Transcript PSD Strategy Implementation Status Update

Business and Investment Climate
Reforms in Ghana – Progress,
Challenges and Issues
Presentation to GTZ Seminar
Mount Grace Country House Hotel
May 22, 2006
PSD Strategy - Logical Framework
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The Goal is sustainable, equitable and widespread
private sector-led growth throughout Ghana
The Purpose is to enhance the competitiveness of the
private sector
The 4 key Outputs are:
 Enhance Ghana’s position in global and regional
markets
 Improve efficiency and accessibility of national
markets
 Improve competence and capacity at the firm level
 Strengthen Government’s private sector policy
formulation, implementation, monitoring and
evaluation
Implementation Framework
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Strategy co-ordinates Investment Climate Reforms of MDAs – Trade and
Industry, Private Sector Development and PSI, Public Sector Reform, Local
Government and Rural Development, Justice & AGs, Finance, RegistrarGeneral’s, Investment Promotion Centre…
An Oversight Committee made up of the key Implementing MDAs
and the private sector is overseeing implementation
Development Partners are providing financial and technical support
for implementation
 World Bank, DFID and DANIDA providing Pooled Funds
 USAID, UNDP, JICA, IFC, Governments of Germany, France, Italy,
Switzerland, Netherlands providing Aligned Support
 EU providing Sector Budget Support
A Monitoring and Evaluation Framework has been designed and is
being operationalised
Implementation will be based on regular and quality dialogue with
the private sector
Key activities
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Implementation of Trade Sector Support Program to provide a trade
enabling environment - includes reform of quality standards
institutions
Enhancing investment promotion activities
Improving operational modalities and performance of strategic
export sectors
Reform of the Registrar-General’s Dept to reduce the time and cost
for starting a business
Promotion of Public-Private Partnerships in infrastructure programs
Improvement in public sector service delivery through:
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Institutional reform of the key agencies that interface with the private
sector
Implementation of Customer Charters and a culture change program for
key PSD-related Ministries, Departments and Agencies
Review of Local Government regulation, taxes and charges
especially for MSMEs
Key activities
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Policy and Regulatory Impact Assessment to ensure that
policy and regulation do not impose undue burden on the
private sector
Business law reforms, including review of the Companies
Code in line with best practice
Institutional strengthening of Commercial Courts and
promotion of Alternative Dispute Resolution
Monitoring of Financial Sector Reforms, Land Reforms;
Infrastructure Programs; Agriculture Sector programs…
Implementation of a best-practice framework for firmlevel initiatives and an action plan for the informal sector
Enhanced and quality dialogue with the private sector
Effective Monitoring and Evaluation of the PSD Strategy
Issues and Challenges
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Business and investment climate reforms are necessary, but are
they sufficient to achieve private sector development and growth –
direct interventions at the firm level
Impact of globalization on the competitiveness of the private sector
in Africa – Access to Markets
Coordination and Prioritization of activities – breadth and
crosscutting nature of the reform agenda versus limited resources
Monitoring and Evaluation Challenges
 Difficulty of setting realistic targets for activities
 Ability to get accurate data/information to assess results
 Attribution of reforms directly to results
 Effectiveness of monitoring and impact assessment tools; e.g.
World Bank Doing Business report
Issues and Challenges
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Level of engagement of the private sector in the process
 Strengthened private sector associations
 Enhanced public-private dialogue
Capacity of MDAs to implement reforms – linked to wider
public sector reform issues of motivation and capacity
Development Partners aligning their programs and
support to Government’s reform agenda
Decentralization of the reform agenda to address specific
constraints at the regional/local level
Political commitment to the reform agenda – reforms
with medium to long-term impact for Government’s with
short-term election cycles