Boahene Asamoah
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
Tuesday, February 13, 2007
Monday, February 12, 2007
EDIF must solely finance exports-• To make the sector grow faster
Story: Boahene Asamoah
THE Private Enterprises Foundation (PEF), the umbrella association of all business associations in the country, has called for a restructuring of the Export Development and Investment Fund (EDIF) to be solely responsible for export financing, since existing structures do not address the needs of exporters in the country.
The association has, therefore, called on the government to decouple EDIF from commercial banks.
Presenting a position paper on, “Enhancing the regulatory environment for an accelerated development and growth of the export sector”, the association said the existing financial framework did not sufficiently address the needs of the export sector.
It also observed that the current interest charge of 12 per cent by EDIF should be lowered to five per cent, since it was too high.
The PEF said it acknowledged the availability of credit facilities for the export sector but indicated that such funds were expensive to access, apart from the high interest charges demanded by the banks.
According to the study, the Ghana Standards Board (GSB) and the Food and Drugs Board (FDB) were the cause of unnecessary delays, given the duplication of functions by the two organisations.
“The functions are not clearly defined, making it difficult for exporters to know where they can immediately go to seek assistance,” it said.
Complaints were made about double taxation by the Internal Revenue Service (IRS), especially in the fisheries sector, which increased operational cost and made products less competitive on the world market.
It said an arbitrary increase in port tariffs by the Ghana Ports and Harbours Authority (GPHA), without consulting stakeholders, was a major concern to exporters.
It cited the recent increase in the ground rent fee from ¢500,000 to ¢70 million as one such instance of arbitrary increase.
The PEF again called for the liberalisation of labour at the country’s ports so that exporters could hire their own labour for loading and offloading at the ports.
It said under the current system, exporters had no option but to use labour at the ports, the cost of which was very high.
On intellectual property rights, PEF said the non-enforcement of laws under the Industrial Designs Law and the Copyright and Trademarks laws did not encourage exporters to be innovative and inventive.
The PEF recommended the creation of land banks for various sectors, such as land banks for exporters of agro- products which could greatly facilitate cold chain and packed house facilities.
It also recommended closer linkages between industry and educational institutions to ensure the right curriculum was developed to suit the job market
“This collaboration is also needed to ensure that trainees acquire practical training necessary for their study,” it said.
The foundation also raised concern about the increase in robbery cases, since it had the potential to drive away investors, especially foreign partners. From the Business Desk
THE Private Enterprises Foundation (PEF), the umbrella association of all business associations in the country, has called for a restructuring of the Export Development and Investment Fund (EDIF) to be solely responsible for export financing, since existing structures do not address the needs of exporters in the country.
The association has, therefore, called on the government to decouple EDIF from commercial banks.
Presenting a position paper on, “Enhancing the regulatory environment for an accelerated development and growth of the export sector”, the association said the existing financial framework did not sufficiently address the needs of the export sector.
It also observed that the current interest charge of 12 per cent by EDIF should be lowered to five per cent, since it was too high.
The PEF said it acknowledged the availability of credit facilities for the export sector but indicated that such funds were expensive to access, apart from the high interest charges demanded by the banks.
According to the study, the Ghana Standards Board (GSB) and the Food and Drugs Board (FDB) were the cause of unnecessary delays, given the duplication of functions by the two organisations.
“The functions are not clearly defined, making it difficult for exporters to know where they can immediately go to seek assistance,” it said.
Complaints were made about double taxation by the Internal Revenue Service (IRS), especially in the fisheries sector, which increased operational cost and made products less competitive on the world market.
It said an arbitrary increase in port tariffs by the Ghana Ports and Harbours Authority (GPHA), without consulting stakeholders, was a major concern to exporters.
It cited the recent increase in the ground rent fee from ¢500,000 to ¢70 million as one such instance of arbitrary increase.
The PEF again called for the liberalisation of labour at the country’s ports so that exporters could hire their own labour for loading and offloading at the ports.
It said under the current system, exporters had no option but to use labour at the ports, the cost of which was very high.
On intellectual property rights, PEF said the non-enforcement of laws under the Industrial Designs Law and the Copyright and Trademarks laws did not encourage exporters to be innovative and inventive.
The PEF recommended the creation of land banks for various sectors, such as land banks for exporters of agro- products which could greatly facilitate cold chain and packed house facilities.
It also recommended closer linkages between industry and educational institutions to ensure the right curriculum was developed to suit the job market
“This collaboration is also needed to ensure that trainees acquire practical training necessary for their study,” it said.
The foundation also raised concern about the increase in robbery cases, since it had the potential to drive away investors, especially foreign partners. From the Business Desk
Sunday, February 11, 2007
$300,000 deal to support SMEs
Story: Boahene Asamoah
A $300,000 trade development project agreement has been signed between Ecobank Transnational Incorporated (ETI), the West African financial institution, and the United States Agency for International Development (USAID) to promote a cordial relationship between commercial banks and the Small and Medium-Scale Enterprises (SMEs) in the country.
The project, which has the tag line “Promoting Trade through Access to Credit”, is a one-year pilot programme to support and promote SMEs especially those in the export sector of the country.
The United States of America Ambassador to Ghana, Ms Pamela Bridgewater and the USAID West African Mission Director, Dr Jatinder Cheema, initialled on behalf of the US, while the Group Chief Executive Officer of ETI, Mr Arnold Ekpe signed on behalf of ECOWAS Transnational Incorporatoin( ETI)
Speaking at the signing ceremony, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Alan Kyeremanten, said the project was important as it would ensure trade promotion within the sub-region of West Africa.
He said the project, which was targeted at SMEs would also ensure the development of SMEs, which constituted about 90 per cent of all businesses in the country.
Mr Kyerematen further stated that the provision of credit as a component of the project was also welcome as credit to business was one of the major challenges facing business development in the country.
Ms Bridgewater said the project which was targeted at SMEs in the country, is an indication of how important SMEs were in the economic development of the country.
She said the ceremony was important as it would help bridge the financial gap between SMEs and the financial institutions and also provide technical support for SMEs.
Ms Bridgewater said the project was part of the US government’s efforts to promote capacity building in trade under the African Global Competitiveness Initiative to ensure that countries within the sub-region took advantage of export opportunities under the African Growth and Opportunities Act (AGOA).
A Deputy Governor of the Bank of Ghana, Dr Mahamudu Bawumia, said the central bank supports any attempt to nurture and develop the SME sector of the economy.
He reiterated that the project was important as it would help promote trade and investment within the West African sub-region.
He called for the enforcement of the Ecowas Trade and Liberalisation Scheme to deepen trading within the sub-region.
He said the passage of the Foreign Exchange Act was to further promote regional trading between Ghana and its neighbours.
Mr Ekpe said trade and investments within the sub-region were fundamental to the economic growth of the sub-region.
He said the agreement was in line with the core foundations of the bank to promote regional trade and investments and said the bank was excited to be part of the programme.
Thursday, February 08, 2007
Private Sector must play active part in corporate governance
Story: Boahene Asamoah
The President of the Private Enterprise Foundation (PEF), Mr Wilson Atta Krofah, has said that there is the need for the private sector to play an active role to ensure good corporate governance in the country.
“Good governance at the national level can never be attained without the involvement and support of the private sector,”he said.
At a two-day seminar on Good Corporate Governance organised for board members by PEF with support from the Centre for International Private Enterprise (CIPE), Mr Akrofah stated that “ there is the need to increase the awareness of good corporate governance practices in the country”.
The seminar attracted some Chief Executive Officers, board members and chairpersons of companies from the private sector particularly. The seminar is being facilitated by Lawfields Consulting, a legal and business management consulting firm.
He said a report on corporate governance in the country has revealed that boards in the country had been largely effective in providing strategic direction for most companies in the country.
He said the situation was prevalent in the public corporations and multinational companies which operated in the country.
The report was conducted as part of the country’s review under the African Peer Review Mechanism, in which PEF was one of the technical teams engaged to prepare a report on the status of governance in the country.
“During the last decade, the adherence to the tenets and observance of governance has been highlighted as a critical variable in promoting the right level of growth in developing countries,” he said.
A Consultant to LawFields Consulting, Dr Pikay Richardson, who is also a lecturer at the Manchester Business School in the United Kingdom, said there was the need to appoint qualified people who could run and make businesses and corporations profitable rather than appoint people who had the right political connections.
He said it was only those managers who anticipated change and devised strategic directions that would be to survive the changing trend in the world of business.
Dr Richardson mentioned some of the reasons why business failed to include the continued faith in yesterday’s models, rapid change in the business environment and management’s failures and incompetence.
He said liberalisation, policy reforms, globalisation, technological developments, industry collision and consumer sophistication were some of the major causes of change.
Dr Richardson said managers and leaders of organisations should set clear objectives, ensure a commitment to common goals and shared values, among other things, to ensure success of their companies.
The President of the Private Enterprise Foundation (PEF), Mr Wilson Atta Krofah, has said that there is the need for the private sector to play an active role to ensure good corporate governance in the country.
“Good governance at the national level can never be attained without the involvement and support of the private sector,”he said.
At a two-day seminar on Good Corporate Governance organised for board members by PEF with support from the Centre for International Private Enterprise (CIPE), Mr Akrofah stated that “ there is the need to increase the awareness of good corporate governance practices in the country”.
The seminar attracted some Chief Executive Officers, board members and chairpersons of companies from the private sector particularly. The seminar is being facilitated by Lawfields Consulting, a legal and business management consulting firm.
He said a report on corporate governance in the country has revealed that boards in the country had been largely effective in providing strategic direction for most companies in the country.
He said the situation was prevalent in the public corporations and multinational companies which operated in the country.
The report was conducted as part of the country’s review under the African Peer Review Mechanism, in which PEF was one of the technical teams engaged to prepare a report on the status of governance in the country.
“During the last decade, the adherence to the tenets and observance of governance has been highlighted as a critical variable in promoting the right level of growth in developing countries,” he said.
A Consultant to LawFields Consulting, Dr Pikay Richardson, who is also a lecturer at the Manchester Business School in the United Kingdom, said there was the need to appoint qualified people who could run and make businesses and corporations profitable rather than appoint people who had the right political connections.
He said it was only those managers who anticipated change and devised strategic directions that would be to survive the changing trend in the world of business.
Dr Richardson mentioned some of the reasons why business failed to include the continued faith in yesterday’s models, rapid change in the business environment and management’s failures and incompetence.
He said liberalisation, policy reforms, globalisation, technological developments, industry collision and consumer sophistication were some of the major causes of change.
Dr Richardson said managers and leaders of organisations should set clear objectives, ensure a commitment to common goals and shared values, among other things, to ensure success of their companies.
Committee on Shareholders association formed
Story: Boahene Asamoah
A five-member committee has been formed to work out a framework for quick establishment of shareholders association in the country.
The members of the committee are Messrs Djaba Nyakotey, Sas George, Adu Anane-Antwi, Kwabena Abankwa Yeboah and Mrs Kwasima Dumor.
The committee was formed during a meeting organised by the Ghana Stock Exchange to facilitate the establishment of strong and vibrant shareholders association in the country.
At the meeting, the Managing Director of the Ghana Stock Exchange (GSE), Mr S.K. Yamoah, said it was important to promote the formation of a strong vibrant shareholders association to play a critical role in the development of the capital market.
He said there was the need to ensure constant education of shareholders on some of the best practices on the capital market, adding that it was only when shareholders were equipped with the necessary knowledge that they could make any meaningful contribution to the development of the stock market.
The General Manager of the GSE, Mr Ekwow Afedzi, gave an overview of the performance of the stock market during 2006 and said given the performance of the bourse, it was expected to continue its slow recovery from the bearish sentiments it experienced the previous year.
Mr Afedzi said the market was expecting to see some action for this year, stating that the exchange had a target to list a minimum of four companies for the year.
He said the automation programme was also likely to be completed during the course of the year, adding that the Central Depository System was also expected to be in operation this year.
He further stated that the GSE would host a conference of African Stock Exchanges in October as part of efforts to celebrate the Golden Jubilee celebrations.
Mr Nyakotey, in a report, said the stock market needed a strong regulatory framework and a high level of awareness creation among the general public.
He said there was the need to form a model shareholders association in the country.
A five-member committee has been formed to work out a framework for quick establishment of shareholders association in the country.
The members of the committee are Messrs Djaba Nyakotey, Sas George, Adu Anane-Antwi, Kwabena Abankwa Yeboah and Mrs Kwasima Dumor.
The committee was formed during a meeting organised by the Ghana Stock Exchange to facilitate the establishment of strong and vibrant shareholders association in the country.
At the meeting, the Managing Director of the Ghana Stock Exchange (GSE), Mr S.K. Yamoah, said it was important to promote the formation of a strong vibrant shareholders association to play a critical role in the development of the capital market.
He said there was the need to ensure constant education of shareholders on some of the best practices on the capital market, adding that it was only when shareholders were equipped with the necessary knowledge that they could make any meaningful contribution to the development of the stock market.
The General Manager of the GSE, Mr Ekwow Afedzi, gave an overview of the performance of the stock market during 2006 and said given the performance of the bourse, it was expected to continue its slow recovery from the bearish sentiments it experienced the previous year.
Mr Afedzi said the market was expecting to see some action for this year, stating that the exchange had a target to list a minimum of four companies for the year.
He said the automation programme was also likely to be completed during the course of the year, adding that the Central Depository System was also expected to be in operation this year.
He further stated that the GSE would host a conference of African Stock Exchanges in October as part of efforts to celebrate the Golden Jubilee celebrations.
Mr Nyakotey, in a report, said the stock market needed a strong regulatory framework and a high level of awareness creation among the general public.
He said there was the need to form a model shareholders association in the country.
Aluworks sings $12.5 million deal with Fata
Story: Boahene Asamoah
ALUWORKS Ghana Limited has signed a $12.5-million agreement with FATA Hunter, an Italian firm, for the supply of a new state-of-the-art Cold Rolling Mill.
The cold rolling mill is the heart of the manufacturing plant, the stage at which the cast strip is reduced to customised thickness for further processing in the finishing lines to customised sizes for various end uses such as corrugated roofing sheets, quality cookware and sheets for fabrication.
The additional Cold Rolling Mill is to be installed within a period of 20 months and is expected to increase the company’s current capacity from the present 20,000 tonnes to 30,000 tonnes.
At the signing ceremony, the Board Chairman of the company, Mr William E. Inkumsah, said “the signing of the contract for the acquisition of a state-of-the-art Cold Rolling Mill in an addition to the existing one is a landmark in the history of Aluworks, which will pave the way for further expansion in future”.
He said he was confident that the company would once again supply high quality equipment, which would meet the company’s expectations.
The Managing Director of Aluworks, Mr Kondagunta Venkataramana, said the agreement with Fata Hunter for the supply and installation of a second mill would provide a vital link towards the goal of ensuring integrated aluminium industry in the country.
“The additional rolling mill will provide raw materials required for developing downstream product line extension strategies and help with acquiring new technologies that facilitate the development of local industries using aluminium semi-finished products, thereby generating job opportunities.
The Chief Executive Officer of Fata Hunter, Dr Anthony Tropeano, said the new cold rolling mill to be installed was the very latest technology, which uses electronic and hydraulic technologies.
He said the company was happy to be associated with Aluworks, and assured management and board members that the company would deliver quality products.
The Italian Ambassador to Ghana, Mr Fabrizio De Agosstini, said the signing agreement signified yet another important step in Ghana-Italian relationship.
He said there was the need to further strengthen industrial co-operation between the countries for their mutual benefit.
He hinted that to further strengthen the ties between the two countries, the Italian President was expected to visit the country sometime this year.
Aluworks and Fata Hunt have a long business relationship spanning a quarter of a century.
Two major expansion works at Aluworks, which involved the addition of two strip casters and a Tension Levelling Line in 1989 and 1999 were designed, manufactured and installed by Fata Hunt.
Aluworks is a leading producer of flat roll aluminium products in the West African sub-region and exports about 40 per cent of the total aluminium demand in the sub-region.
ALUWORKS Ghana Limited has signed a $12.5-million agreement with FATA Hunter, an Italian firm, for the supply of a new state-of-the-art Cold Rolling Mill.
The cold rolling mill is the heart of the manufacturing plant, the stage at which the cast strip is reduced to customised thickness for further processing in the finishing lines to customised sizes for various end uses such as corrugated roofing sheets, quality cookware and sheets for fabrication.
The additional Cold Rolling Mill is to be installed within a period of 20 months and is expected to increase the company’s current capacity from the present 20,000 tonnes to 30,000 tonnes.
At the signing ceremony, the Board Chairman of the company, Mr William E. Inkumsah, said “the signing of the contract for the acquisition of a state-of-the-art Cold Rolling Mill in an addition to the existing one is a landmark in the history of Aluworks, which will pave the way for further expansion in future”.
He said he was confident that the company would once again supply high quality equipment, which would meet the company’s expectations.
The Managing Director of Aluworks, Mr Kondagunta Venkataramana, said the agreement with Fata Hunter for the supply and installation of a second mill would provide a vital link towards the goal of ensuring integrated aluminium industry in the country.
“The additional rolling mill will provide raw materials required for developing downstream product line extension strategies and help with acquiring new technologies that facilitate the development of local industries using aluminium semi-finished products, thereby generating job opportunities.
The Chief Executive Officer of Fata Hunter, Dr Anthony Tropeano, said the new cold rolling mill to be installed was the very latest technology, which uses electronic and hydraulic technologies.
He said the company was happy to be associated with Aluworks, and assured management and board members that the company would deliver quality products.
The Italian Ambassador to Ghana, Mr Fabrizio De Agosstini, said the signing agreement signified yet another important step in Ghana-Italian relationship.
