Story: Boahene Asamoah
THE Executive Director of the Ghana Standards Board (GSB), Mr Adu Darkwa, has called on small- and medium-scale enterprises (SMEs) to engage the board in ways that will ensure that it provides services to the sector at cheaper rates.
He said representatives of SMEs could put across suggestions that would make it possible for the board to present such proposals to the government to increase subventions to the board to cater for the SME sector because of the critical role that the sector played in the economy.
Speaking at a media dialogue on “Ghana Standards Board and the SME Development”, organised by the Ghana Journalists Association (GJA) and sponsored by the Business Advocacy and Challenge Fund (BUSAC), Mr Darkwa said “it would be irresponsible on our part not to charge for services rendered to SMEs”.
He said the board had undertaken a review of its core services and commercial services, its two main areas.
Mr Darkwa explained that under the new structure, the board would perform its statutory and core functions and also ensure that the board generated revenues through the operation of commercial services.
Again, he stated that the board received a one-off support and assistance from development partners, adding that the expectation of such partners was for the board to be able to generate revenue and be self reliant, stressing that this could only be done when the board commercialised some aspects of its operations.
He cited the law that established the GSB, NCR Decree 173 of 1973, which he said, established the functions of the board as a the regulatory body responsible for the quality assurance of the nation in four main areas namely, metrology, standards, testing and quality assurance.
The executive director debunked the assertion that there was functional lapses between the board and the Food and Drugs Board, saying the board worked through co-operation, co-ordination and collaboration with state agencies in their performance of the statutory functions.
Mr Darkwa expressed worry about what he termed a lot of “non-confirmed products” in the country and called on consumers to desist from patronising goods that did not have the right labels and met the standards in the country.
He called on the media to take the lead in educating the general public on the need to shun inferior imported products that did not have the right labels and or met the country’s standards.
“The media has a critical role to play in the quality infrastructure in the country”, adding that the general public must be educated on the important role of standards.
The Executive Director also called on SMEs to apply the right standards.
Monday, February 19, 2007
Investor welcomes shareholders association
Boahene Asamoah
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
Foreign Fund managers makes substantial investments in Trasnols
Story: Boahene Asamoah
THREE international fund managers have made substantial investments in Transaction Solutions Ghana Limited (Transol) in its recent initial public offer with a total equity of about 40 per cent.
They are Mango Capital, based in South Africa, with offices in The Netherlands, which bought 4.6 million shares, representing a 20 per cent stake, Frontier Market Funds, based in Santiago, California in the US, which has 2.5 million shares, representing 11.06 per cent, and STD Bank Noms/Securities Africa Limited, which also bought 828,000 shares, representing a 6.65 per cent equity in Transol.
A stock market analyst, Mr Iddrisu Mahama of EDC Stock Brokers Limited, in an interview, said the implications were that international fund managers were gradually shifting focus to emerging capital markets such as the Ghana Stock Exchange to diversify their investment portfolios.
Again, he said, the country’s capital market was gaining international recognition and attention, adding that “it also shows the confidence that the Ghana bourse is gaining internationally”.
He said the development was very significant, in the sense that it marked the first time that a local firm had seen such an appreciable equity investment, adding that it also showed that fund managers understood the business strategies of Transol.
“The investment of the three fund managers represents the confidence foreign fund managers have in the fundamentals of the company,” Mr Mahama said.
He noted that macro-economic stability in the country was also a factor in attracting foreign fund managers and explained that the stability of the currency against major international trading currencies had boosted investors’ confidence on the market.
Transol is an information technology company which was formally listed on the Ghana Stock Exchange during the last trading session of last year after offering 20 per cent of the company to the public through a public floatation.
A total of 22,662,442 shares, valued at ¢1,000 per share, were listed on the Ghana bourse. The listing of the shares followed a successful initial public offer which was over-subscribed by over 12 per cent.
Transol offers transaction switching and processing systems, electronic funds transfer support services, electronic bill payment services, prepaid utility and telecommunications services, information technology consulting services, as well as customer payment services.
It operates the EZI shops which are points of sale centres for Areeba recharge vouchers and those of the other mobile phone networks. The shops could also be used for Ecobank Visa Gift card and the payment of Multichoice bills.
Transol was the first company to install stand-alone Automated Teller Machines (ATMs) in the country using the Ecobank platform and it has currently installed 16 ATMs at strategic locations.
The company is also in the process of installing 25 additional ATMs throughout the country.
The Chairman of Transol, Mr Paul Jacquaye, said the interest showed in his company by foreign fund managers was an indication of the fact that the fund managers understood its business strategy.
“We are operating in high growth areas such as the banks and information and communications technology,” he said in an interview.
The Ghana Stock Exchange was, for the year 2003, adjudged the best stock market performer among 61 stock markets in the world, with a yield of 144 per cent in dollar terms.
The Ghana bourse had, in 2002, recorded an earlier feat with compound index of 256 per cent in dollar terms. However, the index plummeted thereafter and is still recovering from the bearish sentiments experienced in 2005.
The market, which started in 1996 with a capital of $2 million, today has a market capitalisation in excess of $12 million.
THREE international fund managers have made substantial investments in Transaction Solutions Ghana Limited (Transol) in its recent initial public offer with a total equity of about 40 per cent.
They are Mango Capital, based in South Africa, with offices in The Netherlands, which bought 4.6 million shares, representing a 20 per cent stake, Frontier Market Funds, based in Santiago, California in the US, which has 2.5 million shares, representing 11.06 per cent, and STD Bank Noms/Securities Africa Limited, which also bought 828,000 shares, representing a 6.65 per cent equity in Transol.
A stock market analyst, Mr Iddrisu Mahama of EDC Stock Brokers Limited, in an interview, said the implications were that international fund managers were gradually shifting focus to emerging capital markets such as the Ghana Stock Exchange to diversify their investment portfolios.
Again, he said, the country’s capital market was gaining international recognition and attention, adding that “it also shows the confidence that the Ghana bourse is gaining internationally”.
He said the development was very significant, in the sense that it marked the first time that a local firm had seen such an appreciable equity investment, adding that it also showed that fund managers understood the business strategies of Transol.
“The investment of the three fund managers represents the confidence foreign fund managers have in the fundamentals of the company,” Mr Mahama said.
He noted that macro-economic stability in the country was also a factor in attracting foreign fund managers and explained that the stability of the currency against major international trading currencies had boosted investors’ confidence on the market.
Transol is an information technology company which was formally listed on the Ghana Stock Exchange during the last trading session of last year after offering 20 per cent of the company to the public through a public floatation.
A total of 22,662,442 shares, valued at ¢1,000 per share, were listed on the Ghana bourse. The listing of the shares followed a successful initial public offer which was over-subscribed by over 12 per cent.
Transol offers transaction switching and processing systems, electronic funds transfer support services, electronic bill payment services, prepaid utility and telecommunications services, information technology consulting services, as well as customer payment services.
It operates the EZI shops which are points of sale centres for Areeba recharge vouchers and those of the other mobile phone networks. The shops could also be used for Ecobank Visa Gift card and the payment of Multichoice bills.
Transol was the first company to install stand-alone Automated Teller Machines (ATMs) in the country using the Ecobank platform and it has currently installed 16 ATMs at strategic locations.
The company is also in the process of installing 25 additional ATMs throughout the country.
The Chairman of Transol, Mr Paul Jacquaye, said the interest showed in his company by foreign fund managers was an indication of the fact that the fund managers understood its business strategy.
“We are operating in high growth areas such as the banks and information and communications technology,” he said in an interview.
The Ghana Stock Exchange was, for the year 2003, adjudged the best stock market performer among 61 stock markets in the world, with a yield of 144 per cent in dollar terms.
The Ghana bourse had, in 2002, recorded an earlier feat with compound index of 256 per cent in dollar terms. However, the index plummeted thereafter and is still recovering from the bearish sentiments experienced in 2005.
The market, which started in 1996 with a capital of $2 million, today has a market capitalisation in excess of $12 million.
CPC rehabilitation on course, production to increase 65,000 mt
CPC (fin)
Story: Boahene Asamoah, Tema
THE second phase of the rehabilitation and expansion of the Cocoa Processing Company, (CPC) a leading exporter of cocoa liquor, cake and butter to raise the present production level of 30,000 to 65,000 metric tonnes is on course.
The $22 million project which involves the installation of new plants and machinery is expected to be completed by the end of the year.
The company undertook a two-phase expansion programme in 2004 which was completed in October 2005 and saw the building of a new cocoa processing plant that had the capacity to produce 30,000 tonnes of cocoa liquor.
Speaking in an interview, the Managing Director of the company, Mr Richard Armah Tetteh, said about 70 per cent of the civil work had been completed and the next phase would be the installation of plants and machinery, with the optimism that by the end of the year the company’s present capacity would be doubled.
The second phase of the expansion programme which started in November 2005, entailed the refurbishment and expansion of the old plant which was established in 1965 and had not undergone any major rehabilitation.
