulation and diversification measures in 2006: - Central Securities Depository (CSD) operational; bill submitted for parliamentary approval to admit equities into the depository. - Long Term Savings (LTS) bill passed; Boards of Venture Capital Trust Fund and Long term savings scheme appointed; Chief Executive Officer of Venture Capital appointed. - Insurance Bill laid in parliament before end-2006. - Legislative Instrument on ARB Apex Bank Regulation in Parliament. - Credit reporting bill passed. - Preparatory work initiated for International Financial Services Centre (IFSC) to provide specialised offshore financial services. - Bank of Ghana and banks leading introduction of a National Payments System (NPS) to reach unbanked, underbanked and banked populations under a common payment framework. - Venture Capital Trust Fund (Act passed in 2004) signed 2 investment agreements with venture capital finance companies; government working to enable more participation. ### 2.4.3 International Trade Policy - Improve Import Competitiveness - Study on impact of tariff on companies underway to inform incentive regime and methodology for computing “Effective Rate of Protection” for local industries. - Instituted single corridor and 100% inspection for customs clearance of textile imports. - Diversify and Increase the Export Base - Promote new areas of competitive advantage: - Group export marketing schemes implemented by Ghana Export Promotion Council (GEPC) for associations of vegetable growers. - Confirmed orders of ¢20.24 billions (US$2.2 million) for fruits, vegetables, medicinal plants and seeds, garments, fish and wood secured through government-facilitated trade missions. - MOTIPSD&PSI established 3 Export Trade Houses (ETH): Ghana Export Trade Company Ltd (Gextraco), Ghana Trade Centre (GTC) and Ghanextrade to serve as commercial intermediaries linking SME suppliers and buyers. - Engage fully in multilateral trading negotiations: - Active WTO membership and participation in Doha Development Round, including cotton initiative and reduction of tariffs and non-tariff measures. - Engagement with West African countries in negotiating WTO-compatible Economic Partnership Agreement (EPA) with the European Union. - Take advantage of preferential market access: - National working groups constituted to coordinate preparations for Ghana hosting AGOA Forum in 2007 and UNCTAD in 2008. - Lobbying led to third country fabric provision of AGOA being extended from 2007 to 2012 by US Senate and Congress. - Institute Mechanisms to Manage External Shock - As at end-2006 international reserves ~ US$2.0 billion, enough to cover more than three months of imports of goods and services. *Source: _cr09237 - 2.4 DEVELOPMENTS IN THE MACROECONOMIC AND ECONOMIC POLICY* ### 2.5 SUMMARY OF POLICY RECOMENDATIONS ### 2.5 SUMMARY OF POLICY RECOMMENDATIONS ### Fiscal and Macroeconomic Management - Continue to sustain macroeconomic stability and prudent fiscal policy management in: - public expenditure management; - external resource mobilization; - non-tax revenue mobilization; - financial sector development; and - fiscal policy monitoring. ### Revenue Administration and Systems - The Revenue Agencies Governing Board should review and strengthen its strategic operations in meeting its mandate. - Accelerate activities towards the computerization of the Internal Revenue Service (IRS). - Expand the coverage of the integrated financial management system under the BPEMS to the remaining MDAs, as well as the regional and the district capitals. - The Controller and Accountant General’s Department should consolidate and expand gains from the treasury re-alignment and the Sub-Consolidated Funds Bank Account to cover management of other public funds including Internally Generated Funds (IGF) and Donor Funds to facilitate comprehensive reporting and fiscal decentralisation. ### Non-Tax Revenue and Local Government Finance - To improve non-tax revenue collection, the MoFEP should collaborate with the Ministry of Local Government and Rural Development to: - implement measures to improve the capacity of MMDAs to generate revenue; and - facilitate the review of obsolete and unrealistic fees and charges by MDAs. ### Financial Sector Reform and Market Infrastructure - Continue efforts to strengthen and ensure a more facilitative regulatory framework to improve the financial market infrastructure to increase access and depth of financial services. - Financial sector reforms should focus on inducing more competition and efficiency in bank and non-banking institutions with the view to narrowing the wide interest rate spread. ### Monitoring and Evaluation - The MoFEP should continue to monitor and evaluate the impact of fiscal policy on sectoral performance of MDAs and MMDAs to ensure budgetary allocations fund activities that lead to realization of sectoral targets. ### Private Sector Competitiveness (Selected findings and indicators from 2006) - Policy focus: achieve accelerated growth through modernised agriculture led by a vibrant and competitive private sector; priority interventions include private sector development, modernised agriculture, fisheries and aquaculture, environment and natural resource management, trade and industrial development, transport infrastructure (road, rail, water and air), energy supply, science and technology, ICT development, tourism revenue and employment generation, and expanded social safety nets. - Fifty-three indicators adopted to track progress; in 2006: - 15 indicators (representing 28%) achieved the targets set, with about nine exceeding the targets. - 20 indicators (representing 38%) fell short of the targets. - The remaining indicators could not be sufficiently assessed due to unavailability of initial targets or inadequate data. - Key private sector indicators and 2006 results: - Ease of Doing Business ranking: - Target in 2006: Within the first 55 countries in the world by 2009 - Indicator Level at 2004: 102 - Indicator Level at 2005: 94 - Indicator Level at 2006: (table shows 94 for 2005 and progress note indicates improvement) — narrative: improved from 102nd in 2005 to 94th out of a 175 countries assessed in 2006. - Progress: Slow Progress toward target, with high prospect for improved business environment. - Composite Index of Economic Activities (CIEA): - Indicator Level at 2004: 188.96% (CIEA – Nominal Movement), 14.26% (CIEA – Year-on-Year growth (Nominal)), 144.91% (CIEA – Real Movement) - Indicator Level at 2005: 225.39% (CIEA – Nominal Movement), 19.28% (CIEA – Year-on-Year growth (Nominal)), 160.43% (CIEA – Real Movement) - Indicator Level at 2006: 285.69% (CIEA – Nominal Movement), 26.8% (CIEA – Year-on-Year growth (Nominal)), 140.17% (CIEA – Real Movement) - CIEA – Year-on-Year growth (Real): Na (2004), 7.98% (2005), 10.71% (2006), -12.6% (value shown in table) - Note: The Bank of Ghana Composite Index of Economic Activities increased from 225.4% in 2005 to 285.7% in 2006, indicating increased confidence of businesses in the economy. - FDI net inflows: - Indicator Level at 2004: Na - Indicator Level at 2005: 144.97 (in millions of US$ shown in table; narrative lists US$144.97 million) - Indicator Level at 2006: 434.50 (in millions of US$) - Narrative: FDI net inflows increased from US$144.97 million in 2005 to US$434.50 million in 2006 (an increase of 200%). No baseline target, but significant improvement over the previous year’s level. - Number of days for registering a Limited Liability Company: - Target in 2006: 7 - Indicator Level at 2004: Na - Indicator Level at 2005: 14 - Indicator Level at 2006: 5 - Progress: Target exceeded. - Number of days for resolving a commercial dispute: - Target in 2006: 175 - Indicator Level at 2004: 195 - Indicator Level at 2005: 185 - Indicator Level at 2006: 90 - Progress: Target exceeded. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09237.pdf* ### 6. Domestic credit to the private sector as ratio ### 6. Domestic credit to the private sector as ratio ### Key indicator and status - Domestic credit to the private sector as ratio of GDP: 19.6% (targeted by 2009) - Historical/annual figures reported: 13.1% 14.9% 18.0% - Assessment: Substantial progress towards target - Source: MOTIPPSI/BOG, 2006 ### Key policy measures and strategies pursued in 2006 - Overall objective: Improve Ghana’s competitiveness in the global market and enhance private sector development through targeted trade, quality, investment, financial, public sector, and firm-level reforms. ### Trade Policy — Trade Sector Support Programme (TSSP) - Implementation status: - TSSP commenced fully in 2006; nine out of ten components were underway by end-2006; remaining component (IPR) in advanced preparations. - An Inter-Institutional Committee reconstituted and expected fully operational in 2007; national working groups constituted to coordinate preparations for hosting AGOA Forum in 2007 and UNCTAD XII in 2008. - Lobbying by African Ministerial Group led to extension of third country fabric provision of AGOA from 2007 to 2012 by US Senate and Congress. - Multilateral Trade Negotiations: - Stakeholders consulted and regularly briefed; EPA and ECOWAS CET impact assessments carried out. - Overseas trade offices strengthened with additional staff and equipment. - Trade Facilitation: - MOTIPSD/PSI coordinating functions strengthened via regular inter-agency meetings. - GCNet connectivity extended to key MDAs (BoG, GSS, MOTIPSD/PSI, IRS, VAT, GSB, GIPC, Minerals Commission, VELD, GEPC) enhancing online inter-agency information sharing. - GCNet extended to key border points enabling wider electronic customs declarations. - Piloted transit trade tracking system; remote entry system fully operational and users trained. - Valuation Appeal Committee established; competition introduced in cargo handling; port security improved; fee structure and WTO valuation procedures under review; increased private participation in port services; inland container depots being established. - Import-Export Regime: - Study on impact of tariffs on companies commenced to inform incentive regime and methodology for computing ‘Effective Rate of Protection’. - Training on trade contingency measures implemented; single corridor for 100% inspection for customs clearance of textile imports instituted. - Preparatory work for Tariff Review Mechanism (Tariff Board) and revision of customs procedures/documentation in Ghana Free Zones underway. - Production Capacity: - Industrial Policy formulation commenced in 2006 (to continue in 2007). - Preparatory committee for Future Skills Advisory Group established. - Technical assessment for upgrading Craft Villages completed. - Support provided to companies in agro-processing, garments, salt, and crafts to expand capacity. - Export Trade Support Services: - Group Export Marketing schemes implemented for associations of vegetable growers. - Confirmed orders of ¢20.24 billion (US$2,200,000) secured for fruits, vegetables, medicinal plants and seeds, garments, fish and wood products through government-facilitated trade missions, exhibitions and buyer-seller meetings. - Government supported establishment of three Export Trade Houses; financial assistance to pineapple exporters for MD2 variety; export trade information centre in Accra fully operational and to be upgraded under MSME project. - Foreign Trade and Investment programme commenced with representatives in the US and India. - Finance and Investment: - Export Development and Investment Fund (EDIF) credit to exporters increased; mandate extended to support non-export companies in key strategic areas. - As at October 2006, EDIF provided ¢155.2 billion of financial support to the Non-Traditional export sector. ### Quality Standards - SPS and TBT National Enquiry Points at PPRSD and GSB fully equipped; contractor selected to develop interactive website for technical information for exporters. - Joint Publication Agreement signed between GSB and International Trade Centre to customise and publish SPS and TBT guidebook for Ghanaian exporters. - Quality Management Steering Committee established to develop Quality Management training syllabi for SMEs, establish a professional body for Quality Management practitioners, and institute procedures for a National Quality Award Scheme. - Stakeholder workshops organised on Standards Bill and Food and Drugs Bill in 2006; agreement with Parliament to consider and pass both Bills concurrently. - GSB restructured into commercial and core divisions; technical experts recruited to assess laboratory upgrading requirements. - Negotiations with US Department of Agriculture Foreign Agricultural Service to support development of a National Alert System for Ghana. ### Investment Promotion - Third draft of revised GIPC Act 478 completed for benchmarking against best practice. - Tourism Investment Law, Act 1817 launched in March 2006 to promote investment in tourism through fiscal incentives. - GIPC organized investment promotion seminars/fora in 8 regions. - GIPC registered 114 investment projects with estimated investment outlay of US$2.22 billion (increase driven by projected ALCOA group investments in aluminium and bauxite). - GIPC supported investors with permits/approvals and provided advisory services; hosted 21 trade and investment missions from multiple countries. - Collaboration with UNCTAD and JBIC launched the ‘Blue Book’ recommending 12 priority measures to improve the investment climate. - Four technology transfer agreements registered in 2006 targeting transfer of professional, technical and management services, trademarks and technical assistance to local enterprises. ### Strategic Export Sectors - Draft framework for PSI, completed in late 2005, reviewed and implemented in 2006 as basis for operational guidelines and action plans with key stakeholders and development partners. ### Enhance efficiency and accessibility of national markets — Financial Sector Reforms (FINSSP) - Instruments and actions: - Two- and three-year medium term Bonds listed on the stock exchange to develop secondary market for Government Debt Securities. - Preparatory work on establishment of International Financial Services Centre in advanced stages. - Discount Houses phased out; regulations for investment management service providers harmonised. - Laws on Collateral Enforcement and Truth in Lending reviewed. - BoG commenced installation of fully integrated banking and ERP solution. - First phase of automation of banking/financial systems of 12 rural community banks completed. - Venture Capital Trust Fund established and made operational; signed 2 investment agreements with venture capital finance companies. - Tax incentive enhancements announced to encourage venture capital participation: - extension of the 5year full exemption from corporate income tax, dividend tax and capital gains tax for eligible venture capital finance companies to 10 years; - expansion of the 100% chargeable income deduction for financial institutions investing in venture capital finance companies to include all corporate and individual investors who invest in venture capital financing companies; - tax exemptions on distributions of interest, dividends and capital gains to investors in venture capital finance companies; losses from disposal of venture investment shares may be carried forward for up to 5 years after disposal. - Bills submitted under FINSSP (with legislative status as reported): - Credit Reporting Bill (passed in 2006) - National Insurance Bill (passed in 2006) - Foreign Exchange Bill (passed in 2006) - Central Securities Depository Bill (in Parliament) - Apex Bank Regulations (in Parliament) - Insolvency Bill (passed in 2006) - SEC actions: - Consolidated MoU with Nigeria capital market regulator in 2006. - Approved listing of Ecobank Transnational Incorporated (ETI) on Ghana Stock Exchange; ETI simultaneously listed on Ghana, Nigeria and Cote d’Ivoire exchanges (3 cross-listed stocks on Ghana Stock Exchange). - Expected MoU with Financial Services Board (FSB) of South Africa before end-2007 to encourage information sharing and cross listings. ### Public Sector Reform (focus on service delivery to private sector) - Four main areas of focus: - Implement priority activities from Institutional Review exercise for PSD-related MDAs to inform PSDS implementation. - Establish Client Service Units (CSUs) in key PSD-related MDAs. - Implement Customer Charters. - Deliver culture change programmes for public servants interfacing with private sector. - Actions and outcomes: - Twenty-three MDAs signed MoUs in September 2006 with MPSR, in addition to CEPS, VAT and IRS, to guide establishment/operation of CSUs. - Twelve selected MDAs commenced implementation of institutional review recommendations in July 2006 to simplify procedures, improve transparency and access to information. - Establishment of 3-member Project Implementation Teams (PITs) in participating MDAs. - “Total Customer Care” training delivered to CSU staff in March 2006. - Customer Satisfaction Survey launched in April 2006. - Support to develop customer-friendly facilities at DVLA in July 2006. - Leadership training in Civil Service delivered in collaboration with GIMPA. ### Internal Revenue Service (IRS) — Implementation of FIAS recommendations - Achievements in 2006: - Tax registration reduced to 3 days (company registration and tax registration not yet fully integrated). - Use of manuals in all 50 District Offices to intensify and enforce Tax Collection Manual. - Launch of Tax Stamps in 2006. ### Customs Reforms — CEPS - Achievements in 2006: - Simplified customs procedures; remote entry system for customs declarations fully operational. - GCNet implementation eliminated reliance on discretion in valuations; Appeals Committee established at MOTIPSD/PSI. - GCNet connected to more MDAs, border points and other users. - About 75% of port operations managed by private sector companies; GPHA retains 25% of stevedoring operations. - Study of Ghana’s compliance with WTO valuation procedures undertaken; capacity building planned for CEPS officials. - CEPS conducted trade facilitation training workshops. - Government engaged consultants for comprehensive review of excise duty aiming at simplification, revenue stability, discouraging tax evasion and smuggling, curtailing harmful consumption, and removing distortions. ### Business Registration Reforms — Registrar-General’s Department (RGD) - 2006 highlights: - Name searches and retrieval of information reduced from 2 days to 5 minutes; registration processing reduced from 7 days to about 3 days. - Staff training in electronic workflows completed; network infrastructure installation completed. - User training in data conversion software conducted. - RGD gained access to TIN Office network (TIN numbers must still be inserted on RGD forms manually). - Work commenced on customer-friendly front office (tenders for construction under evaluation). - Regional offices in Kumasi and Takoradi furnished and staffed as part of decentralisation; to become fully operational when equipped and connected via WAN. - Anticipated outcome: - Full use of electronic registration workflow expected to further reduce company registration turnaround. - RGD database to be classified into sectors and sub-sectors to enable sector-by-sector analysis and information sharing with MDAs. ### Judicial Service Reforms — Commercial Courts and ADR - Objective: speedy dispute resolution of commercial disputes and enforcement of contracts. - Results and activities: - Commercial court established to deal exclusively with business/commercial disputes; significant progress in reducing time to hear and dispose cases. - Alternative Dispute Resolution (ADR) introduced into court procedures. - Case profile (March 2005–October 2006): out of 740 cases filed before Commercial courts: - 42% related to restructuring of commercial debts - 25% banking and financial services - 14% business documents and contracts - 5% intellectual property rights - 4% other claims of a commercial nature - 3% tax matters - about 10% other cases (including commercial fraud (0-5%), carriage of goods by sea/land/pipeline (3%), applications under Companies Code (2%)) - Activities implemented in 2006: - Review of rules of Supreme Court and Court of Appeal - Training for Commercial Court Judges - ICT training for Commercial Court staff - Regional sensitisation workshops for about 220 lawyers and entrepreneurs across multiple regions - Clearing backlog of land cases through “Registrar’s Summons” (advertisements) ### Business Law Reform - Business Law Division (BLD) mandate reviewed; recommended refocusing due to breadth of mandate relative to resources. - BLD was scrapped and some functions integrated into Ministry of Justice and Attorney-General during 2006. - Business Law programme taken up by programme implementation team in the Ministry; to work with Committee of Experts to draw up detailed work programme. - Senior Programme Manager to be recruited in 2007 to coordinate/support implementation in collaboration with relevant MDAs. ### Strengthen firms’ competence and capacity - Preparatory activities: - Survey on informal sector and development of Business Development Services (BDS) best practice framework initiated to guide firm-level productivity interventions (linked to MSME Project). - Pharmaceutical sector: - Government granted exemptions to 66 active pharmaceutical ingredients to encourage local pharmaceutical industries and support National Health Insurance Scheme. - Microfinance and enterprise support: - Micro Credit Fund of US$50.00 million launched in September 2006 with MASLOC head office and 9 regional offices established. - About ¢154.00 billion extended as micro credit in 2006 benefiting over 103,000 borrowers (agriculture, fisheries, micro enterprise). - Rural Enterprises Project: - 13 new Business Advisory Centres established. - 376 graduate apprentices supported to obtain NVTI certificate. - Business Development Services organised 69 training sessions reaching 1,934 entrepreneurs. - 70 master-craft persons given skills training. - Business Opportunities Identification Surveys (BOIS) undertaken in 13 new districts. ### Enhance government capacity for private sector policy formulation, implementation, monitoring and evaluation - Public-private dialogue unit created at MOTIPSD/PSI in 2006; activities influenced pro-PSD measures in 2007 Budget Statement and Economic Policy. - Pre-budget consultations and continuing engagement mechanisms: - Bi-monthly breakfast meetings with private sector and selected MDAs - Bi-annual Trade and Industry Forums - Annual PSD Conference - Ghana Investors’ Advisory Council (GIAC) under review - Policy tools: - Policy Regulatory Impact Assessment (PRIA)/Programme Intervention Evaluation Template (PIET) approved by government as part of Central Governance Programme. ### Modernised Agriculture — status and selected indicators - Agricultural sector policy focuses: - Sustainable increase in agricultural productivity and output to support industry and farmer incomes. - Food security and increased access of the poor to adequate food and nutrition. - Development/strengthening of institutional capacity to support increased productivity. - Selected monitoring indicators include: - percentage change in yield of selected traditional crops; - percentage change in volume of export and value of non traditional crops; - percentage of cultivated lands under irrigation; - share of credit to agriculture, forestry and fisheries by Deposit Money Banks (excluding cocoa); - per capita production of key staple foods; - farm and non-farm household incomes; - ratio between subsistence and commercial farming; - percentage change in agro-processing and agro-business enterprises and micro-enterprises registered. - Key sector performance results: - Overall agriculture sector growth rate in 2006 estimated at about 5.7% and contributed about 35.8% to GDP. - This exceeded GPRS II target of 5.2% but was below the 6.6% anticipated in the 2006 budget statement. - Shortfall attributed largely to cocoa sub-sector not meeting budget target despite record-high 2005/06 production. - Cocoa production: - Total 740,458 metric tonnes declared purchased at end of 2005/2006 season. - This represents an increase of 23.0% over 601,922 metric tonnes in 2004/05 and surpasses record production of 736,629 metric tonnes in 2003/04. - Staple crop yields: - Yields of key staples declined in 2006 and targets were not attained; attributed to farmers expanding land rather than investing in yield improvement activities. - Non-traditional export crops: - Value and volume declined for selected non-traditional export crops except banana (volume exceeded targets in 2006). - Export of pawpaw and mango began declining in 2005 and worsened in 2006. - Pineapple exports, though below target, recorded a positive trend since 2005 in both volume and value. *Source: _cr09237 - 6. Domestic credit to the private sector as ratio (MOTIPPSI/BOG, 2006)._* ### Box 3.1: Reasons for Low Yield ### Box 3.1: Reasons for Low Yield ### Reasons for low investment and poor yields (2006) - Farmers prioritized farm expansion over farm intensification because fallow lands are readily available and farm expansion is considered less risky and inexpensive compared to intensification (Figure 3.1). - Decreasing profit margin of some crops due to stable prices of crops and increased input cost, especially for maize and cassava. ### Area under cultivation for major staples (2005–2006) — selected figures from Figure 3.1 - Maize: 2005 = 740,000 hectares; 2006 = 793,000 hectares - Rice (milled): 2005 = 120,000 hectares; 2006 = 125,000 hectares - Cassava: 2005 = 750,000 hectares; 2006 = 790,000 hectares - Yam: 2005 = 300,000 hectares; 2006 = 325,000 hectares - Cocoyam: 2005 = 255,000 hectares; 2006 = 260,000 hectares - Plantain: 2005 = 290,000 hectares; 2006 = 299,000 hectares - Millet: 2005 = 185,000 hectares; 2006 = 200,000 hectares - Sorghum: 2005 = 305,000 hectares; 2006 = 320,000 hectares - Soybean: 2005 = 45,000 hectares; 2006 = 51,000 hectares - Groundnut: 2005 = 450,000 hectares; 2006 = 480,000 hectares - Cow pea: 2005 = 180,000 hectares; 2006 = 185,000 hectares (Source: MOFA, 2006) ### Livestock production and imports (2006) - Estimated total animals raised in 2006: - Cattle: 1,392,000 - Sheep: 3,314,000 - Goat: 3,997,000 - Pigs: 477,000 - Poultry: 34,030,000 - Live animal imports (cattle, sheep and goats): - 2005 = 183,099 head - 2006 = 185,277 head - These represent increases of 14.1% and 15.4% respectively over the 2004 level (160,539 heads base year). - About 99.8% of these imports originated from Burkina Faso, Mali and Niger. ### Productivity of crops and livestock (Table 3.2a) — change in yield / productivity (selected) - Targets not achieved. Yield of all the selected staple crops declined, except rice. - Indicator values (selected crop/livestock yield change entries shown as in source): - Target in 2006: Maize = 0.39; Rice (milled) = 1.17; Cassava = 0.57; Yam = 0.49; Plantain = 1.5; Cocoa = 0.10; Poultry = 0.11; Sheep = 0.05; Goat = 0.04; Cattle = 0.01 - Indicator Level at 2004: Maize = -0,05; Rice (milled) = - 0.03; Cassava = - 0.48; Yam = 0.64; Plantain = 0.34; Cocoa = Na; Poultry = Na; Sheep = Na; Goat = Na; Cattle = Na - Indicator Level at 2005: Maize = 0.01; Rice (milled) = - 0.02; Cassava = 0.56; Yam = 0.58; Plantain = 1.61; Cocoa = 0.46; Poultry = 0.11; Sheep = 0.03; Goat = 0.04; Cattle = 0.01 - Indicator Level at 2006: Maize = -0.08; Rice (milled) = 0.02; Cassava = - 0.56; Yam = 0.11; Plantain = -0.38; Cocoa = 0.46; Poultry = Na; Sheep = Na; Goat = Na; Cattle = Na ### Non‑traditional crop exports (Table 3.2a — selected) - Pawpaw (Volume = 3,751,947Kgs in 2004; Value = US$1,226,695 in 2004) - Indicator Level at 2004: Volume 95.77; Value 66.49 - Indicator Level at 2005: Volume -14.40; Value -11.85 - Indicator Level at 2006: Volume -54.0; Value -35.0 - Mango (Volume = 375,911Kgs in 2004; Value = US$163,850 in 2004) - Indicator Level at 2004: Volume 60.38; Value 51.59 - Indicator Level at 2005: Volume 8.33; Value -17.88 - Indicator Level at 2006: Volume -52.0; Value -34 - Pineapple (Volume = 71,804,617Kgs in 2004; Value = US$13,316,459.48 in 2004) - Indicator Level at 2004: Volume 59.05; Value 53.49 - Indicator Level at 2005: Volume -74.41; Value -42.07 - Indicator Level at 2006: Volume 196; Value 33.0 - Banana (Volume = 725,365Kgs in 2004; Value = US$208,938 in 2004) - Indicator Level at 2004: Volume 99.53; Value -7.82 - Indicator Level at 2005: Volume 53.94; Value 119.65 - Indicator Level at 2006: Volume 1,830; Value 1,291 - With the exception of volume of the banana exported, none of the targets set for the selected non-traditional crops was attained. ### Environment for agricultural productivity (Table 3.2b) - Indicators tracked: share of credit to agriculture, percentage of cultivated lands under irrigation, percentage change in agro-processing and agro-business enterprises and micro-enterprises registered. - Percentage of cultivated lands under irrigation: - Target in 2006: 0.33% (23,500) - Indicator Level at 2004: Na - Indicator Level at 2005: 0.26% (19,000) - Indicator Level at 2006: 0.21% (14,928.5) - Progress: Target not attained - Regional distribution (ha, totals as listed): - Ashanti - 188 - Brong Ahafo - 236 - Central - 386 - Greater Accra - 5,147 - Northern - 690 - Upper East - 3,690 - Upper West - 115.5 - Volta - 3,463 - Eastern - 603 - Western - 60 - Total - 14,928.5 - Note: total cultivated lands under