He said there was the need to further strengthen industrial co-operation between the countries for their mutual benefit.
He hinted that to further strengthen the ties between the two countries, the Italian President was expected to visit the country sometime this year.
Aluworks and Fata Hunt have a long business relationship spanning a quarter of a century.
Two major expansion works at Aluworks, which involved the addition of two strip casters and a Tension Levelling Line in 1989 and 1999 were designed, manufactured and installed by Fata Hunt.
Aluworks is a leading producer of flat roll aluminium products in the West African sub-region and exports about 40 per cent of the total aluminium demand in the sub-region.
Monday, February 05, 2007
BOG to review KYC Policy- To make it relevant to local needs
Story: Boahene Asamoah
THE Bank of Ghana is to review its Know Your Customer (KYC) policy to suit the country’s peculiar needs and to provide banking services to the unbanked public in the country, a deputy Governor has disclosed.
Dr Mahmoud Bawumia, said “some of the requirements needed to open an accounts in commercial banks such as the provision of utility bills disenfranchised many people from banking services”.
Speaking at the launch of the Private Banking Services of Ecobank Ghana Limited in Accra, yesterday the Deputy Governor said the central bank was looking at the KYC policy in view of the country’s own peculiar needs.
He said many people do not have utility bills in their names and as such the policy discouraged people from doing business through the banking system.
Dr Bawumia said to ensure that banking services became convenient to customers the central bank in collaboration with its stakeholders would soon introduce the National Electronic Switch that would provide services to both holders and non holders of Auto Teller Machines cards (ATMs) throughout the country.
“This is not going to be easy, but with the support of all stakeholders this can become a reality”, he stated.
He said the Bank of Ghana would continue to pursue policies that would ensure the development of the banking sector.
He said over the past few years, there had been improvement in the macro-economic stability, however he acknowledged that “macroeconomics stability is not an end itself”.
Dr Bawumia said the banking institution had responded to policies by re-engineering and increasing credit to the private sector.
He said as at August this year, the capitalisation of banks stood at ¢4.3 trillion as against ¢3.3 trillion for the same period last year representing an increase of 33.5 per cent.
The Deputy Governor said “generally the banks have shown a robust earning and profitability over the past few years, whiles non performing loans had dropped to 11.7 per cent from 24 per cent over the past years”.
Dr Bawumia said the central bank would continue to maintain the fight against inflation to ensure its downward trend.
Launching the new service, the Executive Secretary of the Economic Community of West African States, Dr Mohammed Ibn Chambas, said the launch of the private banking services was “a landmark in the bank’s drive towards achieving a full fledged retail banking status”.
He said financial integration was a necessary condition for achieving a monetary and economic union within the sub-region.
Dr Chambas said “ECOWAS is very appreciative of the pioneering role of Ecobank and its contribution to the deepening of the regional financial market.”
He said financial integration in the sub-region has reached the stage where it can only succeed if it was market driven.
“ECOWAS is counting on such regional institutions whose future operations would smoothly and effectively transmit the monetary policy impulses of the proposed West African Central bank throughout the region”, he stated.
He added that Ecobank’s efforts fell in line with the aspirations of ECOWAS as the bank had taken the lead to integrate the retail banking sector by extending cross-border banking services to 12 of the 15 ECOWAS member states.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the introduction of the new service was to provide quality service to a segment of the market.
He said the increasing demand on the target market had positioned the bank in a position to redefine personal banking services that would meet international standards.
Mr Adjei said the new service was fast, convenient and personalised banking services to the target segment.
To ensure that the service is delivered to the top-notch in society, the service is not open to the general public, it is by invitation.
The Managing Director said the bank would introduce more innovations to satisfy both the retail and corporate customers in the near future.
Caption: Mr Alfred Sakyi, Manager of the Private Banking, of Ecobank, (Second Left) showing Dr Chambas the edifice of the bank. Also in the picture from right is Mr E.P.L. Gyampoh, immediate past Board Chairman of Ecobank, Dr Bawumia, a deputy Governor Bank of Ghana, Mr Tei Mensah Mante, Board Chairman of Ecobank Ghana and Mr Adjei, MD of Ecobank Ghana.
THE Bank of Ghana is to review its Know Your Customer (KYC) policy to suit the country’s peculiar needs and to provide banking services to the unbanked public in the country, a deputy Governor has disclosed.
Dr Mahmoud Bawumia, said “some of the requirements needed to open an accounts in commercial banks such as the provision of utility bills disenfranchised many people from banking services”.
Speaking at the launch of the Private Banking Services of Ecobank Ghana Limited in Accra, yesterday the Deputy Governor said the central bank was looking at the KYC policy in view of the country’s own peculiar needs.
He said many people do not have utility bills in their names and as such the policy discouraged people from doing business through the banking system.
Dr Bawumia said to ensure that banking services became convenient to customers the central bank in collaboration with its stakeholders would soon introduce the National Electronic Switch that would provide services to both holders and non holders of Auto Teller Machines cards (ATMs) throughout the country.
“This is not going to be easy, but with the support of all stakeholders this can become a reality”, he stated.
He said the Bank of Ghana would continue to pursue policies that would ensure the development of the banking sector.
He said over the past few years, there had been improvement in the macro-economic stability, however he acknowledged that “macroeconomics stability is not an end itself”.
Dr Bawumia said the banking institution had responded to policies by re-engineering and increasing credit to the private sector.
He said as at August this year, the capitalisation of banks stood at ¢4.3 trillion as against ¢3.3 trillion for the same period last year representing an increase of 33.5 per cent.
The Deputy Governor said “generally the banks have shown a robust earning and profitability over the past few years, whiles non performing loans had dropped to 11.7 per cent from 24 per cent over the past years”.
Dr Bawumia said the central bank would continue to maintain the fight against inflation to ensure its downward trend.
Launching the new service, the Executive Secretary of the Economic Community of West African States, Dr Mohammed Ibn Chambas, said the launch of the private banking services was “a landmark in the bank’s drive towards achieving a full fledged retail banking status”.
He said financial integration was a necessary condition for achieving a monetary and economic union within the sub-region.
Dr Chambas said “ECOWAS is very appreciative of the pioneering role of Ecobank and its contribution to the deepening of the regional financial market.”
He said financial integration in the sub-region has reached the stage where it can only succeed if it was market driven.
“ECOWAS is counting on such regional institutions whose future operations would smoothly and effectively transmit the monetary policy impulses of the proposed West African Central bank throughout the region”, he stated.
He added that Ecobank’s efforts fell in line with the aspirations of ECOWAS as the bank had taken the lead to integrate the retail banking sector by extending cross-border banking services to 12 of the 15 ECOWAS member states.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the introduction of the new service was to provide quality service to a segment of the market.
He said the increasing demand on the target market had positioned the bank in a position to redefine personal banking services that would meet international standards.
Mr Adjei said the new service was fast, convenient and personalised banking services to the target segment.
To ensure that the service is delivered to the top-notch in society, the service is not open to the general public, it is by invitation.
The Managing Director said the bank would introduce more innovations to satisfy both the retail and corporate customers in the near future.
Caption: Mr Alfred Sakyi, Manager of the Private Banking, of Ecobank, (Second Left) showing Dr Chambas the edifice of the bank. Also in the picture from right is Mr E.P.L. Gyampoh, immediate past Board Chairman of Ecobank, Dr Bawumia, a deputy Governor Bank of Ghana, Mr Tei Mensah Mante, Board Chairman of Ecobank Ghana and Mr Adjei, MD of Ecobank Ghana.
High regulatory fees killing SMEs
Story: Boahene Asamoah, Tema
THE lack of finance has been cited as a major constraint to the expansion of many small and medium-scale enterprises (SMEs) in Tema.
High fees charged by regulatory bodies such as the Food and Drugs Board (FDB) and the Ghana Standards Board (GSB) are also a hindrance to the growth and prospects of SMEs in the country.
This came up during a tour by the Ghana Journalists Association (GJA) and the National Board for Small-Scale Enterprises (NBSSI) to give a cross-section of journalists first hand information on the operations of some SMEs in Tema.
The programme was under the GJA/Business Sector Advocacy Challenge Fund (BUSAC) programme which is aimed at creating a conducive environment for businesses to operate.
The tour also brought to the fore the high cost of doing business in the country, which was another major challenge, especially for the SMEs.
At Gomashed Company Limited, producers of alcoholic and non-alcoholic beverages, the proprietor, Mr I. B. K. Tawiah, said one of the constraints his company faced was the huge cost of licensing its products at the Ghana Standards Board.
He said he needed about ¢4 million to register the products, which he said, was too expensive for a small business like his.
Apart from that he said the usual constraint of financial resources to expand the business was equally taking a huge toll on his business.
He said he produced about 20 cartons of both alcoholic and non-alcoholic beverages per month, adding that demand for the his vermouth wine was high but the funds to support the expansion of the business was not available.
At Bersama Enterprise, producers of ointments, the Managing Director, Mr Bernard Sekyiama, said he needed ¢7 million to register his product with the Food and Drugs Board (FDB) which he said was too much.
He said high fees charged by regulatory bodies such as the FDB was a hindrance to the growth and prospects of SMEs in the country and called on the authorities to give SMEs some exceptions.
Mr Sakyiama said because of his inability to register his product, he could not undertake any effective marketing.
At David Tagoe Enterprise, producers of Bottled Palm Wine and Nmedan, the proprietor, Mr David Tagoe, said the major problem facing the company was transportation cost.
That, he said, made the cost of distribution too high and therefore the product very expensive.
He also said another constraint was the lack of working capital for expanding the business.
During the tour, it was observed that most of the enterprises were family-owned and employed an average of about five people.
Journalists also had the opportunity to visit Adjemens Enterprise, producers of sachet water, Dua Ma Eduro, a traditional herbal producer, Sam Soap Industry, a soap manufacturing enterprise, Devyx Textiles, woven fabric enterprise, Ashiaman Metal Fabrication, a metal fabrication enterprise and Special Touch Foods, where the journalists were treated to good Ghanaian and continental dishes to round up the day’s activities.
THE lack of finance has been cited as a major constraint to the expansion of many small and medium-scale enterprises (SMEs) in Tema.
High fees charged by regulatory bodies such as the Food and Drugs Board (FDB) and the Ghana Standards Board (GSB) are also a hindrance to the growth and prospects of SMEs in the country.
This came up during a tour by the Ghana Journalists Association (GJA) and the National Board for Small-Scale Enterprises (NBSSI) to give a cross-section of journalists first hand information on the operations of some SMEs in Tema.
The programme was under the GJA/Business Sector Advocacy Challenge Fund (BUSAC) programme which is aimed at creating a conducive environment for businesses to operate.
The tour also brought to the fore the high cost of doing business in the country, which was another major challenge, especially for the SMEs.
At Gomashed Company Limited, producers of alcoholic and non-alcoholic beverages, the proprietor, Mr I. B. K. Tawiah, said one of the constraints his company faced was the huge cost of licensing its products at the Ghana Standards Board.
He said he needed about ¢4 million to register the products, which he said, was too expensive for a small business like his.
Apart from that he said the usual constraint of financial resources to expand the business was equally taking a huge toll on his business.
He said he produced about 20 cartons of both alcoholic and non-alcoholic beverages per month, adding that demand for the his vermouth wine was high but the funds to support the expansion of the business was not available.
At Bersama Enterprise, producers of ointments, the Managing Director, Mr Bernard Sekyiama, said he needed ¢7 million to register his product with the Food and Drugs Board (FDB) which he said was too much.
He said high fees charged by regulatory bodies such as the FDB was a hindrance to the growth and prospects of SMEs in the country and called on the authorities to give SMEs some exceptions.
Mr Sakyiama said because of his inability to register his product, he could not undertake any effective marketing.
At David Tagoe Enterprise, producers of Bottled Palm Wine and Nmedan, the proprietor, Mr David Tagoe, said the major problem facing the company was transportation cost.
That, he said, made the cost of distribution too high and therefore the product very expensive.
He also said another constraint was the lack of working capital for expanding the business.
During the tour, it was observed that most of the enterprises were family-owned and employed an average of about five people.
Journalists also had the opportunity to visit Adjemens Enterprise, producers of sachet water, Dua Ma Eduro, a traditional herbal producer, Sam Soap Industry, a soap manufacturing enterprise, Devyx Textiles, woven fabric enterprise, Ashiaman Metal Fabrication, a metal fabrication enterprise and Special Touch Foods, where the journalists were treated to good Ghanaian and continental dishes to round up the day’s activities.
Integration of stock exchanges- Ghana, Nigeria take necessary steps
Story: Boahene Asamoah
THE Ghana Stock Exchange (GSE) is exploring possible collaboration with neighbouring stock markets in a bid to create a platform of regional integration of stock markets, the General Manager of the GSE, Mr Ekwow Afedzi, has stated.
He said the “GSE has begun discussions on regional integration with the Nigerian Stock Exchange to harmonise the operations of the two bourses”.
Mr Afedzi made this known during an interaction with the visiting Lord Mayor of the City of London, Rt. Hon. Alderman John Stuttard, and his six-member delegation to the GSE as part of his four-day official visit to the country.
Mr Afedzi’s statement was in response to a suggestion by the Vice Chairperson of the Standard Chartered Bank in charge of Capital Markets, Ms Ann Grant, on the need for the GSE to merge with other neighbouring stock markets to create a regional bourse that could attract the needed investments.
Mr Afedzi said a committee had been set up between the two exchanges to facilitate the integration in the shortest possible time.
The General Manager said the listing of Ecobank Transnational on the three bourses in the West African sub-region — the GSE, the Nigerian Stock Exchange and the Ivorian bourses — was a good platform to integrate the regional markets.
He assured the delegation that the integration of the markets in the sub-region was high on the agenda of the GSE and its Nigerian counterparts.
In her submission, Ms Grant stated that irrespective of the good performance of the Ghana bourse, investors would be interested in bigger markets and called on the GSE to integrate with other regional bourses.
“The reality is that your market is too small in global terms”, she added.
She said “no foreign investor would develop your country for you unless there was equally vibrant domestic investment avenues”.
Ms Grant said Standard Chartered listed on the Ghanaian bourse because the bank wanted to be part of the Ghanaian success.
She said part of the reason for the bank’s growth was the decision to invest in emerging markets and said Ghana was one of the key pillars in the bank’s growth.
She urged the exchange to take advantage of Ghanaians living abroad to ensure a substantial investment back home.
“There must be a way of plugging into this group of people who are doing quite well in the United Kingdom to ensure substantial investments in the economy,” she said.
The Director-General of the Securities and Exchange Commission (SEC), Nii Noi Sowah, mentioned public education as one of the major challenges facing the market and said there was the need to intensify the education of all players on the market.
THE Ghana Stock Exchange (GSE) is exploring possible collaboration with neighbouring stock markets in a bid to create a platform of regional integration of stock markets, the General Manager of the GSE, Mr Ekwow Afedzi, has stated.
He said the “GSE has begun discussions on regional integration with the Nigerian Stock Exchange to harmonise the operations of the two bourses”.
Mr Afedzi made this known during an interaction with the visiting Lord Mayor of the City of London, Rt. Hon. Alderman John Stuttard, and his six-member delegation to the GSE as part of his four-day official visit to the country.
Mr Afedzi’s statement was in response to a suggestion by the Vice Chairperson of the Standard Chartered Bank in charge of Capital Markets, Ms Ann Grant, on the need for the GSE to merge with other neighbouring stock markets to create a regional bourse that could attract the needed investments.
Mr Afedzi said a committee had been set up between the two exchanges to facilitate the integration in the shortest possible time.
The General Manager said the listing of Ecobank Transnational on the three bourses in the West African sub-region — the GSE, the Nigerian Stock Exchange and the Ivorian bourses — was a good platform to integrate the regional markets.
He assured the delegation that the integration of the markets in the sub-region was high on the agenda of the GSE and its Nigerian counterparts.
In her submission, Ms Grant stated that irrespective of the good performance of the Ghana bourse, investors would be interested in bigger markets and called on the GSE to integrate with other regional bourses.
“The reality is that your market is too small in global terms”, she added.
She said “no foreign investor would develop your country for you unless there was equally vibrant domestic investment avenues”.
Ms Grant said Standard Chartered listed on the Ghanaian bourse because the bank wanted to be part of the Ghanaian success.
She said part of the reason for the bank’s growth was the decision to invest in emerging markets and said Ghana was one of the key pillars in the bank’s growth.
She urged the exchange to take advantage of Ghanaians living abroad to ensure a substantial investment back home.
“There must be a way of plugging into this group of people who are doing quite well in the United Kingdom to ensure substantial investments in the economy,” she said.
The Director-General of the Securities and Exchange Commission (SEC), Nii Noi Sowah, mentioned public education as one of the major challenges facing the market and said there was the need to intensify the education of all players on the market.
Merchant Bank to build on strong performance-MD
25/1/2007.
Merchant bank (fin)
Story: Boahene Asamoah
THE Managing Director of Merchant Bank, Ghana Limited, Mr Blaise O. Mankwa, has said that the bank will build on its strong performance last year to deliver better services for its customers in the coming months.
Speaking at a cocktail reception for its customers in Accra, Mr Mankwa said “our performance in the past year has been one of the strongest in the history of the bank”
The Managing Director said “total assets increased from about ¢1.9 trillion to ¢3.4 trillion, an increase of over 70 per cent.”
He said the bank provided about $100 million facilities to support business growth and development in the country.
Mr Mankwa said the bank last year established and deepened its relationships with external partners to provide customers with the needed support to get their businesses going.
