Story: Boahene Asamoah
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Sunday, March 30, 2008
Intercontinental Bank rolls out two products
Story: Boahene Asamoah
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
West Africa needs import, export bank, Says Chambas
Story: Boahene Asamoah
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
GCB launches two new products
Story: Boahene Asamoah
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
Smuggling impedes operations of local manufacturers
Story: Boahene Asamoah
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
Shareholders stop CAL Bank proposal — To raise capital base to GH¢200 million
Story: Boahene Asamoah
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
Ecobank to sustain expansion programm
Story: Boahene Asamoah
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
GCB draws 3-year corporate plan - To consolidate and expand its operations
Story: Boahene Asamoah
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
Monday, March 17, 2008
lecturer warns of national disaster
Story: Boahene Asamoah
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
Eight sign service charters
Story: Boahene Asamoah
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
Inflation goes up again
Story: Boahene Asamoah
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
Thursday, March 13, 2008
Audit Service to network offices
Story: Boahene Asamoah
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
Wednesday, March 05, 2008
Minister meets US trade delegation
Story: Boahene Asamoah & Naa
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Arrow Networks begins to assemble modems
Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
Friday, February 29, 2008
Japanese grant to aid flood victims
Story: Boahene Asamoah
Japan has given Ghana a GH¢5.9 million grant facility to support food aid as a result of the recent floods in the country.
The grant was part of the Japanese government’s response to the government’s request for support as a result of the flood disaster that hit the country, especially northern Ghana, last year.
The multi-purpose grant would enable the government of Ghana to import foods such as rice and sell it on the local market. The proceeds from the sale of the rice would then be used to undertake other social development programmes in the country.
At a signing ceremony between the two countries, the Chief Director of the Ministry of Foreign Affairs, Mrs Ellen Serwaa Nee-Whang, said the grant had once again showed that Japan was a good friend of Ghana.
She said the grant would go into rice procurement to support the anticipated food shortages as a result of the floods.
She recounted Japanese assistance in food aid, dating back to 1973, to support the country and mentioned that since 2005, that policy had changed to include support for the Ministry of Food and Agriculture in the form of irrigation construction to support rice cultivation, as well as to encourage rice production in the country.
The Charge d’ Affairs of the Japanese Embassy, Mr Yutaka Nakamura, said the food aid was a multi-purpose one, adding that monies raised from the sale of the rice could be used to purchase the much needed grains such as maize to meet the needs of the people of the Northern Region.
He said agriculture was the main industrial activity in Northern Ghana, which should play a leading role towards a vibrant Africa.
Japan, Mr Nakamura said, had been assisting Ghana with agriculture through promotion of domestic rice as well as provision of agricultural machinery.
He used the opportunity to announce that the Japanese government would host the 4th Tokyo International Conference on African Development (TICAD IV) under the theme “Towards a Vibrant Africa: A Continent of Hope and Opportunity” this year as it chairs the G-8 Summit.
Japan has given Ghana a GH¢5.9 million grant facility to support food aid as a result of the recent floods in the country.
The grant was part of the Japanese government’s response to the government’s request for support as a result of the flood disaster that hit the country, especially northern Ghana, last year.
The multi-purpose grant would enable the government of Ghana to import foods such as rice and sell it on the local market. The proceeds from the sale of the rice would then be used to undertake other social development programmes in the country.
At a signing ceremony between the two countries, the Chief Director of the Ministry of Foreign Affairs, Mrs Ellen Serwaa Nee-Whang, said the grant had once again showed that Japan was a good friend of Ghana.
She said the grant would go into rice procurement to support the anticipated food shortages as a result of the floods.
She recounted Japanese assistance in food aid, dating back to 1973, to support the country and mentioned that since 2005, that policy had changed to include support for the Ministry of Food and Agriculture in the form of irrigation construction to support rice cultivation, as well as to encourage rice production in the country.
The Charge d’ Affairs of the Japanese Embassy, Mr Yutaka Nakamura, said the food aid was a multi-purpose one, adding that monies raised from the sale of the rice could be used to purchase the much needed grains such as maize to meet the needs of the people of the Northern Region.
He said agriculture was the main industrial activity in Northern Ghana, which should play a leading role towards a vibrant Africa.
Japan, Mr Nakamura said, had been assisting Ghana with agriculture through promotion of domestic rice as well as provision of agricultural machinery.
He used the opportunity to announce that the Japanese government would host the 4th Tokyo International Conference on African Development (TICAD IV) under the theme “Towards a Vibrant Africa: A Continent of Hope and Opportunity” this year as it chairs the G-8 Summit.
Wednesday, February 27, 2008
Aggudey's firm in trouble again
Story: Boahene Asamoah
Twenty vehicles belonging to Gocrest Security were yesterday impounded by officials of the Value Added Tax (VAT) and some police personnel, for the company’s persistent refusal to pay GH¢615,990.85 or (¢6.15 billion) owed to the state over the past four years.
In the dawn operation, the keys to the vehicles including four bullion Man Diesel Trucks, 15 bullion Toyota Hilux vehicles and one Nissan Urvan were taken away from Mr George Oposika Aggudey, the owner of the company at his Weija residence.
The exercise did not affect 25 other posh private cars which were parked in the mansion of the Mr Aggudey, a former Convention People’s Party (CPP) Presidential candidate.
The cars included an Escalade, three Lincoln saloon cars, two poshe sports cars, a Mercedes E Class, two convertible cars, a Jaguar, a Landcruiser, three BMW’s, and a Toyota Hilux among many others.
Mr Aggudey who was awoken from his sleep as early as 5:30 am by his security guard to attend to the VAT officials call, looked sober and tried unsuccessful to negotiate with the VAT officials who would not listen to any explanation.
According to Mr Henry Sam, the leader of the task force, Mr Aggudey had refused all friendly customer appeals to him to pay the outstanding amount.
He indicated the distress action was to ensure that defaulters do pay back taxes that was due to the state and explained that the exercise was undertaken at the early hours of the day because of the nature of business of the company.
He indicated that some cheques issued by the company sometime last year amounting to GH¢240,000 were dishonoured and that by the laws of the VAT, they would only receive cash payments or by bankers draft.
Mr Aggudey indicated that he had visited the VAT Commissioner this week and had made arrangements to make payments for which he had submitted cheques to pay the outstanding amount.
Mr Aggudey who looked visibly disturbed did not argue further and started making calls to unknown personalities.
He subsequently obliged and handed over the keys to the vehicles which were packed outside his house to the leader of the task force.
The drivers of the sized vehicles who had come early morning to start their daily work schedule were seen outside seated in front of Mr Aggudey’s mansion.
A team of five VAT officials and six police officers from the Striking Force and some journalists were detailed to undertake the exercise.
Twenty vehicles belonging to Gocrest Security were yesterday impounded by officials of the Value Added Tax (VAT) and some police personnel, for the company’s persistent refusal to pay GH¢615,990.85 or (¢6.15 billion) owed to the state over the past four years.
In the dawn operation, the keys to the vehicles including four bullion Man Diesel Trucks, 15 bullion Toyota Hilux vehicles and one Nissan Urvan were taken away from Mr George Oposika Aggudey, the owner of the company at his Weija residence.
The exercise did not affect 25 other posh private cars which were parked in the mansion of the Mr Aggudey, a former Convention People’s Party (CPP) Presidential candidate.
The cars included an Escalade, three Lincoln saloon cars, two poshe sports cars, a Mercedes E Class, two convertible cars, a Jaguar, a Landcruiser, three BMW’s, and a Toyota Hilux among many others.
Mr Aggudey who was awoken from his sleep as early as 5:30 am by his security guard to attend to the VAT officials call, looked sober and tried unsuccessful to negotiate with the VAT officials who would not listen to any explanation.
According to Mr Henry Sam, the leader of the task force, Mr Aggudey had refused all friendly customer appeals to him to pay the outstanding amount.
He indicated the distress action was to ensure that defaulters do pay back taxes that was due to the state and explained that the exercise was undertaken at the early hours of the day because of the nature of business of the company.
He indicated that some cheques issued by the company sometime last year amounting to GH¢240,000 were dishonoured and that by the laws of the VAT, they would only receive cash payments or by bankers draft.
Mr Aggudey indicated that he had visited the VAT Commissioner this week and had made arrangements to make payments for which he had submitted cheques to pay the outstanding amount.
Mr Aggudey who looked visibly disturbed did not argue further and started making calls to unknown personalities.
He subsequently obliged and handed over the keys to the vehicles which were packed outside his house to the leader of the task force.
The drivers of the sized vehicles who had come early morning to start their daily work schedule were seen outside seated in front of Mr Aggudey’s mansion.
A team of five VAT officials and six police officers from the Striking Force and some journalists were detailed to undertake the exercise.
PPI dips slightly
Story: Boahene Asamoah
THE Producer Price Index (PPI), which measures the average change over time in the prices received by domestic producers for the production of goods and services for the month of January, stood at 28.65 per cent.
This represents a a slight decrease of 2.38 per per centage points from the December 2007 index.
Announcing the figures at the monthly press conference in Accra yesterday, the Chief Statistician and the Director of Trade and Industry Division of the Ghana Statistical Service, Mrs Araba Forson, indicated that the annual index for mining and quarrying, manufacturing and utilities were 51.46 per cent, 19.94 per cent and 54.16 per cent respectively.
“The annual mining and quarrying index for January 2008 compared to December 2007 edged up by 1.46 percentage points”, she stated.
Mrs Forson stated that the January index for mining of metal ores stood at 55.88 per cent edging up by 4.05 per cent over December 2007 annual index, while the index for mining and quarrying such as salt for January 2008 jumped by 27.02 per cent as compared to December 2007 figure.
Again, she indicated that the annual index for the manufacturing sector compared to the previous month decreased by 0.14 percentage points.
The monthly all industry index for January, 2008 fell marginally by 0.53 per cent after it had edged up by 3.51 per cent in the previous month.
The PPI measures price change from the perspective of the producer. This contrast with other measures such as the Consumer Price Index (CPI), which measures price change from the purchaser’s perspective.
Price of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for virtually every industry in the mining, manufacturing and utilities sectors of the economy.
According to the Ghana Statistical Service, there were plans to expand coverage to include telecommunications, construction, services and agriculture.
THE Producer Price Index (PPI), which measures the average change over time in the prices received by domestic producers for the production of goods and services for the month of January, stood at 28.65 per cent.
This represents a a slight decrease of 2.38 per per centage points from the December 2007 index.
Announcing the figures at the monthly press conference in Accra yesterday, the Chief Statistician and the Director of Trade and Industry Division of the Ghana Statistical Service, Mrs Araba Forson, indicated that the annual index for mining and quarrying, manufacturing and utilities were 51.46 per cent, 19.94 per cent and 54.16 per cent respectively.