After the completion of the second phase of the expansion programme which would be completed in August this year, the company’s production capacity would stand at 65,000 metric tonnes and would generate an annual revenue of about $100 million per annum of exports in cocoa liquor, cake and powder.
Mr Tetteh said the full impact of the expansion works would be felt in the 2008 production year where the company would fully utilise its through-put capacity.
He said this year was rather a difficult one as the company had to repay some of the loans contracted to undertake its expansion programme, but stressed that there had been a steady increase in the growth and profitability of the company.
The Managing Director said with the completion of the project the country would generate enough resources to undertake projects on its own, without a recourse to financial institutions.
He said the company was also negotiating with other end users of its semi-finished products so as to have higher prices for its products as compared to the prices offered by the commodities market.
Mr Tetteh described the company as a “sleeping giant” whose potential over the next two years would be greatly felt as a result of the steady growth of the company.
The Techincal Consultant of the expansion project Mr Isaac Abbiw , said at the end of the project, the company would have the state-of-the-art technology within the entire continent of Africa.
Mr Abbiw said the old factory had been shut down to make room for the expansion works.
He said the old plant which had the capacity of 18,000 tonnes per annum would be upgraded to 35,000 tonnes at the end of the programme and pointed out that the expansion programme would include the installation of new equipment such as seven five new pressers in addition to the two existing one, milling and roasting machines and blowers among others.
Three companies in the country produce cocoa products for exports, they are West African Mills Company Limited located in Takoradi, which has increased its production capacity of cocoa butter and cocoa beans from 10,000 tonnes to 20,387 tonnes of cocoa butter and from 10,000 tonnes of cocoa beans to 53,351 tonnes.
Barry Callebaut, has also embarked on an expansion of its factory that would also see the expansion of its capacity from 30,000 tonnes to 60,000 tonnes.
The Government has indicated that the country must process about 40 per cent of all cocoa production in the year.
Cocoa production for the 2004/2005 production year rose by 27 per cent from 582,503 tonnes to an all time high of 740,457 tonnes for the 2005/2006 production year.
Picture in reports as CPC
Story: Boahene Asamoah, Tema
THE second phase of the rehabilitation and expansion of the Cocoa Processing Company, (CPC) a leading exporter of cocoa liquor, cake and butter to raise the present production level of 30,000 to 65,000 metric tonnes is on course.
The $22 million project which involves the installation of new plants and machinery is expected to be completed by the end of the year.
The company undertook a two-phase expansion programme in 2004 which was completed in October 2005 and saw the building of a new cocoa processing plant that had the capacity to produce 30,000 tonnes of cocoa liquor.
Speaking in an interview, the Managing Director of the company, Mr Richard Armah Tetteh, said about 70 per cent of the civil work had been completed and the next phase would be the installation of plants and machinery, with the optimism that by the end of the year the company’s present capacity would be doubled.
The second phase of the expansion programme which started in November 2005, entailed the refurbishment and expansion of the old plant which was established in 1965 and had not undergone any major rehabilitation.
After the completion of the second phase of the expansion programme which would be completed in August this year, the company’s production capacity would stand at 65,000 metric tonnes and would generate an annual revenue of about $100 million per annum of exports in cocoa liquor, cake and powder.
Mr Tetteh said the full impact of the expansion works would be felt in the 2008 production year where the company would fully utilise its through-put capacity.
He said this year was rather a difficult one as the company had to repay some of the loans contracted to undertake its expansion programme, but stressed that there had been a steady increase in the growth and profitability of the company.
The Managing Director said with the completion of the project the country would generate enough resources to undertake projects on its own, without a recourse to financial institutions.
He said the company was also negotiating with other end users of its semi-finished products so as to have higher prices for its products as compared to the prices offered by the commodities market.
Mr Tetteh described the company as a “sleeping giant” whose potential over the next two years would be greatly felt as a result of the steady growth of the company.
The Techincal Consultant of the expansion project Mr Isaac Abbiw , said at the end of the project, the company would have the state-of-the-art technology within the entire continent of Africa.
Mr Abbiw said the old factory had been shut down to make room for the expansion works.
He said the old plant which had the capacity of 18,000 tonnes per annum would be upgraded to 35,000 tonnes at the end of the programme and pointed out that the expansion programme would include the installation of new equipment such as seven five new pressers in addition to the two existing one, milling and roasting machines and blowers among others.
Three companies in the country produce cocoa products for exports, they are West African Mills Company Limited located in Takoradi, which has increased its production capacity of cocoa butter and cocoa beans from 10,000 tonnes to 20,387 tonnes of cocoa butter and from 10,000 tonnes of cocoa beans to 53,351 tonnes.
Barry Callebaut, has also embarked on an expansion of its factory that would also see the expansion of its capacity from 30,000 tonnes to 60,000 tonnes.
The Government has indicated that the country must process about 40 per cent of all cocoa production in the year.
Cocoa production for the 2004/2005 production year rose by 27 per cent from 582,503 tonnes to an all time high of 740,457 tonnes for the 2005/2006 production year.
Picture in reports as CPC
Tuesday, February 13, 2007
PBC adopts measures to improve efficiency
Story: Boahene Asamoah
THE Produce Buying Company (PBC), a licensed cocoa purchasing company has said it has adopted a new approach to cocoa purchases to ensure efficiency, reduce cost and enhance profitability of the company.
Speaking at the “Facts Behind the Figures” programme of the Ghana Stock Exchange (GSE), the Managing Director of the company, Mr Anthony Osei Boakye said the new approach to cocoa purchases “will reduce shortages to the bearest minimum”.
He said as a result of the new approach, the first quarter results of the company had seen the company’s profit sour from a negative figure of ¢9.3 billion in the 2005/2006 period to ¢13.9 billion for the 2006/2007 year.
Mr Boakye said “comparative first quarter indicators reveal that this is the fist time in three years that PBC has posted a positive results in its first quarter performance”.
The company run into a net loss of ¢31 billion for the 2004/2005 cocoa production year as a result of various industrial problems such as the green pebble cocoa beans, grading and the lack of jute sacks.
The following season, the company again reported net losses of ¢12 billion as a result of the industrial problems the company encountered the previous year.
The Managing Director however, said the company was able to purchase a total of 242,473 tonnes of cocoa out of the total national production which peaked at 740,457 tonnes for the 2006/2007 year.
That, he said, represented an increase on 7.9 per cent of the previous year’s figure of 225,358 tonnes and ensured that the company captured a commanding 33 per cent market share of cocoa buying business in the country.
Giving the highlights of the company for the year under the review, the Deputy Managing Director, Finance and Administration, Mr Joseph Osei Manu said the company has contracted ¢25 billion medium term loan to increase the company’s fleet of vehicles for secondary evacuation.
“Management has also taken steps to revamp the haulage department to make it self-financing and high profit centre to rake in more revenue for the company”, he said.
He said the company would also continue to expand its frontiers of operations in major cocoa growing areas to stem off the intense competition in the internal cocoa market.
The Managing Director of the GSE, Mr S.K. Yamoah, called on the management of PBC to consider raising other financial instruments on the stock market so as to lessen the financial burden on the company.
THE Produce Buying Company (PBC), a licensed cocoa purchasing company has said it has adopted a new approach to cocoa purchases to ensure efficiency, reduce cost and enhance profitability of the company.
Speaking at the “Facts Behind the Figures” programme of the Ghana Stock Exchange (GSE), the Managing Director of the company, Mr Anthony Osei Boakye said the new approach to cocoa purchases “will reduce shortages to the bearest minimum”.
He said as a result of the new approach, the first quarter results of the company had seen the company’s profit sour from a negative figure of ¢9.3 billion in the 2005/2006 period to ¢13.9 billion for the 2006/2007 year.
Mr Boakye said “comparative first quarter indicators reveal that this is the fist time in three years that PBC has posted a positive results in its first quarter performance”.
The company run into a net loss of ¢31 billion for the 2004/2005 cocoa production year as a result of various industrial problems such as the green pebble cocoa beans, grading and the lack of jute sacks.
The following season, the company again reported net losses of ¢12 billion as a result of the industrial problems the company encountered the previous year.
The Managing Director however, said the company was able to purchase a total of 242,473 tonnes of cocoa out of the total national production which peaked at 740,457 tonnes for the 2006/2007 year.
That, he said, represented an increase on 7.9 per cent of the previous year’s figure of 225,358 tonnes and ensured that the company captured a commanding 33 per cent market share of cocoa buying business in the country.
Giving the highlights of the company for the year under the review, the Deputy Managing Director, Finance and Administration, Mr Joseph Osei Manu said the company has contracted ¢25 billion medium term loan to increase the company’s fleet of vehicles for secondary evacuation.
“Management has also taken steps to revamp the haulage department to make it self-financing and high profit centre to rake in more revenue for the company”, he said.
He said the company would also continue to expand its frontiers of operations in major cocoa growing areas to stem off the intense competition in the internal cocoa market.
The Managing Director of the GSE, Mr S.K. Yamoah, called on the management of PBC to consider raising other financial instruments on the stock market so as to lessen the financial burden on the company.
