AMBASSADOR MEETS GHANA'S PRESIDENT ON MCA, TIP,

C O N F I D E N T I A L ACCRA 000519 SIPDIS PASS TO MILLENNIUM CHALLENGE CORP WASHDC E.O. 12958: DECL: 03/14/2010 TAGS: EAID ECON EFIN EAGR ETRD KWMN PHUM PREL KMCA GH SUBJECT: AMBASSADOR MEETS GHANA'S PRESIDENT ON MCA, TIP, G8/NEPAD CONFERENCE REF: A. A) 2004 STATE 246969 ¶B. B) ACCRA 504 ¶C. C) ACCRA 505 ¶D. D) ACCRA 471 Classified By: Ambassador Mary C. Yates for Reasons 1.5 (B and D) Summary -------------- ¶1. (C) Ambassador Yates met March 9 with President Kufuor to recommend urgent action on Ghana's Millennium Challenge Account (MCA) proposal, Trafficking in Persons (TIP) legislation, and planning for the April G8/NEPAD Agricultural Productivity Conference (Ref A). The President acknowledged the need to accelerate work on Ghana's MCA proposal and assured us Ghana would pass TIP legislation (reported Ref B). He confirmed Ghana would host the NEPAD conference, and said he had delegated his Chief of Staff Kwadwo Mpiani to coordinate conference preparations. The Ambassador and President discussed ways for U.S./Ghanaian collaboration to tap the influential Ghanaian diaspora, including a USAID project on remittances. The Ambassador congratulated Kufuor for strong military to military relations and discussed ways to cooperate in 2007 during Ghana's celebration of 50 years of independence. The President also spoke at some length about the challenges in his next four years including his concerns about rising ethnic/religious tensions, which will be reported in a separate message. End Summary. ¶2. (C) The primary purpose of this requested March 9 meeting with President John Kufuor was to highlight U.S. concerns with slow movement on MCA and TIP legislation, and to urge the President to accelerate GoG preparations for the upcoming G8/NEPAD conference. Emboffs will meet separately with the President's Chief of Staff to reinforce the urgency of moving quickly on all three issues. This meeting followed an earlier meeting that same day with the President regarding the FAA's air safety concerns (Ref C),where Ambassador also delivered difficult news. Ghana at Critical Juncture on MCA -------------- ¶3. (C) The Ambassador highlighted the successful February visit of the Millennium Challenge Corporation (MCC) team, but added that the MCC has made it clear that Ghana is at a critical juncture if it is to sign an agreement by October-November 2005. While MCC officials were pleased to see the GoG decision to budget USD 500,000 to fund MCA �A;compact preparations, we are now concerned that the lengthy budget process could further delay the timeline. Ghana's MCA team has made significant accomplishments with limited resources, but the Ambassador pointed out that it now needs money and full-time staff to carry out its complex and ambitious proposal. The Ambassador noted that five countries were already negotiating agreements with the MCC and others are moving fast just behind Ghana. She said that all countries ahead of Ghana have strong Presidential involvement, commitment of fiscal resources, and a dedicated MCA team. The MCC would naturally be more responsive to the countries that demonstrate strong commitment in return. ¶4. (C) The President acknowledged that Ghana needed to act now to stay competitive for MCA money. Chief of Staff Mpiani interjected that the President had met March 6 with Ghana's MCA team, including its London-based team leader Michael Ansah. They made similar points, specifically highlighting the critical timing. Mpiani said the President was committed to ensuring the team was fully funding and staffed as soon as possible. (Comment: Making MCA the priority reason for the meeting and having the EconChief detail the timing realities if Ghana was to achieve a signed agreement by October/November appeared to capture the President's attention.) G8/NEPAD Conference Planning Getting Slow Start -------------- -- ¶5. (C) The Ambassador stated that this April 21-22 conference was a follow up to the G-8 Sea Island initiative and therefore a White House and USG priority. USAID was tasked with supporting Ghana's and NEPAD's logistical arrangements, and that USAID Administrator Natsios and other senior U.S. government officials would likely be attending the meeting. She noted U.S. concerns that time is short and there is not yet even a list of invitees or draft agenda. Kufuor stated that Chief of Staff Mpiani would head up GoG organizational efforts and that some initial meetings had taken place that week. Mpiani said that both the Ministries of Agriculture and NEPAD and Regional Affairs would be involved. ¶6. (C) Comment: Pol, Econ, and USAID will follow up directly with Mpiani to reiterate concerns on MCA and TIP legislation, and also to begin coordinating on the conference. The Ghana USAID mission has requested USAID Washington assistance on logistics organization. Up to ten Heads of State from Africa may attend, so the strain on local resources will be tremendous. Hotels and flights are already filling up, but it is not apparent that the GoG is ramping up its planning efforts. Memories of the protocol and logistics nightmares for the January 7 Presidential inauguration when a similar number of Heads of State attended only add to mission concerns for GoG event