Story: Boahene Asamoah
The annualised rate of inflation for the month of February has hit 13.2 per cent sending strong signals to economic watchers as to whether a single digit inflation would remain elusive to the country.
This is the fourth consecutive time inflation rate has urged up, having increased consistently from 10.14 per cent in October 2007 to 11.40 per cent in November, to 12.75 in December to 12.81 in January and then to 13.2 per cent.
What is worrying is that the food component of the consumer price index seems to have contributed to the increase in the inflation figure for February.
Although it was anticipated that food prices could increase as a result of the floods that hit the three northern regions which happens to be the food basket of the country and the cyclical nature of food prices during this period of the year.
The last previous upward movement in the inflation rate has by and large been attributed to the increase in the non-food component especially the upward increase in fuel prices in November and the higher spending patterns of the consumers during the yuletide in December.
Ghana has struggled to achieve a single digit inflation. In 1999 a nine per cent inflation rate was achieved, whiles in 2006, inflation inched closer to the single digit inflation.
The 2007 year started with inflation rate of 10.89 per cent in January and fell to 10.42 and 10.19 per cent in February and March respectively.
However, inflation rose again in April to 10.50 and 11.02 per cent May as a results of insufficient supply of staples such as maize, yam, cassava and plantain.
The February 2008 inflation increase was also due to high prices of some basic foodstuffs such as fish, bread and cereals were the major cause of the upward surge in inflation.
Considering the anticipated fuel price increases for this month as a result of the continous crude oil prices on the world market, the outlook of the economy look quiet uncertain.
The cyclical nature of the food prices normally would have started in March, but because of the floods this year’s food component impact on the CPI seemed to have started quiet early.
Again the rains seems to have delayed slightly which could
Last June for instance, the inflation rate declined which is the
The weakening of the currency especially against the United States dollar is also a source of great concern to economy.
The outlook of the economy seemed unbalanced although there has been some improvements such as the non-traditional exports hitting an all-time record of $1 billion at the end of the year, and also gold and cocoa prices hitting near records.
However, the continuous increase in crude oil prices coupled with
Sunday, March 30, 2008
UBA open more branches
Story: Boahene Asamoah
THE United Bank of Africa (UBA), Ghana has opened six new branches in Accra simultaneously as part of its strategy to enter into the retail business.
The new branches are located in Madina, Teshie, Spintex Road, East Legon, Dzorwolo and the Ring Road Central all in Accra.
The new branches also come with new model edifices designed with the customers in mind and conforms to the bank’s new banking edifices throughout its operation in Africa, Europe and America.
Speaking at the opening of the new branches at the Ring Road Central branch of the bank in Accra yesterday, the Managing Director and Chief Executive Officer (CEO) of the bank, Mr Nnamdi Okonko, said “ the opening of our additional six branches is a reflection of our expansionary posture and shows that we are on course as far as the bank’s branch roll-out strategy is concerned”.
He said “UBA bank also aims to develop a branch foot-print and delivery that will ensure that the banks services are always within reach of valued customers and thus position ourselves among the top five banks in terms of geographical reach”.
Mr Okonko said the bank which presently has 12 branches including the six new branches would add four more branches next month, adding that “UBA Ghana will continue its policy of opening new branches across all regions of the country”.
That he said would be supported with a roll-out of electronic channels such as point-of-sale terminals and auto teller machines in line with the objectives of the Ghana Inter-Bank Payment Settlement.
He said the strategic location of the new branches was to address the constraints of proximity to ensure that the bank’s services and products reached the door steps of the customer.
“It is a further opportunity to reach out to the mass retail customers who for various reasons, such as high initial deposit requirements and access to business loans have decided to stay out of the mainstream banking”, the CEO stated.
UBA Ghana, a subsidiary of UBA Plc one of the largest banking groups in Africa has expanded its operations to other countries in Africa, which includes, Liberia, Cote D’Ivoire Cameroun and Sierra Leone. The bank recently opened in London as Capital (Europe).
THE United Bank of Africa (UBA), Ghana has opened six new branches in Accra simultaneously as part of its strategy to enter into the retail business.
The new branches are located in Madina, Teshie, Spintex Road, East Legon, Dzorwolo and the Ring Road Central all in Accra.
The new branches also come with new model edifices designed with the customers in mind and conforms to the bank’s new banking edifices throughout its operation in Africa, Europe and America.
Speaking at the opening of the new branches at the Ring Road Central branch of the bank in Accra yesterday, the Managing Director and Chief Executive Officer (CEO) of the bank, Mr Nnamdi Okonko, said “ the opening of our additional six branches is a reflection of our expansionary posture and shows that we are on course as far as the bank’s branch roll-out strategy is concerned”.
He said “UBA bank also aims to develop a branch foot-print and delivery that will ensure that the banks services are always within reach of valued customers and thus position ourselves among the top five banks in terms of geographical reach”.
Mr Okonko said the bank which presently has 12 branches including the six new branches would add four more branches next month, adding that “UBA Ghana will continue its policy of opening new branches across all regions of the country”.
That he said would be supported with a roll-out of electronic channels such as point-of-sale terminals and auto teller machines in line with the objectives of the Ghana Inter-Bank Payment Settlement.
He said the strategic location of the new branches was to address the constraints of proximity to ensure that the bank’s services and products reached the door steps of the customer.