formal irrigation amounts to 14,928 hectares, of which 82% are in the Greater Accra, Volta and Upper East Regions. Estimated developed area of 45,000 ha under non-formal irrigation. - Share of credit to agriculture, forestry and fishing by Deposit Money Banks (excluding Cocoa): - Target in 2006: ≥10% - Indicator Level at 2004: 8.1% - Indicator Level at 2005: 6.2% - Indicator Level at 2006: 4.8% - Progress: Target not achieved; fell short of the 2005 level by 1.4% - Percentage change in agro-processing and agro-business enterprises and micro-enterprises established: - Data not available to evaluate the indicator. ### Food security and farm household incomes - Farm incomes constitute nearly 61% of all household incomes of most farmers in 2006. - Subsistence-commercial farming ratio: - Target in 2006: 2.5 - Indicator Level at 2006: 3.16 - Progress: Target not achieved - Per capita production of key staples, livestock and fish (kg/Annum, except * in live animal/annum) — selected values: - Target in 2006: Maize = 45.0; Rice (milled) = 25.0; Sorghum = 15.0; Millet = 8.0; Cassava = 400.0; Yam = 180.0; Plantain = 110; Cocoa = 21.0; Poultry* = 1.7; Sheep* = 0.17; Goat* = 0.21; Cattle* = 0.07; Fish = 0.022 - Indicator Level at 2004: Maize = 55; Rice (milled) = 7; Sorghum = 14; Millet = 7; Cassava = 464; Yam = 185; Plantain = 113; Cocoa = Na; Poultry* = Na; Sheep* = Na; Goat* = Na; Cattle* = Na; Fish = Na - Indicator Level at 2005: Maize = 55; Rice (milled) = 11; Sorghum = 14; Millet = 9; Cassava = 445; Yam = 182; Plantain = 130; Cocoa = 15.3; Poultry* = 1.49; Sheep* = 0.16; Goat* = 0.20; Cattle* = 0.07; Fish = 0.21 - Indicator Level at 2006: Maize = 54; Rice (milled) = 11; Sorghum = 14; Millet = 7; Cassava = 436; Yam = 194; Plantain = 131; Cocoa = 33.5; Poultry* = 1.52; Sheep* = 0.15; Goat* = 0.18; Cattle* = 0.63; Fish = 0.29 - Progress: At least 50% of target attained (Five out of eight selected staple crops, and two out of five of the selected livestock and fish products exceeded their respective targets) - Farm household incomes vs non-farm household income: - Target in 2006: Farm Household incomes 60%; Non-farm Household income 40% - Indicator Level at 2006: Farm Household incomes 61%; Non-farm Household income 39% - Progress: Target exceeded in 2006 ### Key policy measures and strategies (selected interventions implemented in 2006) - Crops sub‑sector - GLDB produced 55 mt of foundation seed maize; processed 500 mt of certified maize seed; 8 mt of sorghum and 25 mt of rice foundation seeds; processed another 200 mt of maize grains for storage. - Three warehouses established at Tamale and Yendi for grain storage. - Inland Valley Rice Development Project: - Extended credit to 905 farmers. - Provided technical support in land and water management in 17 project districts. - Assisted 850 farmers (average holding 0.4 ha) to plant 340 hectares of rice under the Nerica Rice Dissemination Project. - ICOUR facilitated production of 200 tons of paddy rice seed, 1,800 tons of rice grains and cropped 220 hectares of millet and 34 hectares of soybeans at Vea and Tono dam sites. - Ministry assisted farmers in the North in land preparation and supply of seeds for establishment of 10,000 hectares of cotton. - Legumes - GLDB produced 20 mt of foundation seed groundnuts. - 1,572 hectares of cashew fields established; 9,000 unproductive cashew trees (90 hectares) stumped and grafted. - Technological packages for cashew production developed with CRI (vegetative propagation, canopy substitution strategy, control of cashew diseases). - Root and tubers - Root and Tubers Improvement and Marketing Programme supplied 10,000 mother yams to 40 trained farmers for multiplication. - GLDB produced 100,000 units of yam setts at Kintampo and Ejura nurseries. - Rehabilitation of nine irrigation schemes to make available 1,896 ha of irrigable land upon completion. - Horticulture - Rehabilitation of Shed 9 at Tema Port under HEII initiated; Export Marketing Quality Awareness Project implemented in Greater Accra, Eastern, Central and Volta Regions. - GLDB produced about 15,000 citrus seedlings. - Distribution of about 1.8 million MD2 pineapple plantlets to smallholder farmers through rapid sucker multiplication scheme. - Livestock sub‑sector - Fodder banks established; reconnaissance survey of 44 dugout sites and 28 boreholes sites conducted. - Three training sessions for 3,500 farmers in 33 Districts on disease identification/control (new castle, rabies, African swine fever, foot and mouth disease). - Production and treatment: 2.5 million I2 vaccines were produced by the Veterinary Central Laboratory at Pong Tamale and over 700,000 rural poultry were treated with the product. - 80 Farmer Based Organizations strengthened to access business development services including credits and grants. - Research Extension Liaison Committees (RELCs) strengthened through farmer participation in planning sessions and on-farm adaptive trials. - Cocoa industry - 358 km of feeder roads rehabilitated at a total contract cost of ¢92.7 billion in cocoa growing areas (Ashanti, Brong Ahafo, Central and Western regions). - Cocoa Diseases and Pests Control Programme expenditure: ¢564.9 billion. - 742,213 cocoa farms and 514,361 cocoa farmers had farms sprayed against black pod disease and capsid. - Programme employed 50,765 youth for spraying exercise. - Total area covered: 1,948,101 hectares (800,000 ha under black pod control; 1,148,101 ha under capsid control). - Government (via Ghana Cocoa Board) voted ¢5.0 billion as seed fund for a housing scheme; released ¢1.0 billion for pilot phase in Western Region; Department of Rural Housing started construction of 10 three-bedroom houses in Enchi, Afranse and Yawmatwa. - Partnership with Agricultural Development Bank (ADB) launched in September, 2006 a special package “ADB Farmers Golddrive”. - Dissemination of technology - 64 technologies released by research to MOFA Extension Services under AgSSIP funding in 2006. - 41 technologies demonstrated by DADU/RADU across regions: 15 for crops, 13 for livestock, 6 for fisheries, 7 for other technologies. - Technologies disseminated in all regions, each benefiting more than 20,000 farmers: row planting; correct use of agro-chemical; improved crop varieties; seed planting material production and multiplication; pest/disease recognition; post harvest of food grain; soil fertility improvement and management. - Mechanisation and equipment - Tractors and tillers distributed; 55 units of 20 MT ProCocoon storage facilities distributed. - Beneficiaries trained in use and basic maintenance. - Planned rehabilitation of five animal traction centres not implemented due to lack of funds. - Out of planned 1,000 boreholes for 2006, only 20 boreholes were drilled and eight were equipped. ### Fisheries and aquaculture development (selected outcomes) - Policy focus: develop aquaculture infrastructure (including fish hatcheries), promote private investment in aquaculture, utilize irrigation systems and impounded reservoirs for aquaculture, and ensure value addition of fisheries products. - Key indicators tracked: total fish production; quantity of fish produced per hectare of pond per year; total surface of pond/cage/pen under fish farming. - Outcomes: - Marine fisheries recorded an estimated 3.6% growth in 2006 following a decline in 2005. - Total surface water under fish farming increased from 231.4 ha in 2005 to 508.58 ha in 2006, thereby exceeding its target in 2006. - Quantity of fish produced per hectare of pond per year stagnated at 1.5tons/ha/yr, falling short of its target in 2006. - Production of fish from ponds accounted for about 19.877 mt in 2006 (nearly 90% from Ashanti and Eastern regions); culture-based fisheries accounted for 18.54 mt. *Source: _cr09237 - Box 3.1: Reasons for Low Yield (MOFA, 2006 excerpts)* ### 2. Total Fish Production (mt) ### _cr09237 - 2. Total Fish Production (mt) ### Total Fish Production (aggregate figures) - Marine: Na - Inland Capture fisheries: Na - Harvesting of Ponds: Na - Import: Na - Reported aggregate entries (from table fragments): - 352405.19 - 3,500 - 322,789.48 - 6,900 - 166,003.1 - 334,409.9 - 14,481 - 19.877 - 165,559.7 - No Initial target for assessment ### Regional distribution (Kg) — Total = 19,876.96 - Ashanti - 9,378.1 - Brong Ahafo - 1,167.5 - Central - 376.36 - Greater Accra - Nil - Northern - Nil - Upper East - Nil - Upper West - Nil - Volta - Nil - Eastern - 8,411 - Western - 544 - Total - 19,876.96 ### Aquaculture performance and pond metrics - Quantity of fish produced per hectare of pond per year: - Target: 2 Tons/ha/yr - Achieved: 1.3 1.5 1.5 (noted as "Target not attained") - Total surface water area under fish farming: - Target/benchmark: 250ha - Indicator values: 200 231.4 508.58 (noted as "Target exceeded") - Disaggregations: - Total # of Ponds = 3,472 - Functional ponds = 3,234 - Total # of farmers = 1,597 - Source for pond metrics: MOFI, 2006 ### Key Fisheries inputs, production and operations (2006) - Training and human resource development: - Training courses in fish farming organised for 280 people selected from all regions - Training of fish farmers continued, developing skills of 300 youth from Central, Eastern, greater Accra, Brong Ahafo, Northern, Upper West, Upper East and Volta regions - Pond construction gangs trained at Assin Kumasi; 15 participants from nearby villages and 13 prison officers; 16 prisoners trained in practical pond construction - Community stocking and hatcheries: - Five community dams in the Upper West Region (Zinni, Boti, Kupulma, Kokoli and Nimoro) covering 21hectare were stocked with 824,354 fish species (Oreochromis niloticus, Heterotis spp, Auchenoglanis occidentalis, Sarotherodon galileus, Tilapia zilli) - Public hatcheries: Ashaiman and Cadbury Hall active - Ashaiman produced 220,288 fingerlings of Oreochromis niloticus; 167,288 sold to fish farmers - MOFI at Cadbury Hall produced 327,000 catfish fry for farmers - Two private hatcheries (Kumah Farms and Gyan-Fosu farms) produced a total of 84,000 fingerlings/fry of tilapia and clarias for stocking - Agreement concluded for training of two small scale fingerling producers in all regions (training in Kumasi) - Stocking, support and financing: - Needs assessment for Wassa West Fish Farmers Association (WWFFA) for financial assistance to expand operations, complete cold storage, undertake study tour, training and acquire earth moving machines - Rehabilitation of the hatchery at Ashaiman initiated with contract signing; Water Research Institute awarded contract for completion of Dormaa Ahenkro Fish hatchery - Advertisement posted for expression of interest for development of reservoir and canals for WWFFA at Tarkwa - Gear trials and catch rates: - Sea trials of the trammel net conducted in Western and Greater Accra regions - mean catch rates off Tema (Eastern part of shelf) was approximately 1.36kg/hour - mean catch rates off Sekondi (Western part of shelf) was approximately 2.0kg/hour - Inputs distributed and micro-credit: - A total of 338 outboard motors costing ¢7.842 billion distributed to fishermen under a special credit scheme ("work and pay tools") - Rural Banks advanced a ¢4.0 billion Micro-credit support to 3,000 fish processors - A Spanish grant obtained for establishment of cold storage and fish processing facilities at James Town, Mumford, New Takoradi, Moree, Shama, Winneba, Senya Bereku, Nyanyano and Teshie (in collaboration with private sector) ### Restoration of Degraded Environment and Natural Resource Management — objectives - Medium-term policy focus areas: - (i) secure current natural resources through promotion of sustainable natural resource management practices and restoration of degraded natural resources - (ii) improve environmental and natural resource governance through institution building and regulatory strengthening - (iii) ensure equitable distribution of benefits to resource owners - (iv) leverage regional and global arrangements for natural resource management linkages ### Selected indicators and progress (explicit values preserved) - Indicators selected to track progress include: - cost of environmental degradation as a ratio to GDP (lands, forests, fisheries) - rate of deforestation - number of Timber Utilisation Contracts (TUCs) awarded - number of Social Responsibility Contracts (SRC) signed - percentage change in resource spent on Corporate Social Responsibility, including alternative livelihood programmes - hectares of degraded forest, mining, dry and wet lands rehabilitated/restored - proportion of timber royalties going to resource owners - time taken to register land - Indicator outcomes and notes: - Cost of environmental degradation as a ratio to GDP (lands, forests, fisheries): - Target in 2006: 5% - Indicator Level at 2004: Na - Indicator Level at 2005: 5.5% - Indicator Level at 2006: 6% - Progress: Target not achieved - Rate of deforestation: - Target in 2006: (-1.3%) - Indicator Level at 2004: <10,00 ha/annum - Indicator Level at 2005: 65,000 ha/annum - Indicator Level at 2006: Current Forest = 5,517,000ha (-1.7%) - Progress: Statistics on current rate of deforestation not available - Number of Timber Utilisation Contracts (TUCs) awarded: - Natural Forest and Plantation disaggregations show 167 (conversion to TUC’s = 100; Ratified TUC’s = 42; Next Comp. Bidding (Nat.Forests) = 25) and 36 respectively for earlier levels - Indicator Level at 2006 entries include: 6 TUCs signed and ratified by parliament; 4 TUCs signed and ratified by parliament; 16 TUCs signed - Progress: Target not achieved (competitive bidding for 27 TUCs of plantation timber to be held by end of march, 2007) - Number of Social Responsibility Contracts (SRC) signed: - Target in 2006: 103 (SRA (Nat. Forests) = 67; SRA (Plantation) = 36) - Indicator Level at 2004: 53 (Nat. Forest replacement = 36; SRA (Plantation) = 17) - Indicator Level at 2005: 8 (SRA (Nat. Forests) = 6; SRA (Plantation) = 2) - Indicator Level at 2006: 18 (SRA (Nat. Forests) = 4; SRA (Plantation) = 14) - Progress: Target not achieved — Stakeholder consultations ongoing to facilitate signing of SRAs - Hectares of degraded forest, mining, dry and wet lands rehabilitated/restored: - Targets and levels include: - Target: 20,000 ha; 238ha by 2009 - Indicator Level at 2004: 16,000ha; 168ha - Indicator Level at 2005: 16,800ha; Na - Indicator Level at 2006: 17,500ha; Na - Progress: Target not achieved due to limited financial resource; Data not available to assess progress. Technical document developed for labour intensive physical reclamation - Proportion of timber royalties going to resource owners: - Target in 2006: 50:50 for on-reserve royalties (i.e. 50% for forestry commission and 50% for resource owners); 40:60 for off-reserve royalties - Indicator Level at 2004/2005/2006 show combinations of 60:40, 40:60, 50:50 in different cells - Progress: Target achieved (sharing reviewed in favour of resource owners; Forestry Commission receives 50% of timber royalties from forest reserves while resource owners also receive 50%); Target Achieved for off-reserve: 40% for Forestry Commission and 60% for resource owners - Statistical Overview of the Mineral Sector (selected figures): - Mineral Production targets and levels: - Gold (thousand ounces): Target in 2006 = 2,500; Indicator Level at 2004 = 2,029.97; Indicator Level at 2005 = 2,138.94; Indicator Level at 2006 = 2,423.27 - Diamonds: Target in 2006 = 1,000.0; Indicator Level at 2004 = 905.34; Indicator Level at 2005 = 1,065.92; Indicator Level at 2006 = 967.86 - Bauxite: Target in 2006 = 760.00; Indicator Level at 2004 = 498.06; Indicator Level at 2005 = 606.70; Indicator Level at 2006 = 753.32 - Manganese: Target in 2006 = 1,800.00; Indicator Level at 2004 = 1,597.09; Indicator Level at 2005 = 1,719.59; Indicator Level at 2006 = 1,607.178 - Labour: - Large Scale: Target in 2006 = 22,000; Indicator Level at 2004 = 21,505; Indicator Level at 2005 = 21,916; Indicator Level at 2006 = 21,950 - Small Scale (legal & illegal)*: Target in 2006 = 600,000; Indicator Level at 2004 = 500,000; Indicator Level at 2005 = 540,000; Indicator Level at 2006 = 570,000 - Foreign Direct Investments (in million U.S. $): - Target in 2006 = 1,000; Indicator Level at 2004 = 665.86; Indicator Level at 2005 = 744.050; Indicator Level at 2006 = 900.0 - Mineral Rights Granted: - Target in 2006 = 200; Indicator Level at 2004 = 131; Indicator Level at 2005 = 152; Indicator Level at 2006 = 189 - Progress comments: Significant progress made toward target across mineral indicators - Time to register land: - Target in 2006: 8mths - Indicator Level at 2004: 36mths - Indicator Level at 2005: 12mths - Indicator Level at 2006: 7mths - Progress: Target exceeded (reduction attributed to establishment of deed registries in Sekondi, Koforidua, Sunyani and Tamale). Source: MLFM, 2006 ### Key Policy Measures and Strategies — Forestry, Mining, Lands, Fisheries, Environmental Management (selected actions) - Forestry Sub-Sector: - National Forest Plantation Development Programme (launched 2001) continued in 2006 using taungya system and contract planting with community, private sector and civil society involvement - Micro-Credit Investment Scheme: 476 individuals given loans for re-forestation - Plantation Development Fund: 60 communities from ten regions (6 persons each) given grants - Community Investment Fund beneficiaries: 7,508 individuals comprising 629 groups for mushroom farming, oil-Palm processing, grass cutter rearing, gardening among others - Northern Savanna Biodiversity Conservation Project (NSBCP): assisted 138 communities under Alternative Livelihood Programme (45 benefited from mango plantations; 20 received low tillage equipment; 30 received small ruminants; 43 provided with beehives) - Bamboo and rattan promotion: training for 172 persons in 4 communities on management of bamboo stands and propagation; 159 persons trained in bamboo and rattan furniture and craft making and construction skills - Mining: - Repeal of PNDCL 153 of 1986; new Minerals and Mining Act 2006, Act 703 passed - Draft minerals and mining regulation prepared - Workshop held in September 2006 on draft minerals and mining policy; final document to be submitted to cabinet - 189 mineral rights granted in 2006 covering: 29 prospecting license, 24 reconnaissance license, 32 quarry license, 97 sand winning license, 4 salt license, 2 mining lease and 1 gravel/sand - Digital mapping of 25 towns completed for property rating, settlement planning, road construction, land management and tourism promotion - Prestea – Huni Valley oil palm project prepared: target development of 10,000 acres of oil palm plantation; expected to give direct employment to about 5,000 people - Lands: - Land Administration Project (LAP): 4 additional customary land secretariats established at Dormaa Ahenkro, Sandema, Odukpong Kpehe and Kete-Krachi - Cabinet approved legal and institutional reforms for land administration toward a unified one-stop-service system - Four Deed Registries registered 4,257 deeds in 2006; two more registries expected in Wa and Bolgatanga - Inventory of State acquired/occupied lands in Central Region completed except Hemang acquisition; 1,144 sites covered (346 District Assembly properties) - Verification of survey maps and parcel plans for titling in two Accra sections involving about 2,800 parcels completed; satellite offices being constructed; aerial colour photographs and orthophoto mapping of remaining 256 kilometres of coastline continued; 20 Geodetic Reference Points identified and monumented; airborne geophysics for Keta and Volta River Basins completed - Fisheries (additional measures): - Nine observer missions to monitor industrial vessels conducted - Transponder installation: 17 additional vessels installed bringing total with transponders to 105; only 70 activated with 44 reporting regularly - Committee set up to undertake feasibility studies on diminishing fish stocks of the Volta Lake, other reservoirs and water impoundments - Community Based Fisheries Management Committees (CBFNCs) introduced; two additional bye-laws passed bringing total to sixteen (three gazetted, five lodged with Attorney-General’s Department) - Formation and training: About 131 committees and 27 Zonal Lake Management Committees formed along Volta Lake shoreline in Asuogyaman, Jasikan and Kpando Districts; trained in Alternative Livelihood Strategies (piggery, small ruminants, bee-keeping and other vocations) - Environmental Management: - Environmental awareness promoted via celebrations (World Environment Day, Africa Environment Day, World Day to Combat Desertification and Drought, International Day for Biological Diversity) and Environmental Journalist Awards Night - Biodiversity awareness/conservation at Boti area in Eastern region in collaboration with Yilo Krobo District Assembly - Coordination and evaluation of first phase performance of Guinea Current Large Marine Ecosystem (GCLME) project - Organizational and institutional assessment of environmental sub-sector as part of Ghana Environment Sector Study - Coordination of preparation of draft Plastic Waste Management Fund proposal - Environmental Protection Agency (EPA) functions executed: environmental monitoring, compliance and enforcement; over 100 Environmental Impact Assessment Reports evaluated and permits issued; assistance to 12 Metropolitan and Municipal Assemblies in preparing Waste Management Plans ### Trade and Industrial Development — selected outcomes (2006) - Strategic role: complement and catalyse agro-industrial economy under GPRS II - Selected indicators monitored include: - percentage change in value of non-traditional exports (NTE) - average number of days for clearing goods from nation’s ports - manufacturing value added share in GDP - share of manufacturing in total export - composite index of competitive industrial performance (CIP) - time taken to get duty drawback - Indicator outcomes: - Total value of non-traditional export in 2006: U.S$892.88 million (increment of about 15% over 2005 figure of U.S$777.59) — exceeded 10% target for 2006 - Share of manufacturing in total export: significant improvement over 2005 figure of 1.3% - Manufacturing value added share of GDP: declined to 8.8% in 2006 from 8.9% in 2005 - Average number of days for clearing goods from the nation’s ports: improved from 4 days in 2005 to 2 days in 2006 — exceeded target - Time taken to get duty drawback and composite index of competitive industrial performance (CIP): status could not be adequately analysed due to lack of data *Source: _cr09237 - 2. Total Fish Production (mt), MOFI and related sections (2006 data) — provided in the source PDF content.* ### 1. Percentage change in non-traditional ### _cr09237 - 1. Percentage change in non-traditional ### Key performance indicators: Non-Traditional Exports and Trade Facilitation - 1. Percentage change in non-traditional exports (NTE) = (Value in Million US$) - 10% 16.5% (705.0) - 10.3% (777.59) - 15% (892.88) - Target exceeded - 2. Average number of days for clearing goods from the nation's ports - 3days 7days 4days 2days 6 hours at the airports - Target exceeded - 4. Time taken to get duty drawback - 6wks Na 6mnths Na - Lack of data to evaluate indicator - Source: MOTIPPSI, 2006 ### Industrial sector performance (selected indicators and evaluation) - a. Manufacturing value added share in GDP / b. share of manufacturing in total export - Na Na - 9.0% 1.6% - 8.9% 1.3% - 8.8% 14.2% (Prov.) - Baseline target not available, but results are mix compared to previous year. ### Key policy measures and strategies undertaken in 2006 - Districts Industrialization Programme (DIP): - A nucleus of 13 projects established in Atiwa, Asante Akyem South, Nkwanta, Sekyere East, Ejura Sekyedumase, Techiman, Birim South, Mfantsiman (N&C Foods/Coastal Grooves), Yilo Krobo, Atwima Nwabiagya, Amansie West, Upper Denkyira and Asante Akyem North. - Juapong Textiles Ltd: - Ministry facilitated acquisition of estate and negotiated management by a Chinese textiles company; commissioning expected by the first quarter of 2007. - Factory expected to offer 250 jobs during the first month of re-opening. - Northern Star Tomato Company Limited (former Pwalugu Tomato Factory): - Acquisition complete under private joint venture. - 500 ton per day tomato processing line installed; test runs conducted in August 2006 using local fresh tomatoes. - Paste currently canned by Trusty Foods Limited under sales agreement. - Factory will provide direct employment to 50 people, 1,200 farmers and about 50 indirect labour. - Sugar project feasibility: - Feasibility study commissioned for proposed sugar project at Savelugu Nanton District; other areas in Northern Region identified for plantation. - PSI for Textiles and Garments: - Eight wholly-owned Ghanaian garment factories being established, with four already in operation employing 1,200 workers. - GTMC warehouse in Tema acquired and awaiting refurbishment into garment factories. - Nearly 1,100 people trained in clothing technology to support factories. - Oil Palm: - 911,210 seedlings planted between June 2005 and June 2006. - About 2 million seedlings nursed for planting in 2007. - Tariff study: - Tariff study of 200 companies being undertaken to create a template for tariff analysis to assess industry requests for specific tariff relief. - Export Trade Houses (ETHs): - Three ETHs established: Ghana Export Trade Company Ltd (Gextraco), Ghana Trade Centre (GTC) and Ghanextrade to serve as commercial intermediaries between SME suppliers and buyers. - EDIF financial support (January to October 2006): - EDIF provided ¢155.2 billion to the Non-Traditional export sector. - Sectors covered include agro-processing, salt mining and processing, textiles and garments, aluminium and metal fabrication, wood, handicraft and pharmaceuticals. - Grant facility covered fairs and exhibitions, research, market research, capacity building and project development. - Free Zones Board (end September 2006): - Registered 21 companies in metal fabrication, plastics, agro-processing, textiles, jewellery and machines manufacture. - The 21 companies expected to generate about 1400 jobs. - NBSSI support: - Supported 1,000 MSEs with technical training to improve packaging and quality. - 13 additional Business Advisory Centres (BACs) established, bringing total to 102. - Nearly 160 tailor-made business improvement programmes organised for 4,200 entrepreneurs (1,425 male; 2,575 female). - Data on all loan facilities for MSEs compiled. - GRATIS Foundation: - Trained 268 women in food processing, textile and agro processing. - 260 unemployed youth underwent a 3-year Technical training in welding and fabrication and metal machining. - Design of 2-ton per hour palm oil Production Plant completed and ready for prototyping. - Prototype cashew nut sheller machine fabricated. - GEPC interventions: - Group Export Marketing scheme for 100 members of chilli and okro growers at Abutia and 150 members at Sefwi Wiawso. - Fifty boxes (2,160 kg) of exotic okro and chilies exported weekly through a lead export firm. - About 7 market access facilitation activities undertaken; confirmed orders of ¢20.24 billion (US$2,200,000) for fruits, vegetables, medicinal plants and seeds, garments, fish and wood products. - Facilitated delivery of 4.8 million planting materials to members of Horticulture Association of Ghana and Sea-freight pineapple exporters group in 2006. - Assisted two Ghanaian companies to secure confirmed orders of about ¢4.6 billion (US$500,000) for medicinal plants and seeds. - Ghana Standard Board (GSB) activities: - Analyzed and standardized 997 products. - Provided Health and Export Certificates to 618 export products. - Verified 13,492 measuring devices and calibrated 1,365. - Carried out 3,346 tests on plastics, rubber, building and construction materials, food, drugs and cosmetics, toxicological and forensic samples/specimen, electrical cables, electrical fittings, electrical appliances, Textiles, garment and paper. - Additional activities: - 62,925 imported high risk goods inspected - .1,198 Health and Export Certification issued - 26 products had initial certification - 135 fish factories inspected - 392 fish exports inspected ### Development of Transport Infrastructure: Road, Rail, Water and Air Transport — summary findings - Road transport: - Total funds disbursed for routine maintenance, periodic maintenance, reconstruction and upgrading works, relative to maintenance needs: - =53% (2004) - Na (2005) - ($130.57mil) =54.9% (2005 entry) - ($168.85mil = 93.3% (2006)) - Progress: Target exceeded - Proportion/length of roads maintained/rehabilitated (Target in 2006 = 89%): - National level: Indicator Level at 2004 = 67% (implied), Indicator Level at 2006 = 75.6% — Target not met - Trunk Roads (in km) Indicator Level at 2006: 12,825.1; 135.33; 166.86; 142.18 — mixed progress; some indicators met/exceeded - Urban Roads (in km) Indicator Level at 2006: 3,634.79; 360.87; 56.18; Na — target not met (all six indicators below target) - Feeder Roads (in km) Indicator Level at 2006: 17,340; 557; 50; 1,162; Na; 176 — target not met - Total national network size of roads: 48,381km (increase of about 546km over 2005), fell short of 2006 target by 33%. - Road condition mix (national, Indicator Level at 2006): =45% Good, =28% Fair, =27% Poor — Steady Progress - Annual accident statistics (Road): - Target in 2006: 10,330 - Indicator Level at 2004: 12,164 - Indicator Level at 2005: 11,305 - Indicator Level