US embassy cable - 05ACCRA519

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 
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 
 
 
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