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

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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% withrecord cocoa production of 750,000t

▪ Ghana emerges as oil producing country

▪	Poverty headcount ratio reducedfrom 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%