at 2006: 11,698 - Progress: Target not met; road accidents increased from 11,305 in 2005 to 11,698 in 2006 (about 13% above target). Fatalities declined from 1,778 in 2005 to 1,378 in 2006 (one fatality in every six accidents in 2005 to one fatality in every nine accidents in 2006). - Rail and maritime transport: - Total funds disbursed to rail and maritime sub-sectors, relative to investment needs: =Na for Rail and = Na for Maritime — Lack of data to evaluate indicator. - Passenger traffic and goods traffic by rail: - Target in 2006: Passenger traffic 93,000; Goods traffic 231,000 - Indicator Level at 2004: Passenger 80,000; Goods 215,690 - Indicator Level at 2005: Passenger 64,000; Goods 223,980 - Indicator Level at 2006: Passenger 38,000; Goods 181,250 - Passenger traffic fell by 40% from 64,000 to 38,000 (thousand passenger-km) in 2006; goods traffic by rail fell by 19% in 2006 from 223,980 to 181,250 (in thousand tonnes-km). - Progress: Targets not achieved; indicators showing downward trends. Passenger traffic fell short of its target by nearly 140%, goods traffic fell short by 27%. - Maritime traffic (in 1000 tonnes): - Goods loaded: Target 4,500; Indicator Level at 2004: 3,907; 2005: 4,361; 2006: 4,359 — Targets not achieved, indicators showing downward trends. Decline in goods loaded marginal (~0.1%); fell short of 2006 target by about 3%. - Goods unloaded: Target 9,200; Indicator Level at 2004: 8,720; 2005: 9,524; 2006: 8,038 — Targets not achieved; goods unloaded declined about 18% from 2005 and fell short of 2006 target by 14%. - 2006 traffic by location (in 0000 tonnes): - Goods Loaded: Tema - 1,117; Takoradi - 3,241; Total - 4,359 - Goods Unloaded: Tema - 7,788; Takoradi - 1,477; Total - 9,266 - Total vessels: Tema - 2,032; Takoradi - 610; Total - 2,642 - Air transport: - Total air freight, number of aircraft, and number of air traffic passengers increased in 2006. - Number of air traffic passengers exceeded its target by about 1%. - Total air freight fell short of target by 2%. - Number of aircraft movement fell short of target by 4%. ### Progress assessment and notable outcomes - Trade and industrial development: - NTE targets were exceeded and port/airport clearing time targets were exceeded. - Manufacturing share indicators show mixed results; baseline targets not available. - Significant private and public interventions in textiles, agro-processing, oil palm, sugar feasibility, and export facilitation. - Financial support to exporters via EDIF amounted to ¢155.2 billion for January–October 2006. - Free Zones registrations, NBSSI and GRATIS training, GEPC market facilitation and GSB standardization/testing represent broad capacity-building and quality assurance efforts. - Transport infrastructure: - Road maintenance funding and some rehabilitation works exceeded targets and improved condition mix, but overall proportion of roads maintained/rehabilitated fell short of the 89% target (75.6% achieved). - Rail and maritime indicators show declines in passenger and goods traffic; maritime goods movement marginally down but below targets. - Air transport showed overall increases, with passengers slightly above target. *Source: _cr09237 - 1. Percentage change in non-traditional (MOTIPPSI; MRT; MPHR; MPHR entries as provided), 2006* ### 1. Total air freight and number of air traffic ### 1. Total air freight and number of air traffic ### Air freight, passengers, and aircraft movements (reported figures) - a. Total air freight in thousand tonnes - Loaded: 50.5 - Unloaded: 33.6 - Total (implied): 16.9 - b. Number of air traffic passengers (arrival and departure) in thousand - Total passengers: 919.2 - Arrival: 446.6 - Departure: 462.6 - c. Number of aircraft movements (arrival and departure) in thousand - Total movements: 14.4 - Arrival: 7.2 - Departure: 7.2 - Historical/other reported rows (additional yearly observations): - 46.9; 31.5; 15.4; 705.4; 338.5; 366.9; 10.6; 5.2; 5.4 - 47.2; 30.5; 16.7; 812.2; 382.2; 429.9; 12.5; 6.2; 6.3 - 49.5; 33.2; 16.3; 926.6; 458.8; 467.7; 13.8; 6.9; 6.9 - Performance notes: - Fell short by 1% - Targets exceeded - Fell short of target by 0.6 - Source for table: MOA, 2006 ### Key policy measures and strategies (transport sector summary, 2006) - Road Transport - Institutional reform Phase II ongoing; final urban transport study report submitted for Ghana Urban Transport Project policy framework. - Axle Load Policy approved by Cabinet; implementation action plan prepared. - Draft technical specification for road and bridge works prepared; Committee of Experts constituted to study recommendations. - New Road Traffic Regulations to operationalise Road Traffic Act 683 (2004) submitted to Cabinet. - Trunk roads (as at end August 2006) - Routine maintenance on a total road length of 4,049.60 km representing 51.5% of annual programme physical achievement. - Periodic rehabilitation about 21% and minor rehabilitation about 12% as at end August 2006. - Completed trunk road projects (started 2002–2003): Abuakwa – Bibiani Road (80km); Construction of 6 Bridges (Lot 2) Nayoko & Ngane; Kasoa – Winneba – Ankamu Road (41km); Manso Amenfi–Asankragua (34km); Wenchi – Sampa Phase 1 (30km); Kpando – Dambai Phase 2 (38km of 50km); Ofankor-Nsawam (17 km). - Installation ongoing: 5 weighbridges at Tema port and 2 weighbridges at Takoradi port. - Road projects commenced in 2006 (selected list): Tetteh Quarshie - Madina; Sogakope - Ho; Achimota – Ofankor; Ho – Fume; Nsawam Bypass (Dualization); Wenchi - Sampa; Anwiankwanta - Assin Praso; Kadjebi - Dzindzinso; Bamboi – Tinga; Akropong - Adankwame Ph. 1; Asankragwa – Enchi; Kumasi - Barekese - Offinso; Pantang – Peduase (dualisation); Ashanti & Brong Ahafo Roads (KfW Projects); Anyinam - Konongo Ph. II; Mallam - Kasoa & Interchange. - Feeder roads - Routine maintenance on a total of 9,750 km (37%) out of 26,580 km for the year. - Periodic maintenance on 1,342 km. - Spot improvement and rehabilitation: 827 km and 350 km respectively. - 5 bridges under the AFD bridge programme awarded on contract. - Urban Roads (Department of Urban Roads operations in 15 MMDA areas) - Routine maintenance on about 2,620 km of Urban Roads from January to September 2006. - Periodic maintenance on about 276 km of urban road network representing about 76% of target. - Major rehabilitation/reconstruction: Tema & Sekondi-Takoradi roads (completed as at March 2006); Kwame Nkrumah Circle – Achimota road (86% as at September 2006); Asafo Market – UTC Interchange (70% completed as at September 2006). - Ghana Road Fund - Fuel levy accounts for about 94% of total funds. - Projected revenue January–June 2006: ¢602 billion; actual revenue realized January–June 2006: ¢526 billion; shortfall of 12.6%. - DVLA IT integration; new vehicle testing equipment installed in Accra, Kumasi and Takoradi; Weija branch office established as part of decongestion and national HQ; revised working procedures for customer friendliness. - Road safety (National Road Safety Commission) - Publicity in 6 Ghanaian languages on over-speeding, wrongful overtaking, unsafe driving, unsafe vehicles, fatigue, drink driving, non-use of seat belts and crash helmets on major radio and TV stations. - Production of a short road safety documentary for public education. - Road safety education for school children. - Publication and distribution of over 20,000 copies of Road Safety materials. ### Mass transportation - Bus procurement and fleet - Last batch of 150 of the 400 Yaxing buses from China delivered during 2006; total Yaxing fleet 650. - Contracts signed for importation: - 63 Jonckeere VDL Buses under Belgium Government concessionary financing - 90 Tata buses under India EXIM financing - 150 VDL DAF bus chassis under Dutch Government concessionary financing for bus construction at Neoplan Manufacturing Plant in Kumasi - Metro Mass Transit expanded operational area to include Ho, Wa and Bolgatanga; operates in all 10 regional capitals. - Free bus ride policy for schools: nearly 4,427,055 school children benefited January–September 2006. - Metro Mass Transit patronage January–September 2006: nearly 39,875,253 passengers. ### Maritime sector - Stevedoring and shore handling: nearly 75% of stevedoring operations and 100% of shore handling of conventional cargo ceded to private sector. - Port infrastructure and equipment: - Construction and commissioning of a modern car terminal at Port of Tema. - 1st Phase of modern Container Terminal at Tema completed with state-of-the-art equipment; container devanning terminal under construction. - Truck park commissioned to handle loaded transit trucks awaiting documentation; CCTV installed at both ports. - GPHA purchased two modern tug boats M/V Sakumo Lagoon and M/V Ankobra River deployed to Tema and Takoradi. - Weighbridges installed at Tema and Takoradi ports. - Ghana Maritime Authority (GMA) established and operational; draft Legislative Instrument for inland waterways developed. - Rehabilitation of VLTC “Uniflote” II Pontoon (Ferry A) serialized repair works undertaken. - Harbours and Railway highlights - Delisting of Ghana Railway Company Ltd (GRCL) from divesture. - 82% completion of phase I of Accra-Tema Rail rehabilitation project; DMUS expected. - Feasibility studies initiated for Tema - Akosombo Rail Line and rail extension to the north through to Burkina Faso. - Layout/configuration of commercial seaports in Tema in progress; dredging works at port completed and new container terminal constructed; limited dredging completed in Takoradi. - Transit cargo traffic recorded at Tema and Takoradi ports: 563,586. - Maximum depth attained at Tema: 11.5 metres. - Annual traffic growth rate at Ghanaian ports: 6% on average (target was 3.2%). - Measures to decongest Tema and Takoradi ports; promotion of inland port at Boankra in collaboration with Shippers Council. ### Air transport sector (Kotoka International Airport and regulation) - KIA phase II rehabilitation continued in 2006; additional terminal works completed including: - Flight Information Display Systems, Baggage Information Display Units, Closed Circuit Television (CCTV), Public Address System, Common User Terminal Equipment (CUTE). - VSAT installed at vantage points to improve navigation, communication and surveillance in Accra Flight Information Region (FIR). - Civil Aviation Act of 2004 (Act 678) passed by Parliament; decoupling airport management from GCAA to create an Airport Company for planning, development, operations and maintenance, while GCAA handles safety regulations and air navigation services. - Competition in ground handling at KIA continued; Aviation Handling Services licensed as a second operator for terminal and ramp handling in 2006. ### Energy supply to support industry and households — status and indicators - Broad policy interventions: - (i) increased access to modern forms of energy to the poor and vulnerable; (ii) modernising and expanding power infrastructure; (iii) improving regulatory environment; (iv) ensuring full cost recovery while protecting the poor; (v) ensuring productive and efficient use of energy and minimising environmental impacts. - Sectoral indicator monitoring (selected indicators adopted): - per capita consumption of energy per annum; - average number of hours of electricity outage per consumer per year; - percentage reduction in transmission and distribution losses; - percentage of households covered by electricity supply. - 2006 context: shortage in power supply due to low water inflows into Akosombo Dam; high crude oil and petroleum product prices; load-shedding started in August 2006. - Indicator outcomes and data (Table 3.7 excerpts) - 1. Per capita consumption of energy per annum (in Tonnes of Oil Equivalent(TOE)) - Target in 2006: 0.2936 - Indicator Level at 2004: Na; Electricity 0.0370; Petroleum 0.0802; LPG 0.0031 - Indicator Level at 2005: 0.0414; 0.0806; 0.0033 - Indicator Level at 2006: Na; 0.0798; 0.0040 - Progress note: marginal decrease for Petroleum due to decreased demand from sharp increases in petroleum prices; increase in LPG use. - 2. Average number of hours of electricity outage per consumer per year - Target in 2006: ≤100 hours/Year - Indicator Level at 2004: 143 - Indicator Level at 2005: 122 - Indicator Level at 2006: N/a (Data not currently available for 2006) - Progress note: expectation that target of 100 hours not achieved due to load-shedding programme starting in August 2006. - 3. Percentage reduction in transmission and distribution losses - Transmission: - Target in 2006: 2.8% - Indicator Level at 2004: 2.98% - Indicator Level at 2005: 3.28% - Indicator Level at 2006: 3.56% - Distribution: - Target in 2006: 21% - Indicator Level at 2004: 25.65% - Indicator Level at 2005: 25.44% - Indicator Level at 2006: 24.32% - Progress note: Targets not met due to over-aged equipment. - 4. Percentage of households covered by electricity supply - Target in 2006: 47% - Indicator Level at 2004: 42% - Indicator Level at 2005: 45% - Indicator Level at 2006: 48% - Progress note: Target exceeded. - Key energy sector policy responses and measures (2006) - Nationwide load management programme implemented end of August 2006; programme led to reduction of about 300 MW which is about 21% of current power demand of 1,400 MW. - Repair of generating equipment at Aboadze Thermal Plant fast-tracked to restore full generating capacity. - Procurement commenced for more efficient Compact Fluorescent Lamps (CFLs) to replace incandescent lamps. - Energy Commission and Energy Foundation initiated a massive public education campaign on energy efficiency and appliance labelling standards. - West Africa Gas Pipeline Project progress: - completion of laying of entire length of high-pressure pipeline; - pipelines connecting Tema and Takoradi to main pipeline laid; - pipeline connecting Lome and Cotonou completed; - construction of Regulatory and Metering stations at Tema and Takoradi commenced. - Energy Commission completed policy framework and Master Plan for Natural Gas Secondary Market (SGM); prepared technical and operational rules including: - Natural Gas Distribution and Sale (Standards of Performance) Regulations - Natural Gas Distribution and Sale (Technical & Operational) Rules - Natural Gas Transmission Utility (Standards of Performance) Regulations - Natural Gas Transmission Utility Operational Regulations - Occupational Health & safety Regulations - Environmental Impact Assessment of Bui hydro project completed; potential to expand hydro capacity by an additional 400 MW; public consultation ongoing; funding modalities under discussion. - Review of fiscal and regulatory framework for petroleum exploration and production initiated. - Parliament ratified four Petroleum Agreements in 2006: - GASOP Oil for exploration and development of West Cape Three Point. - Amerada Hess for exploration and development of Deep Water Tano/West Cape Three Point Sites. - Tullow Oil Ghana Limited and Sabre Oil and Gas Limited for exploration, development and production of Shallow Waters West Tano. - Tullow Oil Ghana Limited, Sabre Oil and Gas Limited and Kosmsos Energy Ghana Limited for exploration, development and production of Deep Waters West Tano. - Rural Electrification Project: 198 communities connected to the national grid during the year. ### Science and technology for increased productivity and development - Goal: establish an efficient research system contributing to national development; promote science and technology culture and mastery/application of technologies in agriculture and industry. - Indicator/data availability: percentage change in public expenditure on science and technology research data not available for meaningful analysis. - Indicative public expenditure (2006) - Government spent about US$3, 258,260.90 on the three main public institutions engaged in science and technology research (Ministry of Environment and Science, CSIR, GAEC). - This expenditure constitutes about 0.03% of GDP. - This represents only 5.3% of the total investment budget of the Ministry of Education Science and Sport. *Source: MOA, 2006; MOE, 2006* ### 1. Percentage change in Research and ### 1. Percentage change in Research and ### Research and Development expenditure (Public) — Status and Key Measures - Data not available to evaluate the indicator: "Na Na Na Na Data not available to evaluate the indicator" - 2006 Public Expenditure (investment and Services): Institution - MES - US$363,695.65 - CSIR - US$510,108.70 - GAEC - US$2,384,456.50 - TERTIARY - US$ - Total - US$3,258,260.90 (0.03% of GDP) - Source: MOESS, 2006 - Key Policy Measures and Strategies: - CSIR institutes intensified development of varieties: improved crops and cereals, early maturing pest and drought-resistant. - CRI and SARI released new varieties of peanuts, cowpea, soya beans, sorghum and millet. - GAEC completed establishment of a Tissue Culture Laboratory for large scale multiplication of a wide range of planting materials. - BNARI (GAEC) collaborated with Bio Plantlets Limited for multiplication of MD2 pineapple plants for distribution to farmers. - In collaboration with the Cocoa Research Institute, GAEC developed Gamma Mutation Breeding resistant to Swollen Shoot Disease; about 25 farmers utilizing this technology on a pilot basis. - GAEC established the School of Nuclear and Allied Sciences (SNAS) to train human resources and serve as regional training centre. - National Nuclear Research Institute intensified use of Non-Destructive Testing techniques to detect leakages in storage tanks for mining firms, BOST, TOR, Aboadze Thermal Plant, Oil Storage Tanks at Buipe and Bolgatanga, and the West Africa Gas Pipe-Line Project. ### Developing Information and Communication Technology (ICT) — Status, Indicators, and Measures - Policy thrust: (i) enhance development of ICT Infrastructure; (ii) promote development of e-strategies in key sectors; (iii) promote ICT in Education; (iv) promote ICT in productive activities; (v) build capacity and strengthen legal and institutional framework. - Indicators adopted: size of the ICT industry; teledensity/penetration rate; level of access to the internet. - Teledensity (2006): 27.2%, comprising 25.5% mobile and 1.7% fixed line. - 2005 teledensity: 16.6%, comprising 14.9% mobile and 1.7% fixed line. - Progress statement: "Overall, the teledensity or the penetration rate of telephones has improved over the 2005 level, as well as exceeding the target set for 2006." - Internet access: - Proportion of internet subscribers increased marginally by 0.05% instead of the 2% targeted for 2006. - Number of schools with internet access increased from 53 (including 46 Senior Secondary Schools, and 7 Teacher Training Institutions) in 2005 to 58 (including 50 Senior Secondary Schools, and 8 Teacher Training Institutions) in 2006. - Size of ICT industry: Data not available; planned to reach US$750million by the year 2011. - Table 3.9 (selected exact figures): - Indicator: Size of the ICT industry — Target in 2006: US $750 million by 2011; Indicator Level at 2004: Na; 2005: Na; 2006: Na; Progress: "Data not available to evaluate the indicator" - Indicator: Teledensity/Penetration rate — Target in 2006: 20% - Indicator Level at 2004: 6.9% (Fixed Line 1.6%, Mobile 5.4%) - Indicator Level at 2005: 16.6% (Fixed Line 1.7%, Mobile 14.9%) - Indicator Level at 2006: 27.2% (Fixed Line 1.7%, Mobile 25.5%) - Progress: "Target exceeded" - Indicator: Internet Access — Target in 2006: 1.5million in 2005; ≥2% per annum - Indicator Level at 2004: Na - Indicator Level at 2005: Na - Indicator Level at 2006: 0.05% (Subscribers) / 29 (Providers total number) / 50 (SSS) 8 (Teacher Training) for schools with internet access - Progress: "Targets not achieved (Progress is slow)" - Source: MOC, 2006 - Key Policy Measures and Strategies (selected actions with exact figures): - Drafting of E-Legislation Bills; stakeholder workshops for Electronic Transactions Bill, Telecom Bill, NCA & NITA Bills; Government interoperability draft policy framework prepared and stakeholder forum held. - Privatization process of Ghana Telecom begun; estimated to be completed by June 2007. - New Radiosonde equipment installed and commissioned at Tamale Airport in March 2006. - GICTeD administered ICT status questionnaire at 66 MDAs and 30 SOEs. - Draft policies and regulations for postal and courier business; 50 firms identified to be brought under regulatory framework; Exclusive license for reserved postal services granted to Ghana Post. - About 4,000 persons trained in various ICT skills at AITI-KACE in 2006. - Ghana Telecommunication University College (GTUC) inaugurated; GTUC trained 120 technicians in short term courses by end June 2006. - GIFTEL established; Ten underserved areas approved for extension of telecom access: Tokope (G/Accra), Twifo Mampong (Central), Donkorkrom (Eastern), Dadieso (Western), Odumase (Ashanti), Damanko (Volta), Daboya (Northern), Gwollu (U/West), Fumbisi (U/East) and Kwame Danso (B/A). - CIC concept accomplishments: - 72 CIC Infrastructure completed and equipped. - 6 people trained as Trainers of ‘Trainers’. - 49 CIC coordinators trained. - Extension of LAN/WAN Connectivity/equipment to 50 CICs undertaken. - Concessionary loan facility of $30 million secured to support transformation of Voltacom’s Fibre Optic assets into national Communications Backbone Infrastructure network; design stage completed and legal instrument being considered. - Technology Park Project: funding approved by the World Bank under MSME; project management document completed. - Construction/centralized data centre: study phase for centralized data backup centre completed; design phase in progress. ### Developing the Tourism Sector — Status, Indicators, and Measures - Policy thrust: (i) promote tourism as major source of national revenue; (ii) promote domestic tourism; (iii) promote sustainable and responsible tourism; (iv) enhance capacity and strengthen legal and institutional framework. - Selected indicators: percentage increase in tourist arrivals; percentage change in investment (stock tourism facilities). - Key findings and exact figures: - Ghana ranks 10th in terms of tourist arrivals in Africa. - Percentage change in tourist arrivals declined marginally in 2006 and fell short of its target. - Receipts: 2005 = 836.1 (US $ Million); 2006 = 984.8 (US $ Million). - Employment: 2005 = 172,823; 2006 = 183,192. - Table 3.10 (selected exact figures): - Indicator: Percentage increase in tourist arrivals — Target in 2006: 16% - Indicator Level at 2004: Total arrivals =372,823 - Indicator Level at 2005: 13% - Indicator Level at 2006: 11.8% - Progress: "Target is not achieved" - Indicator: Percentage change of investment (stock of tourism facilities) — Targets and levels by subcategory (exact figures): - a. Accommodation Establishments: Target in 2006: 15.26%; Level at 2004: 2.0%; Level at 2005: -18.5%; Level at 2006: 2.3%; Progress: "Target not achieved (With the exception of car rental companies, all the remaining indicators fell short of targets, showing a declining trend in some cases)" - b. Catering Establishments: Target in 2006: 10.09%; Level at 2004: -18.5%; Level at 2005: 24.5%; Level at 2006: -32.8% - c. Travel Agents and Tour Operations Establishment: Target in 2006: 9.17%; Level at 2004: -4.1%; Level at 2005: 31.0%; Level at 2006: -5.9% - d. Car Rental companies: Target in 2006: 12.94%; Level at 2004: -7.7%; Level at 2005: 10.4%; Level at 2006: 13.2% - Licensing and inspections (2006 exact figures): - Total 1,736 formal establishments licensed in 2006 including 1,406 for accommodation and 330 for catering. - Nearly 370 accommodation and catering units in the formal sector were re-inspected and subsequently licensed. - About 949 informal establishments licensed: 24 accommodation and 925 catering units. - Number of formal travel/trade operators licensed: 410 (350 travel and tours; 60 car rental companies). - Formal Establishments (A&C) Licensed: - Accommodation – 1,406 (Rooms – 19,967, Beds – 28,006) - Catering – 330 - Informal Establishments Licensed: - Accommodation 24: Hostels - 12; Homestays - 10; Tourist homes - 2 - Catering 925: Drinking Bars – 574; Traditional Catering - 344; Snack bars - 6 - Two Charter Flights were licensed in 2006: - ANTRAK Airlines Limited - Route (Accra – Duss – Accra) - MICON Travels & Tours - Route (Port of Spain/George Town – Accra – George Town/Port of Spain) - Progress: "Target not achieved (With the exception of car rental companies, all the remaining indicators fell short of targets, showing a declining trend in some cases)" - Key Policy Measures and Strategies (selected actions): - Four major international promotional activities undertaken to market Ghana. - Hosted the 31st Africa Travel Association (ATA) congress in Accra. - International Exhibitions and Fairs abroad to market Ghana’s tourism potential. - Second hang and paragliding festival organized. - About 1,042 personnel from the private sector trained in Front Office and Food and Beverage Service management; 8 regional sensitization workshops held for 400 traditional caterers and drinking bar operators. - Work on remaining 21 receptive facilities nearly completed; about 90% of facilities commissioned and outsourced to private sector. - New tourist attractions identified: Presbyterian Cemetery at Osofoman, Mayera; Samsam Cave & Sacred Grove at Achioto, Samsam; Guoko Sacred Groove at Pokuase. - Land banks and land use plans for tourist sites identified and documented; workshops held with District Assemblies; land owners being sensitized. - A mechanism to accurately capture data of tourist arrivals has now been established. ### Employment Generation and Expansion of Safety Nets — Status and Indicators - Policy aims: develop institutional capacity of MMYE for Employment Policy Management; develop/implement national employment policy; strengthen tripartism and social protection; develop labour market information/statistics; adopt national policy for enhancing productivity and income; integrate employment strategies in sectoral policies. - Indicators used: number of new jobs created by sector; social protection expenditure as percentage of GDP; number of labour disputes. - Key findings and exact figures: - 200,000 jobs were created in 2006 (including 78,195 placed in the youth employment programme). - Statement: "This is about 60% higher than the total number of jobs created in 2006." (text as provided) - Sectoral breakdown: - About 85% of the jobs came from the services sector. - Within services: education accounted for 28.4% of the total vacancies; wholesale and retail trade 11.03%; Transport, Storage, and Communication 9.2%. - Industrial sector (led by manufacturing) accounted for 14.2%; agriculture accounting for less than 1%. - Labour disputes: - Total number of labour disputes recorded in 2006 amounted to 6632 (text shows "663 2" — preserved as presented: "663 2") (about 20% higher than the number recorded in 2005). - Lack of baseline data makes it difficult to fully assess performance; no meaningful analysis on social protection expenditures due to inadequate data. - Box 5.2: Institutions involved in industrial disputes (selected from text): - Meteorological Services Department - Customs, Excise and Preventive Service - The thirty-two (32) Unions under the Public Services Workers’ Union - Barclays Bank of Ghana Limited - Environmental Protection Agency - National Association of Graduate Teachers (NAGRAT) - Labour Commission outcomes: - About 80% of cases fully settled; remaining 20% in process of settlement. *Source: _cr09237 - 1. Percentage change in Research and; MOESS, 2006; MOC, 2006; MOTDR, 2006.