Story: Boahene Asamoah
TRANSACTION Solutions, an information, communications and technology firm listed on the Ghana Stock Exchange, has said it plans to source additional funds from the capital market to expand its operations.
Speaking at the Facts Behind the Figures programme of the Ghana Stock Exchange (GSE) in Accra, the Chairman of the company, Mr Paul Jacquaye, said the company planned to deploy 300 additional automatic teller machines (ATMs) throughout the country. The company presently has 42 ATMs across the country.
He said the company also planned to expand its operations by pursuing a policy that would ensure that banks out-sourced the operations of their ATMs to the company.
The company operates in three broad areas which are: the telecoms sector, where it operates electronic voucher recharge cards for MTN; the banking sector, where it operates the ATMs and Point of Sale (POS) deployment; and electronic inventory and hosting and the retailing section, where it operates the Ezi shop outlets at Shell shops and some supermarkets.
Mr Jacquaye said the company hoped to diversify its operations in the telecoms sector to leverage its experts to cover other networks as well in order not to be too dependent on one network.
He said the company’s market share in the telecoms sector had dropped from 12 per cent to 4.5 per cent as a result of MTN’s decision to appoint six more distributors, bringing the total number of distributors to 12.
The chairman said presently the company had added Ghana Telecom and Tigo to its list of clients while there were opportunities for adding new networks in the near future.
On the POS, Mr Jacquaye stated that the company also intended to take advantage of the introduction of the Biometric Smart Cards by deploying 5,000 POS in the country.
He said the company was currently in the process of preparing for the VISA and Mastercard third party processing status which would help the company to process the international card locally and attract banks in the country.
“We hope this will present us with opportunities to process transactions for issuers”, Mr Jacquaye stated.
He said the company hoped to expand its Ezi shop concept to cover travelling and ticketing as well as embark on franchising of its brand.
“The Ezi Travel is a new business to leverage on Ezi Shop“, he stated.
Touching on its financials, the chairman said the company projects a net profit of GH¢540.86 million from the loss it recorded in 2007.
He said assets grew buy 104 per cent on account of its ATM expansion works from GH¢932.36 million to GH¢1,905.38 million and projected 23.66 per cent increase to GH¢2.4 billion
He said “ our growth strategies will be to look at possible mergers and acquisitions, raise additional capital for expansion and expand retail presence”.
He said the company would also establish the Transol business model in neighbouring countries.
Thursday, May 01, 2008
Aluworks diversifies product lines
Story: Boahene Asamoah
ALUWORKS Limited, manufacturers and exporters of semi-finished aluminium products, has completed the installation of a 20,000 tonne coil coating plant in a bid to diversify its products and add value to its aluminium products.
The $6.5 million continuous coil coating line, the first of its kind in the country, would offer opportunities for downstream industries in areas such as roofing sheets, ceiling tiles and window blinds.
It will also meet the local demand as well as the export market, especially within the West African sub-region.
Briefing a cross-section of journalists, representatives of financial institutions and institutional investors over progress of work on the new plant, the Managing Director of the company, Mr K. Venkataramana, said the company had to install the new plant because of a growing market for the downstream products as “coloured coils are being imported to the Ghanaian market.”
“The market is demanding various technology which provides long life to the roof and also improves the aesthetic appeal,” the managing director added.
He said the coloured sheets were preferred because of their long life and the visual appeal of various colours.
Taking the delegation through the process of coil coating line, Mr Venkataramana said the technology was in surface preparation and oven baking of the paint, adding that the coil which was fed into the line underwent pre-treatment such as alkaline degreasing, acid, neutralising, demineralised water and steam cleaning and dying.
He said the line had the capacity to coat aluminium alloys, aluzinc and galvanised sheets to cater for the various market segments.
The managing director said currently test runs were being held, and that commercial production would begin by the end of May this year.
Mr Venkataramana indicated that the company in addition to the new plant had also embarked on additional 30,000 metric tonnes per year Cold Rolling Mill in response to the rising demand of the aluminium market.
Last year, the company signed a $12.5 million contract with Fata Hunter, a division of FATA S.p.A of Italy for the supply of a 30,000 metric tonnes per year capacity Cold Rolling Mill.
The new mill is expected to be completed by December this year, which would complete the old mill.
ALUWORKS Limited, manufacturers and exporters of semi-finished aluminium products, has completed the installation of a 20,000 tonne coil coating plant in a bid to diversify its products and add value to its aluminium products.
The $6.5 million continuous coil coating line, the first of its kind in the country, would offer opportunities for downstream industries in areas such as roofing sheets, ceiling tiles and window blinds.
It will also meet the local demand as well as the export market, especially within the West African sub-region.
Briefing a cross-section of journalists, representatives of financial institutions and institutional investors over progress of work on the new plant, the Managing Director of the company, Mr K. Venkataramana, said the company had to install the new plant because of a growing market for the downstream products as “coloured coils are being imported to the Ghanaian market.”
“The market is demanding various technology which provides long life to the roof and also improves the aesthetic appeal,” the managing director added.
He said the coloured sheets were preferred because of their long life and the visual appeal of various colours.
Taking the delegation through the process of coil coating line, Mr Venkataramana said the technology was in surface preparation and oven baking of the paint, adding that the coil which was fed into the line underwent pre-treatment such as alkaline degreasing, acid, neutralising, demineralised water and steam cleaning and dying.
He said the line had the capacity to coat aluminium alloys, aluzinc and galvanised sheets to cater for the various market segments.
The managing director said currently test runs were being held, and that commercial production would begin by the end of May this year.
Mr Venkataramana indicated that the company in addition to the new plant had also embarked on additional 30,000 metric tonnes per year Cold Rolling Mill in response to the rising demand of the aluminium market.
Last year, the company signed a $12.5 million contract with Fata Hunter, a division of FATA S.p.A of Italy for the supply of a 30,000 metric tonnes per year capacity Cold Rolling Mill.
The new mill is expected to be completed by December this year, which would complete the old mill.
Put taxes of aluminium imports
Story: Boahene Asamoah
THE Board Chairman of Aluworks Limited, manufacturers and exporters of semi-finished aluminium products, Mr William E. Inkumsah has hinted that the Company has presented a petition to the government for import tariffs to be slapped on imported aluminium products into the country.
He said the proposal was to ensure the survival of the aluminium industry on cheap imports from especially China, which had flooded the Ghanaian market in particular and the West African markets in general.
Speaking in an interview after a tour of the newly installed coil coating line at the company’s premises, Mr Inkumsah said the government was studying the proposal and was hopeful that it would consider the request to place tariffs on imported aluminium coils into the country.
He said the closure of Volta Aluminium Comapny (VALCO) had posed tremendous challenges to the company, which now had to import aluminium ingots from South Africa, India and other places at a very high cost of international prices.
“But for the VALCO closure, we would have been very competitive”, the board chairman stated, adding that presently the company had to melt the imported aluminium ingots at huge cost, which was not the case when VALCO was in operation.
Aluworks had a pipeline connected to VALCO where its raw material, the alumna flows through the factory and was processed into semi-finished products.
VALCO was shut down at the height of the energy crisis that the country faced last year after nearly a year of power cuts.
Sources close to the industry hinted that ALCOA, the partner to the government has packed bag and baggage and left the country following the closure of VALCO.
According to Mr Inkumsah, Nigeria also faced a similar situation where cheap aluminium products nearly collapsed the industry, but for the timely intervention of the government which placed 25 per cent tariffs on aluminium.