Investor welcomes shareholders association
Boahene Asamoah
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
Monday, February 12, 2007
EDIF must solely finance exports-• To make the sector grow faster
Story: Boahene Asamoah
THE Private Enterprises Foundation (PEF), the umbrella association of all business associations in the country, has called for a restructuring of the Export Development and Investment Fund (EDIF) to be solely responsible for export financing, since existing structures do not address the needs of exporters in the country.
The association has, therefore, called on the government to decouple EDIF from commercial banks.
Presenting a position paper on, “Enhancing the regulatory environment for an accelerated development and growth of the export sector”, the association said the existing financial framework did not sufficiently address the needs of the export sector.
It also observed that the current interest charge of 12 per cent by EDIF should be lowered to five per cent, since it was too high.
The PEF said it acknowledged the availability of credit facilities for the export sector but indicated that such funds were expensive to access, apart from the high interest charges demanded by the banks.
According to the study, the Ghana Standards Board (GSB) and the Food and Drugs Board (FDB) were the cause of unnecessary delays, given the duplication of functions by the two organisations.
“The functions are not clearly defined, making it difficult for exporters to know where they can immediately go to seek assistance,” it said.
Complaints were made about double taxation by the Internal Revenue Service (IRS), especially in the fisheries sector, which increased operational cost and made products less competitive on the world market.
It said an arbitrary increase in port tariffs by the Ghana Ports and Harbours Authority (GPHA), without consulting stakeholders, was a major concern to exporters.
It cited the recent increase in the ground rent fee from ¢500,000 to ¢70 million as one such instance of arbitrary increase.
The PEF again called for the liberalisation of labour at the country’s ports so that exporters could hire their own labour for loading and offloading at the ports.
It said under the current system, exporters had no option but to use labour at the ports, the cost of which was very high.
On intellectual property rights, PEF said the non-enforcement of laws under the Industrial Designs Law and the Copyright and Trademarks laws did not encourage exporters to be innovative and inventive.
The PEF recommended the creation of land banks for various sectors, such as land banks for exporters of agro- products which could greatly facilitate cold chain and packed house facilities.
It also recommended closer linkages between industry and educational institutions to ensure the right curriculum was developed to suit the job market
“This collaboration is also needed to ensure that trainees acquire practical training necessary for their study,” it said.
The foundation also raised concern about the increase in robbery cases, since it had the potential to drive away investors, especially foreign partners. From the Business Desk
THE Private Enterprises Foundation (PEF), the umbrella association of all business associations in the country, has called for a restructuring of the Export Development and Investment Fund (EDIF) to be solely responsible for export financing, since existing structures do not address the needs of exporters in the country.
The association has, therefore, called on the government to decouple EDIF from commercial banks.
Presenting a position paper on, “Enhancing the regulatory environment for an accelerated development and growth of the export sector”, the association said the existing financial framework did not sufficiently address the needs of the export sector.
It also observed that the current interest charge of 12 per cent by EDIF should be lowered to five per cent, since it was too high.
The PEF said it acknowledged the availability of credit facilities for the export sector but indicated that such funds were expensive to access, apart from the high interest charges demanded by the banks.
According to the study, the Ghana Standards Board (GSB) and the Food and Drugs Board (FDB) were the cause of unnecessary delays, given the duplication of functions by the two organisations.
“The functions are not clearly defined, making it difficult for exporters to know where they can immediately go to seek assistance,” it said.
Complaints were made about double taxation by the Internal Revenue Service (IRS), especially in the fisheries sector, which increased operational cost and made products less competitive on the world market.
It said an arbitrary increase in port tariffs by the Ghana Ports and Harbours Authority (GPHA), without consulting stakeholders, was a major concern to exporters.
It cited the recent increase in the ground rent fee from ¢500,000 to ¢70 million as one such instance of arbitrary increase.
The PEF again called for the liberalisation of labour at the country’s ports so that exporters could hire their own labour for loading and offloading at the ports.
It said under the current system, exporters had no option but to use labour at the ports, the cost of which was very high.
On intellectual property rights, PEF said the non-enforcement of laws under the Industrial Designs Law and the Copyright and Trademarks laws did not encourage exporters to be innovative and inventive.
The PEF recommended the creation of land banks for various sectors, such as land banks for exporters of agro- products which could greatly facilitate cold chain and packed house facilities.
It also recommended closer linkages between industry and educational institutions to ensure the right curriculum was developed to suit the job market
“This collaboration is also needed to ensure that trainees acquire practical training necessary for their study,” it said.
The foundation also raised concern about the increase in robbery cases, since it had the potential to drive away investors, especially foreign partners. From the Business Desk
Sunday, February 11, 2007
$300,000 deal to support SMEs
Story: Boahene Asamoah
A $300,000 trade development project agreement has been signed between Ecobank Transnational Incorporated (ETI), the West African financial institution, and the United States Agency for International Development (USAID) to promote a cordial relationship between commercial banks and the Small and Medium-Scale Enterprises (SMEs) in the country.
The project, which has the tag line “Promoting Trade through Access to Credit”, is a one-year pilot programme to support and promote SMEs especially those in the export sector of the country.
The United States of America Ambassador to Ghana, Ms Pamela Bridgewater and the USAID West African Mission Director, Dr Jatinder Cheema, initialled on behalf of the US, while the Group Chief Executive Officer of ETI, Mr Arnold Ekpe signed on behalf of ECOWAS Transnational Incorporatoin( ETI)
Speaking at the signing ceremony, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Alan Kyeremanten, said the project was important as it would ensure trade promotion within the sub-region of West Africa.
He said the project, which was targeted at SMEs would also ensure the development of SMEs, which constituted about 90 per cent of all businesses in the country.
Mr Kyerematen further stated that the provision of credit as a component of the project was also welcome as credit to business was one of the major challenges facing business development in the country.
Ms Bridgewater said the project which was targeted at SMEs in the country, is an indication of how important SMEs were in the economic development of the country.
She said the ceremony was important as it would help bridge the financial gap between SMEs and the financial institutions and also provide technical support for SMEs.
Ms Bridgewater said the project was part of the US government’s efforts to promote capacity building in trade under the African Global Competitiveness Initiative to ensure that countries within the sub-region took advantage of export opportunities under the African Growth and Opportunities Act (AGOA).
A Deputy Governor of the Bank of Ghana, Dr Mahamudu Bawumia, said the central bank supports any attempt to nurture and develop the SME sector of the economy.
He reiterated that the project was important as it would help promote trade and investment within the West African sub-region.
He called for the enforcement of the Ecowas Trade and Liberalisation Scheme to deepen trading within the sub-region.
He said the passage of the Foreign Exchange Act was to further promote regional trading between Ghana and its neighbours.
Mr Ekpe said trade and investments within the sub-region were fundamental to the economic growth of the sub-region.
He said the agreement was in line with the core foundations of the bank to promote regional trade and investments and said the bank was excited to be part of the programme.
Thursday, February 08, 2007
Private Sector must play active part in corporate governance
Story: Boahene Asamoah
The President of the Private Enterprise Foundation (PEF), Mr Wilson Atta Krofah, has said that there is the need for the private sector to play an active role to ensure good corporate governance in the country.
“Good governance at the national level can never be attained without the involvement and support of the private sector,”he said.
At a two-day seminar on Good Corporate Governance organised for board members by PEF with support from the Centre for International Private Enterprise (CIPE), Mr Akrofah stated that “ there is the need to increase the awareness of good corporate governance practices in the country”.
The seminar attracted some Chief Executive Officers, board members and chairpersons of companies from the private sector particularly. The seminar is being facilitated by Lawfields Consulting, a legal and business management consulting firm.
He said a report on corporate governance in the country has revealed that boards in the country had been largely effective in providing strategic direction for most companies in the country.
He said the situation was prevalent in the public corporations and multinational companies which operated in the country.
The report was conducted as part of the country’s review under the African Peer Review Mechanism, in which PEF was one of the technical teams engaged to prepare a report on the status of governance in the country.
“During the last decade, the adherence to the tenets and observance of governance has been highlighted as a critical variable in promoting the right level of growth in developing countries,” he said.
A Consultant to LawFields Consulting, Dr Pikay Richardson, who is also a lecturer at the Manchester Business School in the United Kingdom, said there was the need to appoint qualified people who could run and make businesses and corporations profitable rather than appoint people who had the right political connections.
He said it was only those managers who anticipated change and devised strategic directions that would be to survive the changing trend in the world of business.
Dr Richardson mentioned some of the reasons why business failed to include the continued faith in yesterday’s models, rapid change in the business environment and management’s failures and incompetence.
He said liberalisation, policy reforms, globalisation, technological developments, industry collision and consumer sophistication were some of the major causes of change.
Dr Richardson said managers and leaders of organisations should set clear objectives, ensure a commitment to common goals and shared values, among other things, to ensure success of their companies.
The President of the Private Enterprise Foundation (PEF), Mr Wilson Atta Krofah, has said that there is the need for the private sector to play an active role to ensure good corporate governance in the country.