“I am sure you all heard the news about the $40 million facilities we obtained from Afrieximbank of Cairo and the $10 million Letters of Credit facilities we had from IFC”, he stated, adding that “in the coming year, we expect to obtain some more of such facilities over and above what we obtained last year”.
On branch expansion, Mr Mankwa said the bank would add four more branches to bring the total number of branches to 17 by the end of the year.
He said the bank was determined to make its services available at many more locations within the shortest possible time.
The Managing Director said management was re-organising its Corporate Banking Department to focused on customer needs.
“It will be a department re-positioned to partner your business in the true sense of the word. Our new Corporate Relationship Managers will be specialists in various industries”, he said.
Again, he said, the bank’s Retail Banking Division established in 2005 was also coming out very strongly, adding that “ at last year's Corporate Initiative Ghana (CIG) Banking Awards ceremony, it was adjudged second in the rankings, which is a very significant achievement after only a year in operation.
Merchant bank (fin)
Story: Boahene Asamoah
THE Managing Director of Merchant Bank, Ghana Limited, Mr Blaise O. Mankwa, has said that the bank will build on its strong performance last year to deliver better services for its customers in the coming months.
Speaking at a cocktail reception for its customers in Accra, Mr Mankwa said “our performance in the past year has been one of the strongest in the history of the bank”
The Managing Director said “total assets increased from about ¢1.9 trillion to ¢3.4 trillion, an increase of over 70 per cent.”
He said the bank provided about $100 million facilities to support business growth and development in the country.
Mr Mankwa said the bank last year established and deepened its relationships with external partners to provide customers with the needed support to get their businesses going.
“I am sure you all heard the news about the $40 million facilities we obtained from Afrieximbank of Cairo and the $10 million Letters of Credit facilities we had from IFC”, he stated, adding that “in the coming year, we expect to obtain some more of such facilities over and above what we obtained last year”.
On branch expansion, Mr Mankwa said the bank would add four more branches to bring the total number of branches to 17 by the end of the year.
He said the bank was determined to make its services available at many more locations within the shortest possible time.
The Managing Director said management was re-organising its Corporate Banking Department to focused on customer needs.
“It will be a department re-positioned to partner your business in the true sense of the word. Our new Corporate Relationship Managers will be specialists in various industries”, he said.
Again, he said, the bank’s Retail Banking Division established in 2005 was also coming out very strongly, adding that “ at last year's Corporate Initiative Ghana (CIG) Banking Awards ceremony, it was adjudged second in the rankings, which is a very significant achievement after only a year in operation.
“we will oppose EPA” TWN
Story: Boahene Asamoah
THE Head of the Political and Economic Unit of the Third World Network, a non-governmental organisation, Mr Gyekye Tanoh, has said civil society organisations in Africa are ensuring that their government’s do not sign up the Economic Partnership Agreement between the European Union and the African, Caribbean and Pacific (ACP).
He said civil society groups would organise a critical mass of the population to oppose the agreement.
Mr Tanoh said civil society organisations opposed the EPA Agreement because such a deal could only impoverish the lives of people on the continent, whiles positioning the EU to take advantage of the continent’s resources.
The EPA Agreement is expected to be signed between the EU and ACP countries later this year.
Mr Tanoh made this known when representatives of civil society organisations who attended the just-ended World Social Forum were briefing media men on the significance of the forum in Accra.
He said the EPA Agreement was not part of the free trade agreement under the World Trade Organisation rules but rather were a new set of economic protocols that gave the EU certain privileges and rights but which did not extend these same privileges and rights to the ACP countries.
He said the issues of the EPA Agreement dominated most of the discussions at the just-ended forum in Nairobi, Kenya, and added that this was because of the importance of the agreement and its impact on the continent
He said the forum was able to make a lot of linkages with other liked-minded civil society organisations to further pursue their agenda of promoting social justice.
The Head of the Environment Unit of the TWN, Mr Abdulai Dramani, said issues concerning the extractive industries, especially mining, and its impact on the environment and the EPA were the two main issues that came up for discussions.
Mr Dramani stated that it had been noted that the exploitation of natural resources had rather deepened the poverty of people on the continent and warned that the continent would further be impoverished if the EPA Agreement was signed.
He said one of the focus of the EU under its proposed EPA Agreement was to further make investments in the natural resources sector, which would have dire consequences on the environment and ensure social disintegration.
He said “the agreement if signed would further lower investments standards in ACP countries” and added that civil society organisations intended to mobilise a critical mass of people to effect changes.
Mr Dramani further stated that the issue of China signing agreements with some African countries was seen as a further step to scramble for the natural resources of the continent.
A representative of the National Coalition Against the Privatisation of Water, Mr Leonard Quartey, said the coalition was against any form of privatisation, be it management contract or partial privatisation of water resources in the country.
He said the coalition was in support of total public control of water resources and would campaign against any form of privatisation.
THE Head of the Political and Economic Unit of the Third World Network, a non-governmental organisation, Mr Gyekye Tanoh, has said civil society organisations in Africa are ensuring that their government’s do not sign up the Economic Partnership Agreement between the European Union and the African, Caribbean and Pacific (ACP).
He said civil society groups would organise a critical mass of the population to oppose the agreement.
Mr Tanoh said civil society organisations opposed the EPA Agreement because such a deal could only impoverish the lives of people on the continent, whiles positioning the EU to take advantage of the continent’s resources.
The EPA Agreement is expected to be signed between the EU and ACP countries later this year.
Mr Tanoh made this known when representatives of civil society organisations who attended the just-ended World Social Forum were briefing media men on the significance of the forum in Accra.
He said the EPA Agreement was not part of the free trade agreement under the World Trade Organisation rules but rather were a new set of economic protocols that gave the EU certain privileges and rights but which did not extend these same privileges and rights to the ACP countries.
He said the issues of the EPA Agreement dominated most of the discussions at the just-ended forum in Nairobi, Kenya, and added that this was because of the importance of the agreement and its impact on the continent
He said the forum was able to make a lot of linkages with other liked-minded civil society organisations to further pursue their agenda of promoting social justice.
The Head of the Environment Unit of the TWN, Mr Abdulai Dramani, said issues concerning the extractive industries, especially mining, and its impact on the environment and the EPA were the two main issues that came up for discussions.
Mr Dramani stated that it had been noted that the exploitation of natural resources had rather deepened the poverty of people on the continent and warned that the continent would further be impoverished if the EPA Agreement was signed.
He said one of the focus of the EU under its proposed EPA Agreement was to further make investments in the natural resources sector, which would have dire consequences on the environment and ensure social disintegration.
He said “the agreement if signed would further lower investments standards in ACP countries” and added that civil society organisations intended to mobilise a critical mass of people to effect changes.
Mr Dramani further stated that the issue of China signing agreements with some African countries was seen as a further step to scramble for the natural resources of the continent.
A representative of the National Coalition Against the Privatisation of Water, Mr Leonard Quartey, said the coalition was against any form of privatisation, be it management contract or partial privatisation of water resources in the country.
He said the coalition was in support of total public control of water resources and would campaign against any form of privatisation.
Re-denomination will bring benefits-Says Chamber of Commerce
Story: Boahene Asamoah
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella body of traders and industry in the country, has thrown its weight behind the intended re-domination of the cedi, saying “it has considerable benefits for the business community and the general public”.
A statement issued by the chamber and exclusively made available to the Daily Graphic, said following extensive discussions between officials of the Bank of Ghana and the GNCCI, it was clear that the re-denomination of the cedi would come with considerable benefits.
“The chamber, therefore, fully supports the re-denomination exercise,” the statement said.
The chamber said the re-domination would reduce the high transaction costs of businesses in the country.
It explained that a lot of time was spent in counting money, especially when it involved smaller denominations. That, the chamber stated, often happened not only in financial institutions but also in day-to-day business transactions as a result of the cash-based economy of the country.
“Re-denomination will, therefore, save time and introduce efficiency into day-to-day transactions,” it said.
“With the advent of the new Ghana Cedi ATM and other payment systems are likely to improve”.
The chamber stated that some challenges that its members faced were proper book keeping and statistical records, which the chamber said, the exercise would help to address as fewer figures would be dealt with. It added that the re-denomination would also help to set a realistic exchange rate.
The chamber said the re-denomination would mean that if the present exchange rate is $9200, then the new Ghana Cedi will be $1=GhC 0.9200.
“This will help to boost the level of confidence in the economy since it creates the impression that the local currency is strong in relation to other currencies and because one does not need too many of it to exchange,” the chamber stated.
Again, the chamber said, the exercise may be successful in assuring investors, both local and foreign, that the economy was stable and expected to remain so in future.
On the West African Monetary Zone (WAMZ), the chamber said the exercise would give the country a better bargaining power.
It said with a weak currency such as our current cedi, the country was not only finding it difficult to meet the convergence criteria, but when she eventually entered the ECO zone, it would have a weak bargaining power of convertibility.
The chamber, however, drew the attention of the authorities to some challenges that were likely to affect the exercise.
That included inflation, which the chamber urged the government to tackle seriously.
It said in the case of Ghana, the Consumer Price Index (CPI), which is heavily dependent on food production and consequently the weather, which was outside the control of policy makers, could push up prices.
The chamber said one of the problems likely to be encountered would be the distortion of market and prices since the prices of goods and services may not fall by the same proportion as the exchange rate between the old and new currencies.
It said there was the need for effective public education to ensure that people do not go to the villages and less literate communities to mislead the people, take away their hard earned currencies and replace them with counterfeits in the name of helping them acquire the new currency.
“We would, therefore, urge the authorities to review literature thoroughly to understand how countries that have previously re-denominated fared and learn from their strengths and weaknesses”.
It said in order to ensure the success of the exercise, the authorities should work towards the introduction of non-cash payment instruments, such as “Credit Cards” in order to minimise the current incidence of cash transactions in business.
In addition, it said the law on cheque issuing facilities must also be rigidly enforced to penalise issuers of “dud cheques”.
“The chamber is prepared to collaborate with the Bank of Ghana in the education campaign to give credibility to the rationale for the exercise. It is also prepared to collaborate with the bank in any other project that will really improve commercial and industrial activities in the country,” the statement concluded.
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella body of traders and industry in the country, has thrown its weight behind the intended re-domination of the cedi, saying “it has considerable benefits for the business community and the general public”.
A statement issued by the chamber and exclusively made available to the Daily Graphic, said following extensive discussions between officials of the Bank of Ghana and the GNCCI, it was clear that the re-denomination of the cedi would come with considerable benefits.
“The chamber, therefore, fully supports the re-denomination exercise,” the statement said.
The chamber said the re-domination would reduce the high transaction costs of businesses in the country.
It explained that a lot of time was spent in counting money, especially when it involved smaller denominations. That, the chamber stated, often happened not only in financial institutions but also in day-to-day business transactions as a result of the cash-based economy of the country.
“Re-denomination will, therefore, save time and introduce efficiency into day-to-day transactions,” it said.
“With the advent of the new Ghana Cedi ATM and other payment systems are likely to improve”.
The chamber stated that some challenges that its members faced were proper book keeping and statistical records, which the chamber said, the exercise would help to address as fewer figures would be dealt with. It added that the re-denomination would also help to set a realistic exchange rate.
The chamber said the re-denomination would mean that if the present exchange rate is $9200, then the new Ghana Cedi will be $1=GhC 0.9200.
“This will help to boost the level of confidence in the economy since it creates the impression that the local currency is strong in relation to other currencies and because one does not need too many of it to exchange,” the chamber stated.
Again, the chamber said, the exercise may be successful in assuring investors, both local and foreign, that the economy was stable and expected to remain so in future.
On the West African Monetary Zone (WAMZ), the chamber said the exercise would give the country a better bargaining power.
It said with a weak currency such as our current cedi, the country was not only finding it difficult to meet the convergence criteria, but when she eventually entered the ECO zone, it would have a weak bargaining power of convertibility.
The chamber, however, drew the attention of the authorities to some challenges that were likely to affect the exercise.
That included inflation, which the chamber urged the government to tackle seriously.
It said in the case of Ghana, the Consumer Price Index (CPI), which is heavily dependent on food production and consequently the weather, which was outside the control of policy makers, could push up prices.
The chamber said one of the problems likely to be encountered would be the distortion of market and prices since the prices of goods and services may not fall by the same proportion as the exchange rate between the old and new currencies.
It said there was the need for effective public education to ensure that people do not go to the villages and less literate communities to mislead the people, take away their hard earned currencies and replace them with counterfeits in the name of helping them acquire the new currency.
“We would, therefore, urge the authorities to review literature thoroughly to understand how countries that have previously re-denominated fared and learn from their strengths and weaknesses”.
It said in order to ensure the success of the exercise, the authorities should work towards the introduction of non-cash payment instruments, such as “Credit Cards” in order to minimise the current incidence of cash transactions in business.
In addition, it said the law on cheque issuing facilities must also be rigidly enforced to penalise issuers of “dud cheques”.
“The chamber is prepared to collaborate with the Bank of Ghana in the education campaign to give credibility to the rationale for the exercise. It is also prepared to collaborate with the bank in any other project that will really improve commercial and industrial activities in the country,” the statement concluded.
Flat rate tax would be compulsory
Story: Boahene Asamoah
THE Commissioner of the Value Added Tax Service (VAT), Mr Anthony Minlah, has stated that registration for the yet be introduced flat rate scheme will be compulsory.
He said it was to ensure that as many traders as possible in the informal sector were roped into the system to ensure fairness and , that the service would embark on a mass compulsory registration exercise.
He was speaking at a media dialogue organised by the Ghana Journalists Association (GJA) with support from the Business Sector Advocacy Challenge Fund (BUSAC) and KAB Governance Consult on the “impact of the VAT on the promotion of micro-, small- and medium-scale enterprises (MSMEs)” in Accra last Friday.
Mr Minlah said the flat rate scheme was being piloted with members of the Ghana Union of Traders Association (GUTA) and said the successful outcome of the scheme would ensure the extension of the scheme to other areas of the informal sector.
The scheme is currently before Parliament for approval and has a flat rate of three per cent, targeted at the informal sector.
It is restricted to all retailers who make a turnover of ¢100 million per annum but whose annual turnover do not exceed ¢1.2 billion per annum.
“Retailers of goods who are currently registered to operate the standard or regular VAT scheme but whose business turnover does not exceed ¢1.2 billion over a 12-month period shall be converted to the scheme by the service,” he said.
Mr Minlah stressed the need for MSMEs to ensure simple book-keeping records, adding that “the requirement to issue invoices and keep basic records will compel SMEs to improve on their record keeping culture”.
He said the service was currently working with some manufacturers of cash register machines to develop cash registers with special features to be introduced to MSMEs in the country for proper record keeping.
The commissioner took time to explain the VAT law of 1998 and some of the issues that were inherent in the administration of the law.
He explained that VAT was a tax on consumption and that the burden was not on the enterprises but on the final consumer and stated that “the VAT law does not discriminate between SMES and large enterprises or multinationals”,
Mr Minlah said “all enterprises, irrespective of their size will have to meet the same threshold for registration, file returns with payments, subjected to control and verification visits, apply the same VAT rate and suffer the same penalties for non-compliance”.
Mr Minlah used the occasion to call on the general public to demand receipts for goods and services purchased to ensure that taxes were paid to the government to enable it carry out its development projects.
The President of the GJA, Mr Ransford Tetteh, said there was the need for all citizens to ensure that they fulfilled their obligation to the state by paying their taxes, while demanding accountability from the government on the utilisation of tax revenues.
He said the GJA was ready to partner institutions to ensure that the country moved forward in its development agenda.
Mr Tetteh said SMEs were critical to the economic growth of the country and that efforts must be made to support the sector to grow to enable it to offer employment opportunities for the youth in the country.
THE Commissioner of the Value Added Tax Service (VAT), Mr Anthony Minlah, has stated that registration for the yet be introduced flat rate scheme will be compulsory.
He said it was to ensure that as many traders as possible in the informal sector were roped into the system to ensure fairness and , that the service would embark on a mass compulsory registration exercise.
He was speaking at a media dialogue organised by the Ghana Journalists Association (GJA) with support from the Business Sector Advocacy Challenge Fund (BUSAC) and KAB Governance Consult on the “impact of the VAT on the promotion of micro-, small- and medium-scale enterprises (MSMEs)” in Accra last Friday.
Mr Minlah said the flat rate scheme was being piloted with members of the Ghana Union of Traders Association (GUTA) and said the successful outcome of the scheme would ensure the extension of the scheme to other areas of the informal sector.
The scheme is currently before Parliament for approval and has a flat rate of three per cent, targeted at the informal sector.
It is restricted to all retailers who make a turnover of ¢100 million per annum but whose annual turnover do not exceed ¢1.2 billion per annum.
“Retailers of goods who are currently registered to operate the standard or regular VAT scheme but whose business turnover does not exceed ¢1.2 billion over a 12-month period shall be converted to the scheme by the service,” he said.
Mr Minlah stressed the need for MSMEs to ensure simple book-keeping records, adding that “the requirement to issue invoices and keep basic records will compel SMEs to improve on their record keeping culture”.
He said the service was currently working with some manufacturers of cash register machines to develop cash registers with special features to be introduced to MSMEs in the country for proper record keeping.
The commissioner took time to explain the VAT law of 1998 and some of the issues that were inherent in the administration of the law.
He explained that VAT was a tax on consumption and that the burden was not on the enterprises but on the final consumer and stated that “the VAT law does not discriminate between SMES and large enterprises or multinationals”,
Mr Minlah said “all enterprises, irrespective of their size will have to meet the same threshold for registration, file returns with payments, subjected to control and verification visits, apply the same VAT rate and suffer the same penalties for non-compliance”.
Mr Minlah used the occasion to call on the general public to demand receipts for goods and services purchased to ensure that taxes were paid to the government to enable it carry out its development projects.