He said he was optimistic that the government through the Ministry of Trade and Industry would heed to the call to ensure the survival of the industry.
Aluworks offers opportunities for downstream industries in the aluminium industry that employs over 600 people.
The company exports most of its products to neighbouring countries, mainly Nigeria and recently Burkina Faso and Togo.
The company has recently completed the installation of a 20,000 tonne coil coating plant in a bid to diversify its products and add value to its aluminium products.
The $6.5 million continuous coil coating line, the first of its kind in the country, would offer opportunities for downstream industries in areas such as roofing sheets, ceiling tiles and window blinds.
It will also meet the local demand as well as the export market, especially within the West African sub-region.
In addition to the new plant, the company had also embarked on an additional 30,000 metric tonnes per year Cold Rolling Mill in response to the rising demand for the aluminium products.
Last year, the company signed a $12.5 million contract with Fata Hunter, a division of FATA S.p.A of Italy for the supply of a 30,000 metric tonnes per year capacity Cold Rolling Mill.
The new mill is expected to be completed by December this year, which will complement the old mill.
THE Board Chairman of Aluworks Limited, manufacturers and exporters of semi-finished aluminium products, Mr William E. Inkumsah has hinted that the Company has presented a petition to the government for import tariffs to be slapped on imported aluminium products into the country.
He said the proposal was to ensure the survival of the aluminium industry on cheap imports from especially China, which had flooded the Ghanaian market in particular and the West African markets in general.
Speaking in an interview after a tour of the newly installed coil coating line at the company’s premises, Mr Inkumsah said the government was studying the proposal and was hopeful that it would consider the request to place tariffs on imported aluminium coils into the country.
He said the closure of Volta Aluminium Comapny (VALCO) had posed tremendous challenges to the company, which now had to import aluminium ingots from South Africa, India and other places at a very high cost of international prices.
“But for the VALCO closure, we would have been very competitive”, the board chairman stated, adding that presently the company had to melt the imported aluminium ingots at huge cost, which was not the case when VALCO was in operation.
Aluworks had a pipeline connected to VALCO where its raw material, the alumna flows through the factory and was processed into semi-finished products.
VALCO was shut down at the height of the energy crisis that the country faced last year after nearly a year of power cuts.
Sources close to the industry hinted that ALCOA, the partner to the government has packed bag and baggage and left the country following the closure of VALCO.
According to Mr Inkumsah, Nigeria also faced a similar situation where cheap aluminium products nearly collapsed the industry, but for the timely intervention of the government which placed 25 per cent tariffs on aluminium.
He said he was optimistic that the government through the Ministry of Trade and Industry would heed to the call to ensure the survival of the industry.
Aluworks offers opportunities for downstream industries in the aluminium industry that employs over 600 people.
The company exports most of its products to neighbouring countries, mainly Nigeria and recently Burkina Faso and Togo.
The company has recently completed the installation of a 20,000 tonne coil coating plant in a bid to diversify its products and add value to its aluminium products.
The $6.5 million continuous coil coating line, the first of its kind in the country, would offer opportunities for downstream industries in areas such as roofing sheets, ceiling tiles and window blinds.
It will also meet the local demand as well as the export market, especially within the West African sub-region.
In addition to the new plant, the company had also embarked on an additional 30,000 metric tonnes per year Cold Rolling Mill in response to the rising demand for the aluminium products.
Last year, the company signed a $12.5 million contract with Fata Hunter, a division of FATA S.p.A of Italy for the supply of a 30,000 metric tonnes per year capacity Cold Rolling Mill.
The new mill is expected to be completed by December this year, which will complement the old mill.
NIB focuses on capitalistion through organic growth
Story: Boahene Asamoah
SHAREHOLDERS of the National Investment Bank Limited, (NIB) have approved the board’s decision to transfer an amount of GH¢13 million from the bank’s income surplus to its stated capital.
The move is to gradually raise the minimum capital to GH¢60 million by 2012 as directed by the central bank.
At the annual general meeting in Accra yesterday, the Board Chairman of the Bank, Dr Charles D. Jebuni, said the bank was hoping to meet the new capital requirement by 2012 through its own internal growth strategies.
The Bank of Ghana (BoG) has given local banks in the country up to 2012 to raise their minimum capital requirement from the present Gh¢ 7 million to GH¢60 million.
“We are focusing on capitalisation of the bank through organic growth”, Dr Jebuni stated.
Giving the financial performance of the bank for the 2007 financial year, the board chairman said the total income increased by 54 per cent from Gh¢25.19 million in 2006 to Gh¢38.8 million by the end of last year.
He said Profit after tax stood at GH¢5,989 million from the previous year’s figure of GH¢4,427 million.
Dr Jebuni said total deposits of the bank grew by 44 per cent from GH¢169.75 million in 2006 to Gh¢244.58 million at the end of December 2007.
Again, the board chairman stated that total assets grew by 23 per cent from GH¢344.26 million in 2006 to GH¢279.8 million in 2007.
The board has declared a dividend of GH¢0.0374 to shareholders representing a 50 per cent increase over the previous year’s figure.
He said during the year under review, the bank undertook a number of projects which included the expansion of its branch network.
The bank, according to him also established a joint venture capital company to provide equity and debt financing to small and medium scale enterprises.
“The 2006-2008 strategic plan of the bank was reviewed and the board of your bank approved a revised organogram in order to align departments and units to the new strategic choices which have been crafted and to sustain our competitive posture in the banking industry”, Dr Jebuni stated.
Giving the outlook, Dr Jebuni stated that the bank would strengthen its use of information, communication and technology (ICT) to ensure quality and timely service delivery.
That, he said would be undertaken by integrating the accounting software into the bank’s commercial banking application to enable it improve on its financial efficiency.
“We will also introduce Internet and SMS banking and credit cards for more convenience banking solutions”, he stated.
The Managing Director of the Bank, Mr Daniel Charles Gyimah, said “the bank’s attention will be geared towards generating more non-interest income in order to reduce the over reliance on traditional interest income”.
He was hopeful that the positive economic outlook for this year would provide the right environment and the platform for the banking industry in general and the bank in particular.
SHAREHOLDERS of the National Investment Bank Limited, (NIB) have approved the board’s decision to transfer an amount of GH¢13 million from the bank’s income surplus to its stated capital.
The move is to gradually raise the minimum capital to GH¢60 million by 2012 as directed by the central bank.
At the annual general meeting in Accra yesterday, the Board Chairman of the Bank, Dr Charles D. Jebuni, said the bank was hoping to meet the new capital requirement by 2012 through its own internal growth strategies.
The Bank of Ghana (BoG) has given local banks in the country up to 2012 to raise their minimum capital requirement from the present Gh¢ 7 million to GH¢60 million.
“We are focusing on capitalisation of the bank through organic growth”, Dr Jebuni stated.
Giving the financial performance of the bank for the 2007 financial year, the board chairman said the total income increased by 54 per cent from Gh¢25.19 million in 2006 to Gh¢38.8 million by the end of last year.
He said Profit after tax stood at GH¢5,989 million from the previous year’s figure of GH¢4,427 million.
Dr Jebuni said total deposits of the bank grew by 44 per cent from GH¢169.75 million in 2006 to Gh¢244.58 million at the end of December 2007.
Again, the board chairman stated that total assets grew by 23 per cent from GH¢344.26 million in 2006 to GH¢279.8 million in 2007.
