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Statement by IMF Deputy Managing Director Takatoshi Kato at
the Conclusion of his Visit to Ghana
IMF Press Release
July 3, 2007
Mr. Takatoshi Kato, Deputy Managing Director of the
International Monetary Fund (IMF), made the following
statement today in Accra:
"I am delighted to have had the chance to visit Ghana. I am
grateful to President John Agyekum Kufuor for inviting me to
the African Union (AU) Summit on the "Grand Debate on the
Union Government, " and for the Ghanaian authorities warm
hospitality. I am also grateful for the opportunity I have
had to meet with a wide spectrum of other leaders, including
the Presidents of Madagascar, Nigeria, and Zambia, and the
Vice President of the Seychelles.
"During my brief stay here, I also had a fruitful exchange
of views with representatives of the Ghana Investor Advisory
Council and development partners. And I was able to see
first hand the fine work being done at the Teshie Orphanage
in providing a home for deprived children and in helping
educate them.
"I have specifically come to the region to hear from these
leaders and others about their concerns and priorities, and
how they feel the IMF can better help them address the
economic challenges facing their countries. I would like to
express my sincere thanks to all the people who made time to
meet with me.
"With regard to the African Union Summit, I particularly
welcome the importance the AU leaders attached to
accelerating regional integration. Establishing a unified
market by eliminating trade barriers and impediments to
labor mobility could boost regional economic potential. It
is important, however, to ensure that regional integration
will pave a way for integration into the global economy.
"In my discussions with the African leaders, they assured me
that they strive hard to gear policies in their countries
toward the achievement of the Millennium Development Goals,
but noted that the success in fighting poverty requires
efforts from developing and industrial countries alike. I
agreed, noting that harnessing Africa's immense potential is
a global priority for the 21st century.
"The higher growth path on which Africa has embarked in
recent years is foremost the result of improved policies and
increased reform efforts in many countries in the region. It
provides hope that we can realize our shared vision for the
continent, the vision of an Africa with more growth,
employment, higher living standards, and less poverty and
deprivation. I agreed with the African leaders that progress
on realizing this vision hinges on two pillars: the
international community, including the Fund, providing an
enabling environment that rewards the efforts of a resurgent
Africa; and African leaders meeting their responsibilities
to provide a sound economic and equitable environment for
Africans to pursue their livelihoods. I emphasized that the
IMF is committed to working with low-income countries
through policy advice, capacity building, and financial
assistance. I also underlined the importance of the
developed world to deliver on their commitments on bilateral
aid as well as for improved market access for African
countries and expanded trade.
"Separately, I met with President Kufuor and congratulated
him on Ghana's strong economic track record and expressed
support for the authorities' ambitious policy agenda.
Economic growth in Ghana is strong, inflation has declined,
measures are being taken to preserve fiscal discipline, and
structural reforms are yielding results. The President and
his economic team conveyed to me their firm commitment to
preserving fiscal control and macroeconomic stability and
their determination to press ahead with the reforms that are
needed to accelerate growth, reduce poverty, and meet the
Millennium Development Goals. The authorities are taking the
appropriate corrective measures to address the 2006 fiscal
slippage. They are also moving to resolve the energy
shortages and other difficulties in the sector by securing
emergency supplies, making investments, and moving toward
full cost-recovery pricing. The recent discovery of oil
potentially opens great opportunities for Ghana. I welcome
the authorities' intention to use this resource carefully.
"I note the merits of Ghana's plan to access international
capital markets for high-yielding public investment
projects, as long as borrowing is gradual and consistent
with keeping debt sustainable. The Fund will continue to
support the country as it builds capacity for debt
management.
"My discussions with the Ghana Investor Advisory Council, in
particular, highlighted the importance of the private sector
in accelerating growth. In the context of the government's
strategy of large infrastructure projects to raise growth
potential, we discussed the useful role of Public Private
Partnerships, provided they are underpinned by strong legal
and management frameworks and adequate risk sharing. We
agreed on the importance of structural reforms, in public
financial management, the financial sector, and civil
service. These, together with progress on divestiture and
the business environment, will help the government to
deliver quality services more efficiently and the private
sector to contribute to increased productivity and growth."
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