The President of the GJA, Mr Ransford Tetteh, said there was the need for all citizens to ensure that they fulfilled their obligation to the state by paying their taxes, while demanding accountability from the government on the utilisation of tax revenues.
He said the GJA was ready to partner institutions to ensure that the country moved forward in its development agenda.
Mr Tetteh said SMEs were critical to the economic growth of the country and that efforts must be made to support the sector to grow to enable it to offer employment opportunities for the youth in the country.
Friday, January 26, 2007
Exempt companies on Self Assesment from withholding tax
Story: Boahene Asamoah, Dodowa
A FORMER Commissioner of the Internal Revenue Service (IRS), Mr David Adom, has called on the government to exempt all taxpayers and companies on self assessment from withholding tax at source on corporate income.
Mr Adom said companies on self assessment did not get automatic refund of overpaid taxes adding that by the provisions of the Internal Revenue Act. 2000 (Act 592), the Commissioner was deemed to have assessed a person who filed his self assessed tax.
He said such companies had over the years proven a high level of compliance by filing their taxes, promptly and accurately and that such companies should not be made to go through the process of tax refunds.
He said “self assessment system should be fully implemented so that a person who has self assessed and established over payments has the overpaid taxes automatically refunded or credited”.
Delivering a report on a research for advocacy on tax reduction and widening of the tax net at a workshop organised by the Ghana Chamber of Commerce and Industry (GNCCI), Mr Adom of AA&K Services, a tax consulting firm, said such a move could improve the business climate and could push other companies to comply by filing their taxes accurately.
The workshop supported by the Business Sector Advocacy Challenge Fund (BUSAC) and was aimed at lobbying government to further reduce corporate tax and widening of the tax net.
Participants from the Ministries of Finance, Trade, Industry, Private Sector development and President’s Special Initiative (PSI) Internal Revenue Service, Customs, Excise and Preventive Service (CEPS) and Value Added Tax (VAT) Secretariat.
Mr Adom also suggested that the system of withholding tax should be automated to ensure that the delays in the issuance of tax credit certificate was reduced.
“A comprehensive programme should be put in place to de-emphasise the dependence of the direct administration on withholding tax from corporate income as this often results in entities paying tax out of capital and therefore has adverse effect on business growth”, he stated.
Mr Adom said the research revealed that businesses were concerned about the high capital lock up in their bid to comply with provisions of the tax law.
Mr Adom said in the face of inadequate capacity the frequency of refund, audits of companies should be reduced by raising the threshold for automatic refunds to ¢20 million.
“It was proposed that the IRS should speed up audits for refunds and where overpayments have been established refunds should be done within three months”, he said.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu said, while the association was advocating for a further reduction in the taxes, it must not lose sight of the government’s aim to raise additional taxes.
He said the workshop was relevant because it was through dialogue and brainstorm sessions that ideas could be generated to expand the tax net in the country.
Mr Baah-Wiredu said “ I wish to emphasis here that any advocacy to influence government policy formulation should be based on empiricism as opposed to just appealing to emotions”.
He said the decision by the chamber to undertake the study to carefully and critically look at the appropriateness of tax rates and to make recommendations to government was a step in the right direction.
The finance minister underscored the importance of widening the tax net to make everybody contribute his or her quota to the national coffers.
“ I take it that participants are fully aware of the benefits of a wider and efficient tax collection system without which no government can fully undertake its responsibilities of providing services, amenities and infrastructure to its people”, he emphasised.
The President of the GNNCI, Mr Wilson Atta Krofa, called for a legislation that would ensure that all businesses registered in the country belonged to one association in the country.
That, he said, would ensure the monitoring of such businesses and also ensure that such businesses pay their taxes.
Mr Akrofa stated that the chambers advocacy was in support of the government’s goal to reach out to informal sector.
The President called for a closer collaboration between the IRS, CEPS and other government agencies to educate professional bodies and the business community on the need for tax compliance.
A FORMER Commissioner of the Internal Revenue Service (IRS), Mr David Adom, has called on the government to exempt all taxpayers and companies on self assessment from withholding tax at source on corporate income.
Mr Adom said companies on self assessment did not get automatic refund of overpaid taxes adding that by the provisions of the Internal Revenue Act. 2000 (Act 592), the Commissioner was deemed to have assessed a person who filed his self assessed tax.
He said such companies had over the years proven a high level of compliance by filing their taxes, promptly and accurately and that such companies should not be made to go through the process of tax refunds.
He said “self assessment system should be fully implemented so that a person who has self assessed and established over payments has the overpaid taxes automatically refunded or credited”.
Delivering a report on a research for advocacy on tax reduction and widening of the tax net at a workshop organised by the Ghana Chamber of Commerce and Industry (GNCCI), Mr Adom of AA&K Services, a tax consulting firm, said such a move could improve the business climate and could push other companies to comply by filing their taxes accurately.
The workshop supported by the Business Sector Advocacy Challenge Fund (BUSAC) and was aimed at lobbying government to further reduce corporate tax and widening of the tax net.
Participants from the Ministries of Finance, Trade, Industry, Private Sector development and President’s Special Initiative (PSI) Internal Revenue Service, Customs, Excise and Preventive Service (CEPS) and Value Added Tax (VAT) Secretariat.
Mr Adom also suggested that the system of withholding tax should be automated to ensure that the delays in the issuance of tax credit certificate was reduced.
“A comprehensive programme should be put in place to de-emphasise the dependence of the direct administration on withholding tax from corporate income as this often results in entities paying tax out of capital and therefore has adverse effect on business growth”, he stated.
Mr Adom said the research revealed that businesses were concerned about the high capital lock up in their bid to comply with provisions of the tax law.
Mr Adom said in the face of inadequate capacity the frequency of refund, audits of companies should be reduced by raising the threshold for automatic refunds to ¢20 million.
“It was proposed that the IRS should speed up audits for refunds and where overpayments have been established refunds should be done within three months”, he said.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu said, while the association was advocating for a further reduction in the taxes, it must not lose sight of the government’s aim to raise additional taxes.
He said the workshop was relevant because it was through dialogue and brainstorm sessions that ideas could be generated to expand the tax net in the country.
Mr Baah-Wiredu said “ I wish to emphasis here that any advocacy to influence government policy formulation should be based on empiricism as opposed to just appealing to emotions”.
He said the decision by the chamber to undertake the study to carefully and critically look at the appropriateness of tax rates and to make recommendations to government was a step in the right direction.
The finance minister underscored the importance of widening the tax net to make everybody contribute his or her quota to the national coffers.
“ I take it that participants are fully aware of the benefits of a wider and efficient tax collection system without which no government can fully undertake its responsibilities of providing services, amenities and infrastructure to its people”, he emphasised.
The President of the GNNCI, Mr Wilson Atta Krofa, called for a legislation that would ensure that all businesses registered in the country belonged to one association in the country.
That, he said, would ensure the monitoring of such businesses and also ensure that such businesses pay their taxes.
Mr Akrofa stated that the chambers advocacy was in support of the government’s goal to reach out to informal sector.
The President called for a closer collaboration between the IRS, CEPS and other government agencies to educate professional bodies and the business community on the need for tax compliance.
Deepening activities on the stock market-Transol to rais ¢20 billion on GSE
Story: Boahene Asamoah
TRANSACTION Solutions TRANSACTION Solutions Ghana Limited (Transol), an information technology company is to raise ¢20 billion through an Initial Public Offer (IPO) on the Ghana Stock Exchange (GSE).
“These shops known as easy shops are 23 in number and have been deployed in Accra, Kumasi, Tema and Tamale”, Mr Jacquaye said, adding that plans were under way to open Ezi shops in Takoradi, Tarkwa and Koforidua.
EZI shops are points of sale centres for Areeba recharge vouchers and that of the other network. The locations could also be used for Ecobank Visa Gift card and payment of Multichoice bills.
The Chairman said the company was full of innovation that could help build shareholders funds, saying it was the first company to install stand alone Auto Teller Machines (ATMs) in the country using the Ecobank platform.
He said currently the company had installed 16 ATMs at strategic locations and was in the process of installing 25 additional ATMs throughout the country.
“This is why we are coming to the market to raise funds for the expansion of the business,” he said.
He said the prospects of the business was bright as the company had improved its financials tremendously over the past three years.
The company has witnessed very significant improvement in its financials registering rapid growth in its revenues since 2003.
It’s revenue went up by ¢8 billion in 2003 to ¢36.7 billion and ¢193 billion for 2004 and 2005 respectively.
Even though the company recorded a loss of ¢597.8 million in 2003, which was the first year of operations, it recovered in subsequent years, recording a net profit after tax of ¢556.8 million in 2004 and about ¢6 billion in 2005.
Fixed assets also improved from ¢1.1 billion in 2003 to ¢6.2 billion by the end of 2005, as against a total asset base of ¢2.5 billion in 2003 and ¢21.1 billion in 2005.
Shareholders funds also went up from about ¢2 billion in 2003 to ¢5.6 billion in 2005 due to improved profitability.
Mr Jacquaye said the company’s strategy was geared towards understanding key market conditions and customer needs in the medium to long term.
“The future prospects of the company are very positive as we continue to diversify our product portfolio,” he stated.
TRANSACTION Solutions TRANSACTION Solutions Ghana Limited (Transol), an information technology company is to raise ¢20 billion through an Initial Public Offer (IPO) on the Ghana Stock Exchange (GSE).
“These shops known as easy shops are 23 in number and have been deployed in Accra, Kumasi, Tema and Tamale”, Mr Jacquaye said, adding that plans were under way to open Ezi shops in Takoradi, Tarkwa and Koforidua.
EZI shops are points of sale centres for Areeba recharge vouchers and that of the other network. The locations could also be used for Ecobank Visa Gift card and payment of Multichoice bills.
The Chairman said the company was full of innovation that could help build shareholders funds, saying it was the first company to install stand alone Auto Teller Machines (ATMs) in the country using the Ecobank platform.
He said currently the company had installed 16 ATMs at strategic locations and was in the process of installing 25 additional ATMs throughout the country.
“This is why we are coming to the market to raise funds for the expansion of the business,” he said.
He said the prospects of the business was bright as the company had improved its financials tremendously over the past three years.
The company has witnessed very significant improvement in its financials registering rapid growth in its revenues since 2003.
It’s revenue went up by ¢8 billion in 2003 to ¢36.7 billion and ¢193 billion for 2004 and 2005 respectively.
Even though the company recorded a loss of ¢597.8 million in 2003, which was the first year of operations, it recovered in subsequent years, recording a net profit after tax of ¢556.8 million in 2004 and about ¢6 billion in 2005.
Fixed assets also improved from ¢1.1 billion in 2003 to ¢6.2 billion by the end of 2005, as against a total asset base of ¢2.5 billion in 2003 and ¢21.1 billion in 2005.
Shareholders funds also went up from about ¢2 billion in 2003 to ¢5.6 billion in 2005 due to improved profitability.
Mr Jacquaye said the company’s strategy was geared towards understanding key market conditions and customer needs in the medium to long term.
“The future prospects of the company are very positive as we continue to diversify our product portfolio,” he stated.
VAT flat rate aims at expanding tax net
Story: Boahene Asamoah
THE Commissioner of the Value Added Tax (VAT), Mr Anthony Ewereko Minlah, has said that the introduction of the VAT flat rate scheme, targeted at the informal sector is aimed at expanding the tax net in order to address some of the problems of the informal sector.
He said the high rate of non-filing of tax returns,the high incidence of non-issuance of invoices and bad record keeping were some of the problems of the informal sector.
Speaking at a one-day seminar for a cross-section of journalists on the VAT Flat Rate Scheme (VFRS), in Accra on Wednesday, Mr Minlah said the flat rate was not a new tax system but a modified tax on consumption to suit the informal sector.
He said the scheme was a VAT collection accounting mechanism that applied a marginal tax percentage, representing net VAT payable on the value of taxable goods supplied and was an alternative to the invoice credit method of VAT accounting which was currently being used.
Making a presentation on the scheme, the Head of Training and Development Unit of the VAT Service, Mr Anthony Ackah-Mensah, said the challenges that faced the informal sector under the standard VAT system was the difficulty in claiming back tax, low record keeping and unfair competition.
Mr Ackah-Mensah said the proposed scheme had a marginal three per cent tax to be charged by traders on their taxable output, and explained that the scheme was an alternative to the invoice credit method of VAT accounting.
He said the scheme was restricted to all retailers of goods who made business turnover of ¢100 million per annum but whose annual turnover did not exceed ¢1.2 billion per annum.
“Retailers of goods who are currently registered to operate the standard or regular VAT scheme but whose business turnover does not exceed ¢1.2 billion over a 12 month period shall be converted to the scheme by the service”, Mr Ackah-Mensah stated.
He explained that the reason why the scheme was being piloted or restricted to the trade sector was because the sector operated largely as the informal sector.
He said some of the benefits of the scheme included, easy record keeping, was simple to operate, social acceptability of the rate and a simplified and easy to complete return form.
An Assistant Commissioner in charge of Research, Monitoring and Planning, Mr Nii Ayi Aryeetey, said appropriate training programmes had been organised for management staff and field operation officers to ensure timely and efficient delivery of service.
“Appropriate training programmes will also be delivered to leaders of identifiable distribution and retail trade associations,” he stated.
THE Commissioner of the Value Added Tax (VAT), Mr Anthony Ewereko Minlah, has said that the introduction of the VAT flat rate scheme, targeted at the informal sector is aimed at expanding the tax net in order to address some of the problems of the informal sector.
He said the high rate of non-filing of tax returns,the high incidence of non-issuance of invoices and bad record keeping were some of the problems of the informal sector.
Speaking at a one-day seminar for a cross-section of journalists on the VAT Flat Rate Scheme (VFRS), in Accra on Wednesday, Mr Minlah said the flat rate was not a new tax system but a modified tax on consumption to suit the informal sector.
He said the scheme was a VAT collection accounting mechanism that applied a marginal tax percentage, representing net VAT payable on the value of taxable goods supplied and was an alternative to the invoice credit method of VAT accounting which was currently being used.
Making a presentation on the scheme, the Head of Training and Development Unit of the VAT Service, Mr Anthony Ackah-Mensah, said the challenges that faced the informal sector under the standard VAT system was the difficulty in claiming back tax, low record keeping and unfair competition.
Mr Ackah-Mensah said the proposed scheme had a marginal three per cent tax to be charged by traders on their taxable output, and explained that the scheme was an alternative to the invoice credit method of VAT accounting.
He said the scheme was restricted to all retailers of goods who made business turnover of ¢100 million per annum but whose annual turnover did not exceed ¢1.2 billion per annum.
“Retailers of goods who are currently registered to operate the standard or regular VAT scheme but whose business turnover does not exceed ¢1.2 billion over a 12 month period shall be converted to the scheme by the service”, Mr Ackah-Mensah stated.
He explained that the reason why the scheme was being piloted or restricted to the trade sector was because the sector operated largely as the informal sector.
He said some of the benefits of the scheme included, easy record keeping, was simple to operate, social acceptability of the rate and a simplified and easy to complete return form.
An Assistant Commissioner in charge of Research, Monitoring and Planning, Mr Nii Ayi Aryeetey, said appropriate training programmes had been organised for management staff and field operation officers to ensure timely and efficient delivery of service.
“Appropriate training programmes will also be delivered to leaders of identifiable distribution and retail trade associations,” he stated.
Thursday, January 25, 2007
Integration of stock exchanges—Ghana, Nigeria take
Story: Boahene Asamoah
THE Ghana Stock Exchange (GSE) is exploring possible collaboration with neighbouring stock markets in a bid to create a platform of regional integration of stock markets, the General Manager of the GSE, Mr Ekwow Afedzi, has stated.
He said the “GSE has begun discussions on regional integration with the Nigerian Stock Exchange to harmonise the operations of the two bourses”.
Mr Afedzi made this known during an interaction with the visiting Lord Mayor of the City of London, Rt. Hon. Alderman John Stuttard, and his six-member delegation to the GSE as part of his four-day official visit to the country.
Mr Afedzi’s statement was in response to a suggestion by the Vice Chairperson of the Standard Chartered Bank in charge of Capital Markets, Ms Ann Grant, on the need for the GSE to merge with other neighbouring stock markets to create a regional bourse that could attract the needed investments.
Mr Afedzi said a committee had been set up between the two exchanges to facilitate the integration in the shortest possible time.
The General Manager said the listing of Ecobank Transnational on the three bourses in the West African sub-region — the GSE, the Nigerian Stock Exchange and the Ivorian bourses — was a good platform to integrate the regional markets.
He assured the delegation that the integration of the markets in the sub-region was high on the agenda of the GSE and its Nigerian counterparts.
In her submission, Ms Grant stated that irrespective of the good performance of the Ghana bourse, investors would be interested in bigger markets and called on the GSE to integrate with other regional bourses.
“The reality is that your market is too small in global terms”, she added.
She said “no foreign investor would develop your country for you unless there was equally vibrant domestic investment avenues”.
Ms Grant said Standard Chartered listed on the Ghanaian bourse because the bank wanted to be part of the Ghanaian success.
She said part of the reason for the bank’s growth was the decision to invest in emerging markets and said Ghana was one of the key pillars in the bank’s growth.
She urged the exchange to take advantage of Ghanaians living abroad to ensure a substantial investment back home.
“There must be a way of plugging into this group of people who are doing quite well in the United Kingdom to ensure substantial investments in the economy,” she said.
The Director-General of the Securities and Exchange Commission (SEC), Nii Noi Sowah, mentioned public education as one of the major challenges facing the market and said there was the need to intensify the education of all players on the market.