The board has declared a dividend of GH¢0.0374 to shareholders representing a 50 per cent increase over the previous year’s figure.
He said during the year under review, the bank undertook a number of projects which included the expansion of its branch network.
The bank, according to him also established a joint venture capital company to provide equity and debt financing to small and medium scale enterprises.
“The 2006-2008 strategic plan of the bank was reviewed and the board of your bank approved a revised organogram in order to align departments and units to the new strategic choices which have been crafted and to sustain our competitive posture in the banking industry”, Dr Jebuni stated.
Giving the outlook, Dr Jebuni stated that the bank would strengthen its use of information, communication and technology (ICT) to ensure quality and timely service delivery.
That, he said would be undertaken by integrating the accounting software into the bank’s commercial banking application to enable it improve on its financial efficiency.
“We will also introduce Internet and SMS banking and credit cards for more convenience banking solutions”, he stated.
The Managing Director of the Bank, Mr Daniel Charles Gyimah, said “the bank’s attention will be geared towards generating more non-interest income in order to reduce the over reliance on traditional interest income”.
He was hopeful that the positive economic outlook for this year would provide the right environment and the platform for the banking industry in general and the bank in particular.
Our tariffs must be structured, transparent — Baidoe-Ansah
Story: Boahene Asamoah
THE Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Joe Baidoe-Ansah, has said there is the need for a well structured and a transparent approach to tariff reviews to ensure compliance with international best practices.
“This will offer the private sector refuge against unfair competition as is the case in other countries that use tariffs to protect local industry against unfair competition,” the minister said.
Speaking at a stakeholders’ meeting on the establishment of a tariff advisory board in Accra on Thursday, Mr Baidoe-Ansah stated that the lack of structured processes for seeking tariff review had led to many economic operators and the private sector to exert pressure on the government to back their demands for an adhoc tariff review.
“This is not the best”, the minister stated, adding that the ministry was seeking through consultative meeting to solicit inputs from stakeholders to bring into operation a Tariff Advisory Board (TAB).
The Minister explained that the establishment of the board was consistent with other policy initiatives and actions that were already underway, including the development of a competition law among others.
“Our goal under this thematic area or component is to provide a level playing field for all our economic operators through effective and systematic application of a transparent tariff regime.
The Minister said the establishment of the board constituted one of the ministries major series of programmes under the imports/exports component under the Trade Sector Support Programme (TSSP).
“Tariffs are at the core of our trade policy matters. Tariffs can be an effective tool not only for revenue but can also serve as a vital instrument for enhancing the competitiveness of domestic industries and for promoting the welfare of consumers”, Mr Baidoe-Ansah stated.
The minister underscored the objectives of the country’s trade policy and the TSSP which was meant to improve the legal and regulatory framework for business and consumers and thereby increase the country’s competitiveness in both the domestic and international markets.
Recently, the Board Chairman of Aluworks Limited, manufacturers and exporters of semi-finished aluminium products, Mr William E. Inkumsah hinted that the company had presented a petition to the government for import tariffs to be slapped on imported aluminium products coming into the country.
He said the proposal was to ensure the survival of the aluminium industry on cheap imports from especially China, which had flooded the Ghanaian market in particular and the West African markets in general.
Mr Inkumsah said the government was studying the proposal and was hopeful that it would consider the request to place tariffs on imported aluminium coils into the country.
Some industry players have also called on the government to impose taxes on cheap imported wax prints and textile which had almost brought the textile industry on its knees.
Again, during the 2004 budget statement, the government imposed tariffs on poultry imports into the country, only for the government to withdraw the tariffs.
THE Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Joe Baidoe-Ansah, has said there is the need for a well structured and a transparent approach to tariff reviews to ensure compliance with international best practices.
“This will offer the private sector refuge against unfair competition as is the case in other countries that use tariffs to protect local industry against unfair competition,” the minister said.
Speaking at a stakeholders’ meeting on the establishment of a tariff advisory board in Accra on Thursday, Mr Baidoe-Ansah stated that the lack of structured processes for seeking tariff review had led to many economic operators and the private sector to exert pressure on the government to back their demands for an adhoc tariff review.
“This is not the best”, the minister stated, adding that the ministry was seeking through consultative meeting to solicit inputs from stakeholders to bring into operation a Tariff Advisory Board (TAB).
The Minister explained that the establishment of the board was consistent with other policy initiatives and actions that were already underway, including the development of a competition law among others.
“Our goal under this thematic area or component is to provide a level playing field for all our economic operators through effective and systematic application of a transparent tariff regime.
The Minister said the establishment of the board constituted one of the ministries major series of programmes under the imports/exports component under the Trade Sector Support Programme (TSSP).
“Tariffs are at the core of our trade policy matters. Tariffs can be an effective tool not only for revenue but can also serve as a vital instrument for enhancing the competitiveness of domestic industries and for promoting the welfare of consumers”, Mr Baidoe-Ansah stated.
The minister underscored the objectives of the country’s trade policy and the TSSP which was meant to improve the legal and regulatory framework for business and consumers and thereby increase the country’s competitiveness in both the domestic and international markets.
Recently, the Board Chairman of Aluworks Limited, manufacturers and exporters of semi-finished aluminium products, Mr William E. Inkumsah hinted that the company had presented a petition to the government for import tariffs to be slapped on imported aluminium products coming into the country.
He said the proposal was to ensure the survival of the aluminium industry on cheap imports from especially China, which had flooded the Ghanaian market in particular and the West African markets in general.
Mr Inkumsah said the government was studying the proposal and was hopeful that it would consider the request to place tariffs on imported aluminium coils into the country.
Some industry players have also called on the government to impose taxes on cheap imported wax prints and textile which had almost brought the textile industry on its knees.
Again, during the 2004 budget statement, the government imposed tariffs on poultry imports into the country, only for the government to withdraw the tariffs.
SG-SSB to sustain growth through innovation
Story: Boahene Asamoah
THE Board Chairman of SG-SSB, Mr Philippe Vigue, has said that the bank will continue to look for innovative ways of maintaining profits and ensure growth in the bank’s operations.
“We will continue to seek ways to strengthen and develop our operations and I am confident about the future”, Mr Vigue stated.
The Board chairman made this known when he addressed shareholders at the annual general meeting in Accra.
He explained that his confidence about the future was because the economy remained sound and the environment, positive due to the pursuance of prudent and appropriate macro economic policies of the government.
Giving the financial performance of the bank for the past year, Mr Vigue stated that the bank recorded a net profit of GH¢11.6 million as against the previous year’s figure of GH¢9.9 million recorded in 2006.
He said “net banking income increased by 12 per cent and current operating expenses grew by 18 per cent”.
The Board chairman noted that shareholders funds also increased from GH¢57.4 million to GH¢58.4 million representing an increase of 2 per cent.
The board recommended a dividend pay out of GH¢0.03. Having already paid an interim dividend of GH¢0.03, brings the total dividend to GH¢0.06 per share.
In his address, the Managing Director of the Bank, Mr Allain Bellissard, said during the year under review the bank witnessed an efficient growth in its treasury, positive evolution in business banking and strong growth in its retail banking, among others.
He said the bank also saw an increased financial support to the Small and Medium Scale Enterprises (SMEs) market segment and assured the shareholders that the financial support to that sector would be built upon.
“The segment is considered a major strategic business portfolio and therefore, in 2008 your bank will increase lending to the sector to combine with aggressive marketing, improved customer care and contact as well as monitoring to sustain portfolio quality”, Mr Bellissard stated.
