The Kufuor years (2001 – 2009): Economic Policies and Achievements

The Kufuor years (2001 – 2009): Economic Policies and Achievements

Highlight of Initiatives

▪ Participated in the World Bank/ IMF HIPC Initiative

▪ Signed the Millennium Challenge Corporation, providing $547m for antipoverty programs

▪ Introduced a new 3-year inflationindexed bond

▪ Introduced targeted industrial and agricultural policies to support industry and agriculture.

▪ Constructed over 25000km of roads

Increased minimum wage from US$0.60 to $2.25

▪ Successfully redenominated the Cedi, the Ghanaian currency

▪ Discovery of oil in commercial quantity

▪ Launched the US$50million Microfinance and Small Loans (MASLOC) fund

Impact

External debt fell by 23%

Foreign reserves increased by>1000%

Increase in listed companies on the Ghana Stock

Exchange from 18- 30

Inflation fell from 25.2% to 16.4%

Short term inter-bank rate fell from 36.4% to 23.4%

GDP growth increased from 3.7%  to 6.3%

GDP per capita grew from $262.9 to $602.5

Total exports grew from  $1.9b to $5.5b

Agricultural growth of 6.5% with record cocoa production of 750,000t

▪   Ghana emerges as oil producing country

Poverty headcount ratio reduced from 39.5 in1999 to 28.5 in 2006

Fixed line and mobile phone access increased from 1 persons to 34 persons per 100 people

Access to water increased from 72 to 80%