“The annual mining and quarrying index for January 2008 compared to December 2007 edged up by 1.46 percentage points”, she stated.
Mrs Forson stated that the January index for mining of metal ores stood at 55.88 per cent edging up by 4.05 per cent over December 2007 annual index, while the index for mining and quarrying such as salt for January 2008 jumped by 27.02 per cent as compared to December 2007 figure.
Again, she indicated that the annual index for the manufacturing sector compared to the previous month decreased by 0.14 percentage points.
The monthly all industry index for January, 2008 fell marginally by 0.53 per cent after it had edged up by 3.51 per cent in the previous month.
The PPI measures price change from the perspective of the producer. This contrast with other measures such as the Consumer Price Index (CPI), which measures price change from the purchaser’s perspective.
Price of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for virtually every industry in the mining, manufacturing and utilities sectors of the economy.
According to the Ghana Statistical Service, there were plans to expand coverage to include telecommunications, construction, services and agriculture.
Enact Fiscal Responsibility Law— To limit government expenditures
Story: Boahene Asamoah
THE Bank of Ghana (BoG) has proposed the legislation of a Fiscal Responsibility Law (FRL) to underpin the governments’ commitment to fiscal discipline and debt sustainability.
The central bank suggested expenditure targets or ceilings be embedded in the proposed FRL to limit government expenditures and promote measures to scale-up revenue mobilisation.
According to a policy briefing paper sighted by the Daily Graphic, the bank urged the government to continue with the public sector reforms and expedite the operation of the Fair Wages Commission to anchor wage bills, which was a potential source of fiscal instability in the country.
“Ghana’s success with fiscal rules will ultimately depend on government’s commitment to the process of fiscal discipline and strong governance structures to ensure that fiscal processes are followed through.”
The central bank drew attention to the need to clearly state the objectives on prudent fiscal management as well as principles on transparency and accountability as part of the proposed law.
“Experiences also suggest that critical elements which account for the success of fiscal rules include clearly defined objectives and targets, political commitment, strong institutions and effective enforcement mechanisms,” the paper stated.
The BoG also called for the establishment of fiscal rules and procedures that are clear, flexible and transparent, adding that “these must however be accompanied by sanctions for effective enforcement and applicable escape clauses during periods of adverse shocks.”
The Bank of Ghana said macroeconomic stabilisation was a necessary condition for economic growth and poverty reduction.
It said since 2001, prudent fiscal policies along with sound monetary policies had constituted the core of Ghana’s economic policies aimed at stabilisation.
The brief highlighted that economic improvement has been significant and macroeconomic stability achieved, with growth rates in Gross Domestic Product (GDP) increasing from 3.7 per cent in 2000, to 6.2 per cent in 2006.
Headline inflation declined from 40.5 per cent in December 2000 to 10.5 per cent in December 2006 as core inflation (excluding energy and utilities) remained within single digits, the bank said.
Interest rates have trended downwards, in tandem with the disinflation process.
“In addition to sound monetary management, fiscal adjustment contributed significantly to macro stability. Progress was made in institutional arrangements and the regulatory environment to ensure better fiscal management.”
It named some of them as the Medium-Term Expenditure Framework (MTEF), and enactment of Financial Administration Act, the Internal Audit Agency Act and the Procurement Act.
Over the past six years, Ghana’s economy has been anchored to prudent fiscal and monetary policy frameworks. This has contributed significantly to macroeconomic stability with steady growth.
To further consolidate the macroeconomic stability and anchor inflationary expectations, the Bank of Ghana adopted an inflation targeting regime in May last year.
“Although fiscal policy has remained committed to the stabilisation process, recent trends point to the need for further consolidation to ensure long-term fiscal sustainability,” the brief stated.
“Evidence gathered from international experiences with fiscal rules suggests that fiscal rules are enabling instruments for a country to stay on a transparent, prudent and sustainable fiscal path,” the brief stated.
It however said those measures were not sufficient but needed to be supported by good institutions as well as prudent expenditure and financial management measures that limited government spending and improve revenue generation.
“The key lesson for Ghana is that fiscal rules work best when government is fully committed to the process of fiscal prudence and ensures that long-term development prospects are not sacrificed by short-term gains,” the brief stated.
THE Bank of Ghana (BoG) has proposed the legislation of a Fiscal Responsibility Law (FRL) to underpin the governments’ commitment to fiscal discipline and debt sustainability.
The central bank suggested expenditure targets or ceilings be embedded in the proposed FRL to limit government expenditures and promote measures to scale-up revenue mobilisation.
According to a policy briefing paper sighted by the Daily Graphic, the bank urged the government to continue with the public sector reforms and expedite the operation of the Fair Wages Commission to anchor wage bills, which was a potential source of fiscal instability in the country.
“Ghana’s success with fiscal rules will ultimately depend on government’s commitment to the process of fiscal discipline and strong governance structures to ensure that fiscal processes are followed through.”
The central bank drew attention to the need to clearly state the objectives on prudent fiscal management as well as principles on transparency and accountability as part of the proposed law.
“Experiences also suggest that critical elements which account for the success of fiscal rules include clearly defined objectives and targets, political commitment, strong institutions and effective enforcement mechanisms,” the paper stated.
The BoG also called for the establishment of fiscal rules and procedures that are clear, flexible and transparent, adding that “these must however be accompanied by sanctions for effective enforcement and applicable escape clauses during periods of adverse shocks.”
The Bank of Ghana said macroeconomic stabilisation was a necessary condition for economic growth and poverty reduction.
It said since 2001, prudent fiscal policies along with sound monetary policies had constituted the core of Ghana’s economic policies aimed at stabilisation.
The brief highlighted that economic improvement has been significant and macroeconomic stability achieved, with growth rates in Gross Domestic Product (GDP) increasing from 3.7 per cent in 2000, to 6.2 per cent in 2006.
Headline inflation declined from 40.5 per cent in December 2000 to 10.5 per cent in December 2006 as core inflation (excluding energy and utilities) remained within single digits, the bank said.
Interest rates have trended downwards, in tandem with the disinflation process.
“In addition to sound monetary management, fiscal adjustment contributed significantly to macro stability. Progress was made in institutional arrangements and the regulatory environment to ensure better fiscal management.”
It named some of them as the Medium-Term Expenditure Framework (MTEF), and enactment of Financial Administration Act, the Internal Audit Agency Act and the Procurement Act.
Over the past six years, Ghana’s economy has been anchored to prudent fiscal and monetary policy frameworks. This has contributed significantly to macroeconomic stability with steady growth.
To further consolidate the macroeconomic stability and anchor inflationary expectations, the Bank of Ghana adopted an inflation targeting regime in May last year.
“Although fiscal policy has remained committed to the stabilisation process, recent trends point to the need for further consolidation to ensure long-term fiscal sustainability,” the brief stated.
“Evidence gathered from international experiences with fiscal rules suggests that fiscal rules are enabling instruments for a country to stay on a transparent, prudent and sustainable fiscal path,” the brief stated.
It however said those measures were not sufficient but needed to be supported by good institutions as well as prudent expenditure and financial management measures that limited government spending and improve revenue generation.
“The key lesson for Ghana is that fiscal rules work best when government is fully committed to the process of fiscal prudence and ensures that long-term development prospects are not sacrificed by short-term gains,” the brief stated.
Dont Stampede govt-Into Sharing resources from oil Find-says Oteng-Gyasi
Story: Boahene Asamoah
Individuals and communities should be careful not to stampede the government into sharing the resources which will accrue from the oil find, Mr Anthony Oteng-Gyasi, the President of the Association of Ghana Industries (AGI), has cautioned.
He said concerns being raised in the media in connection with the oil find were all on how to share the revenue that would accrue from the oil find and cautioned that “we must be very careful”.
Speaking at the launch of a media advocacy project on “Using the Media to Strengthen Business Advocacy” in Accra yesterday, Mr Oteng-Gyasi said, “Concerns about the oil find should be on the opportunities for business and employment generation” that would benefit the country and help in the development of the economy.
The 12-month business advocacy project is an initiative of the Ghana Journalists Association (GJA) and supported by the Business Sector Advocacy Challenge (BUSAC) Fund and comes at the heels of the first project in 2006. It is being facilitated by KAB Governance Consult.
Mr Oteng-Gyasi, who touched on many challenges facing the nation, urged the media to give the same prominence they gave to political stories to business and economic issues as the country strove to achieve a middle-income status.
“I am calling for a cultural change in our attitude to business and requesting you, as media professionals, to use your advocacy in bringing about this change by sustained, well structured, multi-media efforts on behalf of business,” the AGI President stated.
He said the media had spearheaded the call for political independence and democratic rule in the 50-year history of the country but expressed regret that the same could not be said of the economic independence of the country since gaining political freedom.
“It is the role of the media to bring this awareness to our people. The success of our media in making concepts of democratic governance and human rights appreciated by large portions of our society can and should be replicated in economic and business advocacy,” Mr Oteng-Gyasi said.
On poverty, he indicated that “a disturbing phenomenon is the constant reminder that we are a poor nation. This is worsened by what is often offered as a logical result of our poverty”.
He stated that the argument often implied that we must, therefore, be given goods and services at low prices or preferably for free.
“What we fail to add is the need for each person to try to better himself,” adding that “the role of a leader should be to ensure conditions that allow an individual who makes the effort to do well”.
The Minister of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiatives (PSIs), Mr Joe Baidoe-Ansah, said the ministry was implementing a strategy on micro, small and medium-scale enterprises (MSMEs) designed to promote SMEs as a response to the dominance of the sector and the need to support their growth.
“In addition, the ministry has a well functioning SME division which is pursuing programmes to streamline government’s support to SMEs,” the minister added.
Mr Baidoe-Ansah said the ministry had set a public-private dialogue unit within the ministry to collate the concerns of trade associations and practitioners and present the concerns for policy considerations by the government.
The Danish Ambassador to Ghana, Mr Flemming Bjork Pedersen, in his statement, said Denmark had allocated GH¢37 million to support a Business Sector Support Programme to pursue a pro-poor development strategy in line with the country’s poverty reduction strategy.
He said the programme had the objective of creating equitable growth in production and employment achieved through the development of a competitive and vibrant private sector.
The President of the GJA, Mr Ransford Tetteh, stated that the project would, among other things, make a conscious effort to develop the capacity of a core of journalists in business advocacy and create a multi-media platform to discuss the concerns of business.
“It will also sensitise the leadership of business groups and entrepreneurs to the importance of advocacy in business and promote dialogue between policy makers and business operatives with the view to addressing the concerns of business,” he stated.
Individuals and communities should be careful not to stampede the government into sharing the resources which will accrue from the oil find, Mr Anthony Oteng-Gyasi, the President of the Association of Ghana Industries (AGI), has cautioned.