Again, he said credit to business customers increased by 44.7 per cent over the previous year’s figure, which was fuelled by exposures to multinational and large local corporate businesses, particularly in the Information and Communication Technology (ICT), real estate and other productive sectors of the economy.
“Your bank’s commitment to the development of Ghana’s economy was underscored by the active role it played towards the success of Societe Generale and its partner lenders, regarding the $900 million sydincation for the 2007/2008 cocoa season”, the Management Director stated.
THE Board Chairman of SG-SSB, Mr Philippe Vigue, has said that the bank will continue to look for innovative ways of maintaining profits and ensure growth in the bank’s operations.
“We will continue to seek ways to strengthen and develop our operations and I am confident about the future”, Mr Vigue stated.
The Board chairman made this known when he addressed shareholders at the annual general meeting in Accra.
He explained that his confidence about the future was because the economy remained sound and the environment, positive due to the pursuance of prudent and appropriate macro economic policies of the government.
Giving the financial performance of the bank for the past year, Mr Vigue stated that the bank recorded a net profit of GH¢11.6 million as against the previous year’s figure of GH¢9.9 million recorded in 2006.
He said “net banking income increased by 12 per cent and current operating expenses grew by 18 per cent”.
The Board chairman noted that shareholders funds also increased from GH¢57.4 million to GH¢58.4 million representing an increase of 2 per cent.
The board recommended a dividend pay out of GH¢0.03. Having already paid an interim dividend of GH¢0.03, brings the total dividend to GH¢0.06 per share.
In his address, the Managing Director of the Bank, Mr Allain Bellissard, said during the year under review the bank witnessed an efficient growth in its treasury, positive evolution in business banking and strong growth in its retail banking, among others.
He said the bank also saw an increased financial support to the Small and Medium Scale Enterprises (SMEs) market segment and assured the shareholders that the financial support to that sector would be built upon.
“The segment is considered a major strategic business portfolio and therefore, in 2008 your bank will increase lending to the sector to combine with aggressive marketing, improved customer care and contact as well as monitoring to sustain portfolio quality”, Mr Bellissard stated.
Again, he said credit to business customers increased by 44.7 per cent over the previous year’s figure, which was fuelled by exposures to multinational and large local corporate businesses, particularly in the Information and Communication Technology (ICT), real estate and other productive sectors of the economy.
“Your bank’s commitment to the development of Ghana’s economy was underscored by the active role it played towards the success of Societe Generale and its partner lenders, regarding the $900 million sydincation for the 2007/2008 cocoa season”, the Management Director stated.
Build human resources on negotiation skills-African governments advised
Story: Boahene Asamoah
The lack of trained human resources to negotiate on behalf of the state has been a major source of exploitation of the continent’s natural resources, the Chief Executive Officer of the African Investments Limited, Mr Kwasi Abeasi, has said.
He said African countries had comparative advantages that could be harnessed and fully exploited to yield greater resources for the continent, but lacked such personnel who understood the major issues.
In an interview on Globalisation and its effects on Africa at the ongoing United Nations Conference on Trade and Development (UNCTAD) in Accra, Mr Abeasi, who was one-time the Chief Executive Officer of the Ghana Investments Promotion Centre (GIPC), called on African governments to build human resources on negotiation skills.
He said “Africa had natural resources as its main comparative advantage”, adding that in negotiating for its exploit emphasis should be placed on value addition”.
He said globalisation had come to stay, and African economies should better be prepared to play their part in the global village, adding that Africa had all it takes to compete in the global world.
On the effects of Foreign Direct Investment (FDI), Mr Abeasi said “Africa needs FDIs to complement its domestic resources to develop”.
He said FDIs also had the potential to bring in the technical know-how that was needed badly for the continent’s rapid development.
He dismissed suggestions that FDI was not needed and stated that while local resource mobilisation was crucial, FDI was indeed a welcome relief to many African economies.
Mr Abeasi, however, stated that the focus should be on FDI that would be able to target where a country had both comparative and competitive advantages.
Mr Abeasi stated that there was also the need to create the enabling environment that would ensure that Africa took full advantage of FDI to the continent.
The UNCTAD XII conference would, among other things, discuss such topics as globalisation, Global Systems of Trade and Preferences (GSTP) and Trade and Gender: Perspectives for sustainable growth and poverty reduction.
Other topics are; Making sustainability standards work for pro-poor agricultural development and trade, Creating an institutional environment conducive to increased foreign investment, and sustainable development.
There will also be regional group meetings, which would consist of Africa, European Union and Group of 77 and China.
The lack of trained human resources to negotiate on behalf of the state has been a major source of exploitation of the continent’s natural resources, the Chief Executive Officer of the African Investments Limited, Mr Kwasi Abeasi, has said.
He said African countries had comparative advantages that could be harnessed and fully exploited to yield greater resources for the continent, but lacked such personnel who understood the major issues.
In an interview on Globalisation and its effects on Africa at the ongoing United Nations Conference on Trade and Development (UNCTAD) in Accra, Mr Abeasi, who was one-time the Chief Executive Officer of the Ghana Investments Promotion Centre (GIPC), called on African governments to build human resources on negotiation skills.
He said “Africa had natural resources as its main comparative advantage”, adding that in negotiating for its exploit emphasis should be placed on value addition”.
He said globalisation had come to stay, and African economies should better be prepared to play their part in the global village, adding that Africa had all it takes to compete in the global world.
On the effects of Foreign Direct Investment (FDI), Mr Abeasi said “Africa needs FDIs to complement its domestic resources to develop”.
He said FDIs also had the potential to bring in the technical know-how that was needed badly for the continent’s rapid development.
He dismissed suggestions that FDI was not needed and stated that while local resource mobilisation was crucial, FDI was indeed a welcome relief to many African economies.
Mr Abeasi, however, stated that the focus should be on FDI that would be able to target where a country had both comparative and competitive advantages.
Mr Abeasi stated that there was also the need to create the enabling environment that would ensure that Africa took full advantage of FDI to the continent.
The UNCTAD XII conference would, among other things, discuss such topics as globalisation, Global Systems of Trade and Preferences (GSTP) and Trade and Gender: Perspectives for sustainable growth and poverty reduction.
Other topics are; Making sustainability standards work for pro-poor agricultural development and trade, Creating an institutional environment conducive to increased foreign investment, and sustainable development.
There will also be regional group meetings, which would consist of Africa, European Union and Group of 77 and China.
"Lets tackle social inequality"-UNCTAD Secreatary-General
Story: Boahene Asamoah
THE Secretary-General of the United Nation’s Conference on Trade and Development (UNCTAD), Mr Supachai Panitchpakdi, has called on countries to tackle and address the issue of economic and social inequality brought about by globalisation.
“We must tackle poverty” and “reverse the trend of inequality,” Mr Panitchpakdi stated at the ongoing UNCTAD XII conference in Accra.
Contributing to a discussion on Enhancing Coherence at all Levels for Sustainable Economic Development and Poverty Reduction in Global Policy Making, including the contribution of regional approaches, Mr Panitchpakdi said globalisation had come to stay and “the least we can do is take care of the poor”.
He said there was growing disparity between the rich and poor and also increasing regional disparities in trade.
Mr Panitchpakdi suggested that while there was the need for sustainable growth, it was equally important to ensure the quality of growth that would ensure that resources were deployed to the productive sectors of the economy.
