Economic projections by the Savanna Accelerated Development Authority (SADA) indicate that growth in the SADA Zone can propel the country rapidly into the higher middle-income status.
According to the Chief Executive Officer (CEO) of SADA, Charles Abugri, “When the SADA zone grows by four percent, it pushes national economic growth by a percentage point.
“So when per capital income grows by 5 percent in the SADA Zone, it shortens our progression towards a higher middle-income country by five years. Therefore the growth in that section pulls the whole economy upwards.”
Mr Abugri called for national support and non-partisan approach in developing the SADA Zone for the benefit of the whole nation.
Speaking at a meeting with political parties on the SADA and long-term transformation planning, he said Ghana is a middle-income country because 5 million people are living on less done one dollar a day.
“In some districts we actually have over 85 percent of the people living below extreme national poverty line. Meanwhile when you raise the per capital income there, it raises the overall per capital income of the nation and it takes you closer to a higher middle income country. So it’s a waste of resources to leave that half of your country’s resources unexploited,” he said.
Mechanism for financing
Touching on the mechanism of financing transformation in SADA zone, he said “we are looking at a medium term financing between 5 and 10 years capital.
Mr Abugri said unless people can borrow for 5 to 10 years, they cannot accumulate assets in typically hash area and become commercially profitable.
“We have to solve that problem…financing mechanisms are very critical and at some point we will go to parliament.
“The law said in order to find a way to finance the transformation of the SADA zone, a non-petroleum levy should be instituted. But before we go to parliament on that levy, we have to create a vehicle or mechanism that inspires trust through which the resources can be channeled. Until we have created that, we will not go to parliament to ask,” Abugri added.
By Cephas Larbi