Story: Boahene Asamoah
THE Director-General of the West African Institute for Financial and Economic Management (WAIFEM), Dr Chris Itsede, has called on member states of the West African Monetary Zone (WAMZ) to enter into monetary co-operation under a framework of currency convertibility and macroeconomics policy harmonisation.
That, he said, “if actualised, will pave the way for the realisation of the ultimate goal of a single currency and centralised monetary authority”.
Speaking at the opening workshop on Practical Aspects of Economic and Financial Analysis for journalists in Lagos, Nigeria, Dr Itsede stated that the rising trend of globalisation strongly underscored the urgent need for WAMZ member states to enter into a monetary co-operation.
The workshop was to upgrade the knowledge and skills of editors, journalists and other media practitioners from West Africa on economic and financial policy formulation, analysis, performance, monitoring and reporting.
He observed that the issue of national currencies for intra-regional trade finance in West Africa had generated debate on the issue for some time and called on policy makers to hasten the process of currency convertibility.
He mentioned some of the benefits in formalising the use of WAMZ currencies in intra-regional trade transactions as the opportunity to trade in a bigger markets, reduction in transaction costs and the elimination of exchange rate risks among participating countries.
The director-general, however, stated that while the informal sector was actively involved in the free convertibility of regional currencies, the bulk of intra-regional trade was still based on cash transactions.
“This form of trade has little prospects of meeting the objective of a single economic space in the sub-region,” he stated.
On the single monetary zone, he said, “while the WAMZ project is on course to materialise in December 2009, intra-WAMZ trade can be promoted, through the use of local currencies in intra-regional transactions.”
Dr Itsede stated the latest progress report that indicated noticeable improvement in macroeconomic convergence in the region, adding that two countries, Nigeria and The Gambia, met all the four primary convergence criteria, while Ghana, Guinea and Sierra Leone met two, one and three of the primary criteria respectively.
The director-general of WAIFEM said “the press plays a critical role of informing and educating the public about economic and financial policy choices and transmitting feedback to policymakers on the impact and effects of their policies in order for a corrective action to be taken”. Dr Itsede stated.
Twenty-nine middle, senior and executive level officials involved in editing, reporting and producing macroeconomic and financial news from the public and private sectors of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone attended the one-week workshop.
Monday, August 27, 2007
Another US programme to boost agric
Story: Boahene Asamoah Lucy & Adoma Yeboah
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
ADB, Stanbic merger must benefit farmers- J.H. Mensah
J.H. Mensah (fin)
Story: Boahene Asamoah
THE Chairman of the National Development Planning Commission, Mr J.H. Mensah has said that any arrangement or instrument that would ensure that farmers benefited under the proposed merger between Agricultural Development Bank (ADB) and the Stanbic Bank, should be pursued.
He said the argument of the proposed merger should be that of “an instrument providing for the welfare of farmers”, adding “that ADB is not an instrument for the staff and management’s welfare”.
He cautioned the country to take a lesson from the defunct Ghana Airways, where, he said, was the airline was used as a welfare for management and staff in which the country was saddled with a huge loss of $670 million.
Stanbic Bank, a subsidiary of Standard Bank of South Africa, one of the biggest banks in Africa, has launched a bid to take-over the shares of Bank of Ghana, which has 49 per cent shares in the bank.
However, unionised staff and some civil society groups have also launched its opposition to the bid for the merger with Standard Bank, citing fears of the bank’s losing its support for the agricultural sector and also loss of jobs.
Mr Mensah who made this known at the opening of a two-day Bank of Ghana Golden Jubilee Anniversary Symposium in Accra yesterday said “the argument is not about the intended beneficiaries in the proposed take-over” adding the “argument should be the instrument for providing for the welfare of farmers” and further urged the Bank of Ghana to go ahead with any arrangement that would ensure the welfare of farmers in the country.
The symposium which forms part of the 50 years celebration of the Bank of Ghana is on the theme “50 years of Central Banking and the Millennium Development Goals”.
On the performance of the central bank in the country over the past 50 years, Mr Mensah said the Bank of Ghana had played a crucial role in the various turning points in the country’s history and said the challenge now was how to fashion out a programme to ensure the achievement of the MDGs by 2015.
“This economy has to move more faster than it should and begin to leap”, he stated adding that BoG has a play a critical role in facilitating the envisaged growth and development.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu stated that the achievement of the Millennium Development Goals (MDGs) by 2015 called for an accelerated growth and the adoption of pro-poor policies.
He said the country over the past six years had achieved the remarkable stability needed for economic growth and development.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the process of accelerated growth posed a great challenge to all, especially in developing countries such as Ghana.
That, he said stemmed from rising expectations as a result of significant structural reforms and dis-inflation among other policies.
He said the Bank of Ghana had chosen inflation targeting as the core of its monetary policies and was committed to it.
Dr Acquah said the symposium would discuss issues of monetary policy, financial markets, mutual funds, global competitiveness and accelerating growth strategies and business environment.
Story: Boahene Asamoah
THE Chairman of the National Development Planning Commission, Mr J.H. Mensah has said that any arrangement or instrument that would ensure that farmers benefited under the proposed merger between Agricultural Development Bank (ADB) and the Stanbic Bank, should be pursued.
He said the argument of the proposed merger should be that of “an instrument providing for the welfare of farmers”, adding “that ADB is not an instrument for the staff and management’s welfare”.