He said in most cases, some countries accepted investments that had led to the movement of resources from the productive sectors, stressing that “this is not the kind of investments we want”.
Mr Panitchpakdi, who touched on states and markets and the social conditions, stated that in many cases growth had led to child labour, which was not conducive to the entire communities.
The Secretary General questioned whether South-South co-operation would spur trade and investments that would ensure labour-intensive jobs.
Again, he asked whether the issues of Small and Medium Scale Enterprise (SMEs) support could work to improve trade and investments among countries.
Mr Panitchpakdi called for “ inclusive growth that will incorporate women and gender equality and ensure equal treatment”.
In her presentation, the President of Finland, Ms Tarjas Halomen, urged developing countries to respond positively to the globalisation phenomenon and not to give up on it.
She also called on women to be active participants in the development process to ensure the development of their respective countries.
Ms Halomen stated that it would be unwise to neglect gender issues in the economic development of any country and stated that women should be encouraged to participate in business and other economic activities to ensure that they benefited directly.
The Netherlands Minister of Development Co-operation, Mr Albert Koenders, observed that there was indeed increasingly inequalities with regards to globalisation.
He said African countries should take advantage of globalisation, especially in the agricultural sector, where it could generate a lot of employment opportunities for the continent.
“One needs to choose their own growth path,” Mr Koenders stated, adding that that was one of the surest ways to take advantage of globalisation.
The minister reiterated the need to build and strengthen regional blocs and trade, as well as enforce rules and regulations that would ensure the development of regional trade and investments.
Touching on trade liberalisation, he said the challenge was to develop comparative advantage and ensure global equitable integration.
THE Secretary-General of the United Nation’s Conference on Trade and Development (UNCTAD), Mr Supachai Panitchpakdi, has called on countries to tackle and address the issue of economic and social inequality brought about by globalisation.
“We must tackle poverty” and “reverse the trend of inequality,” Mr Panitchpakdi stated at the ongoing UNCTAD XII conference in Accra.
Contributing to a discussion on Enhancing Coherence at all Levels for Sustainable Economic Development and Poverty Reduction in Global Policy Making, including the contribution of regional approaches, Mr Panitchpakdi said globalisation had come to stay and “the least we can do is take care of the poor”.
He said there was growing disparity between the rich and poor and also increasing regional disparities in trade.
Mr Panitchpakdi suggested that while there was the need for sustainable growth, it was equally important to ensure the quality of growth that would ensure that resources were deployed to the productive sectors of the economy.
He said in most cases, some countries accepted investments that had led to the movement of resources from the productive sectors, stressing that “this is not the kind of investments we want”.
Mr Panitchpakdi, who touched on states and markets and the social conditions, stated that in many cases growth had led to child labour, which was not conducive to the entire communities.
The Secretary General questioned whether South-South co-operation would spur trade and investments that would ensure labour-intensive jobs.
Again, he asked whether the issues of Small and Medium Scale Enterprise (SMEs) support could work to improve trade and investments among countries.
Mr Panitchpakdi called for “ inclusive growth that will incorporate women and gender equality and ensure equal treatment”.
In her presentation, the President of Finland, Ms Tarjas Halomen, urged developing countries to respond positively to the globalisation phenomenon and not to give up on it.
She also called on women to be active participants in the development process to ensure the development of their respective countries.
Ms Halomen stated that it would be unwise to neglect gender issues in the economic development of any country and stated that women should be encouraged to participate in business and other economic activities to ensure that they benefited directly.
The Netherlands Minister of Development Co-operation, Mr Albert Koenders, observed that there was indeed increasingly inequalities with regards to globalisation.
He said African countries should take advantage of globalisation, especially in the agricultural sector, where it could generate a lot of employment opportunities for the continent.
“One needs to choose their own growth path,” Mr Koenders stated, adding that that was one of the surest ways to take advantage of globalisation.
The minister reiterated the need to build and strengthen regional blocs and trade, as well as enforce rules and regulations that would ensure the development of regional trade and investments.
Touching on trade liberalisation, he said the challenge was to develop comparative advantage and ensure global equitable integration.
UNCTAD-What it stands for
Compiled by Boahene Asamoah
THE United Nation’s Conference on Trade and Development (UNCTAD) was established in 1964 to, among other things, promote the development-friendly integration of developing countries into the world economy.
In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions.
Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.)
The prominent Argentinean economist, Raúl Prebisch, who had headed the United Nations Economic Commission for Latin America and the Caribbean, became the organisation's first Secretary-General.
The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964.
Given the magnitude of the problems at stake and the need to address them, the conference was institutionalised to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support.
Over the past years UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.
The organisation works to fulfil this mandate by carrying out three key functions:
It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building.
It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organisations and donor countries in the delivery of technical assistance.
The Secretary-General of UNCTAD is Dr Supachai Panitchpakdi (Thailand), who took office on September 1, 2005.
In performing its functions, the secretariat works together with member governments and interacts with organisations of the United Nations system and regional commissions, as well as governmental institutions, non-governmental organisations, the private sector, including trade and industry associations; research institutes and universities worldwide.
The 1960s and 1970s
In its early decades of operation, UNCTAD gained authoritative standing:
*As an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the “New International Economic Order”.
*For its analytical research and policy advice on development issues.
Agreements launched by UNCTAD during this time include:
The Generalized System of Preferences (1968), whereby developed economies grant improved market access to exports from developing countries.
A number of International Commodities Agreements, which aimed at stabilising the prices of export products crucial for developing countries.
The Convention on a Code of Conduct for Liner Conferences, which strengthened the ability of developing countries to maintain national merchant fleets.
The adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. This work later evolved into what is today known as “Trade and Competition Policies”.
In addition to these, UNCTAD was a key contributor to the definition of the target of 0.7 per cent of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970.
It also spearheaded the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.
In the 1980s, UNCTAD was faced with a changing economic and political environment:
There was a significant transformation in economic thinking. Development strategies became more market-oriented, focusing on trade liberalisation and privatisation of state enterprises.
A number of developing countries were plunged into severe debt crises. Despite structural adjustment programmes by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the “lost decade”, particularly in Latin America.
Economic interdependence in the world also increased greatly.
In the light of these developments, UNCTAD multiplied efforts aimed at:
Strengthening the analytical content of its intergovernmental debate, particularly regarding macroeconomic management and international financial and monetary issues.
It was also aimed at broadening the scope of its activities to assist developing countries in their efforts to integrate into the world trading system. In this context,
the technical assistance provided by UNCTAD to developing countries was particularly important in the Uruguay Round of Trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS).
UNCTAD’s work on trade efficiency (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade.
UNCTAD assisted developing countries in the rescheduling of official debt in the Paris Club negotiations.
Promoting South-South cooperation.
In 1989, the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the agreement has been ratified by 44 countries.
UNCTAD addressed the concerns of the poorest nations by organising the first UN Conference on Least Developed Countries in 1981. Since then, two other international conferences have been held at 10-year intervals.
Key developments in the international context:
The conclusion of the Uruguay Round of Trade negotiations under the GATT resulted in the establishment of the World Trade Organisation in 1995, which led to a strengthening of the legal framework governing international trade.
A spectacular increase in international financial flows led to increasing financial instability and volatility.
Against this background, UNCTAD’s analysis gave early warning concerning the risks and the destructive impact of financial crises on development. Consequently, UNCTAD emphasised the need for a more development-oriented “international financial architecture”.
Foreign direct investment flows became a major component of globalisation.
UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its 10th conference, held in Bangkok in February 2000, adopted a political declaration – “The Spirit of Bangkok” – as a strategy to address the development agenda in a globalising world.
In recent times, UNCTAD has further focused its analytical research on the linkages between trade, investment, technology and enterprise development.
It has also put forward a “positive agenda” for developing countries in international trade negotiations, designed to assist developing countries to better understand the complexity of the multilateral trade negotiations and in formulating their positions.
UNCTAD expanded work on international investment issues, following the merger into UNCTAD of the New York–based United Nations Centre on Transnational Corporations in 1993 and has expanded and diversified its technical assistance, which covers a wide range of areas, including training trade negotiators and addressing trade-related issues; debt management, investment policy reviews and the promotion of entrepreneurship; commodities; competition law and policy; and trade and environment.
UNCTAD XI
UNCTAD has continued to play a crucial role in emphasising the development dimension of issues in the fields of international trade and investment and related areas.
In particular, UNCTAD has been addressing the imbalances of globalisation and the need to overcome the supply constraints of developing countries, so as to ensure development gains and poverty reduction.
This is captured in the theme of the UNCTAD XI Ministerial Conference, Enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries.
The Trade and Development Board
In the four years between the meetings of the conferences, UNCTAD’s work is guided by the Trade and Development Board. Board membership is open to all members of UNCTAD, and accredited intergovernmental and non-governmental organisations enjoy observer status.
The board meets in Geneva once a year in regular session and up to three times a year in executive sessions to deal with ad hoc policy and institutional issues.
The Commissions
The Trade and Development Board currently has three commissions that meet once a year to address policy issues in specific areas and provide guidance for the work of the secretariat. These commissions are the Commission on Trade in Goods and Services; the Commodities, Commission on Investment, Technology and Related Financial Issues,
and Commission on Enterprise, Business Facilitation and Development.
The UNCTAD Secretariat also services the Commission on Science and Technology for Development (CSTD), which is a subsidiary body of the United Nations Economic and Social Council.
These commissions allow governments to exchange views on policy issues in their respective ambits.
As in all of UNCTAD’s intergovernmental bodies, decisions of the commissions are taken by consensus, and thus agreed conclusions and recommendations reflect the collective political will of UNCTAD’s membership.
Expert Meetings
The work of the commissions is supported by discussions among specialised technical experts in specific fields. Up to 10 such expert meetings are convened by the commissions every year. They allow the government representatives attending the commissions to take advantage of valuable technical input from academics, practitioners and the private sector.
THE United Nation’s Conference on Trade and Development (UNCTAD) was established in 1964 to, among other things, promote the development-friendly integration of developing countries into the world economy.
In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions.
Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.)
The prominent Argentinean economist, Raúl Prebisch, who had headed the United Nations Economic Commission for Latin America and the Caribbean, became the organisation's first Secretary-General.
The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964.
Given the magnitude of the problems at stake and the need to address them, the conference was institutionalised to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support.
Over the past years UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.
The organisation works to fulfil this mandate by carrying out three key functions:
It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building.
It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organisations and donor countries in the delivery of technical assistance.
The Secretary-General of UNCTAD is Dr Supachai Panitchpakdi (Thailand), who took office on September 1, 2005.
In performing its functions, the secretariat works together with member governments and interacts with organisations of the United Nations system and regional commissions, as well as governmental institutions, non-governmental organisations, the private sector, including trade and industry associations; research institutes and universities worldwide.
The 1960s and 1970s
In its early decades of operation, UNCTAD gained authoritative standing:
*As an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the “New International Economic Order”.
*For its analytical research and policy advice on development issues.
Agreements launched by UNCTAD during this time include:
The Generalized System of Preferences (1968), whereby developed economies grant improved market access to exports from developing countries.
A number of International Commodities Agreements, which aimed at stabilising the prices of export products crucial for developing countries.
The Convention on a Code of Conduct for Liner Conferences, which strengthened the ability of developing countries to maintain national merchant fleets.
The adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. This work later evolved into what is today known as “Trade and Competition Policies”.
In addition to these, UNCTAD was a key contributor to the definition of the target of 0.7 per cent of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970.
It also spearheaded the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.
In the 1980s, UNCTAD was faced with a changing economic and political environment:
There was a significant transformation in economic thinking. Development strategies became more market-oriented, focusing on trade liberalisation and privatisation of state enterprises.
A number of developing countries were plunged into severe debt crises. Despite structural adjustment programmes by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the “lost decade”, particularly in Latin America.
Economic interdependence in the world also increased greatly.
In the light of these developments, UNCTAD multiplied efforts aimed at:
Strengthening the analytical content of its intergovernmental debate, particularly regarding macroeconomic management and international financial and monetary issues.
It was also aimed at broadening the scope of its activities to assist developing countries in their efforts to integrate into the world trading system. In this context,
the technical assistance provided by UNCTAD to developing countries was particularly important in the Uruguay Round of Trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS).
UNCTAD’s work on trade efficiency (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade.
UNCTAD assisted developing countries in the rescheduling of official debt in the Paris Club negotiations.
Promoting South-South cooperation.
In 1989, the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the agreement has been ratified by 44 countries.
UNCTAD addressed the concerns of the poorest nations by organising the first UN Conference on Least Developed Countries in 1981. Since then, two other international conferences have been held at 10-year intervals.
Key developments in the international context:
The conclusion of the Uruguay Round of Trade negotiations under the GATT resulted in the establishment of the World Trade Organisation in 1995, which led to a strengthening of the legal framework governing international trade.
A spectacular increase in international financial flows led to increasing financial instability and volatility.
Against this background, UNCTAD’s analysis gave early warning concerning the risks and the destructive impact of financial crises on development. Consequently, UNCTAD emphasised the need for a more development-oriented “international financial architecture”.
Foreign direct investment flows became a major component of globalisation.
UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its 10th conference, held in Bangkok in February 2000, adopted a political declaration – “The Spirit of Bangkok” – as a strategy to address the development agenda in a globalising world.
In recent times, UNCTAD has further focused its analytical research on the linkages between trade, investment, technology and enterprise development.
It has also put forward a “positive agenda” for developing countries in international trade negotiations, designed to assist developing countries to better understand the complexity of the multilateral trade negotiations and in formulating their positions.
UNCTAD expanded work on international investment issues, following the merger into UNCTAD of the New York–based United Nations Centre on Transnational Corporations in 1993 and has expanded and diversified its technical assistance, which covers a wide range of areas, including training trade negotiators and addressing trade-related issues; debt management, investment policy reviews and the promotion of entrepreneurship; commodities; competition law and policy; and trade and environment.
UNCTAD XI
UNCTAD has continued to play a crucial role in emphasising the development dimension of issues in the fields of international trade and investment and related areas.
In particular, UNCTAD has been addressing the imbalances of globalisation and the need to overcome the supply constraints of developing countries, so as to ensure development gains and poverty reduction.
This is captured in the theme of the UNCTAD XI Ministerial Conference, Enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries.
The Trade and Development Board
In the four years between the meetings of the conferences, UNCTAD’s work is guided by the Trade and Development Board. Board membership is open to all members of UNCTAD, and accredited intergovernmental and non-governmental organisations enjoy observer status.
The board meets in Geneva once a year in regular session and up to three times a year in executive sessions to deal with ad hoc policy and institutional issues.