“Good governance at the national level can never be attained without the involvement and support of the private sector,”he said.
At a two-day seminar on Good Corporate Governance organised for board members by PEF with support from the Centre for International Private Enterprise (CIPE), Mr Akrofah stated that “ there is the need to increase the awareness of good corporate governance practices in the country”.
The seminar attracted some Chief Executive Officers, board members and chairpersons of companies from the private sector particularly. The seminar is being facilitated by Lawfields Consulting, a legal and business management consulting firm.
He said a report on corporate governance in the country has revealed that boards in the country had been largely effective in providing strategic direction for most companies in the country.
He said the situation was prevalent in the public corporations and multinational companies which operated in the country.
The report was conducted as part of the country’s review under the African Peer Review Mechanism, in which PEF was one of the technical teams engaged to prepare a report on the status of governance in the country.
“During the last decade, the adherence to the tenets and observance of governance has been highlighted as a critical variable in promoting the right level of growth in developing countries,” he said.
A Consultant to LawFields Consulting, Dr Pikay Richardson, who is also a lecturer at the Manchester Business School in the United Kingdom, said there was the need to appoint qualified people who could run and make businesses and corporations profitable rather than appoint people who had the right political connections.
He said it was only those managers who anticipated change and devised strategic directions that would be to survive the changing trend in the world of business.
Dr Richardson mentioned some of the reasons why business failed to include the continued faith in yesterday’s models, rapid change in the business environment and management’s failures and incompetence.
He said liberalisation, policy reforms, globalisation, technological developments, industry collision and consumer sophistication were some of the major causes of change.
Dr Richardson said managers and leaders of organisations should set clear objectives, ensure a commitment to common goals and shared values, among other things, to ensure success of their companies.
Committee on Shareholders association formed
Story: Boahene Asamoah
A five-member committee has been formed to work out a framework for quick establishment of shareholders association in the country.
The members of the committee are Messrs Djaba Nyakotey, Sas George, Adu Anane-Antwi, Kwabena Abankwa Yeboah and Mrs Kwasima Dumor.
The committee was formed during a meeting organised by the Ghana Stock Exchange to facilitate the establishment of strong and vibrant shareholders association in the country.
At the meeting, the Managing Director of the Ghana Stock Exchange (GSE), Mr S.K. Yamoah, said it was important to promote the formation of a strong vibrant shareholders association to play a critical role in the development of the capital market.
He said there was the need to ensure constant education of shareholders on some of the best practices on the capital market, adding that it was only when shareholders were equipped with the necessary knowledge that they could make any meaningful contribution to the development of the stock market.
The General Manager of the GSE, Mr Ekwow Afedzi, gave an overview of the performance of the stock market during 2006 and said given the performance of the bourse, it was expected to continue its slow recovery from the bearish sentiments it experienced the previous year.
Mr Afedzi said the market was expecting to see some action for this year, stating that the exchange had a target to list a minimum of four companies for the year.
He said the automation programme was also likely to be completed during the course of the year, adding that the Central Depository System was also expected to be in operation this year.
He further stated that the GSE would host a conference of African Stock Exchanges in October as part of efforts to celebrate the Golden Jubilee celebrations.
Mr Nyakotey, in a report, said the stock market needed a strong regulatory framework and a high level of awareness creation among the general public.
He said there was the need to form a model shareholders association in the country.
A five-member committee has been formed to work out a framework for quick establishment of shareholders association in the country.
The members of the committee are Messrs Djaba Nyakotey, Sas George, Adu Anane-Antwi, Kwabena Abankwa Yeboah and Mrs Kwasima Dumor.
The committee was formed during a meeting organised by the Ghana Stock Exchange to facilitate the establishment of strong and vibrant shareholders association in the country.
At the meeting, the Managing Director of the Ghana Stock Exchange (GSE), Mr S.K. Yamoah, said it was important to promote the formation of a strong vibrant shareholders association to play a critical role in the development of the capital market.
He said there was the need to ensure constant education of shareholders on some of the best practices on the capital market, adding that it was only when shareholders were equipped with the necessary knowledge that they could make any meaningful contribution to the development of the stock market.
The General Manager of the GSE, Mr Ekwow Afedzi, gave an overview of the performance of the stock market during 2006 and said given the performance of the bourse, it was expected to continue its slow recovery from the bearish sentiments it experienced the previous year.
Mr Afedzi said the market was expecting to see some action for this year, stating that the exchange had a target to list a minimum of four companies for the year.
He said the automation programme was also likely to be completed during the course of the year, adding that the Central Depository System was also expected to be in operation this year.
He further stated that the GSE would host a conference of African Stock Exchanges in October as part of efforts to celebrate the Golden Jubilee celebrations.
Mr Nyakotey, in a report, said the stock market needed a strong regulatory framework and a high level of awareness creation among the general public.
He said there was the need to form a model shareholders association in the country.
Aluworks sings $12.5 million deal with Fata
Story: Boahene Asamoah
ALUWORKS Ghana Limited has signed a $12.5-million agreement with FATA Hunter, an Italian firm, for the supply of a new state-of-the-art Cold Rolling Mill.
The cold rolling mill is the heart of the manufacturing plant, the stage at which the cast strip is reduced to customised thickness for further processing in the finishing lines to customised sizes for various end uses such as corrugated roofing sheets, quality cookware and sheets for fabrication.
The additional Cold Rolling Mill is to be installed within a period of 20 months and is expected to increase the company’s current capacity from the present 20,000 tonnes to 30,000 tonnes.
At the signing ceremony, the Board Chairman of the company, Mr William E. Inkumsah, said “the signing of the contract for the acquisition of a state-of-the-art Cold Rolling Mill in an addition to the existing one is a landmark in the history of Aluworks, which will pave the way for further expansion in future”.
He said he was confident that the company would once again supply high quality equipment, which would meet the company’s expectations.
The Managing Director of Aluworks, Mr Kondagunta Venkataramana, said the agreement with Fata Hunter for the supply and installation of a second mill would provide a vital link towards the goal of ensuring integrated aluminium industry in the country.
“The additional rolling mill will provide raw materials required for developing downstream product line extension strategies and help with acquiring new technologies that facilitate the development of local industries using aluminium semi-finished products, thereby generating job opportunities.
The Chief Executive Officer of Fata Hunter, Dr Anthony Tropeano, said the new cold rolling mill to be installed was the very latest technology, which uses electronic and hydraulic technologies.
He said the company was happy to be associated with Aluworks, and assured management and board members that the company would deliver quality products.
The Italian Ambassador to Ghana, Mr Fabrizio De Agosstini, said the signing agreement signified yet another important step in Ghana-Italian relationship.
He said there was the need to further strengthen industrial co-operation between the countries for their mutual benefit.
He hinted that to further strengthen the ties between the two countries, the Italian President was expected to visit the country sometime this year.
Aluworks and Fata Hunt have a long business relationship spanning a quarter of a century.
Two major expansion works at Aluworks, which involved the addition of two strip casters and a Tension Levelling Line in 1989 and 1999 were designed, manufactured and installed by Fata Hunt.
Aluworks is a leading producer of flat roll aluminium products in the West African sub-region and exports about 40 per cent of the total aluminium demand in the sub-region.
ALUWORKS Ghana Limited has signed a $12.5-million agreement with FATA Hunter, an Italian firm, for the supply of a new state-of-the-art Cold Rolling Mill.
The cold rolling mill is the heart of the manufacturing plant, the stage at which the cast strip is reduced to customised thickness for further processing in the finishing lines to customised sizes for various end uses such as corrugated roofing sheets, quality cookware and sheets for fabrication.
The additional Cold Rolling Mill is to be installed within a period of 20 months and is expected to increase the company’s current capacity from the present 20,000 tonnes to 30,000 tonnes.
At the signing ceremony, the Board Chairman of the company, Mr William E. Inkumsah, said “the signing of the contract for the acquisition of a state-of-the-art Cold Rolling Mill in an addition to the existing one is a landmark in the history of Aluworks, which will pave the way for further expansion in future”.
He said he was confident that the company would once again supply high quality equipment, which would meet the company’s expectations.
The Managing Director of Aluworks, Mr Kondagunta Venkataramana, said the agreement with Fata Hunter for the supply and installation of a second mill would provide a vital link towards the goal of ensuring integrated aluminium industry in the country.
“The additional rolling mill will provide raw materials required for developing downstream product line extension strategies and help with acquiring new technologies that facilitate the development of local industries using aluminium semi-finished products, thereby generating job opportunities.
The Chief Executive Officer of Fata Hunter, Dr Anthony Tropeano, said the new cold rolling mill to be installed was the very latest technology, which uses electronic and hydraulic technologies.
He said the company was happy to be associated with Aluworks, and assured management and board members that the company would deliver quality products.
The Italian Ambassador to Ghana, Mr Fabrizio De Agosstini, said the signing agreement signified yet another important step in Ghana-Italian relationship.
He said there was the need to further strengthen industrial co-operation between the countries for their mutual benefit.
He hinted that to further strengthen the ties between the two countries, the Italian President was expected to visit the country sometime this year.