* ### 1. Number of Labour Disputes Na Na 548 663 ### _cr09237 - 1. Number of Labour Disputes Na Na 548 663 ### Labour disputes and indicator data - 1. Number of Labour Disputes Na Na 548 663 - Lack of baseline data to evaluate indicator, but indicator showed a worsening trend. ### Employment and youth employment programme - Target: The number of new jobs created by sector — 200,000 Na 125,000 200,000 - Target was achieved. - 78,195 jobs created under the youth employment programme alone, in all 10 regions as at 31 December, 2006. - Employment figures as at December are as follows (REGIONS): - Ashanti - 6,437 - Brong Ahafo - 6,432 - Central - 6,391 - Greater Accra - 5,056 - Northern - 15,614 - Upper East - 8,530 - Upper West - 8,488 - Volta - 7,574 - Eastern - 7,000 - Total - 78,195 - Employment figures by SECTORS: - Agric Biz - 13,069 - Comm. Edu Tech - 20,021 - Comm. Protect - 300 - Aux. Nursing - 10,500 - Waste & s’tion - 4,550 - Internship - 2,800 - Trades & vocations ICT - Na - Other modules - 26,760 (Forestry, Rev. Mobi, Volu. Teachers, etc) - Programme Staff - 195 ### Social protection expenditure - 3. Social Protection Exp as percentage of GDP - 24.42% Na Na Na - Lack of data to evaluate indicator. - Department of Social Welfare Budget for 2006 = 19.28 billion Cedis - Source: MMYE, 2006 ### Key policy measures and strategies (activities carried out) - National Youth Employment Programme officially launched on October 3, 2006. - Work started on developing a draft National Employment Policy and Labour Market Information System. Priority areas include: - defining constraints to employment generation - promoting employment generation potential of economic sectors such as agriculture, manufacturing, construction - development of Action Plans for implementation - Human Resource Development and employment linkages - MMYE and Ghana Statistical Service trained field personnel to collect reliable and accurate data on employment; data being processed and actual figures expected soon. - Welfare programmes implemented in 2006 with achievements including: - 134 cases of adoption handled - 739 child welfare services provided - 44,044 Persons with Disability trained in various vocations nationwide - 85 juvenile and related child cases handled - National Social Protection Strategy (NSPS) undergoing final review to enable programme implementation in 2007. - Tripartite Committee re-constituted; concluded work on determination of a minimum wage for 2007; Central Management Board and Appellate Body handled issues related to wages and salaries. - MMYE through MDPI conducted productivity measurement indices for 10 manufacturing companies and 5 financial institutions using the Value Added Concept. - MMYE collaborated with other MDAs on multiple programmes including: - implementation of the Labour Act and finalisation of a legislative Instrument for gazetting and publication - training 828 co-operative groups with total membership of 13,200 in basic co-operative management techniques - inspection of 1,922 factories and offices and 30 Industrial Hygiene Surveys conducted to determine Safety Standards - passage of Persons with Disability Act, 2006 - passing of Technical Vocational and Education Training (TVET) Act by parliament - commencement of implementation of the on-the-job training programme; management board and implementation teams established ### Summary of policy recommendations (selected highlights) - Overall: Improve infrastructure (electricity, ICT, transport) to reduce production costs and enhance competitiveness. - Strengthen M&E systems of MDAs to address lack of adequate and accurate data, particularly for the informal sector which employs nearly 90% of the populace. - Intensify interventions in agriculture and environment and natural resources sectors to meet set targets. - 3.3.1 Private Sector Development - Accelerate implementation of activities related to “increased competence and capacity”. - 3.3.2 Modernised Agriculture - Enhance productivity through increased extension and technology dissemination coverage, mechanisation services for land preparation, credit facilities for agricultural inputs, and institutionalisation of effective environmental assessment in agricultural development. - Note: Agriculture sector grew at 6.2% compared to the 5.24% envisaged under the GPRS II, and created employment for about 92% of households in the rural areas. - 3.3.3 Modernised Fishing and Aquaculture Development - Accelerate pace of interventions under aquaculture development to achieve 700,000mt fish requirement in the long-run. - 3.3.4 Restoration of degraded environment and Natural Resource Management - Improve environmental governance and incorporate sound environmental practices in national planning and implementation. - Develop an efficient database of relevant indicators for tracking progress. - 3.3.5 Promoting Trade and Industrial Development - MDAs should collaborate with private sector to identify structural constraints in manufacturing; develop instruments to track competitiveness measured by the composite index of competitive industrial performance (CIP). - 3.3.6 Transport Infrastructure: Road, Rail, Water and Air Transport - Address resource and capacity constraints in road infrastructure; intensify road safety programme to reduce annual road accident rate. - Review and scale up interventions in rail sub-sector for bulk transport potential. - 3.3.7 Energy Supply to Support Industry and Households - Develop comprehensive plan to ensure energy is constantly available to support industrial and services sectors; note continued expansion in household access to electricity and improving per capita energy consumption despite 2006 crisis. - 3.3.8 Science and Technology to Support Productivity and Development - Develop instruments to track key indicators including percentage change in R&D expenditures (disaggregated into public and private). - 3.3.9 Developing Information and Communication Technology (ICT) - Accelerate implementation of interventions to make internet access to business and households easier and cheaper. - 3.3.10 Developing the Tourism Sector for Revenue and Employment Generation - Explore incorporation of Music and Film industry activities into MDAs’ programmes to develop them into growth and employment points and preserve culture. - 3.3.11 Employment Generation and Improvement and Expansion of Safety Nets - Address vulnerability and exclusion, improve data availability and disaggregation for social protection expenditures. ### Status of indicators – selected numeric highlights (2004–2006) - Ease of Doing Business rank: Target in 2006 = Within the first 55 countries in the world by 2009; Indicator Levels: Na Na Na Na - Composite Index of Economic Activities (CIEA) — selected movements: - 2004: 188.96% (CIEA – Nominal Movement), 14.26% (Year-on-Year growth Nominal), 144.91% (CIEA – Real Movement), 7.98% (Year-on-Year growth Real) — Indicator Level at 2004 = 102 - 2005: 225.39%, 19.28%, 160.43%, 10.71% — Indicator Level at 2005 = 94 - 2006: 285.69%, 26.8%, 140.17%, -12.6% — Progress: Slow Progress toward target - FDI net inflows (in millions of US$): Na; Indicator Levels: 2004 = 139.27, 2005 = 144.97, 2006 = 434.50 (No baseline target; significant improvement) - Number of days to register a Limited Liability Company: Target = 7; Indicator Levels: 2004 = 14, 2005 = 5; Progress: Target exceeded - Number of days to resolve commercial disputes: Target = 175; Indicator Levels: 2004 = 195, 2005 = 185, 2006 = 90; Progress: Target exceeded - Domestic credit to the private sector as ratio of GDP: Target = 19.6% by 2009; Indicator Levels: 2004 = 13.1%, 2005 = 14.9%, 2006 = 18.0% — Substantial progress towards target - Modernized agriculture indicators: - Change in yield of selected traditional crops (targets and indicator values preserved as in source; targets not achieved for most crops) - Percentage of cultivated lands under irrigation: Target = 0.33 (23,500); Indicator Levels: Na; 2005 = 0.26% (19,000); 2006 = 0.21% (14,928.5) — Target not attained - Regional distribution of irrigated area: - Ashanti - 188 - Brong Ahafo - 236 - Central - 386 - Greater Accra - 5,147 - Northern - 690 - Upper East - 3,690 - Upper West - 115.5 - Volta - 3,463 - Eastern - 603 - Western - 60 - Total - 14,928.5 - Share of Credit to Agriculture, forestry and Fishing by Deposit Money Banks (excluding Cocoa): Target ≥ 10%; Indicator Levels: 2004 = 8.1%, 2005 = 6.2%, 2006 = 4.8% — Target not achieved - Per capita production of key staple foods (kg/Annum) — Targets and Indicator Levels preserved verbatim in source; overall: At least 50% of target attained (Five out of eight selected staple crops, as well as two out of five of the selected livestock and fish products exceeded their respective targets) - Percentage change in export volume and value of non traditional crops — multiple crops show targets substantially not achieved (detailed values in source) - Farm Household incomes / Non-farm Household income: Target = 60% / 40%; Indicator Levels: 2006 = 61% / 39% — Target exceeded in 2006 - Ratio between subsistence crop/livestock and commercial crop/livestock: Target = 2.5; Indicator Level 2006 = 3.16 — Target not achieved - Total Fish Production (mt): a. Marine Na Na Na Na; b. Inland Capture fisheries Na Na Na Na; c. Harvesting of Ponds Na Na Na Na; d. Import Na *Source: _cr09237 - 1. Number of Labour Disputes Na Na 548 663* ### 352405.19 Na 3,500 Na ### _cr09237 - 352405.19 Na 3,500 Na ### FISHERIES AND AQUACULTURE - Regional distribution (Kg) total: 19,876.96 - Ashanti - 9,378.1 - Brong Ahafo - 1,167.5 - Central - 376.36 - Greater Accra - Nil - Northern - Nil - Upper East - Nil - Upper West - Nil - Volta - Nil - Eastern - 8,411 - Western - 544 - Quantity of fish produced per hectare of pond per year - Target in 2006: 2 Tons/ ha/yr - Indicator Level at 2004: 1.3 - Indicator Level at 2005: 1.5 - Indicator Level at 2006: 1.5 - Progress towards target: Target not attained - Total surface water Area under fish farming - Target in 2006: 250ha - Indicator Level at 2004: 200 - Indicator Level at 2005: 231.4 - Indicator Level at 2006: 508.58 - Progress towards target: Target exceeded - Disaggregations: - Total # of Ponds = 3,472 - Functional ponds = 3,234 - Total # of farmers = 1,597 ### RESTORATION OF DEGRADED ENVIRONMENT AND NATURAL RESOURCE MANAGEMENT - Cost of environmental degradation as a ratio to GDP (lands, forests, fisheries) - Target in 2006: 5% - Indicator Level at 2004: Na - Indicator Level at 2005: 5.5% - Indicator Level at 2006: 6% - Progress towards target: Target not achieved - Rate of deforestation - Target in 2006: (-1.3%) <10,00 ha/annum - Indicator Level at 2004: 65,000 ha/annum - Current Forest = 5,517,000ha (-1.7%) - Indicator Level at 2005: Na - Progress towards target: Statistics on current rate of deforestation not available - Number of Timber Utilisation Contracts (TUCs) awarded - Target in 2006: 167 Consists of: Conversion to TUC’s = 100 Ratified TUC’s = 42 Next Comp. Bidding (Nat.Foests) = 25 - Indicator Level at 2004: 36 - Indicator Level at 2005: 17 plantation TUCs signed - Indicator Level at 2006: 6 TUCs signed and ratified by parliament - Progress towards target: Target not achieved; Competitive bidding for 27 TUCs of plantation timber to be held by end of march, 2007 - Number of Social Responsibility Contracts (SRC) signed - Target in 2006: 103 Consist of: SRA (Nat. Forests) = 67 SRA (Plantation) = 36 - Indicator Level at 2004: 53 Consist of: Nat. Forest replacement = 36 SRA (Plantatio n) = 17 (n) = 17 - Indicator Level at 2005: 8 Consist of: SRA (Nat. Forests) = 6 SRA (Plantation) = 2 - Indicator Level at 2006: 18 Consist of: SRA (Nat. Forests) = 4 SRA (Plantation) = 14 - Progress towards target: Target not achieved; Stakeholder consultation are on-going to facilitate the signing of SRAs - Percentage change in resource spent for Corporate Social Responsibility, including alternative livelihood programmes - Target in 2006: Na - Indicator Level at 2004: Na - Indicator Level at 2005: Na - Indicator Level at 2006: Na - Progress towards target: Data not available to evaluate the indicator - Hectares of degraded forest, mining, dry and wet lands rehabilitated/restored - Target in 2006 (a. Forest): 20,000 ha - Indicator Level at 2004: 238ha by 2009 Na - Indicator Level at 2005: 16,000ha 168ha Na - Indicator Level at 2006: 16,800ha Na Na - Progress: Target not achieved due to limited financial resource; Data not available to assess progress; Technical document developed for labour intensive physical reclamation; Lack of data to evaluate indicator - Target in 2006 (b. Mining): Na - Target in 2006 (c. Dry and wetland): Na - Proportion of timber royalties going to resource owners - Target in 2006: 50:50 for on-reserve royalties (i.e. 50% for forestry commission and 50% for resource owners) 40:60 for off-reserve royalties - Indicator Level at 2004: 60:40 60:40 - Indicator Level at 2005: 60:40 40:60 - Indicator Level at 2006: 50:50 40:60 - Progress towards target: Target achieved (The sharing of royalties from timber resources have been reviewed in favour of resource owners both on- and off-reserve. Currently, the Forestry Commission receives 50% of timber royalties from forest reserves while the resource owners also receive 50%) Target Achieved (Similarly, the sharing of royalties outside forest reserves is now 40% for the Forestry Commission and 60% for the resource owners) ### MINERAL SECTOR STATISTICS - Mineral Production targets (and indicator levels) - Gold (thousand ounces) - Target in 2006: 2,500 - Indicator Level at 2004: 2,029.97 - Indicator Level at 2005: 2,138.94 - Indicator Level at 2006: 2,423.27 - Progress: Significant progress made toward target - Diamonds - Target in 2006: 1,000.0 - Indicator Level at 2004: 905.34 - Indicator Level at 2005: 1,065.92 - Indicator Level at 2006: 967.86 - Progress: Significant progress made toward target - Bauxite - Target in 2006: 760.00 - Indicator Level at 2004: 498.06 - Indicator Level at 2005: 606.70 - Indicator Level at 2006: 753.32 - Progress: Significant progress made toward target - Manganese - Target in 2006: 1,800.00 - Indicator Level at 2004: 1,597.09 - Indicator Level at 2005: 1,719.59 - Indicator Level at 2006: 1,607.178 - Progress: Significant progress made toward target - Labour in mining - Target in 2006: Large Scale = 22,000; Small Scale (legal & illegal)* = 600,000 - Indicator Level at 2004: 21,505; 500,000 - Indicator Level at 2005: 21,916; 540,000 - Indicator Level at 2006: 21,950; 570,000 - Foreign Direct Investments (in million U.S.$) - Target in 2006: 1,000 - Indicator Level at 2004: 665.86 - Indicator Level at 2005: 744.050 - Indicator Level at 2006: 900.0 - Progress: Significant progress made toward target - Mineral Rights Granted - Target in 2006: 200 - Indicator Level at 2004: 131 - Indicator Level at 2005: 152 - Indicator Level at 2006: 189 - Progress: Significant progress made toward target ### LAND, TRADE AND BUSINESS ENVIRONMENT - Time to register land - Target in 2006: 8mths - Indicator Level at 2004: 36mths - Indicator Level at 2005: 12mths - Indicator Level at 2006: 7mths - Progress towards target: Target exceeded (The drastic reduction is due to the establishment of deed registries in four areas Sekondi, Koforidua, Sunyani and Tamale). - Percentage change in non-traditional exports (NTE) = (Value in Million US$) - Target in 2006: 10% - Indicator Level at 2004: 16.5% (705.0) - Indicator Level at 2005: 10.3% (777.59) - Indicator Level at 2006: 15% (892.88) - Progress towards target: Target exceeded - Average number of days for clearing goods from the nation’s ports - Target in 2006: 3days - Indicator Level at 2004: 7days - Indicator Level at 2005: 4days - Indicator Level at 2006: 2days (6 hours at the airports) - Progress towards target: Target exceeded ### INDUSTRIAL PERFORMANCE - Manufacturing indicators - Manufacturing value added share in GDP - Indicator Level at 2004: 9.0% - Indicator Level at 2005: 8.9% - Indicator Level at 2006: 8.8% - Share of manufacturing in total export - Indicator Level at 2004: 1.6% - Indicator Level at 2005: 1.3% - Indicator Level at 2006: 14.2%(Prov.) - Composite index of competitive industrial performance (CIP): Na across periods - Progress: Baseline target not available, results are mixed compared to previous year. ### TRADE FACILITATION AND LOGISTICS - Time Taken to get duty drawback - Target in 2006: 6wks - Indicator Level at 2004: Na - Indicator Level at 2005: 6mnths - Indicator Level at 2006: Na - Progress: Lack of data to evaluate indicator - Average number of days for clearing goods from ports: see above (target exceeded) ### TRANSPORT INFRASTRUCTURE: ROAD, RAIL, WATER AND AIR TRANSPORT - Maintenance funding relative to needs (2006 targets) - Road Transport = 53% - Rail & Water = 4% - Air = Na - Indicator data for 2004–2006: largely Na; lack of data to evaluate indicator - Proportion/length of roads maintained/rehabilitated (Trunk Roads, Urban, Feeder) - Trunk Roads routine maintenance - Target in 2006: 89% 12,168 293 - Indicator Level at 2004: Na 13,074.50 260.29 - Indicator Level at 2005: 67% 12,127 281.31 - Indicator Level at 2006: 75.6% 12,825.1 135.33 - Progress: Target not met; Target largely not met (Only one out of four indicators met and exceeded it) - Detailed feeder/urban road activity volumes reported for 2004–2006 with indicators showing mixed achievement; several indicators not met (All six indicators below target for certain categories) - Annual accident statistics for Road transport - Target in 2006: 10,330 - Indicator Level at 2004: 12,164 - Indicator Level at 2005: 11,305 - Indicator Level at 2006: 11,698 - Progress: Target not met - Passenger and goods traffic by railways (in 1000 units) - Target in 2006: Passenger traffic 93,000; Good traffic 231,000 - Indicator Level at 2004: 80,000; 215,690 - Indicator Level at 2005: 64,000; 223,980 - Indicator Level at 2006: 38,000; 181,250 - Progress: Targets not achieved, and indicators showing downward trends - Maritime traffic: Goods loaded and unloaded (in 1000 tonnes) - Target in 2006: Goods loaded 4,500; Goods Unloaded 9,200 - Indicator Level at 2004: 3,907; 8,720 - Indicator Level at 2005: 4,361; 9,524 - Indicator Level at 2006: 4,359; 8,038 - Progress: Targets not achieved, indicators showing downward trends - 2006 Traffic by Location (in 0000 tonnes): Goods Loaded - Tema - 1,117 - Takoradi - 3,241 - Total - 4,359 - Goods Unloaded - Tema - 7,788 - Takoradi - 1,477 - Total - 9,266 - Total vessels: Tema - 2,032; Takoradi - 610; Total - 2,642 - Air transport (2004–2006) - Total air freight (thousand tonnes) Loaded / Unloaded and passenger/movements reported: - Target in 2006: 50.5 33.6 16.9 919.2 446.6 462.6 14.4 7.2 7.2 - Indicator Level at 2004: 46.9 31.5 15.4 705.4 338.5 366.9 10.6 5.2 5.4 - Indicator Level at 2005: 47.2 30.5 16.7 812.2 382.2 429.9 12.5 6.2 6.3 - Indicator Level at 2006: 49.5 33.2 16.3 926.6 458.8 467.7 13.8 6.9 6.9 - Progress: Targets not achieved for freight; passenger and aircraft movement targets exceeded or fell short slightly (Fell short of target by 0.6 for one metric) ### ROAD CONDITION MIX - National road network totals and condition shares - Total 64,131km =48% Good = 30% Fair = 22% Poor (baseline) - 2004: 47,600km =40% = 30% = 30% - 2005: 47,835km =42% = 31% = 27% - 2006: 48,381km =45% = 28% = 27% - Progress: Target not met for national, trunk, and urban roads - Feeder Roads condition (41,000km target) - 2004: 32,594Km = 30% = 17% = 53% - 2005: 32,594Km = 30% = 17% = 53% - 2006: 32,594Km =34% =15% = 51% - Progress: Target not met ### ENERGY SUPPLY - Per capita consumption of energy per annum (Tonnes of Oil Equivalent(TOE)) - Target in 2006: 0.2936 Na Na - Indicator Level at 2004: 0.0370 0.0802 0.0031 (a. Electricity b. Petroleum c. LPG) - Indicator Level at 2005: 0.0414 0.0806 0.0033 - Indicator Level at 2006: Na 0.0798 0.0040 - Progress: Marginal decrease in Petroleum due to decreased demand from sharp increases in petroleum prices; increase in use of LPG. - Average number of hours of electricity outage per consumer per year - Target in 2006: ≤ 100 hours/ year - Indicator Level at 2004: 143 - Indicator Level at 2005: 122 - Indicator Level at 2006: N/a (Data not currently available for 2006) - Percentage reduction in transmission and distribution losses - Target in 2006: Transmission 2.8% Distribution 21% - Indicator Level at 2004: 2.98 25.65% - Indicator Level at 2005: 3.28% 25.44% - Indicator Level at 2006: 3.56% 24.32% - Progress: Targets were not met due to over aged equipment - Percentage of households covered by electricity supply - Target in 2006: 47% - Indicator Level at 2004: 42% - Indicator Level at 2005: 45% - Indicator Level at 2006: 48% - Progress: Target exceeded ### SCIENCE, TECHNOLOGY AND ICT - Percentage change in Research and Development expenditure (Public) - All periods: Na - Progress: Data not available to evaluate the indicator - 2006 Public Expenditure (investment and Services) sample institutions - MES - US$363,695.65 - CSIR - US$510,108.70 - GAEC - US$2,384,456.50 - TERTIARY - US$ Total - US$3,258,260.90 (0.03% of GDP) - Size of the ICT industry - Target by 2011: US $750 million - Indicator Level at 2004–2006: Na - Progress: Data not available to evaluate the indicator - Teledensity/Penetration rate - Target in 2006: 20% - Indicator Level at 2004: 6.9% (Fixed Line 1.6% Mobile 5.4%) - Indicator Level at 2005: 16.6% 1.7% 14.9% - Indicator Level at 2006: 27.2% 1.7% 25.5% - Progress: Target exceeded - Internet Access - Target in 2006: 1.5million in 2005 ≥ 2% per annum - Indicator Level at 2004: Na Na Na - Indicator Level at 2005: 0.05% 23 Na Na - Indicator Level at 2006: 0.05% 29 50 (SSS) 8 (Teacher Training) - Progress: Targets not achieved (Progress is slow) ### TOURISM - Percentage increase in tourist arrivals - Target in 2006: 16% - Total arrivals = 372,823 - Indicator Level at 2004: 13% - Indicator Level at 2005: 11.8% - Progress: Target is not achieved - Receipts and employment (tourism) - RECEIPTS (US $ Million): 2005 = 836.1; 2006 = 984.8 - EMPLOYMENT: 2005 = 172,823; 2006 = 183,192 - Percentage change of investment (stock of tourism facilities) in the tourism sector (2006 targets vs outcomes) - Accommodation Establishments target: 15.26% - Indicator Level at 2004: 2.0% - Indicator Level at 2005: 2.3% - Indicator Level at 2006: 4.5% - Catering Establishments target: 10.09% - Indicator Level at 2004: -18.5% - Indicator Level at 2005: 24.5% - Indicator Level at 2006: -32.8% - Travel Agents and Tour Operations target: 9.17% - Indicator Level at 2004: -4.1% - Indicator Level at 2005: 31.0% - Indicator Level at 2006: -5.9% - Car Rental companies target: 12.94% - Indicator Level at 2004: -7.7% - Indicator Level at 2005: 10.4% - Indicator Level at 2006: 13.2% - Progress: Target not achieved (With the exception of car rental companies, all remaining indicators fell short of targets, showing a declining trend in some cases) - Licensing and inspection (formal sector) - Formal Establishments (A&C) Licensed: - Accommodation – 1406 (Rooms – 19967, Beds – 28006) - Catering – 330 - Re-inspected and licensed: 370 accommodation and catering units in the formal sector - Formal Travel & Trade Operators Licensed – 410 (Travel & Tours – 350; Car Rental – 60) - 2 Charter Flights were licensed in 2006: ANTRAK Airlines Limited (Route Accra – Duss – Accra) and MICON Travels & Tours (Route Port of Spain/George Town – Accra – George Town/ Port of Spain) - Informal Establishments Licensed - Accommodation 24: Hostels - 12; Homestays - 10; Tourist homes - 2 - Catering 925: Drinking Bars – 574; Traditional Catering - 344; Snack bars - 6 ### EMPLOYMENT, LABOUR AND SOCIAL PROTECTION - Number of Labour Disputes - Indicator Level at 2005: 548 - Indicator Level at 2006: 663 - Progress: Lack of baseline data to evaluate indicator, but indicator showed a worsening trend. - Number of new jobs created by sector - Target in 2006: 200,000 - Indicator Level at 2004: Na - Indicator Level at 2005: 125,000 - Indicator Level at 2006: 200,000 - Progress: Target was achieved - Jobs created under the youth employment programme: 78,195 jobs as at 31 December, 2006, in all 10 regions - Regional employment figures (selected) - Ashanti - 6,437 - Brong Ahafo - 6,432 - Central - 6,391 - Greater Accra - 5,056 - Northern - 15,614 - Upper East - 8,530 - Upper West - 8,488 - Volta - 7,574 - Eastern - 7,000 - Employment figures by SECTORS: - Agric Biz - 13,069 - Comm. Edu Tech - 20,021 - Comm. Protect - 300 - Aux. Nursing - 10,500 - Waste & s’tion - 4,550 - Internship - 2,800 - Trades & vocations ICT - Na - Other modules - 26,760 (Forestry, Rev. Mobi, Volu. Teachers, etc) - Programme Staff - 195 - Social Protection Expenditure as percentage of GDP - Target in 2006: 24.42% - Indicator Level at 2004–2006: Na - Progress: Lack of data to evaluate indicator - Department of Social Welfare Budget for 2006 = 19.28 billion Cedis ### HUMAN RESOURCE DEVELOPMENT (CHAPTER FOUR INTRODUCTION) - Main goal of Human Resource Development in the GPRS II: - Ensure that Ghana produces a knowledgeable, well-trained and healthy population with adequate capacity to support accelerated economic growth and poverty reduction. - Broad policy pillars identified: - Education - Training and skills development - Access to health care - Malaria control - HIV/AIDS prevention and treatment - Safe water and Sanitation - Population management - Housing and slum upgrading - Purpose of the section: Assessment of progress made towards attaining targets set out in this thematic area using selected key indicators on human resource development relevant to the broad policy areas identified above. *Content derived from the provided IMF PDF chapter/section _cr09237 - 352405.19 Na 3,500 Na* ### 4.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND ### 4.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGY IN 2006 ### Education — Increase Access and Participation (gender and geographical equity) - Policy objectives: - increase access to and participation in education and training, with greater emphasis on gender and geographical equity; - improve the quality of basic education; - enhance delivery of educational services. - Gross Enrolment Ratio (GER) — trends and highlights: - Kindergarten national GER: 54.58% (2003/2004), 60.14% (2004/2005), 85.30% (2005/2006). Progress: Exceeded target (Target 2006: 64.5%). - Northern: 26.20% (2003/2004), 29.28% (2004/2005), 30.80% (2005/2006). - Upper East: 25.60%, 28.56%, 30.90%. - Upper West: 19.30%, 21.94%, 30.90%. - Deprived districts: 42.10%, 47.95%, 50.40%. - Primary national GER: 86.3% (2003/2004), 87.50% (2004/2005), 92.10% (2005/2006). Progress: Exceeded target (Target 2006: 90.90%). - Northern: 77.60%, 70.50%, 72.70%, 76.20% (2005/2006). - Upper East: 84.29%, 77.10%, 80.40%, 84.40% (target achieved). - Upper West: 81.54%, 74.10%, 77.30%, 81.05% (target achieved). - Deprived districts: 70.06%, 80.12%, 84.30%. - Junior Secondary School (JSS) national GER: 70.20% (2003/2004), 72.80% (2004/2005), 74.70% (2005/2006). Target 2006: 75.63%. Progress: Significant progress. - Kindergarten: GER increased from 60.14% in 2005 to 85.30% in 2006 (reported as "an increase of 41.8% in gross enrolment" in text). - Primary: GER increased from 87.3% in 2005 to 92.10% in 2006 (increase of 4.8%); still about 9% of eligible population not accessing formal primary education. - Net Enrolment Rate (NER): - Primary national NER: 55.60% (2003/2004), 59.10% (2004/2005), 69.20% (2005/2006). Target 2006: 61.70%. Progress: Target exceeded. - Northern: 49.00%, 52.40%, 65.40%. - Upper East: 53.20%, 55.50%, 69.00%. - Upper West: 49.70%, 54.50%, 70.00%. - Sex: Male 56.50%, 60.00%, 69.80% (2005/2006); Female 54.70%, 59.30%, 68.10%. - JSS national NER: 70.30% (2004/2005), 74.50% (2005/2006). - Survival Rates: - Primary national survival: 83.20% (2004/2005), 82.60% (2005/2006). Target 2006: 84.43%. Progress: Slow progress. Noted marginal decrease of 7.6% between 2005 and 2006 (text). - Males primary: 85.10% (2004/2005), 84.70% (2005/2006). - Females primary: 81.10%, 80.30%. - JSS national survival: 86.00% (2004/2005), 85.50% (2005/2006). Target 2006: 87.90%. Progress: Significant progress; stabilization around 86%. - Non-completion concentrated in Grades 1 to 4. - Gender Parity Index (GPI): - KG: 0.98 (2003/2004), 0.98 (2004/2005), 1.03 (2005/2006). Target 2006: 1.00. Progress: Steady progress. - Primary: 0.93, 0.93, 0.95 (2005/2006). Target 1.00. Steady progress. - JSS: 0.88, 0.88, 0.93 (2005/2006). Target 1.00 (noted target 2006: 0.94 in table). Steady progress. - Key policy measures implemented in 2006: - Construction/rehabilitation of classrooms: construction works on 65 (6-unit) classroom blocks commenced; work on another 85 blocks at various stages of completion. - The Capitation Grant Scheme: ¢129.5 billion disbursed as Capitation Grant for pupils in public basic schools during 2006; scheme fully operational after pilot in 40 deprived regions in 2004. - School Feeding Programme: expansion from 10 pilot schools in 2005 to 138 schools in 2006; 42,232 girls assisted through Take Home Ration for Girls (P4-JSS3) programme. ### Education — Improve Quality and Delivery - Quality indicators: - BECE (2006): national percent gaining required aggregate (6-30): 62.6%. - Deprived areas: Northern 47%; Upper East 55%; Upper West 55%. - Gender national: Male 65.3%; Female 59.3%. - Noted: 37.4% of JSS graduates do not qualify to enter next level. - Percentage of trained teachers (2003–2006): - Kindergarten: 37.40% (2003-04), 37.90% (2004-05), 32.70% (2005-06), 33.10% (Target 2006). - Primary national: 81.3% (target), 73.90% (2004-05), 72.40% (2005-06), 70.80% (2006). Progress: Slow progress. - Northern: 81.3% (target), 52.2%, 51.6%, 54.3% (2006). - Upper East: 81.3% (target), 74.8%, 70.3%, 74.0% (2006). - Upper West: 81.3% (target), 77.1%, 78.5%, 82.6% (2006) — Exceeded. - Deprived districts: 81.3% (target), 55.3%, 53.2%, 55.9% (2006). - JSS: 87.10% (target), 84.20% (2004-05), 83.50% (2005-06), 85.50% (2006). - Pupil:Teacher Ratio (PTR): - Primary national PTR: 34 (2003/2004), 34.9 (2004/2005), 35.7 (2005/2006). Target 2006: 34.1. Progress: Slow progress. - Northern region primary PTR: 38.6, 40.2, 38.0 (2005/2006). - Upper East primary PTR: 58.9, 57.4, 48.0 (2005/2006). - Upper West primary PTR: 46.2, 49.0, 40.0 (2005/2006). - JSS national PTR: 18.6 (2004/2005), 19.0 (2005/2006), Target 2006: 20.2. Progress: Slow progress (national 19.4 in table). - Key policy measures to improve quality and delivery (2006): - Teacher deployment: targeted deployment to three deprived Northern regions; incentive packages to attract teachers to remote areas; posting of 18,900 Service Personnel to teach in basic schools in rural areas; District Sponsorship Scheme — 98% of 9,000 trainee teachers in 2006 sponsored by District Assemblies. - Teacher upgrading: 5,689 untrained teachers benefited from Untrained Teacher Training Programme in 2006. - Distribution of textbooks: core textbooks policy ratio of 1:1 fully implemented and monitored during 2006. ### Training and Skills Development - Strategy: provide skills training and entrepreneurial know-how to unemployed youth to enhance access to jobs. - National Youth Employment Programme (NYEP) launched 2006: - Aims to generate half a million jobs in 3 years (2006-2009). - Youth employment target for 2006: 175,000. - Funding sources: DACF, GETFund, NHIS, Road Fund, HIPC, and