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