He said concerns being raised in the media in connection with the oil find were all on how to share the revenue that would accrue from the oil find and cautioned that “we must be very careful”.
Speaking at the launch of a media advocacy project on “Using the Media to Strengthen Business Advocacy” in Accra yesterday, Mr Oteng-Gyasi said, “Concerns about the oil find should be on the opportunities for business and employment generation” that would benefit the country and help in the development of the economy.
The 12-month business advocacy project is an initiative of the Ghana Journalists Association (GJA) and supported by the Business Sector Advocacy Challenge (BUSAC) Fund and comes at the heels of the first project in 2006. It is being facilitated by KAB Governance Consult.
Mr Oteng-Gyasi, who touched on many challenges facing the nation, urged the media to give the same prominence they gave to political stories to business and economic issues as the country strove to achieve a middle-income status.
“I am calling for a cultural change in our attitude to business and requesting you, as media professionals, to use your advocacy in bringing about this change by sustained, well structured, multi-media efforts on behalf of business,” the AGI President stated.
He said the media had spearheaded the call for political independence and democratic rule in the 50-year history of the country but expressed regret that the same could not be said of the economic independence of the country since gaining political freedom.
“It is the role of the media to bring this awareness to our people. The success of our media in making concepts of democratic governance and human rights appreciated by large portions of our society can and should be replicated in economic and business advocacy,” Mr Oteng-Gyasi said.
On poverty, he indicated that “a disturbing phenomenon is the constant reminder that we are a poor nation. This is worsened by what is often offered as a logical result of our poverty”.
He stated that the argument often implied that we must, therefore, be given goods and services at low prices or preferably for free.
“What we fail to add is the need for each person to try to better himself,” adding that “the role of a leader should be to ensure conditions that allow an individual who makes the effort to do well”.
The Minister of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiatives (PSIs), Mr Joe Baidoe-Ansah, said the ministry was implementing a strategy on micro, small and medium-scale enterprises (MSMEs) designed to promote SMEs as a response to the dominance of the sector and the need to support their growth.
“In addition, the ministry has a well functioning SME division which is pursuing programmes to streamline government’s support to SMEs,” the minister added.
Mr Baidoe-Ansah said the ministry had set a public-private dialogue unit within the ministry to collate the concerns of trade associations and practitioners and present the concerns for policy considerations by the government.
The Danish Ambassador to Ghana, Mr Flemming Bjork Pedersen, in his statement, said Denmark had allocated GH¢37 million to support a Business Sector Support Programme to pursue a pro-poor development strategy in line with the country’s poverty reduction strategy.
He said the programme had the objective of creating equitable growth in production and employment achieved through the development of a competitive and vibrant private sector.
The President of the GJA, Mr Ransford Tetteh, stated that the project would, among other things, make a conscious effort to develop the capacity of a core of journalists in business advocacy and create a multi-media platform to discuss the concerns of business.
“It will also sensitise the leadership of business groups and entrepreneurs to the importance of advocacy in business and promote dialogue between policy makers and business operatives with the view to addressing the concerns of business,” he stated.
Wednesday, February 20, 2008
Baah Wiredu calls on Canada to avail its expertise on oil to Ghana
Story: Boahene Asamoah & Jasmine Afari-Mintah
THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, has called on the Canadian government to avail its expertise in the legal framework covering the oil industry to enable the country to lay a strong foundation for its oil find.
Speaking during a courtesy call on him by the new Canadian High Commissioner to Ghana, Mr Darren Schemmer in Accra on Tuesday, the minister said the country was learning from many other countries across the world to ensure that resources from the oil find was put to good use.
He acknowledged the strong legal framework that Canada had adopted over its oil industry and said the country could learn from it and adopt best practises.
The minister outlined a number of initiatives that the government had undertaken such as the new educational reforms that would ensure the compulsory enrolment of pupils from the early education to the first cycle education.
He also mentioned infrastructure development, such as roads, the Bui Dam and the reactivation of the rail lines across the country as some of the projects the government was undertaking.
Mr Baah-Wiredu, also mentioned the need for support in the health and information, communications technology.
The minister said there is the need for more investments in the mining sector and called for partnership between the two countries in that direction.
Mr Baah-Wiredu stressed the need to expand trading relations between the two countries to cover more areas such ICT software development.
He acknowledged the immense support the Canadian government had given to the country for its budgetary support.
He assured the High Commissioner that the government would ensure a free and fair elections during this year’s general elections and stressed the need for development partners not to hold back projected budgetary support in anticipation of any set backs in this year’s elections.
Mr Schemmer, for his part also acknowledged the long standing partnership between Ghana and Canada.
He said he was at the ministry to familiarise himself with the government’s projects as well as to meet the minister and introduce himself and assured the minister of Canada’s support for the country’s economic development.
He said Canada had supported Ghana through Canadian International Development Agency (CIDA) to achieve equitable and sustainable poverty reduction.
Canada’s support for Ghana are carried out through four main channels namely; country to country (bilateral), regional organisations, multilateral institutions and partnership between Canadian and Ghanaian profit and non profit entities.
Currently the Canadian government has supported Ghana with a 93 million Canadian dollar through the multi-donor budgetary support and a further 85 million Canadian dollars for the food and agricultural budgetary support programme.
Additionally, the Canadian government has made available an amount of 14.5 million Canadian dollars under the district wide assistance project and also a 12 million Canadian dollar for a community driven initiative for food security programme among many others.
THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, has called on the Canadian government to avail its expertise in the legal framework covering the oil industry to enable the country to lay a strong foundation for its oil find.
Speaking during a courtesy call on him by the new Canadian High Commissioner to Ghana, Mr Darren Schemmer in Accra on Tuesday, the minister said the country was learning from many other countries across the world to ensure that resources from the oil find was put to good use.
He acknowledged the strong legal framework that Canada had adopted over its oil industry and said the country could learn from it and adopt best practises.
The minister outlined a number of initiatives that the government had undertaken such as the new educational reforms that would ensure the compulsory enrolment of pupils from the early education to the first cycle education.
He also mentioned infrastructure development, such as roads, the Bui Dam and the reactivation of the rail lines across the country as some of the projects the government was undertaking.
Mr Baah-Wiredu, also mentioned the need for support in the health and information, communications technology.
The minister said there is the need for more investments in the mining sector and called for partnership between the two countries in that direction.
Mr Baah-Wiredu stressed the need to expand trading relations between the two countries to cover more areas such ICT software development.
He acknowledged the immense support the Canadian government had given to the country for its budgetary support.
He assured the High Commissioner that the government would ensure a free and fair elections during this year’s general elections and stressed the need for development partners not to hold back projected budgetary support in anticipation of any set backs in this year’s elections.
Mr Schemmer, for his part also acknowledged the long standing partnership between Ghana and Canada.
He said he was at the ministry to familiarise himself with the government’s projects as well as to meet the minister and introduce himself and assured the minister of Canada’s support for the country’s economic development.
He said Canada had supported Ghana through Canadian International Development Agency (CIDA) to achieve equitable and sustainable poverty reduction.
Canada’s support for Ghana are carried out through four main channels namely; country to country (bilateral), regional organisations, multilateral institutions and partnership between Canadian and Ghanaian profit and non profit entities.
Currently the Canadian government has supported Ghana with a 93 million Canadian dollar through the multi-donor budgetary support and a further 85 million Canadian dollars for the food and agricultural budgetary support programme.
Additionally, the Canadian government has made available an amount of 14.5 million Canadian dollars under the district wide assistance project and also a 12 million Canadian dollar for a community driven initiative for food security programme among many others.
Workshop on mining held in Accra
Story: Boahene Asamoah
THE Minister of Lands, Forestry and Mines, Mrs Esther Obeng Dapaah, has called on all stakeholders in the mining industry to collaborate their efforts to raise the living standards of people in the mining communities.
In a speech read on her behalf at a one-day workshop on enhancing the benefits of mining in Accra yesterday, the minister said “the donor community, mining firms, and civil society groups must work closely together to ensure that the benefits of mining are used to raise the living standards of the people”.
The workshop, which was organised by the Ghana Chamber of Mines in collaboration with the World Bank and the International Council on Mining and Metals (ICMM) and United Nations Centre for Trade and Development (UNCTAD, brought together stakeholders from all the mining firms, as well as policy makers, civil society groups and some local representatives.
Mrs Dapaah also called for the identification of new collaborators and actors to deepen the level of collaboration and also with the aim of reducing poverty.
He said the country was also playing a leadership role in the extractive industry to ensure transparency to ensure that all stakeholders knew the use of mining resources in the country.
Mrs Dapaah stated that the government was committed to ensuring the development of the mining sector, since it played a critical role in the economic development of the country.
The Managing Director of the Minerals Commission, Mr Ben Aryee, stated that mining had the potential to impact positively on the economic development of the country.
He, however, said that there should be ways to ensure the effective management of mineral resources that would trickle down to the ordinary people.
Presenting findings of research conducted in four countries on the challenge of Mineral Wealth: Using resource endowments to foster sustainable development, Ms Kathryn McPhail of the ICMM, called for new partnerships to ensure the socio-economic benefits of mining activities.
She said while it was not always the case that mining could promote economic development, evidence from the four countries suggested that mining could promote economic growth and development.
The four countries on which the research work was done were Ghana, Tanzania, Chile and Peru.
Ms MacPhail stated that in the case of Ghana, economic stability had led to a $5 billion investment in the mining industry over the past few years.
She said the research revealed that in Obuasi, the standard of living was better than most other districts in the country.
“Mining resurgence can promote economic growth and poverty reduction,” she stated.
She added that about 46 per cent of procurements in the mining industry were done locally, adding that “local procurement is fundamental to reduce poverty”.
Ms McPhail indicated that mining activities could make strong contributions by way of taxes and employment opportunities.
THE Minister of Lands, Forestry and Mines, Mrs Esther Obeng Dapaah, has called on all stakeholders in the mining industry to collaborate their efforts to raise the living standards of people in the mining communities.
In a speech read on her behalf at a one-day workshop on enhancing the benefits of mining in Accra yesterday, the minister said “the donor community, mining firms, and civil society groups must work closely together to ensure that the benefits of mining are used to raise the living standards of the people”.
The workshop, which was organised by the Ghana Chamber of Mines in collaboration with the World Bank and the International Council on Mining and Metals (ICMM) and United Nations Centre for Trade and Development (UNCTAD, brought together stakeholders from all the mining firms, as well as policy makers, civil society groups and some local representatives.
Mrs Dapaah also called for the identification of new collaborators and actors to deepen the level of collaboration and also with the aim of reducing poverty.
He said the country was also playing a leadership role in the extractive industry to ensure transparency to ensure that all stakeholders knew the use of mining resources in the country.
Mrs Dapaah stated that the government was committed to ensuring the development of the mining sector, since it played a critical role in the economic development of the country.