percentage from 2006 estimates of MDAs. - NYEP 2006 regional achievement (Table 4.8a): - National: No. of Youth Registered 174,670; Actual Number of Youth Employed 78,195; Percent Employed 45%. - By region examples: - Northern: 21,595 registered; 15,614 employed; 71% employed. - Upper East: 13,271 registered; 8,530 employed; 64%. - Upper West: 12,590 registered; 8,488 employed; 67%. - Greater Accra: 22,363 registered; 5,056 employed; 22%. - Employment classification (Table 4.8b) — selected modules: - Agriculture: 74,870 registered; 13,069 employed; 17%. - Commercial/Technical: 14,000 registered; 20,021 employed; 143%. - Auxiliary Nursing: 10,850 registered; 10,500 employed; 97%. - Waste and Sanitation: 8,500 registered; 4,550 employed; 64%. - Other (Forestry, teaching revenue mobilization etc.): 30,000 registered; 26,760 employed; 89%. ### Health — Bridge Equity Gaps and Service Delivery - Overall goal: ensure every Ghanaian has access to good quality health and nutrition services; focus on equity, sustainable financing, and efficiency. - Selected basic health indicators (Table 4.9a): - Infant mortality rate per 1000 live births: 66 (1993), 57 (1998), 64 (2003), 71 (2006). Target 2006: 50. Progress: Slow progress. - Under five mortality rate per 1000 live births: 119 (1993), 108 (1998), 111 (2003), 111 (2006). Target 2006: 95. Progress: Slow progress. - Under five who are malnourished (underweight): 27% (1993), 25% (1998), 22.0% (2003), 18% (2006). Target 2006: 20%. Progress: Significant progress. - Maternal Mortality Ratio (MMR): 214 (1993), 214 (1998), Na (2003), Na (2006). Note: Current MMR has not been established. - Child mortality and nutrition: - Under-five mortality reduction slow; unlikely to meet MDG target without strengthened interventions. - Underweight children reduced from 25% in 1998 to about 18% in 2006. - Health sector output indicators (Table 4.9b): - Outpatient per capita: 0.52 (2004 level), 0.53 (2005), 0.52 (2006). Target 2006: 0.6. Progress: Slow progress. - Immunisation coverage (2006 levels vs targets): Penta 3 84.2% (Target 85%), Measles 85.1% (Target 90.0%), Antenatal Care Coverage 88.4% (Target 99.0%). Progress: slow for Penta 3 and Measles; slow for ANC. - Supervised Deliveries: 37.8% (2004), 40.3% (2005), 44.5% (2006). Target 2006: 60.0%. Progress: Slow progress. - Guinea Worm Cases: 7,275 (2004), 3,981 (2005), 4,136 (2006). Target 2006: 0. Progress: Slow progress (2006 shows ~6% increase over 2005). - Access and utilisation: - Immunisation: 85.1% measles coverage (2006); 84.2% Penta 3 (2006). No reported wild polio since September 2003; no reported deaths from measles since 2003. - Antenatal Care (ANC) coverage: decreased marginally from 88.7% (2005) to 88.4% (2006). - Human resources and ratios (Tables 4.11a–c): - Doctor to Population Ratio: 1:17,773 (2004 level), 1:16,000 (2005 level), 1:10,641 (2006 level). Target 2006: 1:10,500. Achievement: Significant progress. - Regional doctor:population ratios (2006): Northern 1:63,614; Upper West 1:44,317; Upper East 1:28,670; Greater Accra 1:3,706; National 1:10,641. - Nurse to Population Ratio: 1:1,513 (2004), 1:1,800 (2005), 1:1,636 (2006). Target 2006: 1:1,500. Progress: Steady progress. - Regional nurse:population ratios (2006): Greater Accra 1:727; Upper West 1:1458; National 1:1636. - Non-wage recurrent expenditure on health: declined from 14.5% (2005) to 14% (2006) of government expenditure. - Key policy measures and strategies (2006): - Abolished “Additional Duty Hours Allowances” replacing it with rationalised remuneration scheme. - Recruitment of additional health professional trainees. - Increased number of district Mutual Health Insurance Schemes (DMHIS) from 123 (2005) to 142 (2006); 136 providing benefits. ¢22.1 billion disbursed for administrative/logistic support. - Established data centre for ID card processing; engaged 650 National Service Personnel to assist registration and ID processing. - Disbursed ¢255.9 billion in subsidies to cover payment of claims for indigents and exempt categories. - Intensified public education on benefits of health insurance. ### Health Financing — National Health Insurance Scheme (NHIS) - NHIS coverage and registrant categories (2005–2006): - Proportion of population registered under NHIS: 22% (2005) to 38% (2006). - Total registered membership: 4,400,279 (2005) — noted as "22" in table for % of population; 7,673,998 (2006) — noted as "38" in table for % of population. - Informal sector: 3,223,354 (2005) = 73.2% of registered; 6,130,063 (2006) = 79.9% of registered. - SSNIT contributors: 615,450 (2005) = 14.0% of registered; 1,410,582 (2006) = 18.4% of registered. - Categories of exempted persons — Total Exempt: 3,223,354 (2005) = 59.3% of registered; 4,619,340 (2006) = 60% of registered. - Children under 18 years: 1,751,175 (2005) = 39.8% of registered; 3,069,976 (2006) = 40.0% of registered. - Indigents: 79,008 (2005) = 2.0% of registered; 140,994 (2006) = 1.84% of registered. - Total ID Card bearers: 1,388,662 (2005) = 43% of some subgroup; 3,947,334 (2006) = 51.44% (table entries preserved as presented). - Regional NHIS registration coverage (2005 vs 2006) — percent of population registered (selected): - Upper West: 7.85% (2005) -> 30.00% (2006). - Upper East: 10.73% -> 32.00%. - Northern: 18.73% -> 40.00%. - Greater Accra: 17.02% -> 19.00%. - National: 22.00% -> 38.00%. ### HIV/AIDS Prevention - Objectives: curb spread, reduce impact of HIV/AIDS vulnerability, morbidity and mortality; achieve MDG for HIV/AIDS, malaria and other diseases by 2015. - HIV prevalence by age group (2005–2006, Table 4.12): - National: 2.7% (2005) -> 3.2% (2006). Percentage Increase: 0.5%. - Age 15-19: 0.8% -> 1.4%. Increase: 0.6%. - Age 20-24: 2.4% -> 2.4%. Increase: 0.0%. - Age 25-29: 3.6% -> 4.2%. Increase: 0.6%. - Noted: increase in prevalence among adolescents and 25-29 group; calls for renewed emphasis and targeted strategies for youth. - Services and coverage (2006): - Voluntary counselling and treatment services at 243 public and NGO sites; 104 sites provided PMTCT services. - ART provision at 46 sites: 2 teaching hospitals, 10 regional hospitals, 14 district hospitals, 5 private self-financing, 2 uniformed service facilities. - People in need of ART in 2006: 50,942. - Clients on ART as at December 2006 (Table 4.13): Adults Male 2,678; Adults Female 4,392; Adults Total 7,070. Pediatrics Male 151; Female 117; Total 268. Grand total: Male 2,829; Female 4,509; Total 7,338. - ART coverage: 7,338 clients on ART in 2006 represent approximately 14.4% of people in need of Antiretroviral Combination Treatment. - Additional 2006 activities to reduce impact: - Advocacy with regional House of Chiefs; development and implementation of national Policy Guidelines on Orphans and Vulnerable Children (OVC); media support for targeted messages. ### Malaria Control - Malaria burden: - Malaria accounts for 44.5% of all outpatient illnesses, 36.9% of all admissions, and 19% of all deaths in health institutions in Ghana. Among pregnant women: 13.8% of OPD attendance, 10.6% of admissions, 9.4% of deaths. - About 800,000 children under five die from malaria every year (text statement). - 2006 malaria prevention measures: - Insecticide Treated Nets (ITNs) — use among high-risk groups (Table 4.14): - Children under 5 years: 9.1 (2004), 26 (2005), 32.3 (2006). - Pregnant women: 7.8 (2004), 26.8 (2005), 46.3 (2006). - Under-five malaria case fatality rate decreased from 2.4% (2005) to 2.1% (2006). Target 2006: 2%. - Intermittent Preventive Treatment (IPT) policy for pregnant women: all district health facilities implemented IPT in 2006; about 230,269 pregnant women received 2 doses or more in 2006. - Need for strengthened collaboration between MOH and environmental sanitation agencies to address poor environmental sanitation contributing to malaria incidence. ### Population Management - Policy objectives (2006): - promote access to and utilisation of family planning services; - promote compulsory and universal birth registration. - Family planning and fertility: - Total fertility rate (TFR): 4.4 (2004 status), 4.2 (2005), 4.2 (2006). (Estimates based on GDHS 2003 results.) - Contraceptive prevalence rate (CPR): 26.0% (2004), 28.5% (2005), 30.0% (2006). - Births and deaths registration (Table 4.16): - Coverage of birth registration: 51% (2004), 67% (2005), 54% (2006). - Coverage of death registration: 24% (2004), 24% (2005), 23% (2006). - Noted: mixed results in birth registration; significant proportion of births remain unregistered. ### Safe Water and Sanitation - Key policy objectives: - accelerate provision of safe drinking water in rural and urban communities; - accelerate provision of adequate sanitation in rural and urban communities; - improve environmental sanitation. - Safe water access (Table 4.17a): - Percentage of rural population with access to safe water sources: 51.7% (2004), 52.0% (2005), 53.18% (2006). Target 2006: 57.7%. Progress: Slow progress. - Percentage of urban population with access to safe water sources: 54.5% (2004), 55.0% (2005), 56.0% (2006). Target 2006: 59.0%. Progress: Slow progress. - Rural-urban potable water coverage by region (2006) (Table 4.17b) — selected entries: - Ashanti: Estimated Rural Population 2,365,244 — Percent Covered 63.06%; Estimated Urban Population 2,034,555 — Percent Covered 43%. - Greater Accra: Rural 583,335 — 48.86%; Urban 3,320,113 — 73%. - Upper West: Rural 650,277 — 67.20%; Urban 112,358 — 12%. - National: Rural 14,396,749 — 53.18%; Urban 10,175,569 — 56%. - Sanitation and solid waste (Table 4.18): - Reliable national sanitation baseline data lacking; 2003 CWIQ most reliable but outdated. - Proportion of solid waste generated and properly disposed of in 2006 (selected cities): - Kumasi: 83.0% (2006) — Target 89.0% (2006 target); Progress: Steady progress (table shows improvement vs 2005). - Accra: 83.5% (2006) — Target 95.0%; Progress: Slow progress. - Takoradi: 75.9% (2006) — Target 53.5%; Progress: Exceeded. - Noted recommendation: need for national study to establish baselines and data management framework for monitoring and evaluation in the sector. *Source: _cr09237 - 4.2 STATUS OF SELECTED INDICATORS, AND KEY POLICY MEASURES AND STRATEGY IN 2006 (2006 Preliminary sector reports and tables as presented).* ### 4.3 SUMMARY OF POLICY RECOMMENDATIONS ### 4.3 SUMMARY OF POLICY RECOMMENDATIONS ### Education - Deepen the incentive framework to attract enrolment in science, technology and mathematics courses to supply skills required to accelerate growth. - Enhance the quality of teaching, especially in the North and deprived areas. - Accelerate provision of school infrastructure and other teaching and learning facilities to reduce pressure from increasing enrolment resulting from the introduction of the Capitation Grant. - Sustain the School Feeding Programme and the Capitation Grant Scheme; consider decentralising their financing and management. - Strengthen the link between education, skills development, and the labour market because formal training is mainly supply-driven, non-competency based, and largely incapable of adjusting quickly to labour market skill requirements. - Intensify efforts to seek and allocate additional resources to technical and vocational education: current funding to technical and vocational education constitutes only 1.2% of total educational sector funding. ### Health - Design and implement measures to address the high rate of attrition (brain-drain) of qualified health personnel. - Increase coverage and improve efficient management of the NHIS to sustain the initiative. - Analyse health sector wage policy and evaluate its effect on the quality of health care delivery. - Re-focus policies and resources towards promoting preventive health care instead of curative health care. - Investigate the causes of the surge in HIV/AIDS prevalence from 2.7% in 2005 to 3.2% in 2006 and develop measures to reverse this trend sustainably. - Conduct further studies into factors behind the apparent increase in under five and maternal mortality rates. - Conduct a study into the causes of the apparent increase in Guinea worm cases. ### Water and Sanitation - Service providers should upgrade systems to ensure regularity and improved quality of water supply, especially in urban areas. - Evolve permanent measures to manage plastic waste, particularly in cities. - Establish a system for regular and adequate data collection on sanitation; commission a national study to establish baselines to assess progress towards adequate sanitation in rural and urban communities. ### Population Management - Address the lack of adequate population data for planning and policy formulation jointly with all stakeholders involved in generation and use of statistical data for planning, monitoring and evaluation. ### Status of Indicators – 2006 (Human Resource Development) Education (Table 4.19a — policy objectives, indicators, targets, and levels) - Gross Enrolment Ratio: - Kindergarten: Target in 2006: 64.5% — Indicator Level at 2004: 54.58% — 2005: 60.14% — 2006: 75.20% — Progress: Exceeded - Primary: Target in 2006: 90.90% — 2004: 86.3% — 2005: 87.50% — 2006: 92.10% — Progress: Exceeded - JSS: Target in 2006: 75.63% — 2004: 70.20% — 2005: 72.80% — 2006: 74.70% — Progress: Steady progress - Net Enrolment Rate: - Primary: Target in 2006: 61.70 — 2004: 55.60% — 2005: 59.10% — 2006: 68.80% — Progress: Exceeded - JSS: Target in 2006: Na — 2004: 29.50% — 2005: 70.30% — 2006: 74.50% — Progress: Significant progress - Survival Rates: - Primary: 2004: 84.43% — 2005: 83.20% — 2006: 82.60% — 2006 entry shows 75.605 — Progress: Target not achieved - JSS: 2004: 87.90% — 2005: 86.00% — 2006: 85.50% — Progress: Steady progress - Gender Parity Index: - Kindergarten: Target in 2006: 1.00 — 2004: 0.98 — 2005: 0.98 — 2006: 1.03 — Progress: Steady progress - Primary: Target in 2006: 1.00 — 2004: 0.93 — 2005: 0.93 — 2006: 0.95 — Progress: Steady progress - JSS: Target in 2006: 0.94 — 2004: 0.88 — 2005: 0.88 — 2006: 0.93 — Progress: Steady progress - Proportion of students passing national assessment Examinations (BECE): Target 60% — 2004: 61.30% — 2006: 62% — Progress: Target exceeded - Percentage of trained teachers: - Kindergarten: Target 37.40% — 2004: 37.90% — 2005: 32.70% — 2006: 33.10% — Progress: Steady Progress - Primary: Target 77.70% — 2004: 73.90% — 2005: 72.40% — 2006: 70.80% — Progress: Target not achieved - JSS: Target 87.10% — 2004: 84.20% — 2005: 83.50% — 2006: 85.50% — Progress: Steady progress - Proportion of the youth benefiting from skills/entrepreneurial training: Target 45% — Indicator Levels at 2004/2005/2006: Na, Na, Na Health (Table 4.19b — policy objectives, indicators, targets, and levels) - Outpatient per capita: Target in 2006: 0.6 — 2004: 0.52 — 2005: 0.54 — 2006: 0.52 — Progress: Target not achieved - Vaccination coverage: - Penta Target 90.0% — 2004: 72.9% — 2005: 85% — 2006: 84% — Progress: Target not achieved - Measles Target 90.0% — 2004: 78% — 2005: 81% — 2006: 79% — Progress: Target not achieved - Supervised deliveries: Target in 2006: 60% — 2004: 37.8% — 2005: 40.3% — 2006: 44.5% — Progress: Steady progress - Incidence of guinea Worm: Target in 2006: 2000 — 2004: 7275 — 2005: 3981 — 2006: 4136 — Progress: Target not achieved - Population: doctor ratio: - Target in 2006: 1: 10,500 — 2004: 1: 17,773 — 2005: 1: 16,000 — 2006: 1: 10,380 — Progress: Significant progress - Population: nurse ratio: - Target in 2006: 1:1,500 — 2004: 1: 1,513 — 2005: 1: 1,800 — 2006: 1:1,578 — Progress: Steady progress - Health expenditure as percentage of GDP: entries show *** , 12.0% , 16.8% , *** (as presented) - NHIS coverage of indigents: 2005: 79,008 (2.0%) — 2006: 140,994(1.8%) - HIV prevalence among pregnant women: - National: 2005: 2.7% — 2006: 3.2% - Age 15-19: 2005: 0.8% — 2006: 1.4% - Age 20-24: 2005: 2.4% — 2006: 2.4% - Age 25-29: 2005: 3.6% — 2006: 4.2% - Malaria case fatality in children under five years: Target 2 — 2004: 2.7 — 2005: 2.4 — 2006: 2.1 — Progress: Steady Progress - ITN coverage of at risk groups (Children under five / Pregnant women): - Target 56 / 56 — 2004: 9.1 / 7.8 — 2005: 26 / 26.8 — 2006: 32.3 / 46.3 — Progress: Children under five Target not achieved; Pregnant women Significant progress *Source: _cr09237 - 4.3 SUMMARY OF POLICY RECOMMENDATIONS* ### 1. Inspector General of Police 1 ### 1. Inspector General of Police ### Police Strength and Rank Distribution - Total personnel: 17,826 - Rank-by-rank counts: - Inspector General of Police: 1 - Deputy Inspector – General: 2 - Commissioner: 3 - Deputy Commissioner: 24 - Assistant Commissioner: 58 - Chief Superintendent: 116 - Superintendent: 129 - Deputy Superintendent: 217 - Assistant Superintendent: 402 - Chief Inspector / RSM: 1,496 - Inspector / DSM: 2,040 - Sergeant: 3,682 - Corporal: 1,576 - L/Corporal: 2,575 - Constable: 5,565 ### Improving Gender Equity in the Police Service - Overall female and male totals: - Female: 3,130 - Male: 14,696 - Female-male ratio: 1:5 - Officer corps composition: - Female officers: 130 - Male officers: 822 - Officer female-male ratio: 1:7 - Rank-specific gender ratios and counts (Table 5.3): - Inspector-General of Police: Female 1, Male 1, Ratio 1:1, Total 2 - Deputy Inspector-General of Police: Female 1, Male 1, Ratio 1:1, Total 2 - Commissioner of Police: Female 1, Male 2, Ratio 1:2, Total 3 - Deputy Commissioner of Police: Female 2, Male 22, Ratio 1:11, Total 24 - Assistance Commissioner of Police: Female 9, Male 49, Ratio 1:5, Total 58 - Chief Superintendent of Police: Female 15, Male 101, Ratio 1:7, Total 156 - Superintendent of Police: Female 10, Male 119, Ratio 1:12, Total 129 - Deputy of Superintendent of Police: Female 15, Male 202, Ratio 1:13, Total 217 - Assistance Superintendent of Police: Female 77, Male 325, Ratio 1:4, Total 402 - Chief Inspector of Police: Female 153, Male 1,343, Ratio 1:9, Total 1,496 - Inspector of Police: Female 244, Male 1,796, Ratio 1:7, Total 2,040 - Sergeant: Female 533, Male 3,149, Ratio 1:6, Total 3,682 - Corporal: Female 353, Male 1,223, Ratio 1:3, Total 1,576 - Lance Corporal: Female 312, Male 2,203, Ratio 1:7, Total 2,515 - Constable: Female 1,405, Male 4,160, Ratio 1:3, Total 5,565 - Noted points: - Best represented female rank: Deputy Inspector–General of Police (DIGP) - Most skewed rank: Deputy Superintendent of Police (DSP) with ratio 1:13 in favour of men - Female representation in other ranks reported as ratio 1:5 ### Budgetary and Logistics Investments - Budgetary resources allocated for: - accommodation, maintenance of service vehicles, ration and uniforms - purchase of communication equipment, new vehicles and other logistics - Construction projects undertaken: - construction of drains at Police Headquarters building - renovation of Koforidua training school Block 6 - construction of 32 unit hostel block at the police headquarters, Accra - completion of a UN Documentation Centre at the Police Headquarters ### Support for Victims of Domestic Violence (DOVVISU) - Expansion of offices: - 23 new offices and desks established - Total offices and desks: 63 across the country - Personnel by Police Region (Table 5.4): - Accra Region: 69 - Tema Region: 18 - Ashanti Region: 41 - Brong Ahafo Region: 24 - Western Region: 31 - Central Region: 15 - Volta Region: 29 - Eastern: 38 - Northern: 17 - Upper East: 11 - Upper West: 15 - Total personnel: 308 - Capacity-building and outreach: - Four workshops for 160 personnel sponsored by UNICEF/UNDP on management of victims of abuse - Advocacy fora in 8 districts of the Volta region for opinion leaders and stakeholders - Two-day Partners’ Review to finalise a Strategic Plan for the Unit - Preventive outreach programmes in schools and communities in Upper East, Upper West and Northern Regions ### Community Policing: Neighbourhood Watch Committees - 2006 initiative: establishment of Neighbourhood Watch Communities nationwide - Outcomes: - Increased citizen volunteer information aiding crime combat - Increased police patrols in communities, crime-prone areas and highways ### Crime Trends and Major Offences (Fourth Quarter OCT–DEC) - Overall crime management status (Table 5.5: OCT–DEC. 2005 vs OCT–DEC. 2006): - Cases reported: 44,994 → 57,741; % CHANGE 28.3 - Cases rejected: 1,372 → 1,431; % CHANGE 4.3 - Valid cases: 43,622 → 56,310; % CHANGE 29.1 - Cases sent to court: 5,749 → 7,122; % CHANGE 23.9 - Cases of conviction: 1,660 → 2,730; % CHANGE 64.5 - Cases acquittal: 216 → 209; % CHANGE -3.2 - Cases pending trial: 3,873 → 4,183; % CHANGE 8.0 - Cases completed: 4,524 → 3,484; % CHANGE -23.0 - Cases under investigation: 33,349 → 45,704; % CHANGE 37.0 - Incidence of major crimes (Table 5.6: OCT–DEC. 2005 vs OCT–DEC 2006): - Murder: 88 → 103; % CHANGE 17.4 - Robbery: 426 → 612; % CHANGE 43.7 - Rape: 143 → 173; % CHANGE 21.0 - Defilement: 487 → 643; % CHANGE 32.0 - Possessing narcotic drug: 126 → 186; % CHANGE 47.6 - Observations: - Significant increases in narcotic drug offences, robbery and cases of defilement in the fourth quarter of 2006 relative to 2005 ### Border Security and External Aggression Prevention - Measures instituted: - Establishment of Border Patrol Units to reduce cross-border crime (smuggling, arms and human trafficking) - Joint border patrols by Immigration Services and Customs, Excise and Preventive Service (CEPS) - Increased number of metal detectors and scanners at the border - Discussion of ceding Preventive Service domain of CEPS to the Immigration Service - Common checkpoints at borders with Burkina Faso, Togo and La Cote d’Ivoire - Increased sharing of intelligence and vital information on cross-border crimes in the West Africa zone ### Public Policy Management and Public Sector Reforms - Staffing and capacity: - Appointment and/or confirmation of 35 Chief Directors - Comprehensive skill training provided on conflict resolution, human resource management, policy formulation, among others - Organizational analysis and redesign completed and implemented - Performance monitoring system developed - New staffing and internal training plan developed and being implemented - Ministry of Public Sector Reform (MPSR) Service Delivery Improvement Programme (SDIP) components: - Creation of Client Service Units (CSUs) - Institution of Business Process Reviews (BPRs) - President’s Excellence Awards Programme (PEAP) Client Service Units (CSUs) - CSUs established in 23 MDAs (listed in the source) - CSUs equipped with software and hardware for information management and upgraded office facilities - Six (6) Training sessions in effective Customer Care Management and Complaints handling software plus refresher courses organized for CSU officers - Bi-monthly meetings and quarterly Monitoring and Evaluation exercises conducted - CSU activities started in 10 Districts: Ewutu-Efutu Senya, Gomoa, Akwapim South, Komenda Edina Eguafo Abirim, Dangme West, Ga West, Ga East, Yilo Krobo, Mfantsiman and Manya Krobo - CSU concept extended to Head Offices of Value Added Tax Service, Customs, Excise and Preventive Service, Internal Revenue Service and Ministry of Finance and Economic Planning - Memorandum of Understanding signed with 25 MDAs to mainstream CSU activities Business Process Review (BPR) - Project Implementation Teams (PITs) established in 12 MDAs as change agents; PITs received change management training and terms of reference - Implementation commenced in 2006 with institution-specific and system-wide recommendations - Key initiatives: - Facilitated adoption of new Visions, Missions and Organizational Structures for Public Utilities and Regulatory Commission, Forestry Commission, Ghana Atomic Energy Commission and National Communications Authority - Commenced development of websites for Internal Revenue Service, National Communications Authority, Public Utilities and Regulatory Commission, Driver & Vehicle Licensing Authority, Birth and Death Registry and Ghana Standards Boards - Twelve MDAs participating in pilot BPR (Table 5.8): - Internal Revenue Service - Value Added Tax Service - Driver and Vehicle Licensing Authority - Birth and Death Registry - Forestry Commission - Ghana Shippers Council - Ghana Atomic Energy Commission - Public Utilities and Regulatory Commission - Environmental Protection Agency - National Communications Authority - Food & Drugs Board - Ghana Standard Board - Outcomes and deliverables: - Current business processes reviewed in line with global best practices - Future processes mapped in line with national vision and development goals - Supporting requirements determined including service delivery targets for the next five years, technology solutions, HR practices and physical improvements President’s Excellence Awards Programme (PEAP) - Purpose: promote standards of excellence and reward innovation in the Ghana public services - 2006 Award winners: - Ministry of Health (Public Health Unit) - Community Water and Sanitation of the Ministry of Water Resources Works and Housing - Winners selected via national application / nomination process; announced at ceremony in Accra in December 2006 ### Fighting Corruption and Economic Crimes - Procurement reform and implementation: - Public Procurement Act (Act 663) passed in 2003 - As at June 2006, 698 Entity Tender Committees (ETCs) established in MDAs and MMDAs - 109 Review Boards set - Most public institutions applying recommended procurement procedures, though difficulties reported in ETC functioning and aligning donor processes - Public perception and survey findings: - Study under APRM Governing Council (2006): - 89% of respondents said corruption was widespread in Ghana - 89% viewed corruption as more widespread in the public sector than in the private sector (56%) - On government commitment to fighting corruption: - 23% said government intention to fight corruption was very high - 46% said commitment was low - Legislative framework strengthened with: - Whistleblowers Act - Public Procurement Act - Financial Administration Act - Internal Audit Agency Act ### Empowerment of Women - Legal protections and legislation: - Department of Women at the Ministry of Women and Children Affairs carried out public education on the Domestic Violence Bill - Parliament passed the Domestic Violence Bill; it is now the Domestic Violence Act 2007 (Act 732) - Economic empowerment and political participation: - “Women in Local Governance Fund” launched March 2006 on International Women’s Day - Independent board set up to manage the fund; secretariat in the Department of Women - Capacity building and training for female aspirants to local assemblies - Post-training financial support provided: 1,783 women aspirants given a minimum amount to help contest in District Assembly elections (September 2006) - Radio programmes to create voter awareness for women - Result: marginal increase of 2.3% (from year 2002) in number of women in newly inaugurated Assemblies - Department preparing a directory on eminent women and plans to publish a book on eminent women and institutionalize awards - Affirmative Action Policy and leadership statistics (Table 5.9, as at April 2007): - Chief Director: Total 35; Male 29; % OF TOTAL 83; Female 6; % OF TOTAL 17 - Supreme Court Judges: Total 13; Male 10; % OF TOTAL 77; Female 3; % OF TOTAL 23 - High Court Judges: Total 27; Male 23; % OF TOTAL 85; Female 4; % OF TOTAL 25 - Members of Parliament: Total 230; Male 205; % OF TOTAL 89; Female 25; % OF TOTAL 11 - District Assembly Appointee: Total 1,956; Male 1,401; % OF TOTAL 72; Female 555; % OF TOTAL 28 - District Assembly Elected: Total 4,830; Male 4,254; % OF TOTAL 88; Female 576; % OF TOTAL 11 - Gender budgeting and analysis: - Ministry of Women and Children’s Affairs commissioned a scoping study on gender budgeting in Ghana, analyzing budgets since 2001 - Gender Analysis implemented on programme-by-programme basis - Gender Desks at MDAs reported limited influence on public policy; where gender concerns included, often due to civil society advocacy - GPRS II and ICT for Accelerated Development have been engendered ### Development Information Management and Evidence-Based Decision-Making - Management Information Systems and E-governance: - Objective to adopt one messaging and workflow system across MDAs and a single ICT standard under the Ministry of Communications (MoC) - Statistical capacity and data systems: - Ghana Statistical Service completed Ghana Living Standards Survey 5 (GLSS 5) - NDPC and GSS conducted training and awareness on Ghana Info Data Base - Ground prepared to support improved future evidence-based policy making, planning, and monitoring and evaluation *Source: _cr09237 - 1. Inspector General of Police 1* ### 5.3 SUMMARY OF POLICY RECOMMENDATIONS ### 5.3 SUMMARY OF POLICY RECOMMENDATIONS ### 5.3.1 Improving public Safety and Security - The international standard of one policeman to five hundred citizens will not be achieved at the current recruitment rate. - The police–population ratio is worsening because of a faster growth rate of the population. - Recommendation: increase the number of recruits into the police service by about 15% to cater for the increasing population size. - Recommendation: increase the presence of women in the Police Service within a well defined Gender Policy; current increases are conducted largely at the discretion of officers. - Indicator data: Police–citizen ratio was 1:925 in 2005 and 1:1121 in 2006, representing a worsening of the ratio as a result of high population and low recruitment rates. ### 5.3.2 Promoting Rights under the Rule of Law - Recommendation: introduce