Presentation at this conference - http://www.slideshare.net/AfricaNext/nana-nketsia-conference-wrdf-programme-revised

1. Towards a western growth corridor Takoradi conversation: Summary of consultations so far Sep 2010

2. vision The Western Growth Corridor (western+central), has: Small share of population but much larger share of GDP Relatively low poverty levels, MDGs at below country average, high population growth wt in and out migration Corridor has enormous economic potential (mining, agriculture, forestry, manufactures, fisheries, tourism, urban development) But constraints too (infrastructure, finance, skills, regulation) Oil and gas add to opportunities, but also to risks How to harness full potential of the WGC, and not end up with unequal and unstable oil dominated economy?? Vision: A balanced economy with jobs across a number of sectors, with private enterprise fired by well-placed public investment, and growing skills base

3. unleashing agro-industry Agriculture employs 70% of population and accounts for 60% of Western region’s GDP. Production below potential in cocoa, palm, rubber, pineapple, and citrus. Large scope for improvement in productivity and increase in scale Large players exist in all sectors, allowing for scaling up of contract farming – need to develop a platform for supporting out-growers with skills and finance, and a legal framework to reduce diversion and enforce credit contracts Forestry: 44% of Ghana’s closed forest area is in Western region. Need to continue improving sustainability and minimize illegal logging while moving up the value chain. Possibility of carbon finance, as well as multi-product forestry (including tourism, essential oils, timber, cocoa) Need to attract a few large investors in processing, agri-business, wood products – explore development of a competitive industrial zone in Sekondi-Takoradi Policies needed include land use planning; investment promotion; strengthening key institutions (forestry commission, EPA, ag finance, port management, Gateway). Working with industry and traditional authorities is key

4. Fisheries – escaping the tragedy of the commons 90% of the region’s catch is by small scale fishermen yet fishermen are relatively poor, the waters are overfished and value added in industry is low and declining. Potential exists to move to a “virtuous circle” but requires tough decisions by GOG, in coordination with communities: licensing, control of illegal fishing Also requires investments: in cold storage, harbors, more knowledge-based approach to harvesting, upgrading of artisanal boats intergenerational Working with fishing communities, industry and traditional authorities. MOFA has draft sector plan for fisheries

5. Mining A controversial sector, but challenges can be addressed: Western region produces 30% of Ghana’s gold. 21% of region under mining concessions Gold prices are at an all time high but old problems remain and not a good example for the new Oil and Gas industry Sector needs a sustained and active policy reform -- taxation, compensation, distribution of revenue); as well as improved enforcement (EPA , revenue, ..) EPA flexibling muscle How to upgrade artisanal mining and ensure decent working standards? Bauxite: How to solve the transport constraints? How to improve its value added (alumina or aluminum ?) Salt: can scale up extraction; can use in petro- chemical industry

6. Tourism: big potential / small constraints Potential: 192 km of beautiful beaches, weather, culture, history, nature and forests, proximity to main regional and global markets Recent growth commendable but already hitting constraints: skills and client services, beach cleanliness, availability of land, transport Several ongoing efforts need to be put in a comprehensive framework and scaled up: environmental attention (incl. waste management in towns and villages on the coast); better infrastructure, development of crafts and festivals, rehabilitation of forts, and better promotion/marketing Missing initiatives: training for hospitality industry; financing; land use planning, tourism promotion

7. Oil and Gas: averting the curse Transparency at the center – need to build confidence that benefits will be widely shared Domestic content hard to get. Upstream industries need to be built one at a time -- dedicated oil services facility, gas plant, and power plants needed in ST; refinery and fertilizer plants will take longer; must avoid white elephant (aluminum?) and inefficient operations Investing downstream needs to be encouraged – SMEs in service industries require access to skills and capital Managing risks: high expectations and perceptions that region will do as poorly as it did from mining, environmental (spills and hazardous waste), social (population displaced by projects, urban impact of boom)

8. Impact on other sectors

9. Basic ingredient: Skills To invest in a system that serves the regional needs of tomorrow, through: Providing more access in underserved and poor, rural districts Improving enrolment levels in secondary schools (only 4.15% ) Improve quality and teacher pupil ratio (higher than national average at 1: 45 vs 1: 36) Improve vocational training through existing institutes and polytechnics Invest in regional centers of academic excellence: Cape Coast, Takwa?

10. SMEs and Finance How to develop existing potential: tourism (Cedecom), agro, salt etc? 90% of industrial activity in Western region is small and medium scale. How can MSMEs be linked to new oil and gas sector? How can access to finance be improved to support MSMEs make these links? What plans are needed to promote an industrial zone?

11. people

12. Urban planning Boom in Takoradi is hurting citizens by increasing rents, prices, congestion and pressure on services From vision to an urban plan: Sekondi-Takoradi as an industrial hub for O+G, agro-business, finance, and tourism Cape Coast as an education hub with ICT and tourism Secondary towns: Axim, Takwa, Elmina -- what are the challenges? New towns: Bonyere – how to plan and develop it?

13. Infrastructure Transport: need to update regional component of multimodal plan in a prioritized way to include: feeder roads; coastal highway; Western N-S corridor; railway plans; airport; ports Water: update regional plan as part of national strategy Sanitation: Update solid and liquid waste plan for region, as part of national investment plan that presently being designed Energy: only just over 40% of Western region connected to national grid (vs 60% national average) transformers at district capitals low and frequent power outages. Telecommunications: Teledensity below the national average with 0.3 telephones per 100 people (vis a vis 0.7 per 100 people). Proximity to cable would allow strong connectivity

14. Addressing Social and Environmental Risks Head On Social: unplanned urban growth disorganized and divisive in-migration perception that oil could affect fishermen inequality Environmental: related to oil mining deforestation urban waste

15. Supporting policies

17. Private sector groups to organize, promote, attract, connect

19. Potential WB Support: Short Term Urban Services- sanitation, under UESP II, water under Sustainable Rural Water project SMEs- Capacity building and access to finance under MSME Natural Resources- policy and institutional reform in mining, forestry and EPA, under NREG successor Transport- coastal highway- Ajonga Junction to Elubo, N- S corridor : Ayamfuri – Asawinso, feeder roads, preparatory work/feasibility studies for airport. Energy- upgrading of ECG’s distribution system in region and improving access Oil and Gas – local content, skills development in related industries, environment and governance capacity building, under TA loan

20. Potential Support: Medium Term Tertiary Education: Centers of Excellence, under skills development project Skills and Vocational Training Commercial Agriculture: support outgrowers scheme, LAP 2: community land foundation Fisheries: sector support Gas infrastructure, through an IBRD enclave

21. Next Steps??