The Managing Director of the Minerals Commission, Mr Ben Aryee, stated that mining had the potential to impact positively on the economic development of the country.
He, however, said that there should be ways to ensure the effective management of mineral resources that would trickle down to the ordinary people.
Presenting findings of research conducted in four countries on the challenge of Mineral Wealth: Using resource endowments to foster sustainable development, Ms Kathryn McPhail of the ICMM, called for new partnerships to ensure the socio-economic benefits of mining activities.
She said while it was not always the case that mining could promote economic development, evidence from the four countries suggested that mining could promote economic growth and development.
The four countries on which the research work was done were Ghana, Tanzania, Chile and Peru.
Ms MacPhail stated that in the case of Ghana, economic stability had led to a $5 billion investment in the mining industry over the past few years.
She said the research revealed that in Obuasi, the standard of living was better than most other districts in the country.
“Mining resurgence can promote economic growth and poverty reduction,” she stated.
She added that about 46 per cent of procurements in the mining industry were done locally, adding that “local procurement is fundamental to reduce poverty”.
Ms McPhail indicated that mining activities could make strong contributions by way of taxes and employment opportunities.
Monday, February 18, 2008
Re-capitalisation of banks—Banker’s Association welcomes idea
Story: Boahene Asamoah
THE Executive Secretary of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, has welcomed the Bank of Ghana’s (BoG) proposal for bank’s to re-capitalise within a period of four years.
“We are not averse to the recapitalisation of banks,” he said, adding that “our concern was to ensure that banks grow in tandem with the economic growth of the Ghanaian economy”.
Speaking in an interview, Mr Mensah said the time period the Central Bank gave to the banks to re-capitalise would obviously offer them the opportunity to plan and strategise their operations.
The Bank of Ghana, in the latter part of last year, served notice to banks under a consultative proposal to raise their minimum capital requirement from the present GH¢7 million to GH¢60 million by the end of this year.
However, the BoG has come out with a statement that has set the new minimum capital requirement for obtaining a class one banking licence or a universal banking license at GH¢60 million with a caveat.
According to the Central Bank, the existing banks were required to attain a minimum capitalisation of GH¢ 60 million by December 31, 2009. However, Ghanaian-owned banks were given a longer time period to meet the new minimum capital requirement.
It also stated that under the directive, banks with local majority share ownership would have to attain a capitalisation of at least GH¢25 million by the end of 2010 and GH¢60 million by 2012.
According to the BoG, the capitalisation requirement constituted part of the bank’s strategy to deepen the financial sector and support Ghana’s drive for accelerated growth to achieve middle-income status.
Mr Mensah said banks had all along been conscious of the need to raise their capital in order to meet the challenges and position themselves in order to take advantage of opportunities that the economy would present.
He said the position of the banks had always been to ensure a phase approach that would fall in line with the country’s vision of attaining a middle-income status by 2015.
He said the new policy from the Central Bank would position banks, especially the local ones to make strategic choices that would help them to recapitalise.
Industry players say while there would be consolidation of banks in the country, local banks would have the opportunity to look for opportunities that existed to enable them meet the new capital requirement.
Some stock market analysts anticipate initial public offers from banks to raise capital through from the Ghana Stock Exchange, which has seen the oversubscription of equities listed on the bourse over the past two years.
According to some industry players, the previous consultative position of the BoG, where it would have created a three-tier banking sector in the country would not have been a healthy development.
Only six banks, including two local banks would have been able to raise the capital while 10 other local banks would not have been to meet the new capital requirements, making them susceptible to foreign interest.
This situation would have made all the financial transactions in the country to be routed through foreign banks, a situation that would have dire consequences for the economy.
According to Mr Mensah, although the oil find presents an opportunity to banks, experience from other countries suggests that many banks do not actually patronise the oil business, because of the huge capital requirement and the risk associated with such ventures.
The Executive Secretary, however, indicated that with the new capital requirement, banks in the country would be able to finance some of the big projects such as the yearly cocoa syndication.
THE Executive Secretary of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, has welcomed the Bank of Ghana’s (BoG) proposal for bank’s to re-capitalise within a period of four years.
“We are not averse to the recapitalisation of banks,” he said, adding that “our concern was to ensure that banks grow in tandem with the economic growth of the Ghanaian economy”.
Speaking in an interview, Mr Mensah said the time period the Central Bank gave to the banks to re-capitalise would obviously offer them the opportunity to plan and strategise their operations.
The Bank of Ghana, in the latter part of last year, served notice to banks under a consultative proposal to raise their minimum capital requirement from the present GH¢7 million to GH¢60 million by the end of this year.
However, the BoG has come out with a statement that has set the new minimum capital requirement for obtaining a class one banking licence or a universal banking license at GH¢60 million with a caveat.
According to the Central Bank, the existing banks were required to attain a minimum capitalisation of GH¢ 60 million by December 31, 2009. However, Ghanaian-owned banks were given a longer time period to meet the new minimum capital requirement.
It also stated that under the directive, banks with local majority share ownership would have to attain a capitalisation of at least GH¢25 million by the end of 2010 and GH¢60 million by 2012.
According to the BoG, the capitalisation requirement constituted part of the bank’s strategy to deepen the financial sector and support Ghana’s drive for accelerated growth to achieve middle-income status.
Mr Mensah said banks had all along been conscious of the need to raise their capital in order to meet the challenges and position themselves in order to take advantage of opportunities that the economy would present.
He said the position of the banks had always been to ensure a phase approach that would fall in line with the country’s vision of attaining a middle-income status by 2015.
He said the new policy from the Central Bank would position banks, especially the local ones to make strategic choices that would help them to recapitalise.
Industry players say while there would be consolidation of banks in the country, local banks would have the opportunity to look for opportunities that existed to enable them meet the new capital requirement.
Some stock market analysts anticipate initial public offers from banks to raise capital through from the Ghana Stock Exchange, which has seen the oversubscription of equities listed on the bourse over the past two years.
According to some industry players, the previous consultative position of the BoG, where it would have created a three-tier banking sector in the country would not have been a healthy development.
Only six banks, including two local banks would have been able to raise the capital while 10 other local banks would not have been to meet the new capital requirements, making them susceptible to foreign interest.
This situation would have made all the financial transactions in the country to be routed through foreign banks, a situation that would have dire consequences for the economy.
According to Mr Mensah, although the oil find presents an opportunity to banks, experience from other countries suggests that many banks do not actually patronise the oil business, because of the huge capital requirement and the risk associated with such ventures.
The Executive Secretary, however, indicated that with the new capital requirement, banks in the country would be able to finance some of the big projects such as the yearly cocoa syndication.
Security for US President's Tour
President Bush arrives (fin) Read by E. agyeI
Story: Mary Mensah & Boahene Asamoah
THE Ghana Police Service, in collaboration with the American security agencies, has put in place stringent and comprehensive arrangements to ensure a peaceful and successful three-day visit by the US President, George Bush.
The arrangements will see the deployment of over 1,000 security men, comprising all specialised units within the Police Service and the Armed Forces, at vantage points, especially around the Kotoka International Airport and the hotel where the US President and his entourage would lodge.
Three American planes have already landed at the Kotoka International Airport, discharging men and equipment from the American service.
According to a police source, on Tuesday, February 19, the day of the American President’s arrival, no person or vehicle would be allowed around the airport area for an hour prior to his arrival.
The US presidential jet, the Air Force One, is expected to touch down, together with two other large planes, one carrying the presidential press corps and the other White House staff, at the Kotoka International Airport at exactly 7:30 p.m., with President George Bush and his wife on board.
The source said the road from the airport to the La Palm Royal Beach Hotel would also be closed to traffic and no vehicle would be allowed there till late in the night.
The following day, when President Bush is scheduled to meet President Kufuor, the road from Teshie to the Castle at Osu would be blocked.
Two US Naval ships have also landed in Ghana and are currently patrolling the coast.
According to the source, Ghana had been selected as the operational base for the three West African countries where President Bush would visit, namely, Liberia, Benin and Ghana, and added that all the operational structures had been put in place to co-ordinate affairs.
It said the selection of Ghana as a base for the three African countries showed the trust that the US government had in the security agencies in Ghana.
It noted that there would be some inconvenience on the road and appealed to residents of Accra and motorists to bear with the security agencies and respect the sirens when they heard them in order to make the visit a memorable one.
Announcing President Bush’s State Visit at a news conference in Accra earlier in the week, the Minister of Foreign Affairs, Mr Akwasi Osei-Adjei, had said it would offer the platform for bilateral trade discussions between Ghana and the United States, reports Boahene Asamoah.
Mr Osei-Adjei said the visit was a reciprocal gesture for a similar one extended to President Kufuor during the early part of his administration.
The minister said the visit would offer the two leaders the opportunity to discuss issues on free trade, economic opportunities and other initiatives such as the Africa Growth and Opportunities Act (AGOA) and the Millennium Challenge Account (MCA).
Mr Osei-Adjei stated that relations between the two countries were on a high pedestal and said issues of democratic governance, private sector development and economic co-operation would also form part of the discussions.
The minister stated that Ghana’s role in peacekeeping missions would also be discussed.
Ghana and the US have enjoyed considerable high-level bilateral co-operation over the years.
Ghana currently exports apparels and other products under the AGOA initiative signed into law by former President Clinton.
The country has also been a beneficiary of $547 million under the MCA aimed at supporting the agricultural sector and infrastructural development in the country.
Many Ghanaians have been successful in the US immigration lottery over the past years, making Ghana one of the highest application nations.
To further give a boost to Ghana-US relations, the US last year completed and commissioned a multi-million dollar office complex in Ghana.
As part of President Bush’s visit, a State Dinner will be held in his honour. He will also visit the US Embassy to meet with US volunteers in Ghana, go to the Ghana International School and hold high-level discussions at the seat of government, the Christianborg Castle, Osu.
President Bush has initiated several programmes in Africa, including the malaria initiative, the $40 billion HIV/AIDS programme for Africa, among many other initiatives.
The US President began his trip to Africa, which will take him to Benin, Tanzania, Rwanda, Ghana and Liberia, on February 15.
The trip will be an opportunity for him to review at firsthand, since his last visit in 2003, the significant progress in efforts to increase economic development and fight HIV/AIDS, malaria and other treatable diseases as a result of the US’s robust programmes in these areas.
President Bush will also meet with President Yayi of Benin, President Kikwete of Tanzania, President Kagame of Rwanda and President Johnson-Sirleaf of Liberia to discuss how the US can continue to partner African countries to support continued democratic reforms, respect for human rights, free trade, open investment regimes and economic opportunities across the continent.
Story: Mary Mensah & Boahene Asamoah
THE Ghana Police Service, in collaboration with the American security agencies, has put in place stringent and comprehensive arrangements to ensure a peaceful and successful three-day visit by the US President, George Bush.