The Commissions
The Trade and Development Board currently has three commissions that meet once a year to address policy issues in specific areas and provide guidance for the work of the secretariat. These commissions are the Commission on Trade in Goods and Services; the Commodities, Commission on Investment, Technology and Related Financial Issues,
and Commission on Enterprise, Business Facilitation and Development.
The UNCTAD Secretariat also services the Commission on Science and Technology for Development (CSTD), which is a subsidiary body of the United Nations Economic and Social Council.
These commissions allow governments to exchange views on policy issues in their respective ambits.
As in all of UNCTAD’s intergovernmental bodies, decisions of the commissions are taken by consensus, and thus agreed conclusions and recommendations reflect the collective political will of UNCTAD’s membership.
Expert Meetings
The work of the commissions is supported by discussions among specialised technical experts in specific fields. Up to 10 such expert meetings are convened by the commissions every year. They allow the government representatives attending the commissions to take advantage of valuable technical input from academics, practitioners and the private sector.
President Inuagurates e-zwich
Story: Nehemia Owusu-Achiaw & Boahene Asamoah
THE President, Mr John Agyekum Kufuor, yesterday inaugurated the national electronic payment system, popularly called e-zwich, with a call on micro, small and medium businesses to take advantage of the platform to be part of the financial system.
“Small and medium-scale businesses and those involved in micro-credit transactions must be encouraged to take advantage of this new platform to be linked to the financial system so as to benefit from the various services that the financial sector can offer,” he said.
Delivering the keynote address, President Kufuor stated that the main objective of the platform was to extend the coverage of financial services and transactions to a large segment of the population, adding that “this system is safe, secure and efficient”.
The e-zwich is a biometrics smart card which works both online and off-line which is meant to ensure cashless transaction and rope in the large untapped informal sector.
The President said the e-zwich would facilitate access to and transfer of money and remove the cumbersome and insecure processes of using cash.
President Kufuor underscored the importance of technology among emerging and developed countries which remained dependent on cash and paper transactions.
“Ghana must, therefore, phase itself from such dependency as it steadily progresses into the middle-income status,” he stated.
President Kufuor said in spite of the impressive growth of financial institutions as a result of reforms and stability in macro-economic environment, there were still a lot of people outside the financial system.
“An estimated 80 per cent of eligible population is still either ‘unbanked’ or ‘under-banked’ and seems to have no access to financial services,” he added.
The President again called on those responsible for the payment of wages, salaries, pension and other social support funds to consider the use of e-zwich to bring transparency and integrity to the payrolls.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the e-zwich platform would transform the payment system into one that was state-of-the-art of the future to serve all financial institutions in the country.
“It is a platform to link all the existing 25 banking institutions, savings and loans companies, 123 rural banks and their branches and provide access to financial services and the national payment system for all economic transactions,” Dr Acquah stated.
He added that the platform provided a level playing field for institutions to compete on comparative advantage and innovation to drive the financial services industry.
“The e-zwich smart card can be used by anyone, everywhere to do business. It can store value, your money and your savings and you can use it to buy anything, anywhere, thanks to the e-zwich platform,” the Governor stated.
The acting President of the Ghana Association of Bankers (GAB), Mr Joe N. B. Tetteh, said the members of the association welcomed the introduction of the electronic platform as it had the potential to ensure an effective intermediation function of the financial system and the efficiency of funds flow as integral to the overall functioning of the system.
“The project is a manifestation of the banking fraternity’s contract to make Ghana a financial hub, with the government, the private sector and the community joining hands to ensure that the community at large is given easy and secure access to banking services,” Mr Tetteh said.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, stated that the government would continue to undertake reforms that would further propel the financial services sector to become the financial hub in the sub-region.
THE President, Mr John Agyekum Kufuor, yesterday inaugurated the national electronic payment system, popularly called e-zwich, with a call on micro, small and medium businesses to take advantage of the platform to be part of the financial system.
“Small and medium-scale businesses and those involved in micro-credit transactions must be encouraged to take advantage of this new platform to be linked to the financial system so as to benefit from the various services that the financial sector can offer,” he said.
Delivering the keynote address, President Kufuor stated that the main objective of the platform was to extend the coverage of financial services and transactions to a large segment of the population, adding that “this system is safe, secure and efficient”.
The e-zwich is a biometrics smart card which works both online and off-line which is meant to ensure cashless transaction and rope in the large untapped informal sector.
The President said the e-zwich would facilitate access to and transfer of money and remove the cumbersome and insecure processes of using cash.
President Kufuor underscored the importance of technology among emerging and developed countries which remained dependent on cash and paper transactions.
“Ghana must, therefore, phase itself from such dependency as it steadily progresses into the middle-income status,” he stated.
President Kufuor said in spite of the impressive growth of financial institutions as a result of reforms and stability in macro-economic environment, there were still a lot of people outside the financial system.
“An estimated 80 per cent of eligible population is still either ‘unbanked’ or ‘under-banked’ and seems to have no access to financial services,” he added.
The President again called on those responsible for the payment of wages, salaries, pension and other social support funds to consider the use of e-zwich to bring transparency and integrity to the payrolls.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the e-zwich platform would transform the payment system into one that was state-of-the-art of the future to serve all financial institutions in the country.
“It is a platform to link all the existing 25 banking institutions, savings and loans companies, 123 rural banks and their branches and provide access to financial services and the national payment system for all economic transactions,” Dr Acquah stated.
He added that the platform provided a level playing field for institutions to compete on comparative advantage and innovation to drive the financial services industry.
“The e-zwich smart card can be used by anyone, everywhere to do business. It can store value, your money and your savings and you can use it to buy anything, anywhere, thanks to the e-zwich platform,” the Governor stated.
The acting President of the Ghana Association of Bankers (GAB), Mr Joe N. B. Tetteh, said the members of the association welcomed the introduction of the electronic platform as it had the potential to ensure an effective intermediation function of the financial system and the efficiency of funds flow as integral to the overall functioning of the system.
“The project is a manifestation of the banking fraternity’s contract to make Ghana a financial hub, with the government, the private sector and the community joining hands to ensure that the community at large is given easy and secure access to banking services,” Mr Tetteh said.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, stated that the government would continue to undertake reforms that would further propel the financial services sector to become the financial hub in the sub-region.
DVLA automates its operations
Story: Boahene Asamoah
THE Driver and Vehicle Licensing Authority (DVLA) has launched its automated services project aimed at speedy customer service delivery.
The project is expected to reduce especially the number of paper work and the number of hours for services offered by the authority.
Launching the project, the Minister of Transportation, Dr Richard Anane, said the automation of DVLA’s activities would deal with the menace of the “Goro” boys whose activities was a thorn in the flesh of the authority.
He said “today’s occasion sets the DVLA on the course to matching up to the much touted world class standard”.
Dr Anane pledged the government’s support to the authority to continue to implement programmes in the interest of the nation.
The minister reiterated the number of reforms that the authority had undertaken since 2001, such as the opening of more branches throughout the country, and mentioned that a number of infrastructural facilities had also been undertaken.
He also mentioned the setting up of a client service unit and a banking facility at the authority’s premises as part of the reforms.
The Chief Executive Officer of the DVLA, Mr Joe Osei Owusu, stated that the automated project would help address the long period in processing of documents at its offices.
“It goes without saying that DVLA will be better placed to serve its customers better by automating its services delivery system and operations,” he stated, adding that “DVLA sees this project as an indispensable component of the process towards making it a world-class service provider”.