THE Ghana Stock Exchange (GSE) is exploring possible collaboration with neighbouring stock markets in a bid to create a platform of regional integration of stock markets, the General Manager of the GSE, Mr Ekwow Afedzi, has stated.
He said the “GSE has begun discussions on regional integration with the Nigerian Stock Exchange to harmonise the operations of the two bourses”.
Mr Afedzi made this known during an interaction with the visiting Lord Mayor of the City of London, Rt. Hon. Alderman John Stuttard, and his six-member delegation to the GSE as part of his four-day official visit to the country.
Mr Afedzi’s statement was in response to a suggestion by the Vice Chairperson of the Standard Chartered Bank in charge of Capital Markets, Ms Ann Grant, on the need for the GSE to merge with other neighbouring stock markets to create a regional bourse that could attract the needed investments.
Mr Afedzi said a committee had been set up between the two exchanges to facilitate the integration in the shortest possible time.
The General Manager said the listing of Ecobank Transnational on the three bourses in the West African sub-region — the GSE, the Nigerian Stock Exchange and the Ivorian bourses — was a good platform to integrate the regional markets.
He assured the delegation that the integration of the markets in the sub-region was high on the agenda of the GSE and its Nigerian counterparts.
In her submission, Ms Grant stated that irrespective of the good performance of the Ghana bourse, investors would be interested in bigger markets and called on the GSE to integrate with other regional bourses.
“The reality is that your market is too small in global terms”, she added.
She said “no foreign investor would develop your country for you unless there was equally vibrant domestic investment avenues”.
Ms Grant said Standard Chartered listed on the Ghanaian bourse because the bank wanted to be part of the Ghanaian success.
She said part of the reason for the bank’s growth was the decision to invest in emerging markets and said Ghana was one of the key pillars in the bank’s growth.
She urged the exchange to take advantage of Ghanaians living abroad to ensure a substantial investment back home.
“There must be a way of plugging into this group of people who are doing quite well in the United Kingdom to ensure substantial investments in the economy,” she said.
The Director-General of the Securities and Exchange Commission (SEC), Nii Noi Sowah, mentioned public education as one of the major challenges facing the market and said there was the need to intensify the education of all players on the market.
Wednesday, January 24, 2007
“Effective management of stock market is key”
Story: Boahene Asamoah
THE visiting Lord Mayor of the City of London, The Rt. Hon. Alderman John Stuttard, has said that the efficient management of the stock exchange is key to its development.
He said it while it was ideal to have high prices, it must not be done to create problems for the stock market.
Rt. Hon Stuttard made this known during a courtesy call on the Management and Council members of the Ghana Stock Exchange (GSE) as part of his official four-day visit to the country.
Rt. Hon Stuttard is leading a six member delegation to the country.
He said in some instances, prices of shares had been hiked only for such shares to fall , making investors much poorer than they had anticipated.
Rt Hon Stuttard said the London Stock Exchange had in recent times focused on domestic regulation to ensure the development of the capital market.
He said again there was also the need to ensure the quality of entrants, and that there was the need to observe good corporate governance to safeguard the integrity of the market.
The Managing Director of the GSE, Mr K.S. Yamoah, recounted the establishment of the market some 16 years ago, and mentioned some of the feats that the market had chalked up since it started operations in 1991.
He said the market was expecting to list some high profile companies on the market for this year, which he hoped would increase its capitalisation, which currently stood at over $10 million.
Again, he mentioned the automation, the migration to Central Depository System (CDS) and the implementation of the GSE rule book as some of the policies to be pursued this year.
The chairman of the GSE Council, Mr Frank Adu Jnr, urged the visiting delegation to advise some British firms operating in the country to list on the market.
Rt. Hon. Stuttard later rang the bell on the floor of the exchange to signal the beginning of trading activities for the day.
He was accompanied by the British High Commissioner to Ghana, Gordon Wetherell, The Chief Commoner, Mr Pulman, Mr Sinclair of the Daily Mail Group, Ms Ann Grant of Standard Chartered Bank, Mr Neil Chrimes, Ag. Private Secretary and Ms Sarah Stevenson, First Secretary of Trade and Investment of the British High Commission
THE visiting Lord Mayor of the City of London, The Rt. Hon. Alderman John Stuttard, has said that the efficient management of the stock exchange is key to its development.
He said it while it was ideal to have high prices, it must not be done to create problems for the stock market.
Rt. Hon Stuttard made this known during a courtesy call on the Management and Council members of the Ghana Stock Exchange (GSE) as part of his official four-day visit to the country.
Rt. Hon Stuttard is leading a six member delegation to the country.
He said in some instances, prices of shares had been hiked only for such shares to fall , making investors much poorer than they had anticipated.
Rt Hon Stuttard said the London Stock Exchange had in recent times focused on domestic regulation to ensure the development of the capital market.
He said again there was also the need to ensure the quality of entrants, and that there was the need to observe good corporate governance to safeguard the integrity of the market.
The Managing Director of the GSE, Mr K.S. Yamoah, recounted the establishment of the market some 16 years ago, and mentioned some of the feats that the market had chalked up since it started operations in 1991.
He said the market was expecting to list some high profile companies on the market for this year, which he hoped would increase its capitalisation, which currently stood at over $10 million.
Again, he mentioned the automation, the migration to Central Depository System (CDS) and the implementation of the GSE rule book as some of the policies to be pursued this year.
The chairman of the GSE Council, Mr Frank Adu Jnr, urged the visiting delegation to advise some British firms operating in the country to list on the market.
Rt. Hon. Stuttard later rang the bell on the floor of the exchange to signal the beginning of trading activities for the day.
He was accompanied by the British High Commissioner to Ghana, Gordon Wetherell, The Chief Commoner, Mr Pulman, Mr Sinclair of the Daily Mail Group, Ms Ann Grant of Standard Chartered Bank, Mr Neil Chrimes, Ag. Private Secretary and Ms Sarah Stevenson, First Secretary of Trade and Investment of the British High Commission
Structural reforms, stability will shape banking
Story: Boahene Asamoah
A Deputy Governor of the Bank of Ghana (BoG), Dr Mahamudu Bawumia, has said that structural reforms, coupled with macro-economic stability, will deliver the robust financial services which the country requires to achieve a middle- income status.
He said while the economy had witnessed macro-economic stability, the central bank would continue with structural reforms to further promote efficiency and competition in the banking system.
Speaking at the launch of the 6th Ghana Banking Awards organised by Corporate Initiative, Ghana (CIG) in Accra on Tuesday, the deputy governor said the central bank had initiated policy reforms aimed at enhancing the transparency and competitiveness of the inter-bank money market. They were also to enhance the development of the capital market and reduce asymmetric information.
He mentioned some of the reforms as the passage of the Credit Reporting Bill, the publication of bank charges, the proposed Borrowers and Lenders’ Bill, the review of the Know Your Customer (KYC) Bill and the Anti-money Laundering Bill.
Dr Bawumia stated that “macro-economic stability is not enough”, adding that there was the need to ensure structural reforms which would propel the financial sector much further.
He mentioned other reforms as the abolition of secondary reserve requirements, non-resident participation in domestic government securities, the Foreign Exchange Bill, the re-denomination exercise and the universal banking concept.
“These are all benefits of macro-economic stability,” he said, adding that the Ghana Banking Awards were, therefore, a measuring rod to see what banks were doing and also to stimulate debate over how banks could create social and environmental values without sacrificing profitability.
“The banking sector has become very competitive with increased intermediation but improved loan quality,” he said.
Bank credit to Gross Domestic Product (GDP) was 4.7 per cent in 1990, as against 18.4 per cent in 2005, he said, adding that loan deposits ratio was 50 to one per cent in 2002, as against 66 per cent in 2006.
Dr Bawumia stated that non-performing loans stood at 19.6 per cent in 2001, as against 11 per cent as of October 2006, while net foreign currency assets to shareholders’ funds was negative 9.4 per cent in 2000, as against 43.4 per cent in 2006.
The Executive Secretary of CIG, a non-governmental organisation made up of some of the country’s “blue chip” companies, Mr Afotey Odarteifio, said the aim of the organisation was to work towards the creation of an excellent corporate environment in the country by helping to address some of the issues which hindered the growth, efficiency and competitiveness of Ghanaian companies.
He said 22 out of the 24 banks in the country would be competing for awards in 14 categories this year.
“The two new banks, Fidelity Bank and Intercontinental Bank, do not qualify for awards, since they are yet to operate for a full year,” Mr Odarteifio stated.
He said CIG was happy with the increased activity on the banking scene, adding, “We have noticed the increased level of competitiveness, the improved variety of products and services on offer and the increased activity of banks in the areas of lending, electronic banking, money transfer, among others.”
The Chairman of Interplast Limited, Mr Saied Fakhry, who chaired the function, said the banking sector, according to statistics, held a lot of promise for the country and urged the banks to improve upon the innovative products being introduced into the country.
“The future of banking in Ghana, I believe, is very bright. If contemporary banking innovations are anything to go by, such as the networking of most branches, assorted automated teller machines (ATMs) dotted across the country and inter-bank ATM cards, then I believe Ghana will be positively positioned on the world map of banking,” he stated.
Tuesday, January 23, 2007
THE GHANA FREE ZONES BOARD:TEN YEARS OF IMPLEMENTING THE FREE ZONES PROGRAMME:
Story: Boahene Asamoah
In a bid to attract Foreign Direct Investment (FDI), governments throughout the world have adopted several strategies and policy directions which have contributed in enhancing the inflow of foreign direct investment.
One such policy is the Free Zone concept. About 10 years ago, Ghana adopted the Free Zone Concept, which was meant to encourage competitive enterprises to establish themselves within zoned boundaries, mainly to produce for export.
Free Zones (also referred to as Export Processing Zones (EPZs) or Special Economic Zones) have been effectively used, and are currently being applied, in a variety of settings to introduce market oriented economic and institutional policy reforms in several countries such as Ireland, Taiwan, South Korea, Mauritius, Nigeria, Togo, Namibia, and the Republic of China.
In some of these countries, the application of the Free Zones/EPZ Policy option has led to the attraction of competitive enterprises to establish zoned boundaries mainly to produce for export. Ghana's case is not an exception.
To enable Ghana provide the necessary environment for the attraction of investments therefore, the Free Zone Act 1995 (Act 504) was enacted by Parliament to, among other things, facilitate the establishment of free zones in Ghana for the promotion of economic development and also to provide for the regulation of activities in free zones and for related purposes.
In 1996, the Ghana Free Zones Secretariat was established, paving the way for the Implementation of the Programme.
By the enactment of the Free Zone Act, the country opted to further enhance its economic liberalisation programme by offering elaborate fiscal, trade and investment incentives to encourage the production of goods and services primarily destined for export markets through the attraction and utilisation of Foreign Direct Investment and increasing the role of the local private sector.
This was to kick start Ghana's economy with the objective of creating employment opportunities; attracting foreign direct investment/capital and encouraging local processing of (and value-addition to) manufactured products and increasing foreign exchange earnings with the aim of arresting the decline in the value of the cedi.
The free zones concept was also meant to promote transfer of technology; enhance technical and managerial skills/expertise of Ghanaians; and, ensure diversification of exports.
These innovative sets of objectives are expected to be achieved through the enhancement of industrial production and service by giving prominence to the private sector.
The country's programme is designed to promote the processing and manufacturing of goods through the establishment of Export Processing Zones (EPZs), and encouraging the development of commercial and service activities at sea and in the air.
In essence therefore, the whole of Ghana is accessible to potential investors who have the opportunity to use the free zones as focal points to produce goods and services for foreign markets.
The country's programme is also linked to the “Gateway” objective of developing sustainable growth in the private sector through major economic and social improvements in the physical infrastructure and also creating a shift in attitude and institutional arrangements.
It also seeks to promote the country as the trade and investment gateway to West Africa.
The programme is completely private sector driven, limiting the government's role to that of facilitating, regulating and monitoring activities of free zone developers/operators and enterprises in the country.
The mission of the Ghana Free Zones Board therefore, is to help transform the country and position it as the gateway to the West Africa sub-region by creating an attractive and conducive business environment through the provision of competitive free zone incentives and the operation of an efficient “one-stop-shop” for the promotion and enhancement of domestic and foreign investment.
The Ghana Free Zones Board was therefore mandated by the Free Zone Act to:
a. Grant licences to applicants under the Free Zone Act;
b. assist applicants for licences under the Free Zone Act by providing services for obtaining other relevant licences, permits and facilities;
c. examine and recommend for approval agreements and treaties relating to the development and activities of the free zones;
d. monitor the activities, performance and development of free zone developers and enterprises;
e. ensure compliance by free zone developers and enterprises of the Free Zone Act and any other laws relevant to free zone activities.
f. register and keep records and data on the programmes of developers, operators and enterprises in free zones;
g. perform such other functions as are incidental to the foregoing.
By this mandate, the GFZB is responsible for all activities relating to the implementation of the Free Zones Programme. However, the GFZB collaborates with all front-line and revenue agencies having any bearing on the operations of licensed Free Zone Enterprises.
Ten years down the line, the Free Zones Concept has provided some tremendous opportunities for the country. These achievements could be seen in the areas of employment creation, technology transfer, diversification of the country's exports and higher exports earnings to the country.
Picture: the CEO of
In a bid to attract Foreign Direct Investment (FDI), governments throughout the world have adopted several strategies and policy directions which have contributed in enhancing the inflow of foreign direct investment.
One such policy is the Free Zone concept. About 10 years ago, Ghana adopted the Free Zone Concept, which was meant to encourage competitive enterprises to establish themselves within zoned boundaries, mainly to produce for export.
Free Zones (also referred to as Export Processing Zones (EPZs) or Special Economic Zones) have been effectively used, and are currently being applied, in a variety of settings to introduce market oriented economic and institutional policy reforms in several countries such as Ireland, Taiwan, South Korea, Mauritius, Nigeria, Togo, Namibia, and the Republic of China.
In some of these countries, the application of the Free Zones/EPZ Policy option has led to the attraction of competitive enterprises to establish zoned boundaries mainly to produce for export. Ghana's case is not an exception.
To enable Ghana provide the necessary environment for the attraction of investments therefore, the Free Zone Act 1995 (Act 504) was enacted by Parliament to, among other things, facilitate the establishment of free zones in Ghana for the promotion of economic development and also to provide for the regulation of activities in free zones and for related purposes.
In 1996, the Ghana Free Zones Secretariat was established, paving the way for the Implementation of the Programme.
By the enactment of the Free Zone Act, the country opted to further enhance its economic liberalisation programme by offering elaborate fiscal, trade and investment incentives to encourage the production of goods and services primarily destined for export markets through the attraction and utilisation of Foreign Direct Investment and increasing the role of the local private sector.
This was to kick start Ghana's economy with the objective of creating employment opportunities; attracting foreign direct investment/capital and encouraging local processing of (and value-addition to) manufactured products and increasing foreign exchange earnings with the aim of arresting the decline in the value of the cedi.
The free zones concept was also meant to promote transfer of technology; enhance technical and managerial skills/expertise of Ghanaians; and, ensure diversification of exports.
These innovative sets of objectives are expected to be achieved through the enhancement of industrial production and service by giving prominence to the private sector.
The country's programme is designed to promote the processing and manufacturing of goods through the establishment of Export Processing Zones (EPZs), and encouraging the development of commercial and service activities at sea and in the air.
In essence therefore, the whole of Ghana is accessible to potential investors who have the opportunity to use the free zones as focal points to produce goods and services for foreign markets.
The country's programme is also linked to the “Gateway” objective of developing sustainable growth in the private sector through major economic and social improvements in the physical infrastructure and also creating a shift in attitude and institutional arrangements.
It also seeks to promote the country as the trade and investment gateway to West Africa.
The programme is completely private sector driven, limiting the government's role to that of facilitating, regulating and monitoring activities of free zone developers/operators and enterprises in the country.
The mission of the Ghana Free Zones Board therefore, is to help transform the country and position it as the gateway to the West Africa sub-region by creating an attractive and conducive business environment through the provision of competitive free zone incentives and the operation of an efficient “one-stop-shop” for the promotion and enhancement of domestic and foreign investment.
The Ghana Free Zones Board was therefore mandated by the Free Zone Act to:
a. Grant licences to applicants under the Free Zone Act;
b. assist applicants for licences under the Free Zone Act by providing services for obtaining other relevant licences, permits and facilities;
c. examine and recommend for approval agreements and treaties relating to the development and activities of the free zones;
d. monitor the activities, performance and development of free zone developers and enterprises;
e. ensure compliance by free zone developers and enterprises of the Free Zone Act and any other laws relevant to free zone activities.
f. register and keep records and data on the programmes of developers, operators and enterprises in free zones;
g. perform such other functions as are incidental to the foregoing.
By this mandate, the GFZB is responsible for all activities relating to the implementation of the Free Zones Programme. However, the GFZB collaborates with all front-line and revenue agencies having any bearing on the operations of licensed Free Zone Enterprises.
Ten years down the line, the Free Zones Concept has provided some tremendous opportunities for the country. These achievements could be seen in the areas of employment creation, technology transfer, diversification of the country's exports and higher exports earnings to the country.
Picture: the CEO of
Two experts to help in Kimberly process
TWO experts from South Africa are in the country to help the country to purge itself of the illegal trade in diamonds through the implementation of the Kimberly Process (KP).
The KP is an innovative instrument of international co-operation involving multi-lateral organisations, governments, non-government organisations (NGOs) and the diamond industry to take a plan of action to curb the illegal trade in conflict diamonds on the international market.
Late last year, Ghana was enlisted as a country which carried out possible illegal trade in diamonds as a result of the conflict in neighbouring Cote d’Ivoire. The country risked being banned from the international diamond trade as a result of the reports.