The arrangements will see the deployment of over 1,000 security men, comprising all specialised units within the Police Service and the Armed Forces, at vantage points, especially around the Kotoka International Airport and the hotel where the US President and his entourage would lodge.
Three American planes have already landed at the Kotoka International Airport, discharging men and equipment from the American service.
According to a police source, on Tuesday, February 19, the day of the American President’s arrival, no person or vehicle would be allowed around the airport area for an hour prior to his arrival.
The US presidential jet, the Air Force One, is expected to touch down, together with two other large planes, one carrying the presidential press corps and the other White House staff, at the Kotoka International Airport at exactly 7:30 p.m., with President George Bush and his wife on board.
The source said the road from the airport to the La Palm Royal Beach Hotel would also be closed to traffic and no vehicle would be allowed there till late in the night.
The following day, when President Bush is scheduled to meet President Kufuor, the road from Teshie to the Castle at Osu would be blocked.
Two US Naval ships have also landed in Ghana and are currently patrolling the coast.
According to the source, Ghana had been selected as the operational base for the three West African countries where President Bush would visit, namely, Liberia, Benin and Ghana, and added that all the operational structures had been put in place to co-ordinate affairs.
It said the selection of Ghana as a base for the three African countries showed the trust that the US government had in the security agencies in Ghana.
It noted that there would be some inconvenience on the road and appealed to residents of Accra and motorists to bear with the security agencies and respect the sirens when they heard them in order to make the visit a memorable one.
Announcing President Bush’s State Visit at a news conference in Accra earlier in the week, the Minister of Foreign Affairs, Mr Akwasi Osei-Adjei, had said it would offer the platform for bilateral trade discussions between Ghana and the United States, reports Boahene Asamoah.
Mr Osei-Adjei said the visit was a reciprocal gesture for a similar one extended to President Kufuor during the early part of his administration.
The minister said the visit would offer the two leaders the opportunity to discuss issues on free trade, economic opportunities and other initiatives such as the Africa Growth and Opportunities Act (AGOA) and the Millennium Challenge Account (MCA).
Mr Osei-Adjei stated that relations between the two countries were on a high pedestal and said issues of democratic governance, private sector development and economic co-operation would also form part of the discussions.
The minister stated that Ghana’s role in peacekeeping missions would also be discussed.
Ghana and the US have enjoyed considerable high-level bilateral co-operation over the years.
Ghana currently exports apparels and other products under the AGOA initiative signed into law by former President Clinton.
The country has also been a beneficiary of $547 million under the MCA aimed at supporting the agricultural sector and infrastructural development in the country.
Many Ghanaians have been successful in the US immigration lottery over the past years, making Ghana one of the highest application nations.
To further give a boost to Ghana-US relations, the US last year completed and commissioned a multi-million dollar office complex in Ghana.
As part of President Bush’s visit, a State Dinner will be held in his honour. He will also visit the US Embassy to meet with US volunteers in Ghana, go to the Ghana International School and hold high-level discussions at the seat of government, the Christianborg Castle, Osu.
President Bush has initiated several programmes in Africa, including the malaria initiative, the $40 billion HIV/AIDS programme for Africa, among many other initiatives.
The US President began his trip to Africa, which will take him to Benin, Tanzania, Rwanda, Ghana and Liberia, on February 15.
The trip will be an opportunity for him to review at firsthand, since his last visit in 2003, the significant progress in efforts to increase economic development and fight HIV/AIDS, malaria and other treatable diseases as a result of the US’s robust programmes in these areas.
President Bush will also meet with President Yayi of Benin, President Kikwete of Tanzania, President Kagame of Rwanda and President Johnson-Sirleaf of Liberia to discuss how the US can continue to partner African countries to support continued democratic reforms, respect for human rights, free trade, open investment regimes and economic opportunities across the continent.
Sustained economic growth will ensure more jobs
INDUSTRY leaders in the country have said it is refreshing to have heard President Kufuor acknowledge the need to move from macro-economic stability in the economy to growth at his last State of the Nation Address delivered on Thursday. Reports Boahene Asamoah.
According to them, while macro-economic stability was a necessary condition for economic growth, it was not sufficient.
Speaking in two separate interviews, the presidents of the Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry, Mr Wilson Atta Krofah, and the Association of Ghana Industries (AGI), Mr Tony Oteng-Gyasi, stressed the need for the necessary policies to be pursued to ensure growth in the economy.
According to Mr Oteng-Gyasi, “sustained economic growth is the surest way to go to ensure employment generation and economic development”.
He, however, said the process of ensuring economic take-off should not be left to the next government to pursue, saying that the present government ought to start the process of ensuring economic growth.
Mr Oteng-Gyasi mentioned the need to look at the micro level to address constraints that affected the different micro sectors of the economy, adding that such a policy would help to address the shortfalls in the various sectors and fashion out a strategy to address the constraints in each sector.
He also mentioned the need for a second look to be taken at the Labour Law, stressing that a “one-size” labour policy for all sectors was not appropriate.
The President of the AGI stated that the Labour Law, as it existed now, did not address the concerns of all the sectors of the economy, adding that “there should be specific labour laws for different sectors”.
On the interest charges by banks, Mr Oteng-Gyasi said the central bank had to play a more facilitating role by ensuring that banks reduced interest rates.
“These are the kind of policies that will help to anchor industrial take-off,” he stated.
For his part, Mr Krofah stated that while there had been some achievement in maintaining macro-economic stability, a lot still needed to be done.
He said the issue of mechanised agriculture needed to be given priority attention, since that would lead to industrialisation of the economy and propel economic growth and development.
He said there was the need for the government to pursue that agenda more vigorously to attract investments into the agricultural sector as part of its policy to modernise agriculture.
Mr Krofah noted that agricultural mechanisation had the potential to break the back of unemployment in the country and also accelerate the country’s pace of development.
On the oil find in the country, Mr Krofah said the government must ensure that the country benefited from the find, adding that “the country must be able to negotiate for about 30 per cent of the deal instead of the current 10 per cent being speculated”.
Again, he said Ghanaian entrepreneurs must be encouraged to take advantage of downstream businesses associated with the oil industry, stressing that “Ghanaian entrepreneurs must take centre stage in this business”.
The President of the GNCCI welcomed President’s Kufuor’s decision to set up a committee that would manage the resources from the oil find to yield greater benefits for all Ghanaians.
According to them, while macro-economic stability was a necessary condition for economic growth, it was not sufficient.
Speaking in two separate interviews, the presidents of the Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry, Mr Wilson Atta Krofah, and the Association of Ghana Industries (AGI), Mr Tony Oteng-Gyasi, stressed the need for the necessary policies to be pursued to ensure growth in the economy.
According to Mr Oteng-Gyasi, “sustained economic growth is the surest way to go to ensure employment generation and economic development”.
He, however, said the process of ensuring economic take-off should not be left to the next government to pursue, saying that the present government ought to start the process of ensuring economic growth.
Mr Oteng-Gyasi mentioned the need to look at the micro level to address constraints that affected the different micro sectors of the economy, adding that such a policy would help to address the shortfalls in the various sectors and fashion out a strategy to address the constraints in each sector.
He also mentioned the need for a second look to be taken at the Labour Law, stressing that a “one-size” labour policy for all sectors was not appropriate.
The President of the AGI stated that the Labour Law, as it existed now, did not address the concerns of all the sectors of the economy, adding that “there should be specific labour laws for different sectors”.
On the interest charges by banks, Mr Oteng-Gyasi said the central bank had to play a more facilitating role by ensuring that banks reduced interest rates.
“These are the kind of policies that will help to anchor industrial take-off,” he stated.
For his part, Mr Krofah stated that while there had been some achievement in maintaining macro-economic stability, a lot still needed to be done.
He said the issue of mechanised agriculture needed to be given priority attention, since that would lead to industrialisation of the economy and propel economic growth and development.
He said there was the need for the government to pursue that agenda more vigorously to attract investments into the agricultural sector as part of its policy to modernise agriculture.
Mr Krofah noted that agricultural mechanisation had the potential to break the back of unemployment in the country and also accelerate the country’s pace of development.
On the oil find in the country, Mr Krofah said the government must ensure that the country benefited from the find, adding that “the country must be able to negotiate for about 30 per cent of the deal instead of the current 10 per cent being speculated”.
Again, he said Ghanaian entrepreneurs must be encouraged to take advantage of downstream businesses associated with the oil industry, stressing that “Ghanaian entrepreneurs must take centre stage in this business”.
The President of the GNCCI welcomed President’s Kufuor’s decision to set up a committee that would manage the resources from the oil find to yield greater benefits for all Ghanaians.
Tuesday, February 12, 2008
We’l continue with sound policies — Dr Acquah
Story: Boahene Asamoah
THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.
THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.
Thursday, February 07, 2008
Petty traders cash in on CAN ‘08 as sales of promotional materials increase
Story: Boahene Asamoah
TRADERS in the nation’s capital, Accra, and other regional capitals, are cashing in on the promotional materials associated with the Africa Nations Cup, which is billed to kick off on Sunday.
Various paraphernalia branded in red, gold and green, which are the country’s national colours, seemed to be the moving business in town over the past three weeks.
This clearly brings Ghanaian ingenuity to the fore.
Along the major roads of Accra and in the central business district, it is common to see many of such paraphernalia being displayed in shops or by hawkers.
The items being sold are a variety of flags, T-shirts, bracelets, headscarves, baseball cups, slippers (what is called in the local parlance Charlie wote), chains, stickers, pens, belts, socks, cups and many others.
Interestingly, traders who dealt in various goods have switched from the selling of their wares to the selling of CAN 2008 souvenirs.
The high demand for these items, is reminiscent of a similar situation during the Black Stars’ maiden appearance in the World Cup in 2006.
The performance of the national team in that tournament brought high levels of national patriotism unprecedented in the country with many items and even buildings being decorated in the national colours.
Before the Africa Cup of Nations kicks off on Sunday, traders are optimistic of higher sales, a situation which has led to the gradual upward price adjustments.
According to Ms Felicia Sakyi, a trader at Kaneshie, she had invested about GH¢1,000 (¢10 million) in the business. Until three weeks ago, she dealt in men’s apparel, but had now switched to selling the paraphernalia.
She said although the demand for the items had been slow, she was banking her hopes on the Black Stars to win their first match, a situation, she said would trigger greater demand.
Ms Sakyi stated that she makes an average of about Gh¢30 daily from the sales of the paraphernalia and was optimistic that sales would peak by Saturday as it was normal for shoppers to always wait to do last minute shopping.
Another trader, Adwoa Nyarkowaah, said the business was gradually picking up as the event drew near.
She said currently, she made daily sales of about GH¢50 from the various items.