Aluworks and Fata Hunt have a long business relationship spanning a quarter of a century.
Two major expansion works at Aluworks, which involved the addition of two strip casters and a Tension Levelling Line in 1989 and 1999 were designed, manufactured and installed by Fata Hunt.
Aluworks is a leading producer of flat roll aluminium products in the West African sub-region and exports about 40 per cent of the total aluminium demand in the sub-region.
Monday, February 05, 2007
BOG to review KYC Policy- To make it relevant to local needs
Story: Boahene Asamoah
THE Bank of Ghana is to review its Know Your Customer (KYC) policy to suit the country’s peculiar needs and to provide banking services to the unbanked public in the country, a deputy Governor has disclosed.
Dr Mahmoud Bawumia, said “some of the requirements needed to open an accounts in commercial banks such as the provision of utility bills disenfranchised many people from banking services”.
Speaking at the launch of the Private Banking Services of Ecobank Ghana Limited in Accra, yesterday the Deputy Governor said the central bank was looking at the KYC policy in view of the country’s own peculiar needs.
He said many people do not have utility bills in their names and as such the policy discouraged people from doing business through the banking system.
Dr Bawumia said to ensure that banking services became convenient to customers the central bank in collaboration with its stakeholders would soon introduce the National Electronic Switch that would provide services to both holders and non holders of Auto Teller Machines cards (ATMs) throughout the country.
“This is not going to be easy, but with the support of all stakeholders this can become a reality”, he stated.
He said the Bank of Ghana would continue to pursue policies that would ensure the development of the banking sector.
He said over the past few years, there had been improvement in the macro-economic stability, however he acknowledged that “macroeconomics stability is not an end itself”.
Dr Bawumia said the banking institution had responded to policies by re-engineering and increasing credit to the private sector.
He said as at August this year, the capitalisation of banks stood at ¢4.3 trillion as against ¢3.3 trillion for the same period last year representing an increase of 33.5 per cent.
The Deputy Governor said “generally the banks have shown a robust earning and profitability over the past few years, whiles non performing loans had dropped to 11.7 per cent from 24 per cent over the past years”.
Dr Bawumia said the central bank would continue to maintain the fight against inflation to ensure its downward trend.
Launching the new service, the Executive Secretary of the Economic Community of West African States, Dr Mohammed Ibn Chambas, said the launch of the private banking services was “a landmark in the bank’s drive towards achieving a full fledged retail banking status”.
He said financial integration was a necessary condition for achieving a monetary and economic union within the sub-region.
Dr Chambas said “ECOWAS is very appreciative of the pioneering role of Ecobank and its contribution to the deepening of the regional financial market.”
He said financial integration in the sub-region has reached the stage where it can only succeed if it was market driven.
“ECOWAS is counting on such regional institutions whose future operations would smoothly and effectively transmit the monetary policy impulses of the proposed West African Central bank throughout the region”, he stated.
He added that Ecobank’s efforts fell in line with the aspirations of ECOWAS as the bank had taken the lead to integrate the retail banking sector by extending cross-border banking services to 12 of the 15 ECOWAS member states.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the introduction of the new service was to provide quality service to a segment of the market.
He said the increasing demand on the target market had positioned the bank in a position to redefine personal banking services that would meet international standards.
Mr Adjei said the new service was fast, convenient and personalised banking services to the target segment.
To ensure that the service is delivered to the top-notch in society, the service is not open to the general public, it is by invitation.
The Managing Director said the bank would introduce more innovations to satisfy both the retail and corporate customers in the near future.
Caption: Mr Alfred Sakyi, Manager of the Private Banking, of Ecobank, (Second Left) showing Dr Chambas the edifice of the bank. Also in the picture from right is Mr E.P.L. Gyampoh, immediate past Board Chairman of Ecobank, Dr Bawumia, a deputy Governor Bank of Ghana, Mr Tei Mensah Mante, Board Chairman of Ecobank Ghana and Mr Adjei, MD of Ecobank Ghana.
THE Bank of Ghana is to review its Know Your Customer (KYC) policy to suit the country’s peculiar needs and to provide banking services to the unbanked public in the country, a deputy Governor has disclosed.
Dr Mahmoud Bawumia, said “some of the requirements needed to open an accounts in commercial banks such as the provision of utility bills disenfranchised many people from banking services”.
Speaking at the launch of the Private Banking Services of Ecobank Ghana Limited in Accra, yesterday the Deputy Governor said the central bank was looking at the KYC policy in view of the country’s own peculiar needs.
He said many people do not have utility bills in their names and as such the policy discouraged people from doing business through the banking system.
Dr Bawumia said to ensure that banking services became convenient to customers the central bank in collaboration with its stakeholders would soon introduce the National Electronic Switch that would provide services to both holders and non holders of Auto Teller Machines cards (ATMs) throughout the country.
“This is not going to be easy, but with the support of all stakeholders this can become a reality”, he stated.
He said the Bank of Ghana would continue to pursue policies that would ensure the development of the banking sector.
He said over the past few years, there had been improvement in the macro-economic stability, however he acknowledged that “macroeconomics stability is not an end itself”.
Dr Bawumia said the banking institution had responded to policies by re-engineering and increasing credit to the private sector.
He said as at August this year, the capitalisation of banks stood at ¢4.3 trillion as against ¢3.3 trillion for the same period last year representing an increase of 33.5 per cent.
The Deputy Governor said “generally the banks have shown a robust earning and profitability over the past few years, whiles non performing loans had dropped to 11.7 per cent from 24 per cent over the past years”.
Dr Bawumia said the central bank would continue to maintain the fight against inflation to ensure its downward trend.
Launching the new service, the Executive Secretary of the Economic Community of West African States, Dr Mohammed Ibn Chambas, said the launch of the private banking services was “a landmark in the bank’s drive towards achieving a full fledged retail banking status”.
He said financial integration was a necessary condition for achieving a monetary and economic union within the sub-region.
Dr Chambas said “ECOWAS is very appreciative of the pioneering role of Ecobank and its contribution to the deepening of the regional financial market.”
He said financial integration in the sub-region has reached the stage where it can only succeed if it was market driven.
“ECOWAS is counting on such regional institutions whose future operations would smoothly and effectively transmit the monetary policy impulses of the proposed West African Central bank throughout the region”, he stated.
He added that Ecobank’s efforts fell in line with the aspirations of ECOWAS as the bank had taken the lead to integrate the retail banking sector by extending cross-border banking services to 12 of the 15 ECOWAS member states.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the introduction of the new service was to provide quality service to a segment of the market.
He said the increasing demand on the target market had positioned the bank in a position to redefine personal banking services that would meet international standards.
Mr Adjei said the new service was fast, convenient and personalised banking services to the target segment.
To ensure that the service is delivered to the top-notch in society, the service is not open to the general public, it is by invitation.
The Managing Director said the bank would introduce more innovations to satisfy both the retail and corporate customers in the near future.
Caption: Mr Alfred Sakyi, Manager of the Private Banking, of Ecobank, (Second Left) showing Dr Chambas the edifice of the bank. Also in the picture from right is Mr E.P.L. Gyampoh, immediate past Board Chairman of Ecobank, Dr Bawumia, a deputy Governor Bank of Ghana, Mr Tei Mensah Mante, Board Chairman of Ecobank Ghana and Mr Adjei, MD of Ecobank Ghana.
High regulatory fees killing SMEs
Story: Boahene Asamoah, Tema
THE lack of finance has been cited as a major constraint to the expansion of many small and medium-scale enterprises (SMEs) in Tema.
High fees charged by regulatory bodies such as the Food and Drugs Board (FDB) and the Ghana Standards Board (GSB) are also a hindrance to the growth and prospects of SMEs in the country.
This came up during a tour by the Ghana Journalists Association (GJA) and the National Board for Small-Scale Enterprises (NBSSI) to give a cross-section of journalists first hand information on the operations of some SMEs in Tema.
The programme was under the GJA/Business Sector Advocacy Challenge Fund (BUSAC) programme which is aimed at creating a conducive environment for businesses to operate.
The tour also brought to the fore the high cost of doing business in the country, which was another major challenge, especially for the SMEs.
At Gomashed Company Limited, producers of alcoholic and non-alcoholic beverages, the proprietor, Mr I. B. K. Tawiah, said one of the constraints his company faced was the huge cost of licensing its products at the Ghana Standards Board.
He said he needed about ¢4 million to register the products, which he said, was too expensive for a small business like his.
Apart from that he said the usual constraint of financial resources to expand the business was equally taking a huge toll on his business.
He said he produced about 20 cartons of both alcoholic and non-alcoholic beverages per month, adding that demand for the his vermouth wine was high but the funds to support the expansion of the business was not available.
At Bersama Enterprise, producers of ointments, the Managing Director, Mr Bernard Sekyiama, said he needed ¢7 million to register his product with the Food and Drugs Board (FDB) which he said was too much.
He said high fees charged by regulatory bodies such as the FDB was a hindrance to the growth and prospects of SMEs in the country and called on the authorities to give SMEs some exceptions.