He cautioned the country to take a lesson from the defunct Ghana Airways, where, he said, was the airline was used as a welfare for management and staff in which the country was saddled with a huge loss of $670 million.
Stanbic Bank, a subsidiary of Standard Bank of South Africa, one of the biggest banks in Africa, has launched a bid to take-over the shares of Bank of Ghana, which has 49 per cent shares in the bank.
However, unionised staff and some civil society groups have also launched its opposition to the bid for the merger with Standard Bank, citing fears of the bank’s losing its support for the agricultural sector and also loss of jobs.
Mr Mensah who made this known at the opening of a two-day Bank of Ghana Golden Jubilee Anniversary Symposium in Accra yesterday said “the argument is not about the intended beneficiaries in the proposed take-over” adding the “argument should be the instrument for providing for the welfare of farmers” and further urged the Bank of Ghana to go ahead with any arrangement that would ensure the welfare of farmers in the country.
The symposium which forms part of the 50 years celebration of the Bank of Ghana is on the theme “50 years of Central Banking and the Millennium Development Goals”.
On the performance of the central bank in the country over the past 50 years, Mr Mensah said the Bank of Ghana had played a crucial role in the various turning points in the country’s history and said the challenge now was how to fashion out a programme to ensure the achievement of the MDGs by 2015.
“This economy has to move more faster than it should and begin to leap”, he stated adding that BoG has a play a critical role in facilitating the envisaged growth and development.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu stated that the achievement of the Millennium Development Goals (MDGs) by 2015 called for an accelerated growth and the adoption of pro-poor policies.
He said the country over the past six years had achieved the remarkable stability needed for economic growth and development.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the process of accelerated growth posed a great challenge to all, especially in developing countries such as Ghana.
That, he said stemmed from rising expectations as a result of significant structural reforms and dis-inflation among other policies.
He said the Bank of Ghana had chosen inflation targeting as the core of its monetary policies and was committed to it.
Dr Acquah said the symposium would discuss issues of monetary policy, financial markets, mutual funds, global competitiveness and accelerating growth strategies and business environment.
PPI inches up
Proofread by era
Story: Boahene Asamoah
THE Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers or the production of goods and services for the month of June inched up b y 1.39 per cent.
This was as a result of the upward increase in the manufacturing index which climbed up by 2.54 per cent.
For the month of May, the all industry index stood at 3.20 per cent.
Announcing the index, the acting Government Statistician, Prof Nicholas N.N. Nsowah-Nuamah, said the utility index did not show any change, whiles the mining index dropped by 4.9 per cent.
He said the mining index continued to fall after decreasing by 3.24 per cent in May this year, adding that “the fall in the June index is accounted for by the decrease for mining of non-ferrous metal ores except uranium and thorium ores of 4.40 per cent, following a similar decline of 3.40 per cent”.
Prof Nsowah-Nuamah said the index for quarrying of stone, sand and clay remained basically the same at 0.03 per cent since the previous quarrying month of May did not change.
The acting Government Statistician explained that the manufacture of plastic products, basic chemicals, wood, cork straw and plating materials, grain mill product, starches and prepared animal feeds spearheaded the rise in the manufacturing index.
He said the manufacturing of motor vehicles, trailers and semi-trailer and manufacture of other food products showed high declines in their index.
Prof Nsowah-Nuamah said the utilities which comprised of production and distribution of electricity and water did not change, after it jumped 17.73 per cent in May 2007.
The PPI measures price change from the perspective of the purchaser and contrasts with other measures such as the Consumer Price Index (CPI).
Prices of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for almost every industry from mining, manufacturing, and the utilities sector of the Ghanaian economy.
Story: Boahene Asamoah
THE Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers or the production of goods and services for the month of June inched up b y 1.39 per cent.
This was as a result of the upward increase in the manufacturing index which climbed up by 2.54 per cent.
For the month of May, the all industry index stood at 3.20 per cent.
Announcing the index, the acting Government Statistician, Prof Nicholas N.N. Nsowah-Nuamah, said the utility index did not show any change, whiles the mining index dropped by 4.9 per cent.
He said the mining index continued to fall after decreasing by 3.24 per cent in May this year, adding that “the fall in the June index is accounted for by the decrease for mining of non-ferrous metal ores except uranium and thorium ores of 4.40 per cent, following a similar decline of 3.40 per cent”.
Prof Nsowah-Nuamah said the index for quarrying of stone, sand and clay remained basically the same at 0.03 per cent since the previous quarrying month of May did not change.
The acting Government Statistician explained that the manufacture of plastic products, basic chemicals, wood, cork straw and plating materials, grain mill product, starches and prepared animal feeds spearheaded the rise in the manufacturing index.
He said the manufacturing of motor vehicles, trailers and semi-trailer and manufacture of other food products showed high declines in their index.
Prof Nsowah-Nuamah said the utilities which comprised of production and distribution of electricity and water did not change, after it jumped 17.73 per cent in May 2007.
The PPI measures price change from the perspective of the purchaser and contrasts with other measures such as the Consumer Price Index (CPI).
Prices of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for almost every industry from mining, manufacturing, and the utilities sector of the Ghanaian economy.
Free Zones Board offers incentives to investors
Free Zones (fin)
Story: Boahene Asamoah
The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.
Story: Boahene Asamoah
The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.
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