In an interview, Mr Paulus Geraedts, the acting Head of Delegation of the European Commission to Ghana, sponsors of the programme, said the European Union (EU) was committed to ensuring that Ghana expunged itself from the illegal diamond trade.
That, he said, was because of the high level of co-operation between the EU and Ghana this year, as a result of the Golden Jubilee celebrations of both Ghana and the EU.
Again, since the EU took the chairmanship of the KP in January this year, it was committed to ensuring that the country was probably certified after the review periods, which ended in March, he said,.
Mr Geraedts said the agenda of the EU chairmanship would be to promote “continuity through consolidation” by strengthening the KP.
That, he said, would be done by putting emphasis on pursuing and strengthening the implementation of the peer review system, research the traceability of diamonds, increase transparency and accuracy of statistics, promote inclusiveness and participation and improve information capacity in KP participants.
He said the EU would also seek to enhance the capacity to react to emerging crises with a view to ensuring that the KP would increasingly be a “process from conflict diamonds to property diamonds”.
He said during the KP Plenary meeting in Gaborone in Bowtswana in November last year, the plenary agreed on an action plan with Ghana, with a view to ensuring that it could fulfil its obligations under the KP and subject itself to a review mission after three months.
Mr Geraedts said “given the importance of the matter, the EC has agreed to assist the government of Ghana in complying with the Gaborone Action Plan for Ghana”.
The acting Head of Delegation said he was confident that the country would show its usual strong leadership and firm action commitment so that the review mission would prove the country’s full compliance with minimum KP requirements.
Two reviews on the country’s compliance with the Action Plan are expected to be held this month and February, while a final review is expected to be held in March which will either clear the country’s name in the illegal trade of diamonds or affirm its status as supporting the illegal trade.
The KP is an innovative instrument of international co-operation involving multi-lateral organisations, governments, non-government organisations (NGOs) and the diamond industry to take a plan of action to curb the illegal trade in conflict diamonds on the international market.
Late last year, Ghana was enlisted as a country which carried out possible illegal trade in diamonds as a result of the conflict in neighbouring Cote d’Ivoire. The country risked being banned from the international diamond trade as a result of the reports.
In an interview, Mr Paulus Geraedts, the acting Head of Delegation of the European Commission to Ghana, sponsors of the programme, said the European Union (EU) was committed to ensuring that Ghana expunged itself from the illegal diamond trade.
That, he said, was because of the high level of co-operation between the EU and Ghana this year, as a result of the Golden Jubilee celebrations of both Ghana and the EU.
Again, since the EU took the chairmanship of the KP in January this year, it was committed to ensuring that the country was probably certified after the review periods, which ended in March, he said,.
Mr Geraedts said the agenda of the EU chairmanship would be to promote “continuity through consolidation” by strengthening the KP.
That, he said, would be done by putting emphasis on pursuing and strengthening the implementation of the peer review system, research the traceability of diamonds, increase transparency and accuracy of statistics, promote inclusiveness and participation and improve information capacity in KP participants.
He said the EU would also seek to enhance the capacity to react to emerging crises with a view to ensuring that the KP would increasingly be a “process from conflict diamonds to property diamonds”.
He said during the KP Plenary meeting in Gaborone in Bowtswana in November last year, the plenary agreed on an action plan with Ghana, with a view to ensuring that it could fulfil its obligations under the KP and subject itself to a review mission after three months.
Mr Geraedts said “given the importance of the matter, the EC has agreed to assist the government of Ghana in complying with the Gaborone Action Plan for Ghana”.
The acting Head of Delegation said he was confident that the country would show its usual strong leadership and firm action commitment so that the review mission would prove the country’s full compliance with minimum KP requirements.
Two reviews on the country’s compliance with the Action Plan are expected to be held this month and February, while a final review is expected to be held in March which will either clear the country’s name in the illegal trade of diamonds or affirm its status as supporting the illegal trade.
Stand up to the challenges- GSE boss tells stock brokering firms
GSE (fin) Edited by LHA
Story: Boahene Asamoah
THE Managing Director of the Ghana Stock Exchange (GSE), Mr K.S. Yamoah, has urged brokers on the market to brace themselves up for the challenges that confront the capital market.
He said the implementation of the new rule book of the exchange, the expected passage of the Central Depository System (CDS) Bill by Parliament, the automation of the trading as well as the re-denomination of the cedi would pose serious challenges to the market.
In an interview shortly after the listing of Transaction Solutions on the market, Mr Yamoah said “ the challenge for us is to brace ourselves up for these challenges that lie ahead”.
Mr Yamoah said these policies would have a positive impact on the operations of the Ghana bourse, acknowledging that one of the major challenges would be an enhanced public education.
He said the GSE rule book had been reviewed and was expected to be implemented during the course of this year.
He further stated that the passage of the CDS Bill by Parliament would facilitate the easy trading and transfer of share ownership without the use of paper, adding that the purchase and trading of shares would be done through electronic transfer.
Mr Yamoah said the redomination of the cedi would also impact positively on stock market trading as a result of the knocking off of four zeros from the currency.
The managing director said the market was also expected to see some listings on the market to boost the capitalisation of the market as a result of the government’s policy to use the market to divest itself of State Owned Enterprises (SOE).
Companies such as State Insurance Company (SIC) and the Ghana Oil Company Limited (GOIL), Ghana Oil Palm Plantation, Western Telecom (WESTEL) and Ghana Telecom are expected to be divested through initial public offering.
Corporate bodies such as the Trust Bank Limited of The Gambia, British American Tobacco, Camelot as well as HFC are expected to issue right issues during the course of the year.
“These are all expected to make the market vibrant during the course of the year”, a stock market analyst said.
Mr Iddrisu Mahama, Head of EDC Stockbrokers Limited, said with the expected listing of these companies the market capitalisation was expected to increase by about five per cent.
Mr Mahama said although the market was not expected to be as bullish as experienced in 2003 and 2004, it was however, expected to do much better than the five per cent yield recorded last year and predicted a 30 per cent return on investments as a result of the positive outlook.
Story: Boahene Asamoah
THE Managing Director of the Ghana Stock Exchange (GSE), Mr K.S. Yamoah, has urged brokers on the market to brace themselves up for the challenges that confront the capital market.
He said the implementation of the new rule book of the exchange, the expected passage of the Central Depository System (CDS) Bill by Parliament, the automation of the trading as well as the re-denomination of the cedi would pose serious challenges to the market.
In an interview shortly after the listing of Transaction Solutions on the market, Mr Yamoah said “ the challenge for us is to brace ourselves up for these challenges that lie ahead”.
Mr Yamoah said these policies would have a positive impact on the operations of the Ghana bourse, acknowledging that one of the major challenges would be an enhanced public education.
He said the GSE rule book had been reviewed and was expected to be implemented during the course of this year.
He further stated that the passage of the CDS Bill by Parliament would facilitate the easy trading and transfer of share ownership without the use of paper, adding that the purchase and trading of shares would be done through electronic transfer.
Mr Yamoah said the redomination of the cedi would also impact positively on stock market trading as a result of the knocking off of four zeros from the currency.
The managing director said the market was also expected to see some listings on the market to boost the capitalisation of the market as a result of the government’s policy to use the market to divest itself of State Owned Enterprises (SOE).
Companies such as State Insurance Company (SIC) and the Ghana Oil Company Limited (GOIL), Ghana Oil Palm Plantation, Western Telecom (WESTEL) and Ghana Telecom are expected to be divested through initial public offering.
Corporate bodies such as the Trust Bank Limited of The Gambia, British American Tobacco, Camelot as well as HFC are expected to issue right issues during the course of the year.
“These are all expected to make the market vibrant during the course of the year”, a stock market analyst said.
Mr Iddrisu Mahama, Head of EDC Stockbrokers Limited, said with the expected listing of these companies the market capitalisation was expected to increase by about five per cent.
Mr Mahama said although the market was not expected to be as bullish as experienced in 2003 and 2004, it was however, expected to do much better than the five per cent yield recorded last year and predicted a 30 per cent return on investments as a result of the positive outlook.
Decentralise the Registrar General Department-GNCCI
Story: Boahene Asamoah
THE Ghana National Chamber of Commerce and Industry (GNCCI) has called for the decentralisation of the services of the Registrar General’s Department throughout the country in a bid to track companies and ensure that they honour their tax obligations.
The chamber said if that was done, it could be a central base for revenue agencies as well as help widen the tax net.
This was contained in a communiqué issued by the chamber at the end of a workshop for advocacy on tax reduction and widening of the tax net in the country.
The workshop, which was supported by the Business Sector Advocacy Challenge Fund (BUSAC), was aimed at lobbying government to further reduce corporate taxes in the country, while widening the tax net to rope in the informal sector of the economy.
The chamber expressed concern about the lack of decentralisation of the services of the Registrar General's Department.
The chamber also noted that the National Identification System could be adopted and used as an effective tracking system for business operations and tax payments.
The 12-point communiqué stressed the need to encourage voluntary compliance with tax obligations by improving customer care such as making payment systems easier through the use of electronic data to ensure that tax payers would not have to spend a lot of time at the Internal Revenue Office trying to pay their taxes.
The communiqué also called for system networking and integration, adding that “if this is done, the tax payer can pay his /her tax from any point such as the banks or utility agencies. With the tax identification number, money paid will automatically be updated at the internal severs of the revenue agencies,” the chamber said.
The GNCCI suggested to the authorities to create incentives for voluntary tax compliance for both the formal and informal sectors.
“In the formal sector tax compliance should be a condition for achieving Club 100 status, self-assessment status, automatic refund of excess payment of taxes, exemption from withholding tax and easy issuance of tax credit certificates,” the communiqué suggested.
In the informal sector, tax compliance should be a condition for access to loans, grants and aid for business support from the government, the communiqué suggested.
It added that the informal sector taxpayers who belonged to business or trade associations should be targeted for support schemes that would help them to grow their businesses to enable them to pay more taxes in future.
The communiqué urged officers of the Internal Revenue Service (IRS), the Value Added Tax Service (VAT), the Customs, Excise and Preventive Service (CEPS) and the Registrar General’s Department to develop and organise free seminars on relevant topics for members of identifiable groups such as hairdressers and beauticians, the Association of Traditional Caterers, the Ghana Private Road Transport Union (GPRTU) and others who operate in clusters such as exist in Odawna, Suame Magazine, Abossey Okai and Makola areas.
The communiqué said banks and other credit agencies could also use tax compliance as a measure of credit rating and good business practices for advancing loans to such informal sector operators.
It said the chamber was ready to collaborate with the revenue agencies to identify their members for the purposes of tax payment and compliance, but would not be collection agents for the tax authorities.
THE Ghana National Chamber of Commerce and Industry (GNCCI) has called for the decentralisation of the services of the Registrar General’s Department throughout the country in a bid to track companies and ensure that they honour their tax obligations.
The chamber said if that was done, it could be a central base for revenue agencies as well as help widen the tax net.
This was contained in a communiqué issued by the chamber at the end of a workshop for advocacy on tax reduction and widening of the tax net in the country.
The workshop, which was supported by the Business Sector Advocacy Challenge Fund (BUSAC), was aimed at lobbying government to further reduce corporate taxes in the country, while widening the tax net to rope in the informal sector of the economy.
The chamber expressed concern about the lack of decentralisation of the services of the Registrar General's Department.
The chamber also noted that the National Identification System could be adopted and used as an effective tracking system for business operations and tax payments.
The 12-point communiqué stressed the need to encourage voluntary compliance with tax obligations by improving customer care such as making payment systems easier through the use of electronic data to ensure that tax payers would not have to spend a lot of time at the Internal Revenue Office trying to pay their taxes.
The communiqué also called for system networking and integration, adding that “if this is done, the tax payer can pay his /her tax from any point such as the banks or utility agencies. With the tax identification number, money paid will automatically be updated at the internal severs of the revenue agencies,” the chamber said.
The GNCCI suggested to the authorities to create incentives for voluntary tax compliance for both the formal and informal sectors.
“In the formal sector tax compliance should be a condition for achieving Club 100 status, self-assessment status, automatic refund of excess payment of taxes, exemption from withholding tax and easy issuance of tax credit certificates,” the communiqué suggested.
In the informal sector, tax compliance should be a condition for access to loans, grants and aid for business support from the government, the communiqué suggested.
It added that the informal sector taxpayers who belonged to business or trade associations should be targeted for support schemes that would help them to grow their businesses to enable them to pay more taxes in future.
The communiqué urged officers of the Internal Revenue Service (IRS), the Value Added Tax Service (VAT), the Customs, Excise and Preventive Service (CEPS) and the Registrar General’s Department to develop and organise free seminars on relevant topics for members of identifiable groups such as hairdressers and beauticians, the Association of Traditional Caterers, the Ghana Private Road Transport Union (GPRTU) and others who operate in clusters such as exist in Odawna, Suame Magazine, Abossey Okai and Makola areas.
The communiqué said banks and other credit agencies could also use tax compliance as a measure of credit rating and good business practices for advancing loans to such informal sector operators.
It said the chamber was ready to collaborate with the revenue agencies to identify their members for the purposes of tax payment and compliance, but would not be collection agents for the tax authorities.
Transol lists on GSE
Story: Boahene Asamoah
TRANSACTION Solutions Limited (Transol), an information technology company, was formally listed on the Ghana Stock Exchange yesterday, incidentally the last trading session on the exchange for the year.
A total of 22, 662,442 shares valued at ¢1,000 per share was quoted.
Transol thus becomes the 32nd member on the Ghana bourse and also the fourth company to be listed on the market for the year, following on the heels of Aryton Drugs, Ecobank Ghana Limited and Ecobank Transnational Limited.
Transol offers transaction switching and processing systems, electronic funds transfer support services, electronic bill payment services, prepaid utility and telecommunications services, information technology consulting services as well as customer payment services.
The listing of the shares followed a successful initial public offer which was over-subscribed by over 12 per cent.
Speaking at the ceremony, the Managing Director of the Ghana Stock Exchange, Mr S.K. Yamoah, said the successful listing of the shares of Transol conformed to the GSE’s focus to attract more small and medium enterprises (SMEs) to the Ghanaian bourse.
He said “our focus is to attract SMEs to raise capital on the capital market”, adding that “we also welcome big companies to raise funds on the market”.
The Chairman of Transol, Mr Paul Tse Jacquaye, called on local brokerage firms to seek in-depth information from issuers of shares to enable them to advise their clients appropriately.
He commended the board, management and all who helped to ensure the successful listing of the company.
The Chairman of World-wide Investment Limited, one of the sponsoring brokers, Mr Rexford Adomako-Bonsu, said there was the need to encourage SMEs to take advantage of the capital market.
He urged the GSE to strengthen its promotional activities to attract more listings on the market.
The Managing Director of the State Insurance Company, Mr Peter Osei Duah, said the prospects of the information technology business was bright as the government had made it a policy to support that sector to drive growth and development in the country.
He said he was hopeful that transol would use the funds judiciously in order to expand its business and create shareholder value for its shareholders.
Transol operates the EZI shops which are points of sale centres for Areeba recharge vouchers and that of the other networks. The locations could also be used for Ecobank Visa Gift card and payment of Multichoice bills.
It was the first company to install stand alone Auto Teller Machines (ATMs) in the country using the Ecobank platform and has currently installed 16 ATMs at strategic locations.
The company is also in the process of installing 25 additional ATMs throughout the country.
The company has witnessed very significant improvement in its financials, registering rapid growth in its revenues since 2003.
It’s revenue went up by ¢8 billion in 2003 to ¢36.7 billion and ¢193 billion for 2004 and 2005 respectively.
Even though the company recorded a loss of ¢597.8 million in 2003, which was the first year of operations, it recovered in subsequent years, recording a net profit after tax of ¢556.8 million in 2004 and about ¢6 billion in 2005.
Fixed assets also improved from ¢1.1 billion in 2003 to ¢6.2 billion by the end of 2005, as against a total asset base of ¢2.5 billion in 2003 and ¢21.1 billion in 2005.
Shareholders funds also went up from about ¢2 billion in 2003 to ¢5.6 billion in 2005 due to improved profitability.
TRANSACTION Solutions Limited (Transol), an information technology company, was formally listed on the Ghana Stock Exchange yesterday, incidentally the last trading session on the exchange for the year.
A total of 22, 662,442 shares valued at ¢1,000 per share was quoted.
Transol thus becomes the 32nd member on the Ghana bourse and also the fourth company to be listed on the market for the year, following on the heels of Aryton Drugs, Ecobank Ghana Limited and Ecobank Transnational Limited.
Transol offers transaction switching and processing systems, electronic funds transfer support services, electronic bill payment services, prepaid utility and telecommunications services, information technology consulting services as well as customer payment services.
The listing of the shares followed a successful initial public offer which was over-subscribed by over 12 per cent.
Speaking at the ceremony, the Managing Director of the Ghana Stock Exchange, Mr S.K. Yamoah, said the successful listing of the shares of Transol conformed to the GSE’s focus to attract more small and medium enterprises (SMEs) to the Ghanaian bourse.
He said “our focus is to attract SMEs to raise capital on the capital market”, adding that “we also welcome big companies to raise funds on the market”.
The Chairman of Transol, Mr Paul Tse Jacquaye, called on local brokerage firms to seek in-depth information from issuers of shares to enable them to advise their clients appropriately.
He commended the board, management and all who helped to ensure the successful listing of the company.
The Chairman of World-wide Investment Limited, one of the sponsoring brokers, Mr Rexford Adomako-Bonsu, said there was the need to encourage SMEs to take advantage of the capital market.
He urged the GSE to strengthen its promotional activities to attract more listings on the market.
