US embassy cable - 05ACCRA471

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