Ms Nyarkowaah was also optimistic that should the Black Stars progress in the tournament, it was likely that the various stocks of paraphernalia would run out.
“I am praying to God for the Black Stars to go to the finals”, she said, adding that “this will boost our business”.
A hawker on the Graphic Road, who gave his name as Yaw Ofori, said, he had switched from selling dog chains to selling the mini Ghana flags.
He said it was natural in business to take advantage of products that were patronised by drivers and passengers and sell them along the road.
Master Ofori said he also made GH¢20 daily sales which was much better than what he made previously and prayed that the Black Stars would go further in the competition to enhance his sales.
“Aside being a Ghanaian, which presupposes that I have to be patriotic, the second thing is that I need to survive and the Black Stars’ performance would greatly ensure my survival in this scorching sun”, Ofori stated.
TRADERS in the nation’s capital, Accra, and other regional capitals, are cashing in on the promotional materials associated with the Africa Nations Cup, which is billed to kick off on Sunday.
Various paraphernalia branded in red, gold and green, which are the country’s national colours, seemed to be the moving business in town over the past three weeks.
This clearly brings Ghanaian ingenuity to the fore.
Along the major roads of Accra and in the central business district, it is common to see many of such paraphernalia being displayed in shops or by hawkers.
The items being sold are a variety of flags, T-shirts, bracelets, headscarves, baseball cups, slippers (what is called in the local parlance Charlie wote), chains, stickers, pens, belts, socks, cups and many others.
Interestingly, traders who dealt in various goods have switched from the selling of their wares to the selling of CAN 2008 souvenirs.
The high demand for these items, is reminiscent of a similar situation during the Black Stars’ maiden appearance in the World Cup in 2006.
The performance of the national team in that tournament brought high levels of national patriotism unprecedented in the country with many items and even buildings being decorated in the national colours.
Before the Africa Cup of Nations kicks off on Sunday, traders are optimistic of higher sales, a situation which has led to the gradual upward price adjustments.
According to Ms Felicia Sakyi, a trader at Kaneshie, she had invested about GH¢1,000 (¢10 million) in the business. Until three weeks ago, she dealt in men’s apparel, but had now switched to selling the paraphernalia.
She said although the demand for the items had been slow, she was banking her hopes on the Black Stars to win their first match, a situation, she said would trigger greater demand.
Ms Sakyi stated that she makes an average of about Gh¢30 daily from the sales of the paraphernalia and was optimistic that sales would peak by Saturday as it was normal for shoppers to always wait to do last minute shopping.
Another trader, Adwoa Nyarkowaah, said the business was gradually picking up as the event drew near.
She said currently, she made daily sales of about GH¢50 from the various items.
Ms Nyarkowaah was also optimistic that should the Black Stars progress in the tournament, it was likely that the various stocks of paraphernalia would run out.
“I am praying to God for the Black Stars to go to the finals”, she said, adding that “this will boost our business”.
A hawker on the Graphic Road, who gave his name as Yaw Ofori, said, he had switched from selling dog chains to selling the mini Ghana flags.
He said it was natural in business to take advantage of products that were patronised by drivers and passengers and sell them along the road.
Master Ofori said he also made GH¢20 daily sales which was much better than what he made previously and prayed that the Black Stars would go further in the competition to enhance his sales.
“Aside being a Ghanaian, which presupposes that I have to be patriotic, the second thing is that I need to survive and the Black Stars’ performance would greatly ensure my survival in this scorching sun”, Ofori stated.
Govt sheds of 50% stake in SIC Hope to raise GH¢30million
SIC lists Shares (fin)
Story: Boahene Asamoah & Paul Akweterh Mensah
STATE Insurance Company Limited has officially launched its much-awaited Initial Public Offer (IPO) to shed off the government’s 50 per cent stake in the company in Accra yesterday.
A total amount of about GH¢30 million (¢300 billion) is expected to be raised through the sale of 97,822,500 million shares at Gp 30 (¢3000) per share.
Out the total shares, 10 per cent, which is 19,564,500 has been allocated to the staff of the company as part of incentives to motivate the staff under an Employee Share Ownership Plan (ESOP).
The government has indicated that it would offer an additional 10 per cent should the shares be oversubscribed, to bring its shareholding to 40 per cent.
The company over the past five years had delivered profitability with profits soaring from GH¢550,000 (¢5.5 billion) in 2002 to GH¢2.95 million ( ¢29.5 billion at the end of last year.
The half-year performance of the company for the 2007, however, showed net profits dropping slightly to GH¢1.4 million (¢14.1 billion) from the 2006 figure of GH¢1.597 million (¢15.97 billion) for the same period.
The three-week flotation offer will end by December 21, 2007, after which it is expected to be listed on the Ghana Stock Exchange.
SIC would be the second insurance company to be listed on the Ghana bourse if its IPO becomes successful.
Speaking at the function, the Managing Director of the SIC, Mr Peter Osei-Duah, said that the company would partner the government to develop the necessary regulation that would ensure that local insurance companies benefited from the business of oil find in the country.
He cautioned that if the country failed to act to ensure that local insurance companies played an active role in the oil discovery in the country, it stood to lose tremendous resources from the activities of the oil rigging business.
Mr Osei-Duah expressed worry that the big multi-national oil drilling companies would resort to undertaken insurance with their global partners, thereby by-passing local insurance companies in the insurance business.
“We want to partner government to ensure the enforcement of regulations that would ensure that local insurance companies benefit from the oil drilling activities in the country”.
The managing director said the company was positioning itself strategically to take full advantage of the oil business in the country and assured prospective shareholders that the prospects of the company looked brighter.
A Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Osei-Akoto, said the government was selling part of the company as part of the government’s efforts to develop the Ghanaian capital market, to release state-owned entities from governmental controls to enable them to compete more effectively and reduce the government’s involvement in the running of commercial businesses.
He called on other insurance companies to take advantage of the capital market to raise long-term capital to expand their businesses.
The Commissioner of the National Insurance Commission, Ms Josephine Amoah, stated that the years ahead would present a lot of challenges for the insurance sector and urged them to position themselves to brace up for the challenges ahead.
She mentioned that the minimum capitalisation of insurance companies in the country of $1 million each for the life and general business was still too small.
The Board Chairman of the company, Prof Isaac Mensah Ofori, called on the general public to invest in the company as the company had good prospects.
SIC, has a total of 45 per cent market share in an industry that has 22 such companies.
Story: Boahene Asamoah & Paul Akweterh Mensah
STATE Insurance Company Limited has officially launched its much-awaited Initial Public Offer (IPO) to shed off the government’s 50 per cent stake in the company in Accra yesterday.
A total amount of about GH¢30 million (¢300 billion) is expected to be raised through the sale of 97,822,500 million shares at Gp 30 (¢3000) per share.
Out the total shares, 10 per cent, which is 19,564,500 has been allocated to the staff of the company as part of incentives to motivate the staff under an Employee Share Ownership Plan (ESOP).
The government has indicated that it would offer an additional 10 per cent should the shares be oversubscribed, to bring its shareholding to 40 per cent.
The company over the past five years had delivered profitability with profits soaring from GH¢550,000 (¢5.5 billion) in 2002 to GH¢2.95 million ( ¢29.5 billion at the end of last year.
The half-year performance of the company for the 2007, however, showed net profits dropping slightly to GH¢1.4 million (¢14.1 billion) from the 2006 figure of GH¢1.597 million (¢15.97 billion) for the same period.
The three-week flotation offer will end by December 21, 2007, after which it is expected to be listed on the Ghana Stock Exchange.
SIC would be the second insurance company to be listed on the Ghana bourse if its IPO becomes successful.
Speaking at the function, the Managing Director of the SIC, Mr Peter Osei-Duah, said that the company would partner the government to develop the necessary regulation that would ensure that local insurance companies benefited from the business of oil find in the country.
He cautioned that if the country failed to act to ensure that local insurance companies played an active role in the oil discovery in the country, it stood to lose tremendous resources from the activities of the oil rigging business.
Mr Osei-Duah expressed worry that the big multi-national oil drilling companies would resort to undertaken insurance with their global partners, thereby by-passing local insurance companies in the insurance business.
“We want to partner government to ensure the enforcement of regulations that would ensure that local insurance companies benefit from the oil drilling activities in the country”.
The managing director said the company was positioning itself strategically to take full advantage of the oil business in the country and assured prospective shareholders that the prospects of the company looked brighter.
A Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Osei-Akoto, said the government was selling part of the company as part of the government’s efforts to develop the Ghanaian capital market, to release state-owned entities from governmental controls to enable them to compete more effectively and reduce the government’s involvement in the running of commercial businesses.
He called on other insurance companies to take advantage of the capital market to raise long-term capital to expand their businesses.
The Commissioner of the National Insurance Commission, Ms Josephine Amoah, stated that the years ahead would present a lot of challenges for the insurance sector and urged them to position themselves to brace up for the challenges ahead.
She mentioned that the minimum capitalisation of insurance companies in the country of $1 million each for the life and general business was still too small.
The Board Chairman of the company, Prof Isaac Mensah Ofori, called on the general public to invest in the company as the company had good prospects.
SIC, has a total of 45 per cent market share in an industry that has 22 such companies.
Ecobank opens three branches
Story: Boahene Asamoah
ECOBANK Ghana Limited has opened three new branches simultaneously in its effort to become a leader in the retail banking sector in the country.
The three branches, which are located at various places, are situated at the South Industrial Area, near the Agblogloshie Market, Spintex Road and the Accra Shopping Mall branch, near the Tetteh Quarshie Interchange.
The new branches come with new designs that are meant to enhance personal interactions between customers and the bank tellers and to offer customers warmth and comfort.
The branches are also fitted with ATMs and E-lobbies that offer the customer the opportunity to check his/her banking transactions online.
Speaking at the ceremony, the Group Chief Executive Officer (CEO) of Ecobank Transnational Incorporated (ETI), Mr Arnold Ekpe, said the new branch concept was the first to be introduced in the country, due to the important role that the Ghana subsidiary played in the group.
He said the new concept was also to position the bank’s new face as the pan-African bank committed to the African continent.
Mr Ekpe said the bank was on course to becoming the biggest bank in Africa as results of its presence in over 20 countries, adding that “Africa is our strategy”.
The Group CEO stated that the bank would soon enter the micro-finance sector to support micro-businesses across Africa to ensure the development of the continent and challenged the employees of the bank to put more emphasis on the customer service delivery.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selormey, said the expansion of banking services in the country was not by chance, but was as a response to regulatory issues.
He commended the bank for its initiative to expand more branches and offer new designs that also took into consideration facilities for the physically challenged in society.
The Managing Director of the Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the bank remained committed to expanding its retail outlet, and stated that the new face represented the ever-improving customer service of the bank to reach to all segments of the banking public.