a more aggressive and encompassing policy on Affirmative Action to cover the many spheres of governance life in which women are under-represented. - Recommendation: improve resource allocation on the basis of gender considerations; adopt a policy of gender budgeting in response to the growing feminisation of poverty in Ghana. - Recommendation: establish a fund to increase women’s representation in public life (similar to the one established by civil society to support women aspirants for district assembly membership). - Recommendation: formulate and implement policies to protect children from the worst forms of child labour. - Indicator data: GSS indicates that 242,000 children are engaged in child labour; additional data collection noted (surveys in 5 Districts in Ashanti; instruments developed by GSS; ILO support to NCCE). ### 5.3.3 Decentralisation - Recommendation: clearly define the type and nature of decentralisation that the country is pursuing. - Recommendation: immediately implement the policy of universal adoption of composite budgeting to enable more efficient use of financial resources available to districts and to benefit Government. ### 5.3.4 Studies - Recommendation: conduct studies to determine: - a) the rate of reduction in the acquisition of small arms; - b) corruption perception among the public; and - c) citizen compliance with rules and regulation. - Related indicator notes: Reduction in rate of small arms acquisition—data listed as Unavailable; Corruption Perception Index—corruption perception is still high per Transparency International report and civil society reports. * _cr09237 - 5.3 SUMMARY OF POLICY RECOMMENDATIONS_ ### 6.4 ALIGNMENT OF 2006 SPENDING PRIORITIES WITH GPRS II COSTING ### 6.4 ALIGNMENT OF 2006 SPENDING PRIORITIES WITH GPRS II COSTING ### Overview - The Ministry of Finance and Economic Planning (MoFEP) now allocates and releases resources on the basis of the GPRS thematic areas. - Analysis is based on the 2006 approved budget allocations and fund releases, and an overview of Development Partners (DPs) resource envelope in 2006. - Revised investment plan presented at the 2006 Consultative Group (CG) for Ghana Annual Partnership Meeting increased the 2006 approved budget to implement GPRS II to US$2,194.4 million. ### Approved 2006 budget and anticipated funding sources - Approved budget to implement GPRS II in 2006: US$2,194.4 million. - Thematic budget shares (2006 approved): - Private Sector Competitiveness: 40.5% - Human Resource Development: 35.8% - Good Governance and Civic Responsibility: 21.4% - Initial GPRS II costing framework estimate for 2006: US$2,066.42 million. - Anticipated funding sources: - GOG (including statutory funds): US$1,460.9 million - DPs (excluding BOP support to BOG and Budget Support): US$733.5 million - Note: BOP support to BOG and Budget Support together amounted to US$441.18 million (excluded from the DP sector/investment support figures above). ### Actual realizations and totals for 2006 - Actual realized GOG resource: US$815.4 million. - DPs Sector and Investment Support realized: US$743.2 million. - Overall resources made available for GPRS II implementation in 2006 (excluding DPs BOP support to BOG and Budget Support): US$1,558.67 million. - Distribution of that US$1,558.67 million across thematic areas: - Private Sector Competitiveness: 37.0% (of US$1,558.67 million) - Human Resource Development: 43.0% - Good Governance and Civic Responsibility: 20.0% ### Thematic-area alignment: planned vs actual (selected exact figures from Table 6.2) - GPRS II Resource Allocation for 2006 (GPRS II costing framework totals): - Private Sector Competitiveness: 751.88 (36.4%) - Human Resource Development: 1,110.69 (53.7%) - Good Governance and Civic Responsibility: 203.84 (9.9%) - GRAND TOTAL: 2,066.41 (100%) - GoG Actual Releases (2006): - Private Sector Competitiveness: 218.33 (26.8%) - Human Resource Development: 340.30 (41.7%) - Good Governance and Civic Responsibility: 256.61 (31.5%) - GRAND TOTAL GoG releases: 815.5 (100.0%) - DPs Actual Releases (Sector & Investment Support) (2006): - Private Sector Competitiveness: 357.0 (48.0%) - Human Resource Development: 329.3 (44.3%) - Good Governance and Civic Responsibility: 56.9 (7.7%) - GRAND TOTAL DPs releases: 743.2 (100.0%) - Total Resources (GoG + DP) (2006): - Private Sector Competitiveness: 575.31 (36.9%) - Human Resource Development: 669.58 (43.0%) - Good Governance and Civic Responsibility: 313.56 (20.1%) - GRAND TOTAL: 1,558.67 (100.0%) ### Observed misalignments and drivers - GoG deviated from GPRS II costing framework: - Only 26.8% of GoG resources went to Private Sector Competitiveness instead of the 36.4% anticipated. - About 31.5% of GoG resources went to Good Governance and Civic Responsibility instead of the 9.9% anticipated. - DPs Sector and Investment Support allocation pattern: - Nearly 48% of DPs Sector and Investment Support went to Private Sector Competitiveness, disadvantaging Human Resource Development. - DP allocation to Good Governance and Civic Responsibility fell short of the anticipated 9.9% in the costing framework. - Net effect: shortfall in planned allocation to Private Sector Competitiveness and Human Resource Development was reflected in increased resources to Good Governance and Civic Responsibility, traceable to both GOG and DPs. ### Development Partners projections vs actual (exact figures) - DPs’ total resource envelope (including budget support and BOP support) in 2006: US$1,176.47 million. - This represented about 90.1% of the US$1,306.25 million projected inflows in 2006. - Of the US$1,176.47 million total, Sector and Investment Support realized: US$743.19 million. - The actual release indicates a shortfall of US$129.78, equivalent to 9.9% (variance between projection and release). ### Budget approval vs releases (DPs inclusive) — selected exact figures from Table 6.3 - Grand totals (2006): - GoG Budget Approved: 642.0; GoG Releases: 251.8; % Releases: 39.2 - DPs Projected Inflows: 733.5; DPs Releases: 743.2; % Releases: 101.3 - Statutory Funds Budget Approved: 818.9; Statutory Funds Releases: 563.6; % Releases: 68.8 - Total Budget Approved: 2,194.4; Total Releases: 1,558.7; % Releases: 71.0 - Note: DPs’ figures exclude BoP and budget support amounting to US$117.04 million and US$324.14 million respectively; if added the total DP support becomes US$1,176.37 million for 2006. ### Sectoral distribution and functional implications (selected exact figures) - Functional distribution of total (GoG and Donor) expenditure — Budget 2006 vs Actual 2006 (from Table 6.4): - Administration: Budget 14.5; Actual 16.2 - Infrastructure: Budget 17.3; Actual 11.6 - Social: Budget 45.1; Actual 48.0 - Economic: Budget 8.5; Actual 9.7 - Public Safety: Budget 6.4; Actual 9.7 - Contingency: Budget 4.9; Actual 4.8 - Observed sectoral outcomes: - Social services actual expenditure 48.0% exceeded budgetary target 45.1%, translating into increased provision of social services including education, health, and water and sanitation. - Infrastructure sector experienced a significant decline: actual spending 11.6% compared with a budgetary allocation of 17.3%. - Public Safety spending increased to 9.7% in 2006, exceeding projected allocation of 6.4%. ### Donor disbursements and sectoral focus (exact figures) - Total donor disbursement in 2006: ¢3,810.465 billion (below budgeted ¢6,251.815 billion). - Donor disbursement to infrastructure in 2006: 40.83% (infrastructure received the bulk; Roads constituted 25.6% of donor funding). - Donor distribution highlights (2006 disbursements): - Administration: 14.95% - Economic: 23.93% - Infrastructure: 40.83% - Social Services: 15.89% - Ministry-level examples: - Ministry of Education: 5.84% of donor disbursements - Ministry of Health: 10.02% of donor disbursements - Donor totals (2006): Grants – 1,769.330; Loans – 2,041.134; Grand total donor disbursements: ¢3,810.465 billion. ### Data and reporting observations - The analysis is limited to approved budget and releases from MoFEP for financial year 2006; CAGD reporting formats were not aligned to the GPRS, constraining comparison of budgeted, released, and actual expenditures. - Table 6.4 and Table 6.5 provide more detailed program- and MDA-level approved budget and releases for 2006 (summarized above). ### Key implications and suggested focal actions (as implied by the analysis) - There was a measurable misalignment between the GPRS II costing framework and actual resource allocation in 2006, driven by both GoG and DPs. - Shortfalls in planned resource allocation to Private Sector Competitiveness and Human Resource Development suggest the need to: - Improve alignment of GoG releases to the GPRS II costing framework priorities. - Coordinate with DPs to ensure Sector and Investment Support better matches the GPRS II thematic priorities. - Improved reporting alignment (e.g., CAGD reporting formats aligned to GPRS thematic areas) would enable more informative comparisons among budgeted amounts, releases, and actual expenditures. *Source: _cr09237 - 6.4 ALIGNMENT OF 2006 SPENDING PRIORITIES WITH GPRS II COSTING* ### 6.7 DISTRIBUTION OF EXPENDITURES BY ITEMS ### 6.7 DISTRIBUTION OF EXPENDITURES BY ITEMS ### Sectoral composition of discretionary expenditures (2004–2006) - Personnel emoluments constitute the largest component of discretionary expenditures; they "increased in 2006 both as a percentage of total discretionary expenditures and as a percentage of GDP." - Allocation to Administration and Service declined over the period. - In 2006, allocation for Investment increased from 30.8% to 33.3% of discretionary expenditures and from 7.4% to 8.22% of GDP. - Donor (foreign) funding for investment increased to 28.41% from 27.35% of total expenditure, while domestic investment declined from 12.49% to 4.88%. - The report notes: "Donor investment still accounts for a greater part of the nation’s investment expenditure thus rendering development efforts extremely susceptible to the vagaries of donor resource flows." - The report concludes: resources released to finance the GPRS II are inadequate and there is a need to increase investments that will result in growth and employment creation and could contribute to poverty reduction substantially. Key figures from Table 6.8: Utilisation of Discretionary Payments (¢ billion; % of total exp.; % of total GDP where shown) - Personal Emoluments: 2004 Actual 35.1 (8.7), 2005 Actual 37.0 (8.9), 2006 Actual 38.7 (9.5) - Administration and Service: 2004 Actual 11.9 (3.0), 2005 Actual 11.0 (2.7), 2006 Actual 7.7 (1.9) - Service: 2004 Actual 4.7 (1.2), 2005 Actual 4.1 (1.0), 2006 Actual 2.85 (0.7) - Investment: 2004 Actual 29.4 (7.3), 2005 Actual 30.8 (7.4), 2006 Actual 33.3 (8.22) - Domestic Financed: 2004 Actual 6.1 (1.5), 2005 Actual 6.1 (1.5), 2006 Actual 4.88 (1.2) - Foreign Financed: 2004 Actual 23.3 (5.8), 2005 Actual 24.7 (6.0), 2006 Actual 28.41 (5.9) - Utility price subsidies: 2004 Actual 11.2 (2.8), 2005 Actual 1.8 (0.4), 2006 Actual 4.6 (1.1) - HIPC financed Expenditure: 2004 Actual 9.5 (2.3), 2005 Actual 6.9 (1.7), 2006 Actual 6.4 (1.6) - Total (¢ billion): 2004 Actual 19,773.2; 2005 Actual 23,454.8; 2006 Actual 28,350.7 - Total (¢ billion) reported by column headers: 2004 Planned 14,982.6; 2005 Planned 23,560.9; 2006 Planned 29,475; and 2006 Actual 114,903.2 (Total GDP or aggregate figure presented in table) ### Spending on poverty reduction (overview and sources) - Poverty reduction spending sources: (a) Discretionary Government Spending; (b) HIPC funds; (c) Multilateral Debt Relief Initiative Funds (MDRI). - About 57% of total poverty reduction expenditure was from government discretionary budget. - Total poverty reduction expenditure (¢ billion): 2003 Actual 4,278.74; 2004 Actual 6,122.61; 2005 Actual 8,256.01; 2006 Actual 12,374.03. - Total poverty reduction expenditure as % of total Government expenditure: 2003 Actual 27.18; 2004 Actual 28.13; 2005 Actual 34.47; 2006 Actual 34.86. - Total government expenditure figures shown: 2003 Budget 15,712; 2003 Actual 15,744.10; 2004 Budget 19,507.80; 2004 Actual 23,560.9; 2005 Budget 21,765.10; 2005 Actual 25,052,040; 2006 Budget 23,948.62; 2006 Actual 34,677.1; 2006 Actual (alternate) 35,493.2 (table presents multiple totals). Key poverty-sector allocations and shares (2005–2006) - Basic education expenditure (¢ billion): 2005 Actual 3,708.82; 2006 Actual 4,707.89. - Basic education as % of education expenditure: 2005 Actual 56.18; 2006 Actual 51.88. - Basic education as % of total poverty spending: 2005 Actual 44.90; 2006 Actual 38.05. - Primary Health Care expenditure (¢ billion): 2005 Actual 1,749.95; 2006 Actual 1,982.64. - PHC as % of Health sector expenditure: 2005 Actual 60.02; 2006 Actual 56.92. - PHC % of poverty spending: 2005 Actual 21.20; 2006 Actual 16.02. - Poverty-focused agriculture expenditure (¢ billion): 2005 Actual 175.91; 2006 Actual 484.40. - Poverty Agric. as % of sector exp.: 2005 Actual 85.69; 2006 Actual 93.56. - % of poverty spending: 2005 Actual 2.13; 2006 Actual 3.91. - Rural water expenditure (¢ billion): 2005 Actual 117.67; 2006 Actual 186.54. - % of poverty spending: 2005 Actual 1.43; 2006 Actual 1.51. - Feeder roads expenditure (¢ billion): 2005 Actual 410.24; 2006 Actual 766.95. - % of poverty spending: 2005 Actual 4.97; 2006 Actual 6.20. - Rural electrification expenditure (¢ billion): 2005 Actual 381.91; 2006 Actual 1,011.78. - Rural electrification as % of energy sector exp.: 2005 Actual 98.96; 2006 Actual 98.30. - % of poverty spending: 2005 Actual 4.63; 2006 Actual 8.18. - Other Poverty expenditures (¢ billion): 2005 Actual 1,711.51; 2006 Actual 3,233.84. - Percent of Poverty Spending: 2005 Actual 20.73; 2006 Actual 26.13. Notable changes and outcomes - Government increased poverty spending from ¢6,122.61 billion in 2004 to ¢8,256.01 billion in 2005 (increase of about 34.8%). - In 2006, direct spending to poverty reduction activities increased by 49.9% to ¢12,374 billion. - Total poverty spending in 2006 exceeded planned Budget spending by 3.24% and constituted about 34.86% of total government spending (2006). - The outcome of expenditures on poverty reduction showed positive results in areas of education, malaria control, the eradication of measles and polio, HIV/AIDS and coverage for rural water supply. ### HIPC funds in 2006 — planned vs. releases - Actual HIPC releases were 58% of planned spending. - Planned HIPC allocation breakdown (¢bn; share %): Human Resource Development 811.83 (35.64%); Private Sector Competitiveness 885.56 (38.88%); Good Governance 124.85 (5.48%); Domestic Debt 455.50 (20.00%); Total 2,277.74 (100.00%). - Releases (¢bn; share %): Human Resource Development 541.9 (40.97%); Private Sector Competitiveness 618.32 (46.75%); Good Governance 65.45 (4.95%); Domestic Debt 96.98 (7.33%); Total releases 1,322.64 (100.00%). - Specifics highlighted: - Domestic debt payment planned ¢455.5 billion (20% of HIPC Funds); actual domestic debt payment made at end-2006 was ¢96.98 billion (7.33% of HIPC funds). - Human Resource Development spending: ¢541.9 billion (40.97% of total HIPC releases); education expenditures ≈ ¢355.65 billion (about 61% of expenditures for this pillar). - Health: ¢120.09 billion. - Water and sanitation: ¢106.84 billion. - Private sector including agriculture and infrastructure: ¢618.32 billion (46.75% of HIPC funds); feeder roads development and rail transportation represented a significant share. - Energy sector: about ¢193 billion disbursed. - Good Governance and Civic Responsibility: support totalling over ¢65.0 billion. - The Human Resource Development and Private Sector spending allocations exceeded planned allocation at the expense of Good Governance and Domestic Debt payments. ### Multilateral Debt Relief Initiative (MDRI) 2006 allocations and use - As at end-September (2006), the special MDRI account amounted to about ¢1.9 trillion (about US$203 million) from the IMF and the World Bank. - In 2006, a total amount of ¢2,103.58 billion was allocated under MDRI funds: 47.2% to poverty reducing measures and 52.8% to growth enhancing measures. - Funds were allocated across sectoral programmes drawn from the three pillars of GPRS II and the MDGs; significant portion expended on rehabilitation of basic and critical infrastructure in urban and rural areas. Selected entries from Table 6.11: Revised 2006 MDRI Allocations (amounts in million cedis) - Total MDRI: 2,000,230.20 million cedis; Poverty Reduction 944,823.20; Growth Enhancing 1,055,407.00. - Examples of allocations: - Food & Agriculture: 400 tractors & accessories 109,752.00 (POVERTY REDUCTION) - Ministry of Energy: VRA Generator Equipment 182,920.00 (GROWTH ENHANCING); ECG Prepaid Meters 91,460.00 (POVERTY REDUCTION) - Ministry of Transportation: Trunks Roads – Tetteh Quarshie- Adenta, Achimota Ofankor, Asankragua, Bamboi-Tinga & Feeder Roads 411,570.00 (GROWTH ENHANCING) - Office of Government Machinery: 50th Independence Anniversary* 182,920.00 (POVERTY REDUCTION 45,730.00; GROWTH ENHANCING 137,190.00) - Subsidy to VRA, Revol.Fund, WAGP, NYEP, Contingency 361,267.00 (POVERTY REDUCTION 334,785.00; GROWTH ENHANCING 26,482.00) - Total MDRI by classification shown across ministries and items summing to the totals above. ### Summary of policy recommendations (6.9) - Upgrade the software at CAGD to capture actual expenditures based on the thematic and key focus areas of the GPRS II. - GOG must deepen the linkage between spending priorities and the GPRS II Costing framework. - Development partners must be encouraged to align their spending priorities with the GPRS II Costing framework. - Institute measures to ensure GOG can accurately predict the direction of flow, the amounts involved and the timeliness of release of development partner funds. - To deepen alignment, expand the total coverage of districts using the composite budgeting format. *Source: MFEP, Budget Statements 2002-2006; Computed from Budget Statements 2002-2006, and MoFEP data; 2007 Budget Statement p.278; MoFEP, 2007 Budget Statement.* ### 7.3 FINANCING THE IMPLEMENTATION OF DISTRICT DEVELOPMENT ### 7.3 FINANCING THE IMPLEMENTATION OF DISTRICT DEVELOPMENT PROGRAMMES ### Major revenue sources and 2006 inflows - Main sources of revenue for district development programmes: central government transfers, development partners’ grants, and funds internally generated by district assemblies. - 2006 regional revenue inflows (REVENUE INFLOWS IN MILLION CEDIS): - NORTHERN: GOG 12,555; GRANTS 52,872; DONOR GRANTS 29,435; RECEIPTS FROM HIPC FUND 123,886; DACF IGF 6,874 - UPPER EAST: GOG 5,766; GRANTS 11,113; DONOR GRANTS 22,680; RECEIPTS FROM HIPC FUND 48,664; DACF IGF 7,080 - GT ACCRA: GOG 15,647; GRANTS 17,474; DONOR GRANTS 28,878; RECEIPTS FROM HIPC FUND 37,936; DACF IGF 53,799 - EASTERN: GOG 21,956; GRANTS 7,835; DONOR GRANTS 32,179; RECEIPTS FROM HIPC FUND 86,907; DACF IGF 27,980 - VOLTA: GOG 12,456; GRANTS 12,594; DONOR GRANTS 27,154; RECEIPTS FROM HIPC FUND 62,205; DACF IGF 11,872 - WESTERN: GOG 13,710; GRANTS 4,540; DONOR GRANTS 27,250; RECEIPTS FROM HIPC FUND 94,695; DACF IGF 37,118 - CENTRAL: GOG 15,271; GRANTS 10,340; DONOR GRANTS 28,184; RECEIPTS FROM HIPC FUND 80,641; DACF IGF 13,580 - UPPER WEST: GOG 3,282; GRANTS 28,054; DONOR GRANTS 23,023; RECEIPTS FROM HIPC FUND 49,011; DACF IGF 5,042 - ASHANTI: GOG 29,150; GRANTS 33,902; DONOR GRANTS 45,390; RECEIPTS FROM HIPC FUND 156,685; DACF IGF 55,628 - BRONG AHAFO: GOG 19,602; GRANTS 19,540; DONOR GRANTS 25,457; RECEIPTS FROM HIPC FUND 106,278; DACF IGF 25,750 - TOTALS: GOG 149,394; GRANTS 198,263; DONOR GRANTS 289,631; RECEIPTS FROM HIPC FUND 846,910; DACF IGF 244,721 - In 2006 the District Assemblies’ Common Fund (DACF) accounted for nearly half (49%) of all revenue flowing to districts. ### District Assemblies’ Common Fund (DACF) - Total releases from DACF since establishment in 1994 through 2006: ¢4,363.180 billion. - Annual DACF allocations (Year — Amount (Billions)): - 1994 26.193 - 1995 54.077 - 1996 78.036 - 1997 79.037 - 1998 155.288 - 1999 112.421 - 2000 149.526 - 2001 188.729 - 2002 265.350 - 2003 648.562 - 2004 857.172 - 2005 701.917 - 2006 1,046.872 - Total 4,363.180 - DACF sharing formula (major factors and weights): - Equality: a percentage shared equally among all districts — 50% - Need: No. of Schools, Pupil/teacher ratio, No. of Health facilities, doctor/population ratio, nurse/population ratio — 40% - Responsiveness: Improvement in internal revenue collection of the district — 5% - Service Pressure: Population density in the district — 5% - Annual disbursement pattern (DISBURSEMENT IN MILLION CEDIS): - TOTAL to DISTRICTS: DACF 2005 794,208; DACF 2006 785,154 - MPs Fund: DACF 2005 49,638; DACF 2006 52,344 - RCCs: DACF 2005 24,819; DACF 2006 26,172 - Reserve Fund: DACF 2005 19,855; DACF 2006 20,937 - National Sanitation: DACF 2005 99,276; DACF 2006 157,031 - Administrator’s Office: DACF 2005 5,064; DACF 2006 5,234 - Total DACF Release: DACF 2005 992,860; DACF 2006 1,046,872 ### DACF utilisation and expenditure returns (2006) - DACF utilisation guidelines (proportion of DACF): - Capacity and Human Resource Improvement 2% - Self-Help Projects 10% - District Education Fund 2% - Establishment and Strengthening of sub-District Structures 5% - District Response Initiative on HIV/AIDS 1% - Malaria Control 1% - Physically Challenged 5% - National Youth Employment Programme, Productivity Improvement and Employment Generation (Poverty Reduction) 15% - Other Projects: Economic, social services, Administration, Environment 59% - DACF-funded project categories: - Economic: Energy, Electricity, markets, Agriculture, ICT, Private sector support - Social Services: Basic, Secondary, Tertiary, Sports, culture, water, health infrastructure & programmes, CIP - Administration: Disaster mgmt, capacity building, accommodation, logistics support, project management, security, rural housing - Environment: Environment protection, waste management, drains, drainage - Regional sectoral DACF expenditures, 2006 (EXPENDITURES IN MILLION CEDIS; Grand Totals by region): - WESTERN Grand Total 95,638.80 - CENTRAL Grand Total 73,157.78 - GT. ACCRA Grand Total 86,965.87 - EASTERN Grand Total 108,298.81 - VOLTA Grand Total 78,412.13 - ASHANTI Grand Total 171,356.97 - BRONG-AHAFO Grand Total 109,534.51 - NORTHERN Grand Total 147,782.65 - UPPER WEST Grand Total 53,016.74 - UPPER EAST Grand Total 59,140.17 - TOTAL (all regions) 983,304.43 ### Internal revenue generation (IGF) performance - Internal revenue constitutes only 14% of the total revenue base of district assemblies in 2006. - Regional summary of revenue accruals (Revenue Accruels IN MILLION CEDIS): - NORTHERN: Grants 218,748; Internal Revenue (IGF) 6,874; Total Revenue 225,622; % IGF of Total Revenue 3% - UPPER EAST: Grants 88,223; IGF 7,080; Total 95,302; % IGF 7% - GT ACCRA: Grants 99,936; IGF 53,799; Total 153,735; % IGF 35% - EASTERN: Grants 148,878; IGF 27,980; Total 176,858; % IGF 16% - VOLTA: Grants 114,408; IGF 11,872; Total 126,280; % IGF 9% - WESTERN: Grants 140,196; IGF 37,118; Total 177,314; % IGF 21% - CENTRAL: Grants 134,435; IGF 13,580; Total 148,016; % IGF 9% - UPPER WEST: Grants 103,370; IGF 5,042; Total 108,412; % IGF 5% - ASHANTI: Grants 265,127; IGF 55,628; Total 320,755; % IGF 17% - BRONG AHAFO: Grants 170,876; IGF 25,750; Total 196,626; % IGF 13% - TOTAL: Grants 1,484,197; IGF 244,721; Total 1,728,919; % IGF of Total Revenue 14% - Top 20 districts by internal revenue performance (selected entries showing IGF and % IGF of Total Revenue): - Wassa West (WR): IGF 11,213; Grants 8,216; Total Revenue 19,429; % IGF 58% - Tema (GRA): IGF 36,850; Grants 36,348; Total 73,198; % IGF 50% - Obuasi Municipal (ASH): IGF 9,434; Grants 11,236; Total 20,670; % IGF 46% - Kumasi Metro. (ASH): IGF 20,213; Grants 59,861; Total 80,073; % IGF 25% - (Full top-20 list as reported in Table 7.9) - Worst 20 districts by internal revenue (selected entries showing very low % IGF of Total Revenue, many in northern regions): - Sissala West (UWR): IGF 516; Grants 12,630; Total 13,146; % IGF 4% - Builsa (UER): IGF 465; Grants 11,693; Total 12,158; % IGF 4% - Lawra (UWR): IGF 277; Grants 21,500; Total 21,777; % IGF 1% - Karaga (NR): IGF 72; Grants 11,248; Total 11,320; % IGF 1% - Bunkpurugu – Yunyoo (NR): IGF 139; Grants 11,914; Total 12,053; % IGF 1% - (Full worst-20 list as reported in Table 7.10) ### HIPC Fund disbursement, allocations and utilisation (2002–2006) - Total HIPC allocations from inception in 2002 through 2006: ¢6,798,907,598,295 (GRAND TOTAL). - Growth of HIPC annual releases (in exact figures shown per year): - HIPC 02 273,172,246,831 - HIPC 03 732,023,511,221 - HIPC 04 1,870,401,476,629 - HIPC 05 1,919,268,028,687 - HIPC 06 2,004,042,334,927 - Allocation of HIPC Fund by functional classification (TOTAL FOR SECTOR and %): - Payment of Domestic Debt: 1,380,960,000,000 — 20% - Administration: 1,370,776,492,540 — 20% - Economic Services: 1,261,218,637,812 — 19% - Infrastructure: 852,227,221,858 — 13% - Social Services: 1,756,100,173,110 — 26% - Public Safety: 177,625,072,974 — 3% - GRAND TOTAL 6,798,907,598,295 — 100% - HIPC Fund allocations to MDAs (highest recipients, 2002–2006): - Ministry of Education, Science & Sports ¢1,179 billion - Ministry of Local Gov’t, Rural Development and Environment ¢835 billion - Ministry of Energy ¢661 billion - Ministry of Health ¢475 billion - Ministry of Water Resources Works & Housing ¢445 billion - Ministry of Roads & Transport ¢340 billion - Ministry of Trade & Industry ¢246 billion - OGM ¢226 billion - MOFEP ¢171 billion - HIPC releases to MDAs are detailed across categories (Domestic Debt Payment; Administration; Economic Services; Infrastructure; Social Services; Public Safety) with year-by-year disbursements and totals summarized in the consolidated GRAND TOTAL above. ### HIPC Fund disbursement and utilisation at district level - Three main modes of releasing HIPC Funds to District Assemblies: - Direct allocation to districts for projects approved by MLGRD and MoFEP - Received through MDAs for implementation of specific projects/programmes at district level - Funds allocated to parliamentary constituencies for use by MPs for projects in their districts - District-level rules: District Assemblies must submit project proposals and locations to MLGRD for approval before funds are disbursed; HIPC funds are lodged into specially designated HIPC accounts opened by each district. - Regional HIPC receipts, 2002–2006 (HIPC RECEIVED IN MILLION CEDIS; % of HIPC Received; HIPC/Capita): - WESTERN: No. of Districts 13; HIPC RECEIVED 98,159; 12%; HIPC/Capita 48,062 - CENTRAL: No. of Districts 13; HIPC RECEIVED 67,868; 8%; HIPC/Capita 40,222 - GR. ACCRA: No. of Districts 6; HIPC RECEIVED 131,857; 16%; HIPC/Capita 36,870 - VOLTA: No. of Districts 15; HIPC RECEIVED 55,241; 7%; HIPC/Capita 33,756 - EASTERN: No. of Districts 17; HIPC RECEIVED 78,304; 9%; HIPC/Capita 34,428 - ASHANTI: No. of Districts 21; HIPC RECEIVED 172,817; 21%; HIPC/Capita 44,036 - BRONG AHAFO: No. of Districts 19; HIPC RECEIVED 97,196; 12%; HIPC/Capita 49,383 - NORTHERN: No. of Districts 18; HIPC RECEIVED 63,092; 8%; HIPC/Capita 35,239 - UPPER EAST: No. of Districts 8; HIPC RECEIVED 36,030; 4%; HIPC/Capita 37,397 - UPPER WEST: No. of Districts 8; HIPC RECEIVED 29,374; 4%; HIPC/Capita 52,279 - TOTAL: No. of Districts 138; HIPC RECEIVED 829,938; 100%; HIPC/Capita 40,633 - HIPC-funded projects executed by District Assemblies (number of projects by sector and region; TOTAL No. of Projects 2,303): - Total projects by sector across all regions: - Education Projects 1,139 - Health Projects 398 - Water Projects 144 - Sanitation Projects 622 - TOTAL No. of Projects 2,303 - Regional totals (examples): - Western: Education 88; Health 22; Water 39; Sanitation 108; TOTAL 257 - Ashanti: Education 153; Health 143; Water 8; Sanitation 37; TOTAL 341 - Northern: Education 199; Health 34; Water 17; Sanitation 90; TOTAL 340 *Source: _cr09237 - 7.3 FINANCING THE IMPLEMENTATION OF DISTRICT DEVELOPMENT* ### 7.4 SUMMARY OF POLICY RECOMMENDATIONS ### 7.4 SUMMARY OF POLICY RECOMMENDATIONS ### Immediate policy priorities - The capacity of district assemblies, particularly in the area of planning and financial management, should be enhanced by training programmes. - More effective financial accountability mechanisms need to be introduced especially with regard to internal revenue mobilization and generation. The appointment of Internal Auditors for districts is a positive development in this direction, but the pace of hiring of this internal audit should be accelerated. - An examination of data collection systems from the districts reveals that there is generally uncoordinated format for reporting on the different data requirements of multiple donor-assisted development initiative at that level. This can lead to a situation of excessive data collection with no substantive information on the core district development indicators. There is the need, therefore, to rationalise the different data collection system to assist a comprehensive assessment of the performance of district programmes and projects. - The pace of activities leading to the full implementation of fiscal decentralisation programme needs to be accelerated. In this respect action towards the operationalisation of the composite budgeting system for district assemblies should be accelerated. - The guidelines for utilisation of the DACF, which specifies that it can only be used for ‘development’, should be strictly implemented and closely monitored. The