Story: Boahene Asamoah
SHAREHOLDERS of the National Investment Bank Limited, (NIB) have approved the board’s decision to transfer an amount of GH¢13 million from the bank’s income surplus to its stated capital.
The move is to gradually raise the minimum capital to GH¢60 million by 2012 as directed by the central bank.
At the annual general meeting in Accra yesterday, the Board Chairman of the Bank, Dr Charles D. Jebuni, said the bank was hoping to meet the new capital requirement by 2012 through its own internal growth strategies.
The Bank of Ghana (BoG) has given local banks in the country up to 2012 to raise their minimum capital requirement from the present Gh¢ 7 million to GH¢60 million.
“We are focusing on capitalisation of the bank through organic growth”, Dr Jebuni stated.
Giving the financial performance of the bank for the 2007 financial year, the board chairman said the total income increased by 54 per cent from Gh¢25.19 million in 2006 to Gh¢38.8 million by the end of last year.
He said Profit after tax stood at GH¢5,989 million from the previous year’s figure of GH¢4,427 million.
Dr Jebuni said total deposits of the bank grew by 44 per cent from GH¢169.75 million in 2006 to Gh¢244.58 million at the end of December 2007.
Again, the board chairman stated that total assets grew by 23 per cent from GH¢344.26 million in 2006 to GH¢279.8 million in 2007.
The board has declared a dividend of GH¢0.0374 to shareholders representing a 50 per cent increase over the previous year’s figure.
He said during the year under review, the bank undertook a number of projects which included the expansion of its branch network.
The bank, according to him also established a joint venture capital company to provide equity and debt financing to