Mr Sakyiama said because of his inability to register his product, he could not undertake any effective marketing.
At David Tagoe Enterprise, producers of Bottled Palm Wine and Nmedan, the proprietor, Mr David Tagoe, said the major problem facing the company was transportation cost.
That, he said, made the cost of distribution too high and therefore the product very expensive.
He also said another constraint was the lack of working capital for expanding the business.
During the tour, it was observed that most of the enterprises were family-owned and employed an average of about five people.
Journalists also had the opportunity to visit Adjemens Enterprise, producers of sachet water, Dua Ma Eduro, a traditional herbal producer, Sam Soap Industry, a soap manufacturing enterprise, Devyx Textiles, woven fabric enterprise, Ashiaman Metal Fabrication, a metal fabrication enterprise and Special Touch Foods, where the journalists were treated to good Ghanaian and continental dishes to round up the day’s activities.
THE lack of finance has been cited as a major constraint to the expansion of many small and medium-scale enterprises (SMEs) in Tema.
High fees charged by regulatory bodies such as the Food and Drugs Board (FDB) and the Ghana Standards Board (GSB) are also a hindrance to the growth and prospects of SMEs in the country.
This came up during a tour by the Ghana Journalists Association (GJA) and the National Board for Small-Scale Enterprises (NBSSI) to give a cross-section of journalists first hand information on the operations of some SMEs in Tema.
The programme was under the GJA/Business Sector Advocacy Challenge Fund (BUSAC) programme which is aimed at creating a conducive environment for businesses to operate.
The tour also brought to the fore the high cost of doing business in the country, which was another major challenge, especially for the SMEs.
At Gomashed Company Limited, producers of alcoholic and non-alcoholic beverages, the proprietor, Mr I. B. K. Tawiah, said one of the constraints his company faced was the huge cost of licensing its products at the Ghana Standards Board.
He said he needed about ¢4 million to register the products, which he said, was too expensive for a small business like his.
Apart from that he said the usual constraint of financial resources to expand the business was equally taking a huge toll on his business.
He said he produced about 20 cartons of both alcoholic and non-alcoholic beverages per month, adding that demand for the his vermouth wine was high but the funds to support the expansion of the business was not available.
At Bersama Enterprise, producers of ointments, the Managing Director, Mr Bernard Sekyiama, said he needed ¢7 million to register his product with the Food and Drugs Board (FDB) which he said was too much.
He said high fees charged by regulatory bodies such as the FDB was a hindrance to the growth and prospects of SMEs in the country and called on the authorities to give SMEs some exceptions.
Mr Sakyiama said because of his inability to register his product, he could not undertake any effective marketing.
At David Tagoe Enterprise, producers of Bottled Palm Wine and Nmedan, the proprietor, Mr David Tagoe, said the major problem facing the company was transportation cost.
That, he said, made the cost of distribution too high and therefore the product very expensive.
He also said another constraint was the lack of working capital for expanding the business.
During the tour, it was observed that most of the enterprises were family-owned and employed an average of about five people.
Journalists also had the opportunity to visit Adjemens Enterprise, producers of sachet water, Dua Ma Eduro, a traditional herbal producer, Sam Soap Industry, a soap manufacturing enterprise, Devyx Textiles, woven fabric enterprise, Ashiaman Metal Fabrication, a metal fabrication enterprise and Special Touch Foods, where the journalists were treated to good Ghanaian and continental dishes to round up the day’s activities.
Integration of stock exchanges- Ghana, Nigeria take necessary steps
Story: Boahene Asamoah
THE Ghana Stock Exchange (GSE) is exploring possible collaboration with neighbouring stock markets in a bid to create a platform of regional integration of stock markets, the General Manager of the GSE, Mr Ekwow Afedzi, has stated.
He said the “GSE has begun discussions on regional integration with the Nigerian Stock Exchange to harmonise the operations of the two bourses”.
Mr Afedzi made this known during an interaction with the visiting Lord Mayor of the City of London, Rt. Hon. Alderman John Stuttard, and his six-member delegation to the GSE as part of his four-day official visit to the country.
Mr Afedzi’s statement was in response to a suggestion by the Vice Chairperson of the Standard Chartered Bank in charge of Capital Markets, Ms Ann Grant, on the need for the GSE to merge with other neighbouring stock markets to create a regional bourse that could attract the needed investments.
Mr Afedzi said a committee had been set up between the two exchanges to facilitate the integration in the shortest possible time.
The General Manager said the listing of Ecobank Transnational on the three bourses in the West African sub-region — the GSE, the Nigerian Stock Exchange and the Ivorian bourses — was a good platform to integrate the regional markets.
He assured the delegation that the integration of the markets in the sub-region was high on the agenda of the GSE and its Nigerian counterparts.
In her submission, Ms Grant stated that irrespective of the good performance of the Ghana bourse, investors would be interested in bigger markets and called on the GSE to integrate with other regional bourses.
“The reality is that your market is too small in global terms”, she added.
She said “no foreign investor would develop your country for you unless there was equally vibrant domestic investment avenues”.
Ms Grant said Standard Chartered listed on the Ghanaian bourse because the bank wanted to be part of the Ghanaian success.
She said part of the reason for the bank’s growth was the decision to invest in emerging markets and said Ghana was one of the key pillars in the bank’s growth.
She urged the exchange to take advantage of Ghanaians living abroad to ensure a substantial investment back home.
“There must be a way of plugging into this group of people who are doing quite well in the United Kingdom to ensure substantial investments in the economy,” she said.
The Director-General of the Securities and Exchange Commission (SEC), Nii Noi Sowah, mentioned public education as one of the major challenges facing the market and said there was the need to intensify the education of all players on the market.
THE Ghana Stock Exchange (GSE) is exploring possible collaboration with neighbouring stock markets in a bid to create a platform of regional integration of stock markets, the General Manager of the GSE, Mr Ekwow Afedzi, has stated.
He said the “GSE has begun discussions on regional integration with the Nigerian Stock Exchange to harmonise the operations of the two bourses”.
Mr Afedzi made this known during an interaction with the visiting Lord Mayor of the City of London, Rt. Hon. Alderman John Stuttard, and his six-member delegation to the GSE as part of his four-day official visit to the country.
Mr Afedzi’s statement was in response to a suggestion by the Vice Chairperson of the Standard Chartered Bank in charge of Capital Markets, Ms Ann Grant, on the need for the GSE to merge with other neighbouring stock markets to create a regional bourse that could attract the needed investments.
Mr Afedzi said a committee had been set up between the two exchanges to facilitate the integration in the shortest possible time.
The General Manager said the listing of Ecobank Transnational on the three bourses in the West African sub-region — the GSE, the Nigerian Stock Exchange and the Ivorian bourses — was a good platform to integrate the regional markets.
He assured the delegation that the integration of the markets in the sub-region was high on the agenda of the GSE and its Nigerian counterparts.
In her submission, Ms Grant stated that irrespective of the good performance of the Ghana bourse, investors would be interested in bigger markets and called on the GSE to integrate with other regional bourses.
“The reality is that your market is too small in global terms”, she added.
She said “no foreign investor would develop your country for you unless there was equally vibrant domestic investment avenues”.
Ms Grant said Standard Chartered listed on the Ghanaian bourse because the bank wanted to be part of the Ghanaian success.
She said part of the reason for the bank’s growth was the decision to invest in emerging markets and said Ghana was one of the key pillars in the bank’s growth.
She urged the exchange to take advantage of Ghanaians living abroad to ensure a substantial investment back home.
“There must be a way of plugging into this group of people who are doing quite well in the United Kingdom to ensure substantial investments in the economy,” she said.
The Director-General of the Securities and Exchange Commission (SEC), Nii Noi Sowah, mentioned public education as one of the major challenges facing the market and said there was the need to intensify the education of all players on the market.
Merchant Bank to build on strong performance-MD
25/1/2007.
Merchant bank (fin)
Story: Boahene Asamoah
THE Managing Director of Merchant Bank, Ghana Limited, Mr Blaise O. Mankwa, has said that the bank will build on its strong performance last year to deliver better services for its customers in the coming months.
Speaking at a cocktail reception for its customers in Accra, Mr Mankwa said “our performance in the past year has been one of the strongest in the history of the bank”
The Managing Director said “total assets increased from about ¢1.9 trillion to ¢3.4 trillion, an increase of over 70 per cent.”
He said the bank provided about $100 million facilities to support business growth and development in the country.
Mr Mankwa said the bank last year established and deepened its relationships with external partners to provide customers with the needed support to get their businesses going.
“I am sure you all heard the news about the $40 million facilities we obtained from Afrieximbank of Cairo and the $10 million Letters of Credit facilities we had from IFC”, he stated, adding that “in the coming year, we expect to obtain some more of such facilities over and above what we obtained last year”.
On branch expansion, Mr Mankwa said the bank would add four more branches to bring the total number of branches to 17 by the end of the year.
He said the bank was determined to make its services available at many more locations within the shortest possible time.