term development is now too over stretched so that the portion of the fund used for recurrent expenditure is disproportionate. - The guidelines for the allocation of HIPC funds need to be fine-tuned to better integrate the principles of equity and poverty targeting. ### Key statistics — revenue generation performance of district assemblies (2006) - DISTRICT: WASSA WEST — TOTAL IGF: 11,213,337,752; TOTAL GRANTS: 8,216,133,931; TOTAL REVENUE: 19,429,471,683; % IGF OF TOTAL REVENUE: 58% - DISTRICT: TEMA — TOTAL IGF: 36,849,724,540; TOTAL GRANTS: 36,348,422,712; TOTAL REVENUE: 73,198,147,252; % IGF OF TOTAL REVENUE: 50% - DISTRICT: OBUASI MUNICIPAL — TOTAL IGF: 9,434,299,161; TOTAL GRANTS: 11,235,607,537; TOTAL REVENUE: 20,669,906,698; % IGF OF TOTAL REVENUE: 46% (Note: Appendix I contains a comprehensive list of district TOTAL IGF, TOTAL GRANTS, TOTAL REVENUE and % IGF OF TOTAL REVENUE for 2006, including entries such as NEW JUABEN, GA EAST, AFRAM PLAINS, SHAMA AHANTA EAST, and many others. ACCRA METRO. Data Not Available for 2006. Source: MLGRDE, 2006.) ### Achievements and policy measures from the 2006 Budget initiatives (selected) - The focus of the 2006 Budget was growth and employment; measures aim to strengthen the private sector, generate employment, rationalise and enhance revenue mobilisation. - Capital market and payments infrastructure: - Floatation of medium-term government securities — (two and three year fixed and floating rate bonds) — to be listed on the Ghana Stock Exchange (GSE) to promote the development of the bond market. - Passage by Parliament of the Long-Term Savings Act. - Setting up of the Venture Capital Fund. - Introduction of a Real Time Gross Settlement (RTGS) System in 2002. - Passage of a Payments System Bill in 2003. - Establishment of a Central Securities Depository System in 2004. - An unlisted securities market will be introduced at the GSE to enable indigenous SMEs raise equity. - Extension of the tax-exempt status of capital gains on the Ghana Stock Exchange by 5 years to the end of December 2010. - The government proposed to issue a 5-year bond early in 2007. - Venture Capital and tax incentives: - The government-sponsored Venture Capital Fund will commence operations in December 2005. - The programme earmarks 25% of the National Reconstruction Levy for financing private companies. - Tax incentives for venture capital firms meeting eligibility requirements in the Act include: - Upfront relief from stamp duty in each year on subscriptions for new equity shares in venture capital funds; - Full tax exemption from corporate income tax, dividend tax and capital gains for 5 years. - Losses from disposal of the shares during the tax exempt period may be carried forward to the post-exempt period up to 5 years. - Financial institutions which invest in venture capital subsidiaries will receive a chargeable income tax deduction equal to 100% of their investment. - Subsequent developments recorded: - The 5-Year full exemption from corporate income tax, dividend tax and capital gains tax for eligible venture capital finance companies is now extended to 10 years. - The 100% chargeable income deduction granted to financial institutions investing in venture capital finance companies is now expanded to include all corporate and individual investors who invest in venture capital financing companies. - National Reconstruction Levy (NRL) and corporate tax measures: - Proposed NRL rate reductions: - Part A Companies: 7.5% to 5.50% - Part B Companies: 5.0% to 2.50% - The National Reconstruction Levy (NRL) for Part C Companies and all other companies is to be abolished with effect from January 1, 2006. - The National Reconstruction Levy to be abolished by January 1, 2007. - The National Reconstruction Levy will cease to exist starting on January 1, 2007. - Corporate Tax rate reduced from 28% to 25% with effect from January 1, 2006. - The IRS in 2006 implemented the Venture Capital Tax Incentive and the reduced Corporate Tax Rate from 28% in 2005 to 25% in 2006. - Other competitiveness measures: - Domestic Content Bill to be finalised for consideration by Parliament. - Margin of Preference under the Public Procurement Act (Act 663) of 2003 to benefit domestic contractors and suppliers. - Industry-specific measures: - Tobacco: All cigarettes sold in Ghana (imported or domestically produced) will carry the Ministry of Health (Ghana) warning label issued by CEPS; cigarettes without this specific label shall not be sold on the local market. - Locally Printed Books: All locally printed textbooks and exercise books will now be rated zero for VAT. - Light Aviation Industry: Aircraft parts and accessories for approved commercial, health and security related operations in the Light Aviation Industry to be exempt from import duties on parity with current exemptions for commercial airlines. *Source: _cr09237 - 7.4 SUMMARY OF POLICY RECOMMENDATIONS (MLGRDE, 2006) — content as provided in the source PDF.* ### 14. Government will therefore, continue to dialogue with the two ### _cr09237 - 14. Government will therefore, continue to dialogue with the two ### District Industries Programme (DIP) - Implementation of the District Industries Programme will be accelerated to assist all Districts to establish at least one commercially viable industry. - Objective: develop rural industries with potential in commodity production and agro-processing into growth poles and centres of excellence that: - act as ready markets for fresh farm produce for processing to minimise post-harvest loses, - generate employment, - raise rural incomes. ### Loss Carry Forward – Agro-Processing, Tourism and ICT - The loss carry forward tax regime will be extended to cover agro-processing, tourism and ICT industries. - For the tourism industry, the policy will cover only those operators registered with the Ghana Tourist Board. - For ICT, the policy will cover software development. ### Mortgage Market Development - Government will introduce a Mortgage Market Initiative to channel long-term local currency funds from institutional investors to the banking system for: - residential mortgage lending, and - estate-developers constructing large scale housing development (1,000 units or more within one well-designed project). - Issues to be addressed during the year: - Amendment to the tax code to enable deduction of mortgage interest for home owners; - Enactment of a Collateral Security Act to provide the legal framework for creation, registration, perfection and enforcement of collateral. - Implementation status note: Internal Revenue Act has been amended to provide for the deductibility of mortgage interest for tax purposes. ### Personal Income Tax Reliefs - A special income tax regime is proposed to relieve low-income earners. - Personal income tax at the current minimum wage abolished with effect from January 2006. - Taxes for those marginally above the minimum wage will be capped to ensure disposable incomes above the minimum wage. - Expanded and modified tax bands: - The minimum tax-free threshold increased from ¢1.8 million to ¢2.4 million. This means that everybody’s income of ¢2.4 million shall be tax-free. - The next ¢1.8 million has been raised to ¢2.4 million, and will attract a 5 % tax rate. - The next ¢4.8 million has been raised to ¢12.0 million, and will attract a tax rate of 10% in 2005. - The next two bands of ¢27.6 million and ¢36.0 million have been combined and raised to a single band of ¢79.2 million, and will attract a tax rate of 17.5% instead of 15% and 20%, respectively, in 2005. - Incomes in excess ¢96.0 million as opposed to ¢72.0 million in 2005 will attract a marginal rate of 25% down from 28% in 2005. ### Taxation of Overtime Income - Government proposes amendments to taxation of overtime income: - Raise the qualifying annual employment income four-fold from 2,400 currency points to 9,600 currency points. - Qualifying monthly overtime earnings taxed as: - The first ¢1.2 million: 2.5%; - Between ¢1.2 million - ¢4.0 million: 10.0%; - Overtime earnings in excess of ¢4.0 million will be added to the beneficiary’s income and taxed at the prevailing personal income tax rates. - For those earning above ¢8.0 million, no concessionary rates will be granted. - Implementation status note: The taxation of overtime income was fully implemented. ### Employment Generation - National Youth Employment Programme: - Ministry of Manpower, Youth and Employment established a National Employment Task Force under a Presidential directive to develop a structured and coordinated youth employment programme. - Purpose: explore, recommend and provide additional employment opportunities for youth in all districts, including self-employment, wage-earning jobs and voluntary service activities. - Implementation status note: The National Youth Employment Programme was launched on October 3, 2006 and is ongoing. - Rural Enterprises: - Rural enterprises with potential in commodity production and agro-processing will be developed into centres of excellence to serve as ready markets for fresh produce, minimise post-harvest losses, generate employment and raise rural incomes. - Learning Centres: - Government will support setting up learning centres organised around prospering small private enterprises willing to train others. - Tax Credits for Employers (Employment Tax Credit scheme): - Incentive to companies employing fresh graduates from tertiary institutions; additional to normal allowable expenses for wages and salaries. - Proposed incentives by percentage of fresh graduates in workforce: - Up to 1%: 10% of salaries/wages of such employees - 1 – 5%: 30% - above 5%: 50% ### Good Governance and Civic Responsibility — Public Sector Reforms - Public Sector Pay Reforms: - Implementation over a three year period to achieve consolidation and monetisation of salary components and elimination of non-monetary benefits and allowances in a sustainable manner. - Progressive monetization phases: - Phase 1: consolidate all cash allowances, monetise and consolidate benefits such as fuel, house staff, driver, and utilities (phone, electricity, water); - Phase 2: monetise and consolidate benefits such as vehicles; - Phase 3: monetise and consolidate benefits such as housing. - Pensions Reform: - Presidential Commission on Pensions (established August 2004) presented Interim Report in June 2005 recommending a three-tier pension structure. - Government accepted recommendations in principle and requested publicisation to secure broad consensus. - Commission requested to work out cost and financial implications; Government will make necessary provisions to support implementation. - Emoluments of Executive, Legislature and Judiciary: - Chinery Hesse Committee appointed to review salaries, allowances and facilities as required by Article 71 of the 1992 Constitution; an interim report has been issued and acceptable recommendations will be implemented as soon as practicable. - Free Ride on Metro Mass Transit for School Children: - Pilot policy to provide free ride in urban areas for school children from kindergarten to Junior Secondary School level who are in school uniforms on buses operating on respective corridors. Policy without prejudice to other commercial arrangements. - Implementation status note: The government policy on free ride on metro Mass Transport is on course. ### Status Report on Poverty Reduction Support Credit (PRSC) 2006 and MDBS 2006 — Key MDBS Features and Performance - MDBS description: - Multi-Donor Budgetary Support (MDBS) is an ODA arrangement where development partners collectively contribute to the budget of the Government of Ghana, coordinating financial support behind the medium term development strategy (GPRS). - Initial framework memorandum signed March 2003 with nine DPs; arrangement designed to be inclusive for new partners. - MDBS created a harmonized mechanism with twice-yearly substantive discussions and an annual progress assessment; disbursement schedule linked to budget cycle and a Performance Assessment Framework (PAF) matrix. - Two-tranche disbursement system: - A ‘base payment’ disbursed in the first quarter against satisfactory outcome of annual PRGF review in previous year. - A ‘performance payment’ linked to achievement of explicitly defined ‘policy triggers’. - A 50/50 split envisaged between tranches, with performance tranche disbursed in full or in part depending on triggers fulfilled. - Triggers were to be realistic, within GoG power to achieve and limited in number. - Evolution of triggers: - 2003 triggers covered PFM, budget process, decentralisation, public sector reforms and governance. - 2004 onward, PAFs for MDBS and PRSC were merged and scope widened to include growth, income and employment and service delivery. - MDBS disbursement performance (2003–2006): - The MDBS has provided disbursements of an average of just under $ 300 million per annum over 2003 to 2006. - This has been divided between a base payment of approximately US$220 million and a performance payment of approximately US$80 million. - This constitutes about 10.4% of total budgetary allocation and 33% of ODA. - Table 2: MDBS Disbursements 2003 – 2006 (US $ millions) as reported - Total MDBS Disbursement (US$ millions): 278 311 282 299 - Base payment: 262 225 225 231 - Performance Payment: 16 87 57 68 - MDBS disbursement as % Total ODA: 39.4% 32.4% 27.0% Na - MDBS disbursement as % Total Expenditure: 12.7% 10.3% 8.9% Na - Summary of implementation status: - Nearly all targets and triggers were met except two triggers where GoG was judged by MDBS partners to have been in breach. - Subsequently total MDBS disbursement for 2006 was US$24million below pledges primarily due to reduction in the performance payment. *Source: _cr09237 - 14. Government will therefore, continue to dialogue with the two* ### 2. Implement priority actions arising out of the TSSP with regard to reducing the time taken to Export and Import: ### 2. Implement priority actions arising out of the TSSP with regard to reducing the time taken to Export and Import ### Overview - Baseline time taken to Export and Import reported as "47/55 days in 2005". - Target/time reported for 2006: "45/52 days in 2006". - Reported "Reduction in time taken to Export and Import (days) 39/47". ### A. Customs clearance and trade facilitation (Policy Objective: PRSC 6/MDBS 06) - Expected outcomes: - "Time taken to export reduced from 47 to 21 days; Time taken to import reduced from 52 to 42 days." (2006) - Progress / Means of Verification: - Baseline and definition taken from the WB “Doing Business Report” and corroborated with customized survey on Ease of Doing Business. - Specific actions and status: - a) Customs clearance procedures simplified and oriented towards trade facilitation objectives. - b) Landlord Concept implemented and port facilities/services improved. - "Port services being further privatized, with GPHA acting as Landlord (status of report on implementation plan); CCTV installed to improve security." - (i) "Computerized Port management system, CCTV & tracking facility installed & operational" - "Pilot implementation of Transit Tracking carried out using GCNet system." - c) "Export Roundtable mechanism established with a secretariat at post" - "Export Roundtable Coordinator appointed 1 January 2007; Secretariat established at MOTIPSD/PSI Annex; Draft Working Rules and Incorporation Document developed for approval (copies of relevant documentation)." - "Growth recorded in selected strategic sectors, based on baseline and year on year targets determined in implementation and funding plan." ### B. Business registration and related measures (Enhance private sector competitiveness) - Targets and reported outcomes: - "Reduction in number of days to register a business at RGD, from 14 days to 7 days" - WB reports reduction to "10 days", RGD's report reduction to "7 days, for critical stages within the purview of RGD." - Longer-term expected outcome: "Reduction in number of days to register a business to 3 days" - Progress / Means of Verification: - Project implementation Team (PIT) in place since Oct 2006. - "Automation process in progress and in use for business name registration; expansion of carrying capacity of hardware required and additional equipment being procured (RGD Quarterly Report)." - "WAN electronic link-up of HQ to regional offices deferred to 2007 (RGD Quarterly Report)." - "Construction of new Customer Service Centre/Front Office at RGD head office (Physical inspection)." — prerequisite to implement Customer Charter for RGD. - Measurement and surveys: - Development of a "customized ease of doing business survey to measure progress on PSD reforms including the time required to register new businesses" - "WB Methodology Sensitization Workshop held; DBS Inter-Agency Working Group established; Survey methodology and Instrument developed but yet to be pilot pre-tested; and survey commissioned for Trading Across Borders and Starting a Business (at RGD)." - Expected outcome: "Availability of timely customized national data to complement World Bank ease of doing business survey." ### C. Monitoring and verification instruments - Instrument and M&E actions: - "Instrument for annual survey developed and integrated into M&E systems." - "PSDS M&E Framework revision and integration process commenced (Consultant's Report)." - Baseline statistic referenced: "Time required to register new businesses at RGD reduced from 14 to 7 days" ### D. Related institutional and sectoral reforms (context affecting trade facilitation) - Industrial policy and private sector consultation: - "Industrial Policy consultations with Private Sector undertaken; 22 Thematic Areas developed; Recruitment process for Consultants to carry out options analysis and propose prescriptions commenced." - Registrar-General's Reform Strategy actions (supporting faster business registration and interface with trade facilitation): - Organizational change management and HR: "Consultations concluded with MPSR on supporting proposed change management processes (MPSR Report)." - Automation, ICT linkage, and customer service centre described above. ### Key numeric facts and targets preserved exactly as reported - Baselines and reported times: - "47/55 days in 2005" - "45/52 days in 2006" - "Reduction in time taken to Export and Import (days) 39/47" - "Time taken to export reduced from 47 to 21 days; Time taken to import reduced from 52 to 42 days." - Business registration: - "Reduction in number of days to register a business at RGD, from 14 days to 7 days" - WB: "10 days"; RGD: "7 days" - Longer-term: "Reduction in number of days to register a business to 3 days" - Institutional dates and appointments: - "Export Roundtable Coordinator appointed 1 January 2007" - PIT "in place since Oct 2006" - Survey and M&E status: - "Survey methodology and Instrument developed but yet to be pilot pre-tested" *Source: _cr09237 - 2. Implement priority actions arising out of the TSSP with regard to reducing the time taken to Export and Import* ### 25. Continue to improve national Gross Primary Enrolment Rates (GPER) in Academic Year 2006/07 with no deterioration in ### _cr09237 - 25. Continue to improve national Gross Primary Enrolment Rates (GPER) in Academic Year 2006/07 with no deterioration in ### Education: Enrollment, Gender Parity, Access, and Inputs - Policy Objective: PRSC 6/MDBS 06 — Continue to improve national Gross Primary Enrolment Rates (GPER) in Academic Year 2006/07 with no deterioration in national Gender Parity Index (GPI). - Baseline and reported enrollment / parity indicators: - KG GPER: 60% - Primary GPER: 88% - JSS GPER: 72% - Deprived Districts GER (KG): 50% - Deprived Districts GER (Primary): 84% - Deprived Districts GER (JSS): 67% - Primary NER (expected outcome): 73% - Primary NER (progress): 69% - Primary NER (target/progress line): 78.5% - Baseline GPI 2005 = 0.95 - Academic Year 2006/07 measures to boost girls’ enrollment and parity: - a. Abolishing of school fees. - b. Communication materials on girl’s enrolment drive launched and disseminated to communities and schools. - c. 5220 bicycles provided for girls who commute long distance to schools in deprived districts in four regions (CR, NR, UER and UWR). - d. "Send your Girl Child to School" Campaign took place in all 10 regions; three Northern regions developed an accelerated plan for girls’ education. - e. Sensitisation, advocacy and provision of bicycles to girls in 15 most deprived communities with low girls’ enrolment undertaken. - f. 919 girls awarded scholarship under the Complementary Education Scholarship Programme in West Gonja and Bole Districts; programme expanding to Lora, Talensi and East Mamprusi Districts. - Gender Parity Index (GPI) reported values: - KG baseline 2005/06 = 1 - Primary baseline 2005/06 = 0.97 - JSS baseline 2005/06 = 0.94 - KG reported (post-interventions) = 1.03 - Primary reported = 0.95 - JSS reported = 0.88 - Summary GPI (KG 1.03; Primary 0.95; JSS 0.93) appears in progress table. - Teacher recruitment, deployment, and pupil–teacher ratios: - a. 500 retired professional teachers re-engaged and posted to deprived areas. - b. 700 personnel deployed to deprived areas under the National Volunteer Programme. - c. 22,000 people teachers recruited and deployed under the Community Teaching Education Assistant programme (in collaboration with Ministry of Manpower and Employment). - d. 8,209 newly trained teachers deployed centrally in 2006 postings; regions directed to post 50% of allocations to deprived areas. - e. Teacher accommodation: 31 6-No. teacher accommodation completed under phase 1 in 31 deprived districts; construction ongoing for remaining 22 6-No teacher accommodation under phase 2. - f. Teacher trainees enrolled in 2005/06: total 8,551; 97.3% (8,320) sponsored; 35.1% sponsored by deprived districts. - g. Consultant completed development of a Teacher Supply/Demand Forecasting Model. - Reported Primary PTRs: - Target national PTR: 35:1 - Deprived Districts Primary PTR reported: 38:1 - Primary PTR (progress line): 40.2:1 - Deprived Districts Primary PTR repeated: 38:1 - Training, assessment, and quality: - 28. Training manuals published: a draft training manual developed; publication on hold pending feedback from National Education Reform Implementation Committee. - 28. Implement Education Assessment mechanisms (School Education Assessment, Continuous Assessment). - Expected outcomes include improved performance of Deprived Districts at BECE examinations and improved education service delivery. - Public expenditure on primary education: - Baseline 2005 = 30% (total public expenditure for primary education as proportion of total resource envelope for education). - Target 2006 = 33%. - 2006 half-year expenditure analysis indicates 34.9% public expenditure for primary education as a proportion of total resource envelope for education. - 2006 full year expenditure returns being collated; full year figure to be ready by April. - Activities funded: basic classroom construction; payment of capitation grant; provision of textbooks and TLMs; deployment of adequate number of teachers; provision of teacher accommodations and incentives in deprived areas; in-service training for basic school teachers; capacity building for district education officers; efficient EMIS. - Science & Technical Education: - Objective to equip Teacher Training Colleges (TTCs) to specialize in Mathematics and Science teaching. - Fifteen (15) existing TTCs to be converted to specialize in training teachers in Mathematics and Science. - Report: constructions ongoing at various project sites; contracts for provision of equipment to be awarded by end of April. - Verification notes: - Report on status of indicators and annual EMIS Census Report to be available by end of April for verification. ### Health: Human Resources, MDGs, HMIS, Spending, and HIV/AIDS - Human resources reform: - Continue human resources reform to increase staff productivity and improve population-staff ratios. - Piloting decentralisation of Personal Emolument’s Vote and Human Resource Management in the Health Sector planned; WB procuring TA to support implementation. - Maternal and child health, malaria, nutrition targets: - Target: Supervised delivery coverage improved (From 54.1 in 2006 to 62% 2008.) - (i) Increase coverage of maternal supervised deliveries by at least 3% in the three lowest performing regions and national coverage to 56%. - In 2005 the 3 lowest performing regions were Volta, Western and Greater Accra. - Regional performance 2005 vs 2006: - Western 2005 = 26.4% ; 2006 = 34.8% - Volta 2005 = 36.5% ; 2006 = 35.4% - Greater Accra 2005 = 45.6% ; 2006 = 61.4% - National Coverage 2005 = 54.2% ; National Coverage 2006 = 44.5% - ITN and malaria targets: - National ITN coverage (Base year 2003 = 3%) target: At least [50%] coverage of ITNs nationally in 2008. - (ii) Increase utilisation of Insecticide bed nets (ITNs) by children under 5 years to 30% nationally. - ITN use for under 5's in 2006 = 22%. - Malaria case fatality in 2006 = 2.7%. - Target malaria case fatality reduced to 2.3. - Decrease in under-five malaria case fatality by 5% in 2007 and 10% in 2008. - Baseline malaria case fatality 2005 = 2.4. Baseline morbidity 2005 = 2.4. - (iii) Continue essential nutrition actions and prioritize and cost interventions to be implemented in 2007. - Preliminary Assessment conducted; to be finalized during Marginal Budgeting for Bottleneck (MBB) Workshop planned for end of Jan 07. - Target: Increase exclusive breastfeeding (EBF) to 70% in 2008. - Health Management Information System (HMIS): - Health Matrix Network project underway. - 2006 draft health data provided by end March 2007 with data disaggregated by districts for the 31 sector-wide indicators. - National and Sub-National information system assessment conducted. - Health spending: - Baseline health spending on services (GoG, HIPC, Health Fund, NHIS) in 2005 = ¢ 390.46 billion. - A. Health spending on services in 2006 = ¢549,048 billion) — components reported: - GoG (budget) = ¢ 108.80bn - HIPC = ¢7.00 bn - Health Fund = ¢ 198.70 bn - NHIS = ¢ 75.96 bn - Later reported breakdowns (appearing inconsistent in presentation) include: - GoG = ¢ 237,682 billion - Health Fund = ¢240,266 billion - HIPC = ¢31,100 billion - NHIS = ¢40,000 Billion - Execution of 2006 Budget: - 2006 budget execution rate = 79% - Total respective shares of the 4 deprived regions of item 2 & 3 amounts to 64% of the total disbursements. - ¢40 billion has been provided to clear backlog and continue to grant exemptions. - 54% of health budget allocated to district level; out of this, about 84% has been released to the 4 deprived regions. - HIV / AIDS: - Baseline % of people with advanced HIV infection receiving antiretroviral combination treatment 2005 = 2% (Source MoH/NACP). - End 2006 = 8% - End 2007 = 26% - 35. Continue rapid scale-up of provision of antiretroviral combination therapy (ART): - 35. 8% of people with HIV infection receiving antiretroviral combination treatment (progress line). - 2006 - 16% ART for adults with AIDS - End 2008 = 42% - 36. Prevention interventions: - Prevalence of HIV among pregnant women retained below 3% in 2006 (Source NAPC). - 2.7% of pregnant women have HIV. - Prevalence target retained below 3% in 2006, 2007, 2008. ### Social Protection and Employment - National Social Protection Strategy (NSPS): - A fully costed NSPS developed and submitted to Cabinet. - A design mission for the Social Grant (Livelihood against Poverty, LEAP) Programme fielded in April to develop the fully costed LEAP for implementation. - Contract for dissemination/sensitisation exercise for the NSPS signed; consultants recruited for Department of Social Welfare Institutional Assessment. - New Information Management System developed for improved targeting of SP Programmes, M and E and allocation of resources. - Cash transfer pilots and targeting: - Design of pilot cash transfer schemes underway. Verification: Letter by MMYE outlining that a fully costed design document has been submitted to Cabinet. - Ghana Youth Employment Programme: - Implementation and start-up programmes: MMYE records show that in each district nation-wide, 500 youth have been newly employed or self employed under this programme. - Employment figures by region (as at Dec): - Ashanti = 6437 - B/A = 6432 - Central = 6391 - GAR = 5056 - NR = 15,614 - UE = 8530 - UW = 8488 - Volta = 7574 - Eastern = 7000 - Total = 78,195 - Employment figures by sectors: - Agric Bus = 13069 - Comm. Edu. Tech = 20021 - Comm. Protect = 300 - Aux Nursing = 10500 - Waste & San = 4550 - Internship = 2800 - Trades & Vocation: ICT = 0 - Other modules = 26760 (Forestry, Rev. Mobi, Volu. Teachers etc) - Programme Staff = 195 - Outcome: More youth have jobs or are self-employed for overall poverty reduction. - Resource mobilization: Budget line found in 2007 budget, MMYE report. ### Water and Sanitation - National Water Policy (NWP) and investment planning: - Approve NWP by Cabinet and begin implementation; NWP resubmitted to cabinet in February 2007 — still awaiting cabinet approval. - Increased GoG budget for Rural and Urban Water (definition of GoG to exclude grants). - Rural Water: - a. Approve the 5-year investment plan and implementation framework for Rural Water. - Consultant completed work on the 5-year medium-term investment plan; draft to be submitted to CWSA and MWRWH for review by end of April 2007. - Rural water baseline access: - Baseline 2005 = 52% - 2006 = 57.2% - Urban Water: - b. Update the SIP and approve the 5-year investment plan for Urban Water. - Selection of Consultant to update SIP in progress; to be completed by end of June. - Urban baseline: - Baseline 2005 = 55% - 2006 = 56% - 2007 = 57% - Water Quality Index (basin targets): - Densu Basin: Baseline 2005 = 54% ; 2006 = 56% ; 2007 = 58% - Ankobra Basin: Baseline 2005 = 66% ; 2006 = 67% ; 2007 = 68% - Water resources management: - c. Formulate Integrated Water Resources Management (IWRM) Plans for major river basins. - IWRM plans for the Densu River basin completed and basin office operational. - Number of major water users with permits for water use: - Baseline 2005 = 15 - 2006 = 31 (existing and new users) - 2007 = 50 - 2008 = 65 - Guinea worm eradication and safe water for endemic communities: - Baseline Guinea worm cases 2005 = 2981 - 41. Proportion of endemic villages with access to at least one source of safe drinking water increased. - 2005 baseline = 42% - Proportion increased to 47% as reported in 2006 Annual Report of the Guinea worm Eradication Programme. - By end March 2007 = 25% reduction in cases recorded in endemic communities. - By end March 2008 = Interruption of transmission. - By end March 2009 = Eradication - no cases recorded. - Increased sanitation coverage baseline 2005 = ? (not specified). ### Governance and Public Sector Management - Anti-corruption/legal framework: - 43. Comprehensive review of the country’s anti-corruption laws taking account of AU and UN conventions. - Report of review committee: Report on review of anti-corruption laws in the context of AU and UN mandates available. - 44. Review of Freedom of Information Bill and re-submit to Cabinet — verification: Letter submitting FoI to cabinet. - Expected outcome: Public awareness and education on what constitutes corruption is improved. - Decentralisation: - 45. Formulate a comprehensive decentralisation policy (progress details follow in source beyond excerpt). *Source: PRSC 6 / MDBS 06 progress and expected outcomes as presented in the provided document excerpt.