Mobilising private development flows Magdalene Apenteng Director – Public Investment 13 th November 2014

Presentation outline a.Public investment management in Ghana b.Context and motivation for the private sector & investor c.Instruments for leveraging private sector financing – PPPs, equity funds, blended finance d.Debt sustainability and development sustainability e.Challenges and Conclusions

Country Overview Land Area : 238,533 sq. km (2010 census) Income Level : Lower Middle Income Population: 25,904,598 (2013 WDI Population growth rate : 2.5% Real GDP growth: 7.% (2013 GNI per capita US$3, ) Headline Inflation : 8.8% (end of Jan, 2013) Doing Business 2013 – Ease of doing business (rank): 64 – Protecting investors (rank): 49 – Enforcing contracts (rank) : 48 Ghana has had 6 successful elections since 1992

Public investment management Efficient management and delivery of public investments for accelerated growth: Develop a national public investment policy. – Establish an appropriate policy framework to guide public investment decisions; Oversee the management of state investments in SOE’s and Joint Ventures; – Monitor commercial and strategic investments of Government;

Public investment management Efficiently allocate resources for public investments. - Prioritise and establish Database and gate keeping role; Coordinate and implement the National PPP program – policy, institutional, legal framework; provide transaction advisory role; monitor and evaluate projects Assist in the preparation and defining of various projects for the market – onitor and evaluate PPP projects.

Motivation for investors Clear framework – well defined policty, regulatory and institutional processes – Law – sector laws and regulations; Appropriate identified risk and mitigatio factors adequate project preparation activities; public sector capacity to implement, monitor and evaluate projects and Specific government support – political commitment

Available instruments Instruments for leveraging private sector financing Public Private Partnerships (PPPs), Equity funds; Blended finance

Sustainability – debt and development Meeting the benchmarks - burden of state owned enterprises – escrow accounts Deregulation of pricing and subsidies Establishment of the Ghana Infrastructure Investment Fund – commercially viable projects Capacity building activities

Challenges Political commitment – strong sponsorship of projects Political dispensation – period and an appropriate investment policy for adequate prioritization and execution of critical projects Comprehensive capacity building and effective communication activities

Challenges Private sector capacity to also accept some of the risks – support from the development finance institutions Overall fiscal sustainability is required

Conclusions Private sector participation could accelerate the delivery of critical infrastructure; Sufficient local capital funding Policy framework Institutional capacity Balance risks and rewards

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