He said the project would also help in the monitoring of all DVLA’s activities nationwide and would ensure compliance of laid down standards and procedures and harmonise all the authority’s processes.
Mr Owusu stated that the automation project would encompass the authority’s area of work including its administrative and external works.
“The success or failure of a project such as this, aimed at improving service delivery and better equipping the DVLA to carry out its mandate therefore, would have a strong impact on the socio-economic development of the nation in the long term,” the chief executive officer stated.
THE Driver and Vehicle Licensing Authority (DVLA) has launched its automated services project aimed at speedy customer service delivery.
The project is expected to reduce especially the number of paper work and the number of hours for services offered by the authority.
Launching the project, the Minister of Transportation, Dr Richard Anane, said the automation of DVLA’s activities would deal with the menace of the “Goro” boys whose activities was a thorn in the flesh of the authority.
He said “today’s occasion sets the DVLA on the course to matching up to the much touted world class standard”.
Dr Anane pledged the government’s support to the authority to continue to implement programmes in the interest of the nation.
The minister reiterated the number of reforms that the authority had undertaken since 2001, such as the opening of more branches throughout the country, and mentioned that a number of infrastructural facilities had also been undertaken.
He also mentioned the setting up of a client service unit and a banking facility at the authority’s premises as part of the reforms.
The Chief Executive Officer of the DVLA, Mr Joe Osei Owusu, stated that the automated project would help address the long period in processing of documents at its offices.
“It goes without saying that DVLA will be better placed to serve its customers better by automating its services delivery system and operations,” he stated, adding that “DVLA sees this project as an indispensable component of the process towards making it a world-class service provider”.
He said the project would also help in the monitoring of all DVLA’s activities nationwide and would ensure compliance of laid down standards and procedures and harmonise all the authority’s processes.
Mr Owusu stated that the automation project would encompass the authority’s area of work including its administrative and external works.
“The success or failure of a project such as this, aimed at improving service delivery and better equipping the DVLA to carry out its mandate therefore, would have a strong impact on the socio-economic development of the nation in the long term,” the chief executive officer stated.
20 Corporate bodies open off-shore banking facilities
Story: Boahene Asamoah
TWENTY corporate bodies and 91 individuals from 14 countries mainly from the United States, the United Kingdom and China have established an off-shore banking facility in the country, the Managing Director of Barclays Bank Ghana, Mrs Margaret Mwanakatwe has stated.
Speaking at the 29th annual Management Day organised by the University of Ghana Business School, Mrs Mwanakatwe said “the large volumes of deposits that will flow will form the basis of developing more lending solutions to Ghana’s private sector”.
She said that the offshore banking services established in the country in September last year offered great opportunities of attracting Foreign Direct Investments into the economy.
Mrs Mwanakatwe who was speaking on the topic “Offshore Banking and the Ghanaian Economy” mentioned other benefits that the off-shore banking concepts would bring as aircraft financing and leasing, ship registration, trust incorporation assets management, insurance pension funds, consultancy services among others.
She dispelled suggestions that off-shore banking was associated with underground economy, organised crime and money laundering, stating that while Ghana’s off-shore banking was evolving and that the bank has learnt from best practises and has put in place strict rules and procedures that would check all such illegal transfers.
She noted that although off-shore banks may decide not to report their income to other tax authorities and have no legal obligation to do so, that did not make the non-declaration of the income by the tax payer or the evasion of the tax on that income, illegal.
Mrs Mwanakatwe cited examples of countries which had made use off-shore banking services such as Bermuda which had a population of about 70,000 and which ha attracted about 28 per cent of the world’s captive insurance market with 1,491 insurance companies having assets worth over $290 billion.
She added that the country’s banks held assets worth over $22 billion and the financial services sector accounted for 26 per cent of the Gross Domestic Product.
“Indeed off-shore banking provides a more friendly legal regulation, tax benefits and protection for customers”, adding that “offshore banking however is not only about access to investments products and opportunities that might not be available from domestic banks.
The Head of Banking Supervision, Mr Dela Selormey, said parliament had recently passed the anti money laundering act which was part of processes to check the transfer of illegal funds into the banking system.
He said the bank of Ghana would establish the Financial Intelligence Centre in collaboration with stakeholders to complement the activities of the banks to check the safety and soundness and to protect foreign deposits.
Mr Selormey stated that the central bank has adopted several policies such as the Customer Due Diligence (CDD) and the Know Your Customer (KYC) policies which were all meant to address some of the challenges that confronted the banking sector.
He also stated that the off-shore banking concept would help mobilise international funds, strengthen infrastructure of the banking sector and also improved the human resources of the country as well as ensure transfer of skills to the economy.
Mr Selormey mentioned some of the challenges that confronted the country in terms of attracting foreign direct investments as the need to sustain political stability, ensure efficient and effective legal system as well as ensure good corporate governance practices.
TWENTY corporate bodies and 91 individuals from 14 countries mainly from the United States, the United Kingdom and China have established an off-shore banking facility in the country, the Managing Director of Barclays Bank Ghana, Mrs Margaret Mwanakatwe has stated.
Speaking at the 29th annual Management Day organised by the University of Ghana Business School, Mrs Mwanakatwe said “the large volumes of deposits that will flow will form the basis of developing more lending solutions to Ghana’s private sector”.
She said that the offshore banking services established in the country in September last year offered great opportunities of attracting Foreign Direct Investments into the economy.
Mrs Mwanakatwe who was speaking on the topic “Offshore Banking and the Ghanaian Economy” mentioned other benefits that the off-shore banking concepts would bring as aircraft financing and leasing, ship registration, trust incorporation assets management, insurance pension funds, consultancy services among others.
She dispelled suggestions that off-shore banking was associated with underground economy, organised crime and money laundering, stating that while Ghana’s off-shore banking was evolving and that the bank has learnt from best practises and has put in place strict rules and procedures that would check all such illegal transfers.
She noted that although off-shore banks may decide not to report their income to other tax authorities and have no legal obligation to do so, that did not make the non-declaration of the income by the tax payer or the evasion of the tax on that income, illegal.
Mrs Mwanakatwe cited examples of countries which had made use off-shore banking services such as Bermuda which had a population of about 70,000 and which ha attracted about 28 per cent of the world’s captive insurance market with 1,491 insurance companies having assets worth over $290 billion.
She added that the country’s banks held assets worth over $22 billion and the financial services sector accounted for 26 per cent of the Gross Domestic Product.
“Indeed off-shore banking provides a more friendly legal regulation, tax benefits and protection for customers”, adding that “offshore banking however is not only about access to investments products and opportunities that might not be available from domestic banks.
The Head of Banking Supervision, Mr Dela Selormey, said parliament had recently passed the anti money laundering act which was part of processes to check the transfer of illegal funds into the banking system.
He said the bank of Ghana would establish the Financial Intelligence Centre in collaboration with stakeholders to complement the activities of the banks to check the safety and soundness and to protect foreign deposits.
Mr Selormey stated that the central bank has adopted several policies such as the Customer Due Diligence (CDD) and the Know Your Customer (KYC) policies which were all meant to address some of the challenges that confronted the banking sector.
He also stated that the off-shore banking concept would help mobilise international funds, strengthen infrastructure of the banking sector and also improved the human resources of the country as well as ensure transfer of skills to the economy.
Mr Selormey mentioned some of the challenges that confronted the country in terms of attracting foreign direct investments as the need to sustain political stability, ensure efficient and effective legal system as well as ensure good corporate governance practices.
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