* ### 45. MLGRDE submits to cabinet for approval a draft comprehensive Policy document referring to administrative, fiscal and ### MLGRDE submits to cabinet for approval a draft comprehensive Policy document referring to administrative, fiscal and political decentralisation ### Decentralisation: draft policy, implementation steps, and capacity building - Draft Comprehensive Decentralisation Policy Document submitted to Cabinet for approval (Item 45). - Expected outcome: Service delivery at the local level improved. - Continue implementing the National Decentralisation Action Plan (Item 46). - B1. Implement framework for decentralized delivery of local public service delivery within the framework of the National Decentralisation Action Plan. - A. Training all DA core staff in district composite budgeting. - Means of verification: Reports on training sessions from all DA’s. - Progress: Training of all MMDA core staff in District Composite Budgeting completed and training report available. - Expected outcome: Internally generated revenue increased. - B. MoFEP and MLGRDE endorsement of guidelines. - Means of verification: Circular from MoFEP to MLGRDE endorsing the guidelines for circulation to the DA’s. - Progress: Guidelines endorsed by MoFEP and MLGRDE. - C. Cabinet endorsement of DDF, incl. a road map for Operationalising the DDF for fiscal year 2008. - Means of verification: Cabinet circular endorsing the DFF and road map. - Progress: DDF submitted to Cabinet for endorsement. - D. Finalization and Cabinet endorsement of FOAT, including implementation plan for Operationalising FOAT and capacity building. - Means of verification: Cabinet circular endorsing the FOAT and implementation plan. - Progress: FOAT submitted to Cabinet for endorsement. - Item 47: Capacity building modules being developed. - Modules available: Draft Modules available pending validation by stakeholders. - Item 48: Inter-governmental fiscal framework developed. - Proposal for inter-governmental fiscal framework from MoFEP and MLGRDE. - Progress: An Inter-Ministerial Team with Reps from MoFEP, LGS, MLGRDE, MPSR, and CAGD set up and has been meeting. - Being developed: 1) Global Conceptual Framework for IGFF; 2) Communication Strategy; 3) Implementation Plan. - Item 49: Finalize conditions and schemes of service for LGS. - Progress: Conditions and schemes of service available and to be submitted to Cabinet for endorsement. - Item 50: Integrate four (4) decentralized departments: Community Development, Births and Deaths, Parks and Gardens, Town and Country planning. - Means of verification: Guidelines for integration, Administrative circular placing responsibility for administration and budgets (recurrent and investment) with the District Treasuries. - Progress: Treasuries of 4 departments of MLGRDE have been realigned and funds will be available from January 2007. By the end of next year, all other departments would have had their treasuries realigned. Road map to be published after approval from Local Government Council. ### Governance — Public Sector Reforms (PSR) Phase One - Implement Phase One of sequenced, prioritized PSR Programme (Item 51). - Overall expected outcome: Improved public sector performance and service delivery. - Outcomes for 2006: Satisfactory implementation of 2006 work plan: Achievement of at least half outcomes and activities as defined in 06 MPRS's M&E plan. - C1. Increase capacity of the public and civil service for accountable, transparent, timely, efficient and effective performance and service delivery. - a) Appointment and remuneration of civil service leadership. - Progress: Robust & motivated administrative leadership. - b) Operationalising revised Civil Service Law. - Means of verification: 100% of list of appointment and confirmation of Chief Directors including appointment of new head of Civil Service. - Progress: CS has clearer mandate and improved structures. - c) Continue roll-out of scheme of service training. - Means of verification: Revised Civil Service Bill approved by Cabinet. Draft New Civil Service Bill sent to Parliament. - Progress/outcome: Civil Service is professionally trained. - d) Setting up Client Service Units (CSUs) in selected departments at district level. - Means of verification: Scheme of service training rolled out with training of 35 Chief Directors. - Progress: CSUs in 10 districts and 25 other MDAs established. - Expected outcome: MDA efficiency & effectiveness enhanced & improved, & transparent and cost effective services delivered. - e) Finalizing re-categorization of selected Sub-vented Agencies (SAs). - Progress: Subvented Agency Law passed by Parliament and given Presidential Assent. Sensitization workshop organised for representatives of all subvented agencies. Compilation of request from and identification of subvented agencies for re-categorization in 2007. - Expected outcome: Selected Subvented agencies more efficient. - f) Continue implementation of recommendations for: PSC, OHCS, SEC, MoFEP. - Progress: Implementation of reform recommendations, including signing of MOUs and implementation agreements with PSC, OHCS etc. Provision of logistics for improvement in the conditions of work of PSC and OHCS. - Expected outcome: Elimination of duplication in roles of CMAs & improved service delivery. ### Governance — Public Financial Management (PFM) reforms (D1–D4) - D1. Improve public expenditure management. - Item 52: Conduct an audit of existing BPEMS processes and systems and adopt a road map. - 52a) By October 2006: Consultant is recruited to carry out audit of existing BPEMS processes and systems. - Progress: Consultant was recruited in September 06. - 52b) By December 2006: Report on the strengths and weaknesses of existing BPFMS processes and systems, together with recommendations for improvements, is completed. - Progress: Reports are ready. - 52c) By March 2007: Based on actions 52.a. and 52.b, a road-map for 2007/08 to standardize processes and computerize BPEMS systems (with six-monthly deliverables) is defined and endorsed by senior MOFEP management. - Progress: Done. - Expected outcome: Integrated financial management systems is operational and used nationally to ensure timely, accurate and complete budgeting, accounting and reporting for revenue and expenditures. - Item 53: Complete deployment of all 6 modules of BPEMS in the 8 pilot MDAs by December 2006. - Means of verification: Management Report (CAGD Statutory Report to Auditor General) prepared from BPEMS produced by 8 pilot MDAs. - Progress: The system was deployed in Dec 06 and will start producing statutory report by end 07. - Item 54: Refurbish BPEMS sites and prepare for connection of fiber optic and /or VSAT, the remaining MDAs offices in Accra and 10 Regional Capitals. - Progress: Site visits to other Accra MDAs. Contract for WAN awarded. Contracts on WAN have been awarded for regional offices and first 50% payment has been made. Sites have been prepared. Contracts for the fiber optic have been done. All tender processes for Accra are complete and currently with CTB because Accra amount is over $2million. - Item 55: Following successful parallel run with IPPD1, payroll is routinely computed by IPPD2 system. - Means of verification: Progress report by CAGD on implementation status and payroll report of both the old and new systems produced. - Progress: Parallel run of IPPD1 closed in October 06. IPPD2 is now the only system being operated and reports can be produced on IPPD2 only. - Expected outcome: Payroll process and database made more reliable and sustainable. Responsibilities for payroll and personnel data management clearly demarcated to ensure integrity of payroll databases and reports. The payroll system is fully integrated with the HR system. - D2. Modernize PFM framework. - Item 56: MoFEP’s three year action plan updated, and a prioritized, sequenced, and costed annual action plan for 2007 is prepared. - Means of verification: Annual updates available for review. - Progress: Done. - Expected outcome: Monitoring of PFM reforms improved. - D3. Strengthen budget formulation. - Item 57: Budget 2007 includes, Internally Generated Funds (IGFs), MDRI and reported project loans and project grants. - Means of verification: The Annual Budget statement. - Progress: Done. - Expected outcome: Comprehensiveness of budget statement increased, measured by the share of public funds presented in the budget statement (baseline: 2005=>50%). - CAGD reports on: - a) Treasury realignment (indicating that all MDAs, RCCs and MMDAs have functioning treasuries). - Progress: Done. - b) Bank account restructuring (indicating that all bank accounts in MDAs, RCCs, and MMDAs are restructured into sub consolidated fund bank accounts which will embrace revenue and expenditure from GoG and internally generated funds). - Progress: Done-BOG. - Expected outcome: Increase comprehensiveness of CAGD reports, as measured by the share of public resources reported in the budget execution (baseline: 2005=35% of IGF). - D4. Strengthen budget execution and reporting. - Item 58: Realign treasuries by integrating them into the MDAs, RCCs, and MMDA and increase transparency and accountability by informing cost centers directly when disbursements are made. - Means of verification: Payment system improvement (indicating that all payments between CAGD and MDAs are now being made by banks transfers). - Progress: Done. - Expected outcome: Increased fiscal decentralisation and reduction in delays experienced by MMDAs in receiving their funds. - Item 59: Internal Audit Units of the following MDAs are effective and operational: GES, GHS, MRT, MLGRDE, MoFEP and MOFA as provided in the IAA act. - Means of verification: Annual report of the Internal Audit Board. - Progress: Done and 06 reports available. - Expected outcome: Effective internal control system over revenue, expenditure, assets and liabilities increased. - Item 60: Continue to ensure provisions of the Public Procurement Act are fully implemented and applied, using PPB’s PPME assessment, covering 200 entities. Improvement in the following areas: - Means of verification: Report generated by the PPME assessment tool. - Progress: Done. - Expected outcome: Effective compliance with the Public Procurement Act, measured by the share of contracts above the threshold awarded on a competitive basis (baseline: 2005=40%). - Targets/achievements: - Use of appropriate procurement methods 50% — 95.27% achieved. - Publication of tender notices — 100% achieved. - Procurement training: Training of institutions under the Act commenced; expression of interest for implementation of training programme has been received and training will start I 2nd quarter of 2007. - Quality and timeliness of external audit strengthened. - Means of verification: The Auditor General’s Report. - Expected outcome: Time taken for the Auditor-General’s reports (consolidated budget and MDAs) to be submitted to Parliament (baseline: 2005=<12 months). - Computerization of IRS — Increase revenue collection. - Item 61: Introduction of comprehensive tax administrative system. - 2005 baseline (IMF): - IRS- 6.7% of GDP - CEPS- 8.8% of GDP - VAT - 5.2% of GDP - Means of verification: Widening the tax net. Increase in the number of registered taxpayers compared to 2005 baseline (IRS Flash Report). - Taxpayers: 1,410,369. ### Governance — Strengthening Tax Administration (D5) - Item 61: ICT policy for revenue agencies. - Progress: ICT policy integrated in revenue agencies strategic plans. - Registered companies: 45,732. - Item 62: Establishment of a Tax Policy Unit (TPU) in MOFEP. - Means of verification: TPU TORs, mission statement, budget and staffing requirements approved by MOFEP top management. - Progress: Done. - Item 63: Establishment of a Revenue Protection Unit (RPU) at the RAGB (Revenue Agencies Governing Board). - Means of verification: Formulation of RPU ToRs mission statement, budget staffing requirements and 30% of staff are hired. - Expected outcome: Decrease in IRS cost of collection ratio compared to baseline of May 2004- May 2005 (IRS Flash Report) 34%. - Targets for taxpayer and company registration: - Increase in number of taxpayers by 1% and in number of registered companies by 1% (2006) (compared to 2005). - Increase in number of taxpayers by 5% and in number of registered companies by 7% (2007) (compared to 2005). - Item 64: Relaunch of Tax Stamp for small businesses and traders. - Means of verification: Set up 52 small business tax bureau in all tax districts of the IRS. - Target: Increase in number of taxpayers by 10% and in number of registered companies by 10% (2008) (compared to 2005). ### Governance — Strengthening the Capacity to Monitor and Evaluate the Policy Agenda (M&E) - Item 65: Continue to strengthen M&E capacity by: - Training District Monitoring Groups on Ghana Info (To be cleared by NDPC). - Means of verification: Report on Statistical Literacy and MDGs (including Ghana Info). - Progress: Technical delay. - Preparing M&E plan for GPRS II. - Progress: Draft outline and sessions completed. Components are to be completed for publication. - Expected outcome: M&E of Government activities improved, as measured by time taken for the Annual Progress Report of the GPRS II to be completed (baseline: 2005=10 months). - Evaluating GPRS I. - Means of verification: TORs prepared. Experts at post. On-going. - Participatory M&E involving selected CSOs. - Means of verification: To be conducted after APR. - Constraint: Insufficient funds. - Developing M&E capacity of NDPC, PPMEDs, RDMGs, DDMGs. - Progress: Staff recruited at post. - Dissemination of GPRS II and 2005 APR. - Progress: Report available at NDPC Library. Recommendations factored into 2006 APR. - Introduce Annual Programme Reporting at all sector and district levels. - Means of verification: Guidelines issued to sectors and districts. Orientation of district staff completed. - Item 66: Conduct PSIA. - Means of verification: Documents available. - Progress: New PSIA yet to be undertaken. - E1. Strengthen M&E system. - Item 67: Ghana statistical service is reinforced and meta database and reports are disseminated in order to enhance public accountability. - Means of verification: NSDS Questionnaire document; Indus Census document; Tourism Market Trends; Gender Statistics; GLSS V. - Progress: GLSS V analysis in progress. Reports available at GSS Library. - Quick count Baseline: 19/60=68%. ### Appendix IV: Status report on the implementation of the POA of the African Peer Review Mechanism (APRM) - Purpose: APRM provides an objective basis for the use of peer pressure to adopt good policies and practices on governance and to assist countries to identify existing capacity gaps, inadequacies and deficiencies in order to provide solutions to them. - Role: APRM monitors progress made towards implementation of policies, standards and practices that contribute to political stability, high economic growth, sustainable development and accelerated sub-regional and continental economic integration. - Coverage: A total of 26 countries out of the 53 have acceded to the APRM, with Ghana, Kenya and Rwanda having been peer reviewed while South Africa and Algeria are scheduled to be reviewed in July 2007. *Excerpt from document _cr09237 - 45. MLGRDE submits to cabinet for approval a draft comprehensive Policy document referring to administrative, fiscal and political decentralisation* ### 1. PROGRESS TOWARDS IMPLEMENTATION OF THE POA: ### 1. PROGRESS TOWARDS IMPLEMENTATION OF THE POA ### Overview of implementation and institutional actions - 2006: second year of implementation of the Ghana National Programme of Action (POA) of the APRM. - Institutional measures completed or underway: - Institutionalisation of the Governing Council of the APRM on a permanent basis; operations charged on the Consolidated Fund. - Integration of the GNPOA into existing government development policy initiatives: GPRS, National Economic Dialogue, Medium Term Expenditure Frameworks of the annual budget and other institutional reforms. - Mainstreaming of the GNPOA by the National Development Planning Commission into GPRS II. - Second annual progress report based on consultations with key stakeholders; sample respondents: 1,200 persons from the 10 regions of the country. Improvement in respondent scores compared to June 2005 progress report. ### Theme 1: Democracy and Good Political Governance — key findings - Decentralisation: - Local Government Service Act passed and Local Government Service Council instituted, but the Service not yet operational. - Preparations ongoing for legislative instruments to effect transfer of functions, resources and staff to MMDAs. - Access to Justice: - Improvement in access to justice in 2006 attributed to DOVVSU and CHRAJ presence in almost all districts. - General satisfaction that national security system provides appropriate protection to safety of life and property. - Resourcing of Governance Institutions: - Substantial increase in resource allocation for CHRAJ and Judicial Services in 2006, though still insufficient. - DOVVSU under-funded; opened 23 new offices in 2006, increasing total number of offices to 63 countrywide. - Ensuring Protection of Women’s Rights: - “Domestic Violence and Property Rights Bill” received a second reading in Parliament in 2006 (note: the Bill was passed into law in February, 2007). - Measures under preparation: domestication of CEDAW and adoption of the African Protocol on Women’s Rights. - Women in Administration and Politics (as at April 2007): - Women MPs: 11% of the 230 MPs; represents an increased of 2.3% over 2002 general election. - Women ministers: 21%. - Other high ranking positions: - Female Chief Director: 35 — 17% - Supreme Court Judges: 13 — 23% - High Court Judges: 27 — 25% - District Assembly Appointee: 1,956 — 28% - District Assembly Elected: 4,830 — 11% ### Theme 2: Economic Governance and Management — key findings - Standards, Codes and Treaties still not ratified (eight listed): - Code of Good Practices on Fiscal Transparency; International Standards in Auditing; International Accounting Standards; Code of Good Practices in transparency and Financial Affairs; Best Principles for Budget Transparency; Guidelines on Public Debt Management; Core Principles of Effective Banking Supervision; Principles of Corporate Governance. - African Union Convention on Preventing and Combating Corruption was ratified. - Public procurement and entities: - Public Procurement Board developed Standard Tender Documents and Manuals for Entity Tender Committees. - 698 Entity Tender Committees established in MDAs and MMDAs. - 109 Review Boards set up in MDAs and MMDAs. - Board re-assessed 100 entities for compliance with Public Procurement Act. - Revenue mobilization incentives: - Proportion of total revenue allowed to be retained by Revenue Agencies increased from 2.5% of revenue collected in 2005 to 3.0% in 2006. - All revenue agencies resourced with operational vehicles to facilitate increased revenue collection. - Expenditure tracking: - MoFEP, BoG and CAGD set up an expenditure tracking committee to track fund releases; committee meets weekly. ### Theme 3: Corporate Governance — key findings - Labour and labour rights: - Labour Act 2003 (Act 651) passed; addresses restrictive provisions in previous laws and reflects freedom of association under Sections 79–81; conforms to 1992 Constitution and ILO Conventions No. 87 and 98. - Accounting and auditing: - Institute of Chartered Accountants – Ghana declared all Ghanaian companies should adopt International Accounting Reporting norms and practices from January 1, 2007. - Two-year transition period allows use of Ghana Accounting Standards up to 2009. - Educational workshops commenced on International Accounting and Auditing Standards. - Ratification recommendation: - National Advisory Council on Labour recommended ratification of Convention 184 on “Agricultural Workers Health and Safety” for submission to Cabinet and Parliament. - Business environment: - World Bank’s “Doing Business Report 2006” found Ghana as the 9th easiest place to do business in Africa and first in West Africa. - Constraints: poor public service delivery, industrial unrests, environmental concerns. - Electricity power outages since Q4 affected businesses; government developing new power generation stations and exploring alternative energy sources. ### Theme 4: Socio‑Economic Development — key interventions and figures - Development of SMEs: - MASLOC strengthened Micro-credit and Small Loans Scheme. - Micro Credit Fund of US$50 million launched in September 2006. - National Health Insurance Scheme (NHIS): - In 2006, 11 additional DMHIS established, bringing total functional schemes to 134. - About 127 schemes are providing benefits to their members. - Affordable Housing Programme: - Commenced in 2005 to construct 100,000 housing units over five years for middle and low income groups. - Government committed an equivalent of US$32.6 million in the 2005 and 2006 budgets for this programme. - Percentage of population with access to secure housing increased from 11.0 percent in 2005 to 11.4 percent in 2006. - Proportion of people living in slum areas (5 largest cities) reduced to 20.7 percent in 2006 from 21.0 percent in 2005. ### Financing the POA of APRM — costs, approvals and releases - Mainstreaming and alignment: - POA mainstreamed into GPRS II and incorporated into the MTEF through the GPRS matrix. - Nearly US$1,129,863,400 was approved for APRM-related activities during the 2006 budget cycle. - Approved composition (2006): - 48.7% discretionary expenditures. - 51.3% statutory funds, including: 15% HIPC inflows, 11.4% GETFUND, 10.3% Road Fund. - Actual releases and shortfall: - US$596,557,400 was released for implementation of POA activities. - Shortfall of about 47.2% of the planned expenditure. - Overall, actual resources released fell short of the annual average by 41%, with Corporate Governance and Socio‑economic governance pillars as major sources of shortfall. - Note: analysis presently excludes donor funds. - Total cost estimate and pillar shares: - Total cost of implementing APRM estimated at US$5 billion. - Expected distribution of total cost: - 53.7% to Corporate Governance pillar. - 37.3% to Socio‑Economic Governance. - 4.7% to Economic Governance related activities. - 2.4% to Democracy and Political Governance. - Timing of activities: - Nearly 94% of the activities expected to be undertaken over the period 2005-2009. - Remaining 6% expected to be implemented over the period 2010–2015. - Pillar-specific funding details: - Democracy and Political Governance: - Nearly 91% of actual expenditure releases went to: - Ensuring accountable, efficient public office holders and civil servants: 43.5% - Promoting Civil, Political, Social and Cultural rights: 25.2% - Prevention and reduction of intra- and inter-state conflict: 22.3% - Economic Governance and Management: - Nearly 90% of actual releases were for activities relating to promoting sound macroeconomic policies supporting sustainable development and promoting sound public finance management. - Corporate Governance: - Total resource requirement: US$2,684,361,693 (about 53.7% of total requirement for 2005–2009). - Provided in the 2006 budget: US$338,982,800. - 48.1% of the provided amount was actually released for implementation. - Of releases, 98% went into infrastructural development (roads, rail, energy, aviation, maritime and ICT). - Socio‑economic Governance: - Total approved budget in 2006: US$340,462,200. - 56.7% was actually released for implementation. - Major allocations: - Strengthening policies, delivery mechanisms and outcomes in key social areas including education and combating HIV/AIDS and other communicable diseases: 57% - Ensuring the maintenance of standards and codes: 30% ### MDG status at a glance (selected indicators and trends from Appendix V) - Poverty and hunger: - Proportion below extreme poverty (national basic needs): 27% (1999) → 24.9% (2001) → 22% (2005) [table entries show gaps/variations]; likelihood of achieving goal: “Probably” / “Potentially” / “Unlikely” across sub-indicators. - Nutrition: - Under-five children who are malnourished: 18% (2006 entry in table). - Education: - Net primary enrolment ratio: 59.1% (2005) → 68.8% (2006). - Gender parity and female enrolment: - Ratio females to males in primary/junior secondary and senior secondary displayed year-by-year in table; female enrolment in SSS 43.5% (earlier) → 49.5% (later). - Health: - Under-five mortality rate: 108 (1998) → 111 (2003 and 2006 entries). - Maternal mortality ratio: 2.60 (2001) → 1.87 (2006). - HIV/AIDS and malaria: - HIV prevalence rate among pregnant women: 1.5% (1999) → 3.2% (2006). - Under-five malaria case fatality (institutional): 2.9% → 2.1% (2006). - Environment and water: - Proportion of population with access to safe drinking water: urban/rural entries showing increases to 56.0% / 53.2% (table). - External debt service: - External debt service as a percentage of exports of goods & services: 10.1% (1999) → 3.2% (2005). - Data notes: - Goal data drawn from multiple sources including GSS, GDHS, MICS, Ministry of Education, Health Sentinel Surveillance, Ghana Water Company, Bank of Ghana, and APR reports; see table footnotes in source. ### Key GPRS II policy measures supporting MDGs (selected) - Goal 1 (Eradicate Extreme Poverty): - Link GPRS II programmes to annual budget and fund as planned; maintain macro-stability; address population growth; reduce spread of HIV/AIDS; sustain political will. - Goal 2 (Universal Primary Education): - Construction/rehabilitation of classrooms; capitation grants for public basic schools; school feeding programme; expand preschool access. - Goal 3 (Gender Equality): - Incentive schemes to increase girls’ enrolment/retention/completion; parent and community sensitisation. - Goal 4 (Under-five Mortality): - Implement high-impact strategies; outreach services and clinics in deprived areas; close-to-client services; redistribute health workers; improve maternal and child health access. - Goal 5 (Maternal Health): - High-impact strategies for U5M & MM and malnutrition; improve reproductive health access; develop at least one functional well-equipped hospital in each district; expand community-based health delivery; improve quality of traditional health services. - Goal 6 (HIV/AIDS and Malaria): - Intensify behaviour change strategies; prevent mother-to-child transmission; promote safe sex; improve VCT access and youth services; reduce stigma; scale up comprehensive care including antiretroviral therapy; improve malaria case management and prevention (ITNs, chemoprophylaxis for pregnant women, sanitation). - Goal 7 (Environmental Sustainability): - Encourage re-forestation; manage land, forest and wildlife protected areas; involve communities in National Action Plan to combat desertification; stem land degradation; minimise climate change/variability impact. - Goal 8 (Global Partnership for Development): - Debt restructuring; expenditure management; improved domestic resource mobilisation; pursuit of stable price and exchange rate policies; passage of Banking Law restricting government borrowing to 10% of expected revenues; passage of Procurement Act; de-regulation of the petroleum sector. *Source: _cr09237 - 1. PROGRESS TOWARDS IMPLEMENTATION OF THE POA* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2009/_cr09237.pdf_