AMBASSADOR AND AFRICAN DEVELOPMENT FOUNDATION

UNCLAS ACCRA 000471 SIPDIS DEPARTMENT PLEASE PASS TREASURY FOR ALEX SEVERENS USTDA FOR BRYCE TERNET MILLENNIUM CHALLENGE CORP. FOR ROD NORMAN ADF FOR BRYAN CALLAHAN E.O. 12958: N/A TAGS: ECON EINV EAID EFIN ETRD GH SUBJECT: AMBASSADOR AND AFRICAN DEVELOPMENT FOUNDATION OFFICIALS MEET WITH PRESIDENT KUFUOR ¶1. SUMMARY: Ambassador Mary C. Yates, African Development Foundation (ADF) Board Chairman Edward Brehm, and ADF President Nathaniel Fields met with President Kufuor March 2 to discuss the current state and future of ADF's assistance to Ghanaian businesses. Minister for Private Sector Development and Presidential Special Initiative, Kwamena Bartels, ADF board members Dr. Ephriam Batambuze and John Leslie and EconOff also attended. End Summary. ¶2. Chairman Brehm congratulated Kufuor on Ghana's Democratic institutions and stability while stressing the need for further private sector development. Kufuor welcomed Brehm's remarks and said ADF's program directly supported the development of Ghana's human resources and the private sector, two of the primary goals of his administration. Kufuor encouraged ADF to expend more resources and include more companies. Minister Bartels said that the program's investment ceiling--which currently stands at USD 250,000 from both ADF and the GoG for a total of USD 500,000 maximum per recipient--should be increased tenfold to USD 5 million as soon as possible. ADF President Fields explained that ADF, which provides investment capital to small businesses in 15 African countries with matching funds from host governments, has eight projects underway in Ghana and hopes to expand to 50 in five years. Fields said ADF was ready to increase the ceiling to USD 1 million in the near term, and would seriously consider additional steps, if needed. (NOTE: ADF's total investment in Ghanaian businesses over the last two years is USD 1.25 million. END NOTE.) ¶3. The Ambassador suggested ADF and the GoG find ways to leverage the diaspora in order to accelerate development, adding that Ghana's success is the region's success. Kufuor agreed, saying that he had asked Bartels to work directly with the diaspora without subjecting them to the bureaucracy in order to direct as much of the USD 2 billion in remittances (GoG estimate) Ghana expects to receive next year into private sector development. YATES