The Managing Director said management was re-organising its Corporate Banking Department to focused on customer needs.
“It will be a department re-positioned to partner your business in the true sense of the word. Our new Corporate Relationship Managers will be specialists in various industries”, he said.
Again, he said, the bank’s Retail Banking Division established in 2005 was also coming out very strongly, adding that “ at last year's Corporate Initiative Ghana (CIG) Banking Awards ceremony, it was adjudged second in the rankings, which is a very significant achievement after only a year in operation.
Merchant bank (fin)
Story: Boahene Asamoah
THE Managing Director of Merchant Bank, Ghana Limited, Mr Blaise O. Mankwa, has said that the bank will build on its strong performance last year to deliver better services for its customers in the coming months.
Speaking at a cocktail reception for its customers in Accra, Mr Mankwa said “our performance in the past year has been one of the strongest in the history of the bank”
The Managing Director said “total assets increased from about ¢1.9 trillion to ¢3.4 trillion, an increase of over 70 per cent.”
He said the bank provided about $100 million facilities to support business growth and development in the country.
Mr Mankwa said the bank last year established and deepened its relationships with external partners to provide customers with the needed support to get their businesses going.
“I am sure you all heard the news about the $40 million facilities we obtained from Afrieximbank of Cairo and the $10 million Letters of Credit facilities we had from IFC”, he stated, adding that “in the coming year, we expect to obtain some more of such facilities over and above what we obtained last year”.
On branch expansion, Mr Mankwa said the bank would add four more branches to bring the total number of branches to 17 by the end of the year.
He said the bank was determined to make its services available at many more locations within the shortest possible time.
The Managing Director said management was re-organising its Corporate Banking Department to focused on customer needs.
“It will be a department re-positioned to partner your business in the true sense of the word. Our new Corporate Relationship Managers will be specialists in various industries”, he said.
Again, he said, the bank’s Retail Banking Division established in 2005 was also coming out very strongly, adding that “ at last year's Corporate Initiative Ghana (CIG) Banking Awards ceremony, it was adjudged second in the rankings, which is a very significant achievement after only a year in operation.
“we will oppose EPA” TWN
Story: Boahene Asamoah
THE Head of the Political and Economic Unit of the Third World Network, a non-governmental organisation, Mr Gyekye Tanoh, has said civil society organisations in Africa are ensuring that their government’s do not sign up the Economic Partnership Agreement between the European Union and the African, Caribbean and Pacific (ACP).
He said civil society groups would organise a critical mass of the population to oppose the agreement.
Mr Tanoh said civil society organisations opposed the EPA Agreement because such a deal could only impoverish the lives of people on the continent, whiles positioning the EU to take advantage of the continent’s resources.
The EPA Agreement is expected to be signed between the EU and ACP countries later this year.
Mr Tanoh made this known when representatives of civil society organisations who attended the just-ended World Social Forum were briefing media men on the significance of the forum in Accra.
He said the EPA Agreement was not part of the free trade agreement under the World Trade Organisation rules but rather were a new set of economic protocols that gave the EU certain privileges and rights but which did not extend these same privileges and rights to the ACP countries.
He said the issues of the EPA Agreement dominated most of the discussions at the just-ended forum in Nairobi, Kenya, and added that this was because of the importance of the agreement and its impact on the continent
He said the forum was able to make a lot of linkages with other liked-minded civil society organisations to further pursue their agenda of promoting social justice.
The Head of the Environment Unit of the TWN, Mr Abdulai Dramani, said issues concerning the extractive industries, especially mining, and its impact on the environment and the EPA were the two main issues that came up for discussions.
Mr Dramani stated that it had been noted that the exploitation of natural resources had rather deepened the poverty of people on the continent and warned that the continent would further be impoverished if the EPA Agreement was signed.
He said one of the focus of the EU under its proposed EPA Agreement was to further make investments in the natural resources sector, which would have dire consequences on the environment and ensure social disintegration.
He said “the agreement if signed would further lower investments standards in ACP countries” and added that civil society organisations intended to mobilise a critical mass of people to effect changes.
Mr Dramani further stated that the issue of China signing agreements with some African countries was seen as a further step to scramble for the natural resources of the continent.
A representative of the National Coalition Against the Privatisation of Water, Mr Leonard Quartey, said the coalition was against any form of privatisation, be it management contract or partial privatisation of water resources in the country.
He said the coalition was in support of total public control of water resources and would campaign against any form of privatisation.
THE Head of the Political and Economic Unit of the Third World Network, a non-governmental organisation, Mr Gyekye Tanoh, has said civil society organisations in Africa are ensuring that their government’s do not sign up the Economic Partnership Agreement between the European Union and the African, Caribbean and Pacific (ACP).
He said civil society groups would organise a critical mass of the population to oppose the agreement.
Mr Tanoh said civil society organisations opposed the EPA Agreement because such a deal could only impoverish the lives of people on the continent, whiles positioning the EU to take advantage of the continent’s resources.
The EPA Agreement is expected to be signed between the EU and ACP countries later this year.
Mr Tanoh made this known when representatives of civil society organisations who attended the just-ended World Social Forum were briefing media men on the significance of the forum in Accra.
He said the EPA Agreement was not part of the free trade agreement under the World Trade Organisation rules but rather were a new set of economic protocols that gave the EU certain privileges and rights but which did not extend these same privileges and rights to the ACP countries.
He said the issues of the EPA Agreement dominated most of the discussions at the just-ended forum in Nairobi, Kenya, and added that this was because of the importance of the agreement and its impact on the continent
He said the forum was able to make a lot of linkages with other liked-minded civil society organisations to further pursue their agenda of promoting social justice.
The Head of the Environment Unit of the TWN, Mr Abdulai Dramani, said issues concerning the extractive industries, especially mining, and its impact on the environment and the EPA were the two main issues that came up for discussions.
Mr Dramani stated that it had been noted that the exploitation of natural resources had rather deepened the poverty of people on the continent and warned that the continent would further be impoverished if the EPA Agreement was signed.
He said one of the focus of the EU under its proposed EPA Agreement was to further make investments in the natural resources sector, which would have dire consequences on the environment and ensure social disintegration.
He said “the agreement if signed would further lower investments standards in ACP countries” and added that civil society organisations intended to mobilise a critical mass of people to effect changes.
Mr Dramani further stated that the issue of China signing agreements with some African countries was seen as a further step to scramble for the natural resources of the continent.
A representative of the National Coalition Against the Privatisation of Water, Mr Leonard Quartey, said the coalition was against any form of privatisation, be it management contract or partial privatisation of water resources in the country.
He said the coalition was in support of total public control of water resources and would campaign against any form of privatisation.
Re-denomination will bring benefits-Says Chamber of Commerce
Story: Boahene Asamoah
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella body of traders and industry in the country, has thrown its weight behind the intended re-domination of the cedi, saying “it has considerable benefits for the business community and the general public”.
A statement issued by the chamber and exclusively made available to the Daily Graphic, said following extensive discussions between officials of the Bank of Ghana and the GNCCI, it was clear that the re-denomination of the cedi would come with considerable benefits.
“The chamber, therefore, fully supports the re-denomination exercise,” the statement said.
The chamber said the re-domination would reduce the high transaction costs of businesses in the country.
It explained that a lot of time was spent in counting money, especially when it involved smaller denominations. That, the chamber stated, often happened not only in financial institutions but also in day-to-day business transactions as a result of the cash-based economy of the country.
“Re-denomination will, therefore, save time and introduce efficiency into day-to-day transactions,” it said.
“With the advent of the new Ghana Cedi ATM and other payment systems are likely to improve”.
The chamber stated that some challenges that its members faced were proper book keeping and statistical records, which the chamber said, the exercise would help to address as fewer figures would be dealt with. It added that the re-denomination would also help to set a realistic exchange rate.
The chamber said the re-denomination would mean that if the present exchange rate is $9200, then the new Ghana Cedi will be $1=GhC 0.9200.
“This will help to boost the level of confidence in the economy since it creates the impression that the local currency is strong in relation to other currencies and because one does not need too many of it to exchange,” the chamber stated.
Again, the chamber said, the exercise may be successful in assuring investors, both local and foreign, that the economy was stable and expected to remain so in future.
On the West African Monetary Zone (WAMZ), the chamber said the exercise would give the country a better bargaining power.
It said with a weak currency such as our current cedi, the country was not only finding it difficult to meet the convergence criteria, but when she eventually entered the ECO zone, it would have a weak bargaining power of convertibility.
The chamber, however, drew the attention of the authorities to some challenges that were likely to affect the exercise.
That included inflation, which the chamber urged the government to tackle seriously.
It said in the case of Ghana, the Consumer Price Index (CPI), which is heavily dependent on food production and consequently the weather, which was outside the control of policy makers, could push up prices.
The chamber said one of the problems likely to be encountered would be the distortion of market and prices since the prices of goods and services may not fall by the same proportion as the exchange rate between the old and new currencies.
It said there was the need for effective public education to ensure that people do not go to the villages and less literate communities to mislead the people, take away their hard earned currencies and replace them with counterfeits in the name of helping them acquire the new currency.