The Managing Director of the State Insurance Company, Mr Peter Osei Duah, said the prospects of the information technology business was bright as the government had made it a policy to support that sector to drive growth and development in the country.
He said he was hopeful that transol would use the funds judiciously in order to expand its business and create shareholder value for its shareholders.
Transol operates the EZI shops which are points of sale centres for Areeba recharge vouchers and that of the other networks. The locations could also be used for Ecobank Visa Gift card and payment of Multichoice bills.
It was the first company to install stand alone Auto Teller Machines (ATMs) in the country using the Ecobank platform and has currently installed 16 ATMs at strategic locations.
The company is also in the process of installing 25 additional ATMs throughout the country.
The company has witnessed very significant improvement in its financials, registering rapid growth in its revenues since 2003.
It’s revenue went up by ¢8 billion in 2003 to ¢36.7 billion and ¢193 billion for 2004 and 2005 respectively.
Even though the company recorded a loss of ¢597.8 million in 2003, which was the first year of operations, it recovered in subsequent years, recording a net profit after tax of ¢556.8 million in 2004 and about ¢6 billion in 2005.
Fixed assets also improved from ¢1.1 billion in 2003 to ¢6.2 billion by the end of 2005, as against a total asset base of ¢2.5 billion in 2003 and ¢21.1 billion in 2005.
Shareholders funds also went up from about ¢2 billion in 2003 to ¢5.6 billion in 2005 due to improved profitability.
Exports of MD2 pineapple rake in $20 m
Story: Boahene Asamoah
THE country has successfully completed her first commercial export of MD2 pineapple variety of 42,000 tonnes at the close of last year.
The exports of the new variety earned the country $20 million in foreign currency. That feat also helped the country to maintain her position as the third exporter of pineapples to the European markets.
Additionally, the MD2 variety currently accounts for about 85 per cent of all pineapple exports to the European market.
Ghana’s pineapple exports of smooth cayenne in 2003 took a severe hit as a result of the introduction of the MD2 variety by Costa Rica, which is the leading exporter of pineapples to the European market.
It plunged the industry so badly that exports of pineapples plummeted from 71,000 peak of 2004 tonnes to about 40,000 tonnes in 2005.
According to figures from the Ghana Export Promotion Council (GEPC), in the year 2000, Ghana exported a total of over 28,000 tonnes of pineapples valued at $11.85 million, and in 2001, the figure increased to over 35,000 tonnes at a $13 million value. In 2002, the country exported over 46,000 tonnes valued at $15.52 million.
A year later, the country exported 45,000 tonnes valued at about ¢14 million. This was the time Costa Rica introduced the MD2 variety, which forced the price per tonne downwards.
In 2004, export peaked at approximately 72,000 and was valued at $22,068,649, while in 2005, the volumes dropped to about 47,000 tonnes at a value of $12,784,322, making the country feel the full impact of the MD2 variety.
The MD2 variety, according to experts, are yellowish in colour, have longer shelf-life and was sweeter than the smooth cayenne.
Speaking in an interview, the General Manager of the Sea-Freight Pineapple Exporters of Ghana (SPEG), Mr Stephen Mintah, said with the successful implementation of the MD2 variety programme, it would help the country to regain its market share on the European market.
He said “ government’s intervention was timely”, adding that with the successful progress of the MD2 variety, the country expected a 15 per cent increase in pineapple exports for the year.
The government intervened in the pineapple sector with a $2 million facility after the country had suffered a decline in pineapple exports to the European markets.
Part of the government’s support was used to establish the Bioplantlet Ghana Limited for the multiplication of the MD2 variety, through the tissue culture technique as well as the nursery methods.
Bioplantlet was established as a joint venture between the Ministry of Agriculture, the Sea-Freight Pineapple Exporters of Ghana (SPEG), the Ghana Export Promotion Council (GEPC), the Biotechnology and Nuclear Agriculture Research Institute (BNARI) and the Ghana Atomic Energy Commission, with support from the United States Agency for International Development (USAID).
According to the Project Manager of the Biolplantlet Ghana Limited, Mr Harry Mensah Amoatey, the company was the first laboratory in the country to use the tissue culture technology for the duplication of the MD2 variety in 2003.
He said the process ensured a quick duplication of the MD2 suckers at a relatively shorter periods. Biolplantlet has successfully used the tissue culture technique to multiply the planting materials.
The centre currently produces two million plantlets, although it has the capacity to do more.
The project manager, in another interview, said production started in 2004, and the company had since been producing suckers for farmers and employed 51 people, 10 of whom were permanent staff and 41 casual labour.
He said another effective method was the gauging or the castration methods .
Mr Amoatey said one of the major challenges facing the company was the ability of the farmers to pay back planting materials sold on credit.
He said as at December last year, farmers owed the company $88,000, as result of non-payment of credit extended to them.
He said that was because an arrangement between farmers and the company was to ensure that the suckers were given out on credit to farmers to undertake their planting activities.
Costa Rica is the leading exporter of pineapple to the European markets with an annual export of about 300,000 tonnes followed by Cote de’Ivoire, with an export of 150,000 tonnes, while Ghana just reached the third position with 71,000 tonnes.
According to sources at the GEPC, indications were that with the introduction of the MD2 variety demand for Ghana’s pineapples had picked up.
There is a global pineapple market growth of about six per cent. While Cote d’Ivoire experienced a two per cent growth over the past five years as a result of the conflict situation in that country, Ghana had experienced a 45 per cent growth over the same period and reached the third position.
Costa Rica, around the same period, doubled her exports from 280,000 tonnes in 1996 to 360,000 tonnes by the end of 2001.
Mr Mintah said while Costa Rica had good infrastructure facilities which ensured good refrigeration from the farm gates to the destination, the country lacked such infrastructure.
That, coupled with lower cost of freight and haulage, made the country’s products uncompetitive on the international market.
He was, however, optimistic that the proposed building of storage facilities at the country’s main port would ensure that the country’s products were competitive
THE country has successfully completed her first commercial export of MD2 pineapple variety of 42,000 tonnes at the close of last year.
The exports of the new variety earned the country $20 million in foreign currency. That feat also helped the country to maintain her position as the third exporter of pineapples to the European markets.
Additionally, the MD2 variety currently accounts for about 85 per cent of all pineapple exports to the European market.
Ghana’s pineapple exports of smooth cayenne in 2003 took a severe hit as a result of the introduction of the MD2 variety by Costa Rica, which is the leading exporter of pineapples to the European market.
It plunged the industry so badly that exports of pineapples plummeted from 71,000 peak of 2004 tonnes to about 40,000 tonnes in 2005.
According to figures from the Ghana Export Promotion Council (GEPC), in the year 2000, Ghana exported a total of over 28,000 tonnes of pineapples valued at $11.85 million, and in 2001, the figure increased to over 35,000 tonnes at a $13 million value. In 2002, the country exported over 46,000 tonnes valued at $15.52 million.
A year later, the country exported 45,000 tonnes valued at about ¢14 million. This was the time Costa Rica introduced the MD2 variety, which forced the price per tonne downwards.
In 2004, export peaked at approximately 72,000 and was valued at $22,068,649, while in 2005, the volumes dropped to about 47,000 tonnes at a value of $12,784,322, making the country feel the full impact of the MD2 variety.
The MD2 variety, according to experts, are yellowish in colour, have longer shelf-life and was sweeter than the smooth cayenne.
Speaking in an interview, the General Manager of the Sea-Freight Pineapple Exporters of Ghana (SPEG), Mr Stephen Mintah, said with the successful implementation of the MD2 variety programme, it would help the country to regain its market share on the European market.
He said “ government’s intervention was timely”, adding that with the successful progress of the MD2 variety, the country expected a 15 per cent increase in pineapple exports for the year.
The government intervened in the pineapple sector with a $2 million facility after the country had suffered a decline in pineapple exports to the European markets.
Part of the government’s support was used to establish the Bioplantlet Ghana Limited for the multiplication of the MD2 variety, through the tissue culture technique as well as the nursery methods.
Bioplantlet was established as a joint venture between the Ministry of Agriculture, the Sea-Freight Pineapple Exporters of Ghana (SPEG), the Ghana Export Promotion Council (GEPC), the Biotechnology and Nuclear Agriculture Research Institute (BNARI) and the Ghana Atomic Energy Commission, with support from the United States Agency for International Development (USAID).
According to the Project Manager of the Biolplantlet Ghana Limited, Mr Harry Mensah Amoatey, the company was the first laboratory in the country to use the tissue culture technology for the duplication of the MD2 variety in 2003.
He said the process ensured a quick duplication of the MD2 suckers at a relatively shorter periods. Biolplantlet has successfully used the tissue culture technique to multiply the planting materials.
The centre currently produces two million plantlets, although it has the capacity to do more.
The project manager, in another interview, said production started in 2004, and the company had since been producing suckers for farmers and employed 51 people, 10 of whom were permanent staff and 41 casual labour.
He said another effective method was the gauging or the castration methods .
Mr Amoatey said one of the major challenges facing the company was the ability of the farmers to pay back planting materials sold on credit.
He said as at December last year, farmers owed the company $88,000, as result of non-payment of credit extended to them.
He said that was because an arrangement between farmers and the company was to ensure that the suckers were given out on credit to farmers to undertake their planting activities.
Costa Rica is the leading exporter of pineapple to the European markets with an annual export of about 300,000 tonnes followed by Cote de’Ivoire, with an export of 150,000 tonnes, while Ghana just reached the third position with 71,000 tonnes.
According to sources at the GEPC, indications were that with the introduction of the MD2 variety demand for Ghana’s pineapples had picked up.
There is a global pineapple market growth of about six per cent. While Cote d’Ivoire experienced a two per cent growth over the past five years as a result of the conflict situation in that country, Ghana had experienced a 45 per cent growth over the same period and reached the third position.
Costa Rica, around the same period, doubled her exports from 280,000 tonnes in 1996 to 360,000 tonnes by the end of 2001.
Mr Mintah said while Costa Rica had good infrastructure facilities which ensured good refrigeration from the farm gates to the destination, the country lacked such infrastructure.
That, coupled with lower cost of freight and haulage, made the country’s products uncompetitive on the international market.
He was, however, optimistic that the proposed building of storage facilities at the country’s main port would ensure that the country’s products were competitive
Let’s now focus on real sector
Let’s now focus on real sector
•Although lower inflation is desirable
Story: Boahene Asamoah
A Senior Research Fellow at the Institute of Economic Affairs, Dr John Asafu-Adjaye, has said that while achieving a single digit inflation was desirable, there was the need to also focus on other real sector variables such as employment and investment.
He said “although low inflation is desirable for an economy, an overly aggressive anti-inflationary stance has the potential to dampen aggregate demand, causing firms to reduce production, which could then stagnate economic growth”.
Delivering a paper on “Dynamic Analysis of Ghana’s Inflationary Process” at a round-table discussion organised by the Institute of Economic Affairs (IEA) in Accra on Thursday, Dr Asafu-Adjaye asked “what should be an optimal inflation target for Ghana”.
He said at a lower inflation target about three per cent it could be a costly opportunity as it could have adverse effects on the economic development as the output gap could be widened.
“The danger in a single-minded attempt to keep inflation low is that it could compromise economic growth,” he said, adding that other economic variables such as employment general and investments which could help in enhancing economic growth while reducing poverty.
Dr Asafu-Adjaye recounted the inflationary trend in the country since independence to 2004 and said over the past years, money supply had been a determinant in the money supply in the short term.
He said according to his module, in the long run however, money supply and currency depreciation and the out put gap had been the main drivers of inflation in the country.
He said since 1983, when the country experienced its highest inflation of about 123 per cent as a result of the draught the country faced and the return of Ghanaian migrants from neighbouring Nigeria to Ghana, inflation had been on the decline.
Dr Asafu-Adjaye said “inflation reduction to be successful, it has to go hand-in-hand with acceleration of structural reforms, in particular deregulation of the economy and institutional reforms.
Again, he said there was the urgent need to remove the lack of credit, which was one of the major barriers preventing both consumers and producers from reaping the benefits of low inflation.
“Why are market interest rates high (currently about 18- 20 per cent) when inflation is hovering around 10.5 per cent,” he questioned.
Dr Asafu-Adjaye said over the past five years, the country had seen some considerable stability in economic fundamentals which had moved the country from high inflation to disinflation and macro-economic stability.
On the re-denomination of the cedi, he said there was a possibility of the policy leading to higher prices and hence inflation.
He explained that for some commodities the possibility of rounding up prices to arrive at a even figure could lead to high prices and called for public education.
The research fellow said while the central bank’s inflation targeting had been largely successful, with a single digit inflation within reach, the Bank of Ghana “should consider targeting real sector variables such as employment and investment, which do not only enhance economic growth but also have the potential to reduce poverty.
•Although lower inflation is desirable
Story: Boahene Asamoah
A Senior Research Fellow at the Institute of Economic Affairs, Dr John Asafu-Adjaye, has said that while achieving a single digit inflation was desirable, there was the need to also focus on other real sector variables such as employment and investment.
He said “although low inflation is desirable for an economy, an overly aggressive anti-inflationary stance has the potential to dampen aggregate demand, causing firms to reduce production, which could then stagnate economic growth”.
Delivering a paper on “Dynamic Analysis of Ghana’s Inflationary Process” at a round-table discussion organised by the Institute of Economic Affairs (IEA) in Accra on Thursday, Dr Asafu-Adjaye asked “what should be an optimal inflation target for Ghana”.
He said at a lower inflation target about three per cent it could be a costly opportunity as it could have adverse effects on the economic development as the output gap could be widened.
“The danger in a single-minded attempt to keep inflation low is that it could compromise economic growth,” he said, adding that other economic variables such as employment general and investments which could help in enhancing economic growth while reducing poverty.
Dr Asafu-Adjaye recounted the inflationary trend in the country since independence to 2004 and said over the past years, money supply had been a determinant in the money supply in the short term.
He said according to his module, in the long run however, money supply and currency depreciation and the out put gap had been the main drivers of inflation in the country.
He said since 1983, when the country experienced its highest inflation of about 123 per cent as a result of the draught the country faced and the return of Ghanaian migrants from neighbouring Nigeria to Ghana, inflation had been on the decline.
Dr Asafu-Adjaye said “inflation reduction to be successful, it has to go hand-in-hand with acceleration of structural reforms, in particular deregulation of the economy and institutional reforms.
Again, he said there was the urgent need to remove the lack of credit, which was one of the major barriers preventing both consumers and producers from reaping the benefits of low inflation.
“Why are market interest rates high (currently about 18- 20 per cent) when inflation is hovering around 10.5 per cent,” he questioned.
Dr Asafu-Adjaye said over the past five years, the country had seen some considerable stability in economic fundamentals which had moved the country from high inflation to disinflation and macro-economic stability.
On the re-denomination of the cedi, he said there was a possibility of the policy leading to higher prices and hence inflation.
He explained that for some commodities the possibility of rounding up prices to arrive at a even figure could lead to high prices and called for public education.
The research fellow said while the central bank’s inflation targeting had been largely successful, with a single digit inflation within reach, the Bank of Ghana “should consider targeting real sector variables such as employment and investment, which do not only enhance economic growth but also have the potential to reduce poverty.
Tuesday, January 31, 2006
The Dreams of Paul Tse Jacquaye
Story: Boahene Asamoah
“THE desire to achieve things in life and the challenge to do what I set myself to do is what inspires me and not the money”, these are the words of Mr Paul Tse Jacquaye, Group Chief Executive Officer of Clydestone.
Born 43 years ago, Mr Jacquaye today heads one the country’s leading Information Technology firms in the country, Clydestone Ghana Limited and its subsidiary Remittance Processing Ghana Limited.
A dream he started some 17 years ago with two employees, and an initial capital of ¢200,000 in 1989 from savings he had made whiles in the United Kingdom, today employees over 118 workers and is worth more that ¢500 billion.
Born in Labone, a surburd of Accra, Paul started his elementary school at Labadi Wireless One Primary. He continue to Presbyterian Boys Secondary at Ada Foah and later enrolled at Universal College at Yilo Krobo where he studied accounting and business.
He left for the United Kingdom and obtained a Diploma in Business Studies from the North Hearths College and also Wood London College where he did further studies.
With no IT background, Paul saw an opportunity in the IT business in the country and decided to invest. Seventeen years down the lane, Clydestone has become a leading name in the providing solutions to satisfied clients. He has gone ahead to establish two other companies Transaction Solutions and Easy shop.
The usual “lack of finance and start-up capital for small and potential firms did not wear the man down. Instead, he was focused, determined and committed to his vision.
Clydestone offers networking, hardware and software installation services, systems integration, training and technical support. The company is authorised distributor for the Unisys Corporation and also an authorised Cisco Systems re-seller in the country.
The company has chalked a number of first positions. It was the first company to be provisionally listed on the Ghana stock Exchange (GSE), It was also the first IT Company to list on the GSE, the company was the first to introduced the electronic bill payment system in collaboration with the Ghana Post, first to introduce the automation of the clearing system.
From small beginnings, the company now boost of a list of clienteles including almost all of the financial institutions, which the company provides with their financial document processing product.
It also provides Local Campus Area Network to some the country’s blue chip company’s such as Unilever Ghana Limited, British American Tobacco (BAT), AngloGold Ashanti and host of others.
Transaction Solutions was also the first to install the independent AutoTeller Machine, which is hosted by ECOBANK and situated at six Shell Filling Stations in Accra.
It was also the first to install the electronic voucher recharge system for Areeba.
“We are always looking for new opportunities, especially areas where we can have a competitive edge which is relevant to solving business problems” Mr Jaquaye said.