The total branch network of the bank comes to 29, with a total of 72 ATMs network throughout the country with the opening of the three branches.
Ecobank Ghana Limited is part of a Pan-African Banking Group with affiliates in 20 African countries.
Ecobank Ghana was adjudged the Bank of the Year by Corporate Initiative Ghana (CIG) for this year, an award which it has won five times.
ECOBANK Ghana Limited has opened three new branches simultaneously in its effort to become a leader in the retail banking sector in the country.
The three branches, which are located at various places, are situated at the South Industrial Area, near the Agblogloshie Market, Spintex Road and the Accra Shopping Mall branch, near the Tetteh Quarshie Interchange.
The new branches come with new designs that are meant to enhance personal interactions between customers and the bank tellers and to offer customers warmth and comfort.
The branches are also fitted with ATMs and E-lobbies that offer the customer the opportunity to check his/her banking transactions online.
Speaking at the ceremony, the Group Chief Executive Officer (CEO) of Ecobank Transnational Incorporated (ETI), Mr Arnold Ekpe, said the new branch concept was the first to be introduced in the country, due to the important role that the Ghana subsidiary played in the group.
He said the new concept was also to position the bank’s new face as the pan-African bank committed to the African continent.
Mr Ekpe said the bank was on course to becoming the biggest bank in Africa as results of its presence in over 20 countries, adding that “Africa is our strategy”.
The Group CEO stated that the bank would soon enter the micro-finance sector to support micro-businesses across Africa to ensure the development of the continent and challenged the employees of the bank to put more emphasis on the customer service delivery.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selormey, said the expansion of banking services in the country was not by chance, but was as a response to regulatory issues.
He commended the bank for its initiative to expand more branches and offer new designs that also took into consideration facilities for the physically challenged in society.
The Managing Director of the Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the bank remained committed to expanding its retail outlet, and stated that the new face represented the ever-improving customer service of the bank to reach to all segments of the banking public.
The total branch network of the bank comes to 29, with a total of 72 ATMs network throughout the country with the opening of the three branches.
Ecobank Ghana Limited is part of a Pan-African Banking Group with affiliates in 20 African countries.
Ecobank Ghana was adjudged the Bank of the Year by Corporate Initiative Ghana (CIG) for this year, an award which it has won five times.
Prudent economic management must continue - GNCCI
Story: Boahene Asamoah
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry in the country, has called on the government to maintain prudent management of the economy this election year to ensure that gains made so far are not derailed.
“We expect the government to maintain a prudent management of the economy in an electioneering year with all the temptations to overspend, leading to excessive borrowing from the banking sector, thereby crowding out the private sector from access to bank credit,” the chamber said.
In a New Year message, the President of the chamber, Mr Wilson Attah Krofah, also urged the government to seriously pursue the modernisation of agriculture through mechanisation, delivery of extension services, including the supply of high yield crop seedlings and the provision of suitable irrigation facilities.
“There is also the need to organise more efficient marketing systems for food crops nationally,” Mr Krofah stated, adding that “these arrangements will lead to improvement in the purchasing power of large majority of the rural population engaged in farming.”
Mr Krofah stated that the chamber would continue to pursue vigorously the ECOWAS integration to allow for free movement of people, goods and services across the sub-region.
“The chamber believes strongly that Ghana stands to benefit tremendously from an integrated West African market with over 250 million people, as it will help to expand the market for our local manufacturing industries,” Mr Krofah stated.
He said the chamber was already working with its Burkinabe counterpart for the supply of meat to Ghana and the export of manufactured products from Ghana.
On the oil find in the country, the President of the chamber implored Ghanaian entrepreneurs to gear up to participate fully in what he described as a “profitable and competitive market”.
He said there were indications that there was an influx of international business operations into the country to explore business opportunities associated with the oil industry and encouraged Ghanaian entities not to stand aloof.
“Looking into the future, the oil found in the Western Region, promises buoyant and profitable business opportunities,” Mr Krofah stated, and added that the chamber was ready and prepared to put its services at the disposal of all interested Ghanaian entrepreneurs to make the necessary contacts internationally.
On the political front, he said the chamber would like to see a more civil electioneering campaign from all political parties to ensure that the political climate remained stable, and that campaigns should be based on issues and how contesting parties planned to improve the standard of living of Ghanaians.
Mr Krofah stated that last year trade and industry faced a lot of challenges such as the energy crises and the influx of cheaper imports, but expressed optimism that this year would offer a more favourable and friendlier business climate.
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry in the country, has called on the government to maintain prudent management of the economy this election year to ensure that gains made so far are not derailed.
“We expect the government to maintain a prudent management of the economy in an electioneering year with all the temptations to overspend, leading to excessive borrowing from the banking sector, thereby crowding out the private sector from access to bank credit,” the chamber said.
In a New Year message, the President of the chamber, Mr Wilson Attah Krofah, also urged the government to seriously pursue the modernisation of agriculture through mechanisation, delivery of extension services, including the supply of high yield crop seedlings and the provision of suitable irrigation facilities.
“There is also the need to organise more efficient marketing systems for food crops nationally,” Mr Krofah stated, adding that “these arrangements will lead to improvement in the purchasing power of large majority of the rural population engaged in farming.”
Mr Krofah stated that the chamber would continue to pursue vigorously the ECOWAS integration to allow for free movement of people, goods and services across the sub-region.
“The chamber believes strongly that Ghana stands to benefit tremendously from an integrated West African market with over 250 million people, as it will help to expand the market for our local manufacturing industries,” Mr Krofah stated.
He said the chamber was already working with its Burkinabe counterpart for the supply of meat to Ghana and the export of manufactured products from Ghana.
On the oil find in the country, the President of the chamber implored Ghanaian entrepreneurs to gear up to participate fully in what he described as a “profitable and competitive market”.
He said there were indications that there was an influx of international business operations into the country to explore business opportunities associated with the oil industry and encouraged Ghanaian entities not to stand aloof.
“Looking into the future, the oil found in the Western Region, promises buoyant and profitable business opportunities,” Mr Krofah stated, and added that the chamber was ready and prepared to put its services at the disposal of all interested Ghanaian entrepreneurs to make the necessary contacts internationally.
On the political front, he said the chamber would like to see a more civil electioneering campaign from all political parties to ensure that the political climate remained stable, and that campaigns should be based on issues and how contesting parties planned to improve the standard of living of Ghanaians.
Mr Krofah stated that last year trade and industry faced a lot of challenges such as the energy crises and the influx of cheaper imports, but expressed optimism that this year would offer a more favourable and friendlier business climate.
NTHC to review fund portfolio
Story: Boahene Asamoah
THE Managing Director of NTHC, an investment firm, Dr Albert N Q Barnor, has said that management would review the portfolio mix of its Horizon Fund to ensure higher returns on investments.
He said presently the fund’s investments in equities on the stock market was skewed towards the agro-processing companies which had not been too impressive.
In an interview shortly after the first annual general meeting of the Horizon Fund, Dr Barnor stated that there was need to review the firm’s investment portfolio to ensure higher returns for investors.
He assured investors in the NTHC Horizon Fund that the prospects of the fund looked much better this year, admitting that there had been some internal problems within the organisation, which had affected the fund’s performance.
Presenting the financial report for the year ended 2006, the Board Chairman of the fund, Mr Gaylord Kemevor, said the outlook of the fund looked good as the current macroeconomic conditions were expected to continue.
“The board is very optimistic about the performance of the fund in the coming year to enhance shareholders’ value. Strategies have been put in place to re-align our asset allocation mix to achieve a higher return than the benchmark Ghana Stock Exchange All Share Index,” the board chairman stated.
He said despite all the challenges the company faced during the year under review, the fund managed to make a modest nominal return of one per cent in 2006 as compared to a nominal return of four per cent in 2005.
Mr Kemevor said total subscriptions to the fund declined significantly whilst redemptions increased.
A total of 248 new shareholders bought shares valued at GH¢26,740 in 2006 as compared to 399 new shareholders who purchased shares valued at GH¢75,440, he stated.
During the period under review, a total of GH¢310,000 was redeemed by 303 shareholders in 2005 as compared to GH¢350,000 by 416 shareholders in 2005.
“The fund intends to position itself by enhancing its visibility through advertisements, as well as identifying ways of reaching out to potential investors across the country,” Mr Kemevo stated.
THE Managing Director of NTHC, an investment firm, Dr Albert N Q Barnor, has said that management would review the portfolio mix of its Horizon Fund to ensure higher returns on investments.
He said presently the fund’s investments in equities on the stock market was skewed towards the agro-processing companies which had not been too impressive.
In an interview shortly after the first annual general meeting of the Horizon Fund, Dr Barnor stated that there was need to review the firm’s investment portfolio to ensure higher returns for investors.
He assured investors in the NTHC Horizon Fund that the prospects of the fund looked much better this year, admitting that there had been some internal problems within the organisation, which had affected the fund’s performance.
Presenting the financial report for the year ended 2006, the Board Chairman of the fund, Mr Gaylord Kemevor, said the outlook of the fund looked good as the current macroeconomic conditions were expected to continue.
“The board is very optimistic about the performance of the fund in the coming year to enhance shareholders’ value. Strategies have been put in place to re-align our asset allocation mix to achieve a higher return than the benchmark Ghana Stock Exchange All Share Index,” the board chairman stated.
He said despite all the challenges the company faced during the year under review, the fund managed to make a modest nominal return of one per cent in 2006 as compared to a nominal return of four per cent in 2005.
Mr Kemevor said total subscriptions to the fund declined significantly whilst redemptions increased.
A total of 248 new shareholders bought shares valued at GH¢26,740 in 2006 as compared to 399 new shareholders who purchased shares valued at GH¢75,440, he stated.
During the period under review, a total of GH¢310,000 was redeemed by 303 shareholders in 2005 as compared to GH¢350,000 by 416 shareholders in 2005.
“The fund intends to position itself by enhancing its visibility through advertisements, as well as identifying ways of reaching out to potential investors across the country,” Mr Kemevo stated.
Graphic and Apex Bank to collaborate to reduce poverty
Story: Boahene Asamoah
THE Graphic Communications Group Limited (GCGL) and the ARB Apex Bank, the association of rural banks, have agreed to collaborate to improve the lives of residents of rural communities in the country through education and dissemination of information on savings culture.
This follows discussions held at the GCGL when the newly-appointed Managing Director of the Apex Bank, Mr Eric Osei-Bonsu, paid a courtesy call on the Managing Director of the GCGL, Mr Ibrahim Awal, in his office in Accra yesterday.
Mr Osei-Bonsu, who was accompanied by the Head of Finance, Mr Kwadwo Aye Kusi, and Mrs Eunice Osei-Bonsu, the Head of Corporate Affairs, both of the bank, said the GCGL, through the dissemination of information, could educate rural people on the need to invest through savings.