“We would, therefore, urge the authorities to review literature thoroughly to understand how countries that have previously re-denominated fared and learn from their strengths and weaknesses”.
It said in order to ensure the success of the exercise, the authorities should work towards the introduction of non-cash payment instruments, such as “Credit Cards” in order to minimise the current incidence of cash transactions in business.
In addition, it said the law on cheque issuing facilities must also be rigidly enforced to penalise issuers of “dud cheques”.
“The chamber is prepared to collaborate with the Bank of Ghana in the education campaign to give credibility to the rationale for the exercise. It is also prepared to collaborate with the bank in any other project that will really improve commercial and industrial activities in the country,” the statement concluded.
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella body of traders and industry in the country, has thrown its weight behind the intended re-domination of the cedi, saying “it has considerable benefits for the business community and the general public”.
A statement issued by the chamber and exclusively made available to the Daily Graphic, said following extensive discussions between officials of the Bank of Ghana and the GNCCI, it was clear that the re-denomination of the cedi would come with considerable benefits.
“The chamber, therefore, fully supports the re-denomination exercise,” the statement said.
The chamber said the re-domination would reduce the high transaction costs of businesses in the country.
It explained that a lot of time was spent in counting money, especially when it involved smaller denominations. That, the chamber stated, often happened not only in financial institutions but also in day-to-day business transactions as a result of the cash-based economy of the country.
“Re-denomination will, therefore, save time and introduce efficiency into day-to-day transactions,” it said.
“With the advent of the new Ghana Cedi ATM and other payment systems are likely to improve”.
The chamber stated that some challenges that its members faced were proper book keeping and statistical records, which the chamber said, the exercise would help to address as fewer figures would be dealt with. It added that the re-denomination would also help to set a realistic exchange rate.
The chamber said the re-denomination would mean that if the present exchange rate is $9200, then the new Ghana Cedi will be $1=GhC 0.9200.
“This will help to boost the level of confidence in the economy since it creates the impression that the local currency is strong in relation to other currencies and because one does not need too many of it to exchange,” the chamber stated.
Again, the chamber said, the exercise may be successful in assuring investors, both local and foreign, that the economy was stable and expected to remain so in future.
On the West African Monetary Zone (WAMZ), the chamber said the exercise would give the country a better bargaining power.
It said with a weak currency such as our current cedi, the country was not only finding it difficult to meet the convergence criteria, but when she eventually entered the ECO zone, it would have a weak bargaining power of convertibility.
The chamber, however, drew the attention of the authorities to some challenges that were likely to affect the exercise.
That included inflation, which the chamber urged the government to tackle seriously.
It said in the case of Ghana, the Consumer Price Index (CPI), which is heavily dependent on food production and consequently the weather, which was outside the control of policy makers, could push up prices.
The chamber said one of the problems likely to be encountered would be the distortion of market and prices since the prices of goods and services may not fall by the same proportion as the exchange rate between the old and new currencies.
It said there was the need for effective public education to ensure that people do not go to the villages and less literate communities to mislead the people, take away their hard earned currencies and replace them with counterfeits in the name of helping them acquire the new currency.
“We would, therefore, urge the authorities to review literature thoroughly to understand how countries that have previously re-denominated fared and learn from their strengths and weaknesses”.
It said in order to ensure the success of the exercise, the authorities should work towards the introduction of non-cash payment instruments, such as “Credit Cards” in order to minimise the current incidence of cash transactions in business.
In addition, it said the law on cheque issuing facilities must also be rigidly enforced to penalise issuers of “dud cheques”.
“The chamber is prepared to collaborate with the Bank of Ghana in the education campaign to give credibility to the rationale for the exercise. It is also prepared to collaborate with the bank in any other project that will really improve commercial and industrial activities in the country,” the statement concluded.
Flat rate tax would be compulsory
Story: Boahene Asamoah
THE Commissioner of the Value Added Tax Service (VAT), Mr Anthony Minlah, has stated that registration for the yet be introduced flat rate scheme will be compulsory.
He said it was to ensure that as many traders as possible in the informal sector were roped into the system to ensure fairness and , that the service would embark on a mass compulsory registration exercise.
He was speaking at a media dialogue organised by the Ghana Journalists Association (GJA) with support from the Business Sector Advocacy Challenge Fund (BUSAC) and KAB Governance Consult on the “impact of the VAT on the promotion of micro-, small- and medium-scale enterprises (MSMEs)” in Accra last Friday.
Mr Minlah said the flat rate scheme was being piloted with members of the Ghana Union of Traders Association (GUTA) and said the successful outcome of the scheme would ensure the extension of the scheme to other areas of the informal sector.
The scheme is currently before Parliament for approval and has a flat rate of three per cent, targeted at the informal sector.
It is restricted to all retailers who make a turnover of ¢100 million per annum but whose annual turnover do not exceed ¢1.2 billion per annum.
“Retailers of goods who are currently registered to operate the standard or regular VAT scheme but whose business turnover does not exceed ¢1.2 billion over a 12-month period shall be converted to the scheme by the service,” he said.
Mr Minlah stressed the need for MSMEs to ensure simple book-keeping records, adding that “the requirement to issue invoices and keep basic records will compel SMEs to improve on their record keeping culture”.
He said the service was currently working with some manufacturers of cash register machines to develop cash registers with special features to be introduced to MSMEs in the country for proper record keeping.
The commissioner took time to explain the VAT law of 1998 and some of the issues that were inherent in the administration of the law.
He explained that VAT was a tax on consumption and that the burden was not on the enterprises but on the final consumer and stated that “the VAT law does not discriminate between SMES and large enterprises or multinationals”,
Mr Minlah said “all enterprises, irrespective of their size will have to meet the same threshold for registration, file returns with payments, subjected to control and verification visits, apply the same VAT rate and suffer the same penalties for non-compliance”.
Mr Minlah used the occasion to call on the general public to demand receipts for goods and services purchased to ensure that taxes were paid to the government to enable it carry out its development projects.
The President of the GJA, Mr Ransford Tetteh, said there was the need for all citizens to ensure that they fulfilled their obligation to the state by paying their taxes, while demanding accountability from the government on the utilisation of tax revenues.
He said the GJA was ready to partner institutions to ensure that the country moved forward in its development agenda.
Mr Tetteh said SMEs were critical to the economic growth of the country and that efforts must be made to support the sector to grow to enable it to offer employment opportunities for the youth in the country.
THE Commissioner of the Value Added Tax Service (VAT), Mr Anthony Minlah, has stated that registration for the yet be introduced flat rate scheme will be compulsory.
He said it was to ensure that as many traders as possible in the informal sector were roped into the system to ensure fairness and , that the service would embark on a mass compulsory registration exercise.
He was speaking at a media dialogue organised by the Ghana Journalists Association (GJA) with support from the Business Sector Advocacy Challenge Fund (BUSAC) and KAB Governance Consult on the “impact of the VAT on the promotion of micro-, small- and medium-scale enterprises (MSMEs)” in Accra last Friday.
Mr Minlah said the flat rate scheme was being piloted with members of the Ghana Union of Traders Association (GUTA) and said the successful outcome of the scheme would ensure the extension of the scheme to other areas of the informal sector.
The scheme is currently before Parliament for approval and has a flat rate of three per cent, targeted at the informal sector.
It is restricted to all retailers who make a turnover of ¢100 million per annum but whose annual turnover do not exceed ¢1.2 billion per annum.
“Retailers of goods who are currently registered to operate the standard or regular VAT scheme but whose business turnover does not exceed ¢1.2 billion over a 12-month period shall be converted to the scheme by the service,” he said.
Mr Minlah stressed the need for MSMEs to ensure simple book-keeping records, adding that “the requirement to issue invoices and keep basic records will compel SMEs to improve on their record keeping culture”.
He said the service was currently working with some manufacturers of cash register machines to develop cash registers with special features to be introduced to MSMEs in the country for proper record keeping.
The commissioner took time to explain the VAT law of 1998 and some of the issues that were inherent in the administration of the law.
He explained that VAT was a tax on consumption and that the burden was not on the enterprises but on the final consumer and stated that “the VAT law does not discriminate between SMES and large enterprises or multinationals”,
Mr Minlah said “all enterprises, irrespective of their size will have to meet the same threshold for registration, file returns with payments, subjected to control and verification visits, apply the same VAT rate and suffer the same penalties for non-compliance”.
Mr Minlah used the occasion to call on the general public to demand receipts for goods and services purchased to ensure that taxes were paid to the government to enable it carry out its development projects.
The President of the GJA, Mr Ransford Tetteh, said there was the need for all citizens to ensure that they fulfilled their obligation to the state by paying their taxes, while demanding accountability from the government on the utilisation of tax revenues.
He said the GJA was ready to partner institutions to ensure that the country moved forward in its development agenda.
Mr Tetteh said SMEs were critical to the economic growth of the country and that efforts must be made to support the sector to grow to enable it to offer employment opportunities for the youth in the country.
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