He said the key to the success of the company has been to use cutting technology, coupled with its skilled human resources to provide business solutions to its satisfied clients.
Mr Jaquaye in 2004 did what many Ghanaian entrepreneurs are afraid of doing. He took his company to the Stock market to raise capital for expansion of the company.
“ I believed that people must also share in the success of the company, whiles raising capital for expansion”, adding that I want the company to outlive me”.
The stock market, he said, offers the opportunity to raise long-term capital for expansion.
“ Listing Clydestone on the stock market was good”, he said and mentioned that among the benefits of such listing, was the transparency, accountability to shareholders and good corporate governance.
Clydestone has gone ahead to establish its presence in Nigeria. Although the group CEO of Clydestone is aware of the enormous challenges that face the company, he believes, this was another challenge he was willing to undertake.
“ I want Clydestone to become a Pan-African firm committed to service quality and delivery”, he said
That is not the end, Mr Jaquaye intends to list Transaction Solutions this year on the stock market. The company at the end of last recorded a turn over of ¢198 billion.
“I am relentless in my pursuit to over come challenges and through hard work and with the grace of God, I am successful at what I do”.
My Jaquaye had a word of advise for Ghanaian entrepreneurs, “go to the stock market to raise interest-free capital”.
The man has set his eyes higher, Mr Jaquaye says, the company would soon establish its presence in South Africa and other neighbouring countries.
Again, he said such companies must demonstrate their ability to show growth in their business, be transparent and adhere to good corporate governance.
“It is good to spread the risk”, he said.
He said the establishment of the venture capital fund would go a long way to support local businesses in the country and called for a clear definition of Small and Medium Scale Enterprises.
Mr Jacquaye beleives, the young generation of today can make it to greater heights, only if “they work hard, stay focus on their vision and with God your side, you shall succeed”.
Mr Jacquaye happily married with five kids.
“THE desire to achieve things in life and the challenge to do what I set myself to do is what inspires me and not the money”, these are the words of Mr Paul Tse Jacquaye, Group Chief Executive Officer of Clydestone.
Born 43 years ago, Mr Jacquaye today heads one the country’s leading Information Technology firms in the country, Clydestone Ghana Limited and its subsidiary Remittance Processing Ghana Limited.
A dream he started some 17 years ago with two employees, and an initial capital of ¢200,000 in 1989 from savings he had made whiles in the United Kingdom, today employees over 118 workers and is worth more that ¢500 billion.
Born in Labone, a surburd of Accra, Paul started his elementary school at Labadi Wireless One Primary. He continue to Presbyterian Boys Secondary at Ada Foah and later enrolled at Universal College at Yilo Krobo where he studied accounting and business.
He left for the United Kingdom and obtained a Diploma in Business Studies from the North Hearths College and also Wood London College where he did further studies.
With no IT background, Paul saw an opportunity in the IT business in the country and decided to invest. Seventeen years down the lane, Clydestone has become a leading name in the providing solutions to satisfied clients. He has gone ahead to establish two other companies Transaction Solutions and Easy shop.
The usual “lack of finance and start-up capital for small and potential firms did not wear the man down. Instead, he was focused, determined and committed to his vision.
Clydestone offers networking, hardware and software installation services, systems integration, training and technical support. The company is authorised distributor for the Unisys Corporation and also an authorised Cisco Systems re-seller in the country.
The company has chalked a number of first positions. It was the first company to be provisionally listed on the Ghana stock Exchange (GSE), It was also the first IT Company to list on the GSE, the company was the first to introduced the electronic bill payment system in collaboration with the Ghana Post, first to introduce the automation of the clearing system.
From small beginnings, the company now boost of a list of clienteles including almost all of the financial institutions, which the company provides with their financial document processing product.
It also provides Local Campus Area Network to some the country’s blue chip company’s such as Unilever Ghana Limited, British American Tobacco (BAT), AngloGold Ashanti and host of others.
Transaction Solutions was also the first to install the independent AutoTeller Machine, which is hosted by ECOBANK and situated at six Shell Filling Stations in Accra.
It was also the first to install the electronic voucher recharge system for Areeba.
“We are always looking for new opportunities, especially areas where we can have a competitive edge which is relevant to solving business problems” Mr Jaquaye said.
He said the key to the success of the company has been to use cutting technology, coupled with its skilled human resources to provide business solutions to its satisfied clients.
Mr Jaquaye in 2004 did what many Ghanaian entrepreneurs are afraid of doing. He took his company to the Stock market to raise capital for expansion of the company.
“ I believed that people must also share in the success of the company, whiles raising capital for expansion”, adding that I want the company to outlive me”.
The stock market, he said, offers the opportunity to raise long-term capital for expansion.
“ Listing Clydestone on the stock market was good”, he said and mentioned that among the benefits of such listing, was the transparency, accountability to shareholders and good corporate governance.
Clydestone has gone ahead to establish its presence in Nigeria. Although the group CEO of Clydestone is aware of the enormous challenges that face the company, he believes, this was another challenge he was willing to undertake.
“ I want Clydestone to become a Pan-African firm committed to service quality and delivery”, he said
That is not the end, Mr Jaquaye intends to list Transaction Solutions this year on the stock market. The company at the end of last recorded a turn over of ¢198 billion.
“I am relentless in my pursuit to over come challenges and through hard work and with the grace of God, I am successful at what I do”.
My Jaquaye had a word of advise for Ghanaian entrepreneurs, “go to the stock market to raise interest-free capital”.
The man has set his eyes higher, Mr Jaquaye says, the company would soon establish its presence in South Africa and other neighbouring countries.
Again, he said such companies must demonstrate their ability to show growth in their business, be transparent and adhere to good corporate governance.
“It is good to spread the risk”, he said.
He said the establishment of the venture capital fund would go a long way to support local businesses in the country and called for a clear definition of Small and Medium Scale Enterprises.
Mr Jacquaye beleives, the young generation of today can make it to greater heights, only if “they work hard, stay focus on their vision and with God your side, you shall succeed”.
Mr Jacquaye happily married with five kids.
Sunday, October 16, 2005
Ghana negotiates with foreign firms to process more cocoa
Story: Boahene Asamoah
NEGOTIATIONS are going on between Ghana and some multinational companies towards the establishment of cocoa processing plants in the country, a senior official of the Ghana Cocoa Board (COCOBOD) has revealed.
The companies include ADM, ED & F Max, Schokinag, Cargill and Gerkin.
In an interview, the Chief Executive Officer of COCOBOD, Mr Kwame Sarpong, said “discussions with these multinationals are on-going”.
He was optimistic that within 18 to 24 months, the country would see some investments in the cocoa processing sector.
Mr Sarpong was speaking immediately after the opening session of the 68th meeting of the Cocoa Producers Alliance (COPAL) in Accra yesterday.
He said it was the policy of the government to process 40 per cent of all cocoa produced in the country to generate additional income and employment for the country.
Mr Sarpong stated that the long-term objective of the negotiations was to establish firms which in the long run, would produce finished cocoa products for both local and external consumption.
Such companies, he said, would in the short term, however, process semi-finished goods for export.
He said the Cocoa Processing Company (CPC) and Barry Callebeaut were both undertaking expansion programmes which were all geared towards the processing of cocoa products.
On the COPAL’s move towards the promotion of cocoa consumption, he said the association had established local promotion committees within member countries aimed at promoting the local consumption of cocoa and said the health benefits of cocoa products were very encouraging.
The 10 members of COPAL include Brazil, Cameroun, Cote d’Ivoire, the Dominican Republic, Gabon, Ghana, Malaysia, Nigeria, Sao Tome and Principe and Togo.
These countries together account for 75 per cent of the total world cocoa production.
COPAL’s objectives include exchanging technical and scientific information, discussing problems of mutual interest, advancing social and economic relations among producers, ensuring adequate supplies to market at remunerative prices and promoting consumption of cocoa products with the view to expanding the markets of cocoa products.
The Secretary General of COPAL, Mr Hope Sona Ebai, said the association was involved in generic promotion to ensure the sustainable consumption of the cocoa products.
That, he said, was to ensure that the consumption of cocoa was matched with its production in order to avoid higher production and less consumption which could lead to low prices for cocoa on the international market.
He said the five-day meeting would set new objectives for the 2005-2006 cocoa season.
The highlights of the meeting will be the election of a new chairman and the ministerial council meeting.
About three million metric tonnes of cocoa beans are produced in the world each year, approximatetly two-thirds of these beans come from from West African countries, Cote d’Ivoire, Ghana, Nigeria and Cameroun.
Nearly 45 per cent of cocoa beans produced annually are used in Europe.
In 2003, 2.5 million metric tonnes of chocolate confectionery was manufactured in Europe, representing about 50 per cent of global production.
Chocolate production in Europe uses more than 250,000 metric tonnes of both milk powder and liquid milk each year.
The value of all confectionery goods produced in Europe, including all types of chocolate , biscuits and sugar confectionery, exceeds four billion euros per annum.
There are nearly 2,000 companies active in the European confectionery industry, employing more than 270,000 people.
NEGOTIATIONS are going on between Ghana and some multinational companies towards the establishment of cocoa processing plants in the country, a senior official of the Ghana Cocoa Board (COCOBOD) has revealed.
The companies include ADM, ED & F Max, Schokinag, Cargill and Gerkin.
In an interview, the Chief Executive Officer of COCOBOD, Mr Kwame Sarpong, said “discussions with these multinationals are on-going”.
He was optimistic that within 18 to 24 months, the country would see some investments in the cocoa processing sector.
Mr Sarpong was speaking immediately after the opening session of the 68th meeting of the Cocoa Producers Alliance (COPAL) in Accra yesterday.
He said it was the policy of the government to process 40 per cent of all cocoa produced in the country to generate additional income and employment for the country.
Mr Sarpong stated that the long-term objective of the negotiations was to establish firms which in the long run, would produce finished cocoa products for both local and external consumption.
Such companies, he said, would in the short term, however, process semi-finished goods for export.
He said the Cocoa Processing Company (CPC) and Barry Callebeaut were both undertaking expansion programmes which were all geared towards the processing of cocoa products.
On the COPAL’s move towards the promotion of cocoa consumption, he said the association had established local promotion committees within member countries aimed at promoting the local consumption of cocoa and said the health benefits of cocoa products were very encouraging.
The 10 members of COPAL include Brazil, Cameroun, Cote d’Ivoire, the Dominican Republic, Gabon, Ghana, Malaysia, Nigeria, Sao Tome and Principe and Togo.
These countries together account for 75 per cent of the total world cocoa production.
COPAL’s objectives include exchanging technical and scientific information, discussing problems of mutual interest, advancing social and economic relations among producers, ensuring adequate supplies to market at remunerative prices and promoting consumption of cocoa products with the view to expanding the markets of cocoa products.
The Secretary General of COPAL, Mr Hope Sona Ebai, said the association was involved in generic promotion to ensure the sustainable consumption of the cocoa products.
That, he said, was to ensure that the consumption of cocoa was matched with its production in order to avoid higher production and less consumption which could lead to low prices for cocoa on the international market.
He said the five-day meeting would set new objectives for the 2005-2006 cocoa season.
The highlights of the meeting will be the election of a new chairman and the ministerial council meeting.
About three million metric tonnes of cocoa beans are produced in the world each year, approximatetly two-thirds of these beans come from from West African countries, Cote d’Ivoire, Ghana, Nigeria and Cameroun.
Nearly 45 per cent of cocoa beans produced annually are used in Europe.
In 2003, 2.5 million metric tonnes of chocolate confectionery was manufactured in Europe, representing about 50 per cent of global production.
Chocolate production in Europe uses more than 250,000 metric tonnes of both milk powder and liquid milk each year.
The value of all confectionery goods produced in Europe, including all types of chocolate , biscuits and sugar confectionery, exceeds four billion euros per annum.
There are nearly 2,000 companies active in the European confectionery industry, employing more than 270,000 people.
Ghana negotiates with foreign firms to process more cocoa
Story: Boahene Asamoah
NEGOTIATIONS are going on between Ghana and some multinational companies towards the establishment of cocoa processing plants in the country, a senior official of the Ghana Cocoa Board (COCOBOD) has revealed.
The companies include ADM, ED & F Max, Schokinag, Cargill and Gerkin.
In an interview, the Chief Executive Officer of COCOBOD, Mr Kwame Sarpong, said “discussions with these multinationals are on-going”.
He was optimistic that within 18 to 24 months, the country would see some investments in the cocoa processing sector.
Mr Sarpong was speaking immediately after the opening session of the 68th meeting of the Cocoa Producers Alliance (COPAL) in Accra yesterday.
He said it was the policy of the government to process 40 per cent of all cocoa produced in the country to generate additional income and employment for the country.
Mr Sarpong stated that the long-term objective of the negotiations was to establish firms which in the long run, would produce finished cocoa products for both local and external consumption.
Such companies, he said, would in the short term, however, process semi-finished goods for export.
He said the Cocoa Processing Company (CPC) and Barry Callebeaut were both undertaking expansion programmes which were all geared towards the processing of cocoa products.
On the COPAL’s move towards the promotion of cocoa consumption, he said the association had established local promotion committees within member countries aimed at promoting the local consumption of cocoa and said the health benefits of cocoa products were very encouraging.
The 10 members of COPAL include Brazil, Cameroun, Cote d’Ivoire, the Dominican Republic, Gabon, Ghana, Malaysia, Nigeria, Sao Tome and Principe and Togo.
These countries together account for 75 per cent of the total world cocoa production.
COPAL’s objectives include exchanging technical and scientific information, discussing problems of mutual interest, advancing social and economic relations among producers, ensuring adequate supplies to market at remunerative prices and promoting consumption of cocoa products with the view to expanding the markets of cocoa products.
The Secretary General of COPAL, Mr Hope Sona Ebai, said the association was involved in generic promotion to ensure the sustainable consumption of the cocoa products.
That, he said, was to ensure that the consumption of cocoa was matched with its production in order to avoid higher production and less consumption which could lead to low prices for cocoa on the international market.
He said the five-day meeting would set new objectives for the 2005-2006 cocoa season.
The highlights of the meeting will be the election of a new chairman and the ministerial council meeting.
About three million metric tonnes of cocoa beans are produced in the world each year, approximatetly two-thirds of these beans come from from West African countries, Cote d’Ivoire, Ghana, Nigeria and Cameroun.
Nearly 45 per cent of cocoa beans produced annually are used in Europe.
In 2003, 2.5 million metric tonnes of chocolate confectionery was manufactured in Europe, representing about 50 per cent of global production.
Chocolate production in Europe uses more than 250,000 metric tonnes of both milk powder and liquid milk each year.
The value of all confectionery goods produced in Europe, including all types of chocolate , biscuits and sugar confectionery, exceeds four billion euros per annum.
There are nearly 2,000 companies active in the European confectionery industry, employing more than 270,000 people.
NEGOTIATIONS are going on between Ghana and some multinational companies towards the establishment of cocoa processing plants in the country, a senior official of the Ghana Cocoa Board (COCOBOD) has revealed.
The companies include ADM, ED & F Max, Schokinag, Cargill and Gerkin.
In an interview, the Chief Executive Officer of COCOBOD, Mr Kwame Sarpong, said “discussions with these multinationals are on-going”.
He was optimistic that within 18 to 24 months, the country would see some investments in the cocoa processing sector.
Mr Sarpong was speaking immediately after the opening session of the 68th meeting of the Cocoa Producers Alliance (COPAL) in Accra yesterday.
He said it was the policy of the government to process 40 per cent of all cocoa produced in the country to generate additional income and employment for the country.
Mr Sarpong stated that the long-term objective of the negotiations was to establish firms which in the long run, would produce finished cocoa products for both local and external consumption.
Such companies, he said, would in the short term, however, process semi-finished goods for export.
He said the Cocoa Processing Company (CPC) and Barry Callebeaut were both undertaking expansion programmes which were all geared towards the processing of cocoa products.
On the COPAL’s move towards the promotion of cocoa consumption, he said the association had established local promotion committees within member countries aimed at promoting the local consumption of cocoa and said the health benefits of cocoa products were very encouraging.
The 10 members of COPAL include Brazil, Cameroun, Cote d’Ivoire, the Dominican Republic, Gabon, Ghana, Malaysia, Nigeria, Sao Tome and Principe and Togo.
These countries together account for 75 per cent of the total world cocoa production.
COPAL’s objectives include exchanging technical and scientific information, discussing problems of mutual interest, advancing social and economic relations among producers, ensuring adequate supplies to market at remunerative prices and promoting consumption of cocoa products with the view to expanding the markets of cocoa products.
The Secretary General of COPAL, Mr Hope Sona Ebai, said the association was involved in generic promotion to ensure the sustainable consumption of the cocoa products.
That, he said, was to ensure that the consumption of cocoa was matched with its production in order to avoid higher production and less consumption which could lead to low prices for cocoa on the international market.
He said the five-day meeting would set new objectives for the 2005-2006 cocoa season.
The highlights of the meeting will be the election of a new chairman and the ministerial council meeting.
About three million metric tonnes of cocoa beans are produced in the world each year, approximatetly two-thirds of these beans come from from West African countries, Cote d’Ivoire, Ghana, Nigeria and Cameroun.
Nearly 45 per cent of cocoa beans produced annually are used in Europe.
In 2003, 2.5 million metric tonnes of chocolate confectionery was manufactured in Europe, representing about 50 per cent of global production.
Chocolate production in Europe uses more than 250,000 metric tonnes of both milk powder and liquid milk each year.
The value of all confectionery goods produced in Europe, including all types of chocolate , biscuits and sugar confectionery, exceeds four billion euros per annum.
There are nearly 2,000 companies active in the European confectionery industry, employing more than 270,000 people.
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