Gov’t requests US200m to implement Economic Transformation Project

Finance Minister, Ken Ofori-Atta

Government is requesting from the World Bank a US$200 million credit facility to begin implementation of the Ghana Economic Transformation Project (GETP), a policy document from the Ministry of Finance has revealed.

The credit facility is expected to promote sustainable private investments, productive jobs and firm growth in non-resource-based economic activities which would result in a growth model that is conducive to economic transformation. This would then achieve, higher economic rates from productivity growth across the economy with a view to raising incomes.

The project has four primary components namely: project management and monitoring and evaluation; accelerating entrepreneurship and Small and Medium-sized Enterprises (SMEs); improving the enabling business environment; as well as promoting spatial and industrial planning and development.

According to the report, these measures aim at “supporting the diversification of the economy to better provide shock-proof against volatility in primary commodity prices, and spurring a transition to an economic structure that generates higher growth that is more sustainable over the long term”.

Report indicates that the Project will be implemented jointly by the Ministry of Finance as the lead agency and other implementing agencies such as the Ministry of Trade and Industry (MoTI), Ministry of Business Development (MoBD ), National Board for Small Scale Industries (NBSSI), Ghana Free Zones Authority (GFZA), Ghana Investment Promotion Centre (GIPC), Ghana Standards Authority (GSA), Venture Capital Trust Fund (VCTF) and the Registrar General Department (RGD).

Consequently, Ministry has prepared the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) that would serve as safeguards instruments to the projects. These frameworks would guide mitigation of any potential negative impacts in accordance with the government and the World Bank requirements.

The ESMF outlines among others, procedures to ensure that proposed investments are adequately screened for their potential environmental and social risks and impacts, and that corrective measures are followed to avoid or mitigate and minimize any potential negative impacts arising from the project.

By Dundas Whigham