He said the successful implementation of the ARB Apex banking concept in the country had endeared the concept to many countries who now wanted to replicate it.
He added that the bank was repositioning itself, in view of the challenges and opportunities that the banking scene presented.
The managing director of the Apex Bank said in view of that, the bank was going to undertake a re-branding exercise under a new corporate strategy that would reposition it and called for support from the GCGL to help it to achieve its corporate objectives.
He said the Millennium Challenge Account (MCA) had made available $18 million to help network all rural banks and added that with the introduction of the EZWICH by the Central bank, the banking scene was going to be even more exciting.
Mr Osei-Bonsu said the courtesy call was also to introduce himself to the management of the GCGL to further deepen the already cordial relationship that existed between the two organisations.
For his part, Mr Awal, who was flanked by the General Manager, Finance, Mr Baah Adade, the Editor of the Daily Graphic, Mr Ransford Tetteh, and the Public Affairs Manager, Mr Albert Sam, all of the GCGL, suggested the setting up of a joint committee between the two organisations to come up with cogent proposals to fashion out the extent of collaboration between the two organisations.
He again suggested weekly and quarterly publications in the Daily Graphic, the flagship of the company’s products, to help push the new branding and corporate image of the bank.
Mr Awal recognised the immense contribution of rural and community banks in the country and said the company was ready to partner the bank in its drive to help alleviate poverty.
He commended the bank for increasing its subscription of the company’s products by some of its members across the country but stated that there was still room for improvement.
Mr Tetteh said the impressive performance of rural and community banks culminated in the number of awards to some rural banks during the last Ghana Club 100 awards and assured those banks of the paper’s support for their activities.
THE Graphic Communications Group Limited (GCGL) and the ARB Apex Bank, the association of rural banks, have agreed to collaborate to improve the lives of residents of rural communities in the country through education and dissemination of information on savings culture.
This follows discussions held at the GCGL when the newly-appointed Managing Director of the Apex Bank, Mr Eric Osei-Bonsu, paid a courtesy call on the Managing Director of the GCGL, Mr Ibrahim Awal, in his office in Accra yesterday.
Mr Osei-Bonsu, who was accompanied by the Head of Finance, Mr Kwadwo Aye Kusi, and Mrs Eunice Osei-Bonsu, the Head of Corporate Affairs, both of the bank, said the GCGL, through the dissemination of information, could educate rural people on the need to invest through savings.
He said the successful implementation of the ARB Apex banking concept in the country had endeared the concept to many countries who now wanted to replicate it.
He added that the bank was repositioning itself, in view of the challenges and opportunities that the banking scene presented.
The managing director of the Apex Bank said in view of that, the bank was going to undertake a re-branding exercise under a new corporate strategy that would reposition it and called for support from the GCGL to help it to achieve its corporate objectives.
He said the Millennium Challenge Account (MCA) had made available $18 million to help network all rural banks and added that with the introduction of the EZWICH by the Central bank, the banking scene was going to be even more exciting.
Mr Osei-Bonsu said the courtesy call was also to introduce himself to the management of the GCGL to further deepen the already cordial relationship that existed between the two organisations.
For his part, Mr Awal, who was flanked by the General Manager, Finance, Mr Baah Adade, the Editor of the Daily Graphic, Mr Ransford Tetteh, and the Public Affairs Manager, Mr Albert Sam, all of the GCGL, suggested the setting up of a joint committee between the two organisations to come up with cogent proposals to fashion out the extent of collaboration between the two organisations.
He again suggested weekly and quarterly publications in the Daily Graphic, the flagship of the company’s products, to help push the new branding and corporate image of the bank.
Mr Awal recognised the immense contribution of rural and community banks in the country and said the company was ready to partner the bank in its drive to help alleviate poverty.
He commended the bank for increasing its subscription of the company’s products by some of its members across the country but stated that there was still room for improvement.
Mr Tetteh said the impressive performance of rural and community banks culminated in the number of awards to some rural banks during the last Ghana Club 100 awards and assured those banks of the paper’s support for their activities.
Rural banks to get a new facelift
Story: Boahene Asamoah
THE ARB Apex Bank, a mini central bank of rural and community banks in the country, is to adopt a new corporate strategic plan that would ensure that all the 127 rural and community banks become a branch of the Apex Bank.
According to the new Managing Director, Mr Eric Osei-Bonsu, the new five-year corporate plan would spell out the modalities that would ensure an effective, smooth implementation.
He said the strategy was also to reposition the bank to become a major player in the financial sector of the economy.
Speaking in an interview during a courtesy call on the Management of Graphic Communications Group Limited in Accra, Mr Osei-Bonsu acknowledged that while that feat was a tall order, it was a vision that would be pursued vigorously.
He said the 127 rural and community banks had a combined capitalisation of about GH¢330 million (¢3.3 trillion) which made the rural banks a force to reckon with.
He acknowledged that the banking scene was changing, with some new banks strategically focused on rural and community financial service.
That, he said, should compel a new strategy that would ensure that rural and community banks became positioned strongly to play a meaningful financial intermediary in the rural economy.
He said the ARB Apex Bank, the first such kind in Africa, was a success story and had attracted many other countries to study how the system worked.
In view of that, he said, the bank would be looking to replicate such projects within the sub-region to ensure its impact on the people in the sub-region.
He said $18 million had been made available from the Millennium Challenge Account (MCA) to help network all rural and community banks.
Mr Osei-Bonsu said the bank had also launched the Apex link that offered quick and safe transfer of funds from one rural bank to other parts of the country.
THE ARB Apex Bank, a mini central bank of rural and community banks in the country, is to adopt a new corporate strategic plan that would ensure that all the 127 rural and community banks become a branch of the Apex Bank.
According to the new Managing Director, Mr Eric Osei-Bonsu, the new five-year corporate plan would spell out the modalities that would ensure an effective, smooth implementation.
He said the strategy was also to reposition the bank to become a major player in the financial sector of the economy.
Speaking in an interview during a courtesy call on the Management of Graphic Communications Group Limited in Accra, Mr Osei-Bonsu acknowledged that while that feat was a tall order, it was a vision that would be pursued vigorously.
He said the 127 rural and community banks had a combined capitalisation of about GH¢330 million (¢3.3 trillion) which made the rural banks a force to reckon with.
He acknowledged that the banking scene was changing, with some new banks strategically focused on rural and community financial service.
That, he said, should compel a new strategy that would ensure that rural and community banks became positioned strongly to play a meaningful financial intermediary in the rural economy.
He said the ARB Apex Bank, the first such kind in Africa, was a success story and had attracted many other countries to study how the system worked.
In view of that, he said, the bank would be looking to replicate such projects within the sub-region to ensure its impact on the people in the sub-region.
He said $18 million had been made available from the Millennium Challenge Account (MCA) to help network all rural and community banks.
Mr Osei-Bonsu said the bank had also launched the Apex link that offered quick and safe transfer of funds from one rural bank to other parts of the country.
Kraft Export attracts $80,000 facility
Story: Boahene Asamoah
ECOBANK Ghana Limited has extended an $80,000 credit facility to Kraft Export Consult, an exporter of artefacts, under the Improved Access to Credit for West Africa programme which was launched last year.
The $300,000 programme, which was facilitated by the United States Agency for International Development (USAID) and supported by ECOBANK Transnational Incorporated (ETI), the parent company of ECOBANK, is to support small- and medium-scale enterprises (SMEs) in West Africa to grow their businesses.
Kraft Export Consult from Ghana is the first beneficiary of the loan programme.
Speaking at the ceremony, an Executive Director of ETI, Mr Patrick Akinwuntan, said the credit facility demonstrated the commitment of USAID and ECOBANK to the development of the West African sub-region by empowering entrepreneurs in the region.
He expressed gratitude to USAID for its commitment and said the ECOBANK Group was equally committed to ensuring the development of the sub-region, adding that the bank had made substantial commitments in the sub-region.
The USAID Director for West Africa, Mr Patrick Henderson, said “increasing access to finance for trade and investment is a pre-requisite for firms trying to break into the export markets”.
He acknowledged that many Ghanaian apparel exporters had succeeded in landing large orders from major buyers in the USA under the Africa Growth and Opportunities Act (AGOA), adding that “without finance to buy the cloth to meet the order, Ghanaian apparel exporters cannot compete”.
The Managing Director of Kraft Consult, Mr Robert Darko, said the company was pleased to participate in the four workshops hosted by the Improving Access to Finance programme and expressed his appreciation for the loan and the knowledge acquired.
“The loan from ECOBANK will enable us to increase our production capacity from 13 40-foot containers to 16 40-foot containers,” he said, adding that that translated into more jobs for producers.
Kraft Consult supplies artefacts to Pier 1, one of the largest speciality retailers of imported home furnishings and decor in the United States.
It is expected that the credit facility will increase its exports by 25 per cent and create 390 new jobs for artisans.
ECOBANK Ghana Limited has extended an $80,000 credit facility to Kraft Export Consult, an exporter of artefacts, under the Improved Access to Credit for West Africa programme which was launched last year.
The $300,000 programme, which was facilitated by the United States Agency for International Development (USAID) and supported by ECOBANK Transnational Incorporated (ETI), the parent company of ECOBANK, is to support small- and medium-scale enterprises (SMEs) in West Africa to grow their businesses.
Kraft Export Consult from Ghana is the first beneficiary of the loan programme.
Speaking at the ceremony, an Executive Director of ETI, Mr Patrick Akinwuntan, said the credit facility demonstrated the commitment of USAID and ECOBANK to the development of the West African sub-region by empowering entrepreneurs in the region.
He expressed gratitude to USAID for its commitment and said the ECOBANK Group was equally committed to ensuring the development of the sub-region, adding that the bank had made substantial commitments in the sub-region.
The USAID Director for West Africa, Mr Patrick Henderson, said “increasing access to finance for trade and investment is a pre-requisite for firms trying to break into the export markets”.
He acknowledged that many Ghanaian apparel exporters had succeeded in landing large orders from major buyers in the USA under the Africa Growth and Opportunities Act (AGOA), adding that “without finance to buy the cloth to meet the order, Ghanaian apparel exporters cannot compete”.
The Managing Director of Kraft Consult, Mr Robert Darko, said the company was pleased to participate in the four workshops hosted by the Improving Access to Finance programme and expressed his appreciation for the loan and the knowledge acquired.
“The loan from ECOBANK will enable us to increase our production capacity from 13 40-foot containers to 16 40-foot containers,” he said, adding that that translated into more jobs for producers.
Kraft Consult supplies artefacts to Pier 1, one of the largest speciality retailers of imported home furnishings and decor in the United States.
It is expected that the credit facility will increase its exports by 25 per cent and create 390 new jobs for artisans.
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