planning capacity. End Comment) Tapping Ghanaian Diaspora -------------- ¶7. (C) Tapping the Ghanaian diaspora's remittances and return of talent are hot topics in government and private circles, with a two billion dollar annual remittance figure often cited. The importance of Ghana's diaspora was raised during the President's meeting with the African Development Foundation (ADF -- Ref D) on March 2, and the Ambassador subsequently encouraged the ADF to explore ways to collaborate with the Ghanaian diaspora in the U.S. on their business development projects. The Ambassador described USAID's new 24-month project with the American NGO Citizens International, which will survey remittance practices of Ghanaians in North America and Europe, and will also review the practices of participating financial institutions. After collating empirical data on remittances and their transfer mechanisms, the second year of the USAID project plans to suggest ways to develop and launch a "Ghana Remittance Clearinghouse." The President was not aware of this specific project and expressed appreciation for its goals. ¶8. (C) The President was, however, well aware of the impact of remittances, and saw the need to channel them productively. He has tasked the Ministry of Private Sector Development to investigate this. The Ambassador also encouraged Kufuor to explore ways to capture the talents of returning Ghanaians, and suggested opening a one-stop shop to assist returnees. She shared that Ghanaians who return from the states with skills and talents to offer become frustrated with the bureaucratic red tape. She asked if a diaspora office in the government had been considered, and also mentioned that Dr. Erika Bennett (American living in Ghana) had been selected to head the diaspora office for the African Union. We understand from Dr. Bennett that several African countries were vying for hosting that office but the President expressed preference for Ghana becoming the headquarters of this AU office. (Note: the President stated his intention to capture diaspora support for the NPP by including all Ghanaians in the GoG's electronic ID program, which will confer voting privileges. He said there were over one million Ghanaians living outside of Ghana, and most of them were voting age and would support the NPP. He added that Ghanaians voting absentee would represent 15 percent of the total voting population in Ghana. End Note) Military to Military Cooperation -------------- ¶9. (C) The Ambassador took the opportunity of this meeting to reaffirm the outstanding U.S./Ghanaian military to military relations and to brief him on the State Partnership Program. She said that Ghana had acquired a reputation in the U.S. Military of being the best place in West Africa for engagement. EUCOM's frequent flag officer visits, and the Emory S. Land Ship visit in Takoradi were just recent examples. She highlighted the upcoming visit of the Adjutant General of North Dakota to discuss the North Dakota National Guard's plans under the State Partnership Plan for engagement in Ghana in the coming months and years (Note: Ghana is only third African country to participate in this program, after Morocco and South Africa. End Note). She added that the U.S. Military is actively pursuing Gulf of Guinea partnerships with regional countries, and suggested a briefing during General Wald's visit in mid-April. Planning Ahead for Ghana's 2007 Banner Year -------------- ¶10. (C) Looking ahead, the Ambassador asked about the President and his government's plans for 2007, Ghana's fiftieth year of independence. Kufuor reaffirmed that it would be an historic year, that Ghana would indeed host the African Union summit, and surprisingly he confirmed local rumor that he would "likely" be elected African Union president in 2007. The Ambassador said that March 6, 2007 would also be 50 years of U.S./Ghanaian diplomatic relations that might be celebrated together. She suggested this could be connected to the opening of our new embassy, scheduled for April 2007. The President agreed it was a good idea and commented that he hoped to have a few new hotels -- including a Hilton hotel -- by then. Ambassador's Comment -------------- ¶11. (C) Two Presidential meetings in one day is a bit out of the norm, and this second hour-long meeting was one of the best we have ever had. He made the same observation. He was responsive on the three pressing issues of the day, and post will follow up closely on the MCA and others. Delegating so much to Chief of Staff Mpiani may or may not prove to be fully productive as there was much concern by some Ghanaians during the first four years that Mpiani often was the cause of Castle logjams. The President was confident about his second term, albeit realistic about the challenges from education to infrastructure problems to the increase in crime and growing anti-NPP sentiments in Muslim sectors of the north. His growth as a regional and international statesman during the past four years is evidenced in his confirmation that he will likely be selected as the African Union President in 2007 and plans for participating at Glen Eagles in July. His lengthy political musings and concerns will follow in a separate message on his next four years. YATES NNNN