“It is a further opportunity to reach out to the mass retail customers who for various reasons, such as high initial deposit requirements and access to business loans have decided to stay out of the mainstream banking”, the CEO stated.
UBA Ghana, a subsidiary of UBA Plc one of the largest banking groups in Africa has expanded its operations to other countries in Africa, which includes, Liberia, Cote D’Ivoire Cameroun and Sierra Leone. The bank recently opened in London as Capital (Europe).
All set for e-Zwich introduction
Story: Boahene Asamoah
ALL is set for the introduction of the national electronic payment system, the e-Zwich, next month.
So far necessary tests on the system, such as the user acceptance test, have been completed, proving a high user acceptance.
The Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GIPPS), Mr Fred France, who gave the assurance said staff of banks and other point of sale outlets had undergone the necessary training needed to introduce the project in the coming month.
Speaking to a cross-section of the media in Accra, Mr France stated that the e-Zwich would afford everybody the opportunity to access financial services using a biometric smart card.
GIPPS has been established by the Bank of Ghana to work with banks to improve the payment systems to provide a range of technology-driven solutions and associated support services to improve the general efficiency of the payment systems.
The system is to provide an overall affordable and convenient public access to banking services.
Mr France stated that from April, there was going to be mass deployment of Point of Sale (PoS) terminals throughout the country, adding that it would also be a period of piloting the project.
The Chief Operating Officer of GIPPS, Mr Yooku Korsah, explained that the e-Zwich would offer a common platform for electronic payment system transactions, integrate all existing bank switches and also enable both online and off-line payment and settlement transactions.
He said currently about 46 per cent of banks were concentrated in the Greater Accra Region and such banks were limited in terms of branch network throughout the country.
Mr Korsah said there was a large unbanked public, while there was strong competition for the few who were doing business with the banks.
Again, the heavy dependence on cash for payment as well as limited infrastructure for electronic payment, such as low ATM spread, insufficient Point of Sale (PoS) terminals and unreliable power and communication networks were some of the reasons that had accounted for the introduction of the national payment system, Mr Korsah stated.
He said the e-Zwich used a biometrics card for both off-line and online and also works on Global System of Mobile (GSM) communications, adding that “from both a merchant and the bank’s perspective, it is a very safe platform”.”
Mr Korsah said banks in the country had up to June this year to make their ATMs compatible to the e-Zwich platform.
ALL is set for the introduction of the national electronic payment system, the e-Zwich, next month.
So far necessary tests on the system, such as the user acceptance test, have been completed, proving a high user acceptance.
The Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GIPPS), Mr Fred France, who gave the assurance said staff of banks and other point of sale outlets had undergone the necessary training needed to introduce the project in the coming month.
Speaking to a cross-section of the media in Accra, Mr France stated that the e-Zwich would afford everybody the opportunity to access financial services using a biometric smart card.
GIPPS has been established by the Bank of Ghana to work with banks to improve the payment systems to provide a range of technology-driven solutions and associated support services to improve the general efficiency of the payment systems.
The system is to provide an overall affordable and convenient public access to banking services.
Mr France stated that from April, there was going to be mass deployment of Point of Sale (PoS) terminals throughout the country, adding that it would also be a period of piloting the project.
The Chief Operating Officer of GIPPS, Mr Yooku Korsah, explained that the e-Zwich would offer a common platform for electronic payment system transactions, integrate all existing bank switches and also enable both online and off-line payment and settlement transactions.
He said currently about 46 per cent of banks were concentrated in the Greater Accra Region and such banks were limited in terms of branch network throughout the country.
Mr Korsah said there was a large unbanked public, while there was strong competition for the few who were doing business with the banks.
Again, the heavy dependence on cash for payment as well as limited infrastructure for electronic payment, such as low ATM spread, insufficient Point of Sale (PoS) terminals and unreliable power and communication networks were some of the reasons that had accounted for the introduction of the national payment system, Mr Korsah stated.
He said the e-Zwich used a biometrics card for both off-line and online and also works on Global System of Mobile (GSM) communications, adding that “from both a merchant and the bank’s perspective, it is a very safe platform”.”
Mr Korsah said banks in the country had up to June this year to make their ATMs compatible to the e-Zwich platform.
AMAL Bank improves profit base
Story: Boahene Asamoah
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Intercontinental Bank rolls out two products
Story: Boahene Asamoah
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
West Africa needs import, export bank, Says Chambas
Story: Boahene Asamoah
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
GCB launches two new products
Story: Boahene Asamoah
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
Smuggling impedes operations of local manufacturers
Story: Boahene Asamoah
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
Shareholders stop CAL Bank proposal — To raise capital base to GH¢200 million
Story: Boahene Asamoah
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
Ecobank to sustain expansion programm
Story: Boahene Asamoah
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
GCB draws 3-year corporate plan - To consolidate and expand its operations
Story: Boahene Asamoah
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
Monday, March 17, 2008
lecturer warns of national disaster
Story: Boahene Asamoah
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
Eight sign service charters
Story: Boahene Asamoah
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
Inflation goes up again
Story: Boahene Asamoah
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
Thursday, March 13, 2008
Audit Service to network offices
Story: Boahene Asamoah
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
Wednesday, March 05, 2008
Minister meets US trade delegation
Story: Boahene Asamoah & Naa
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Arrow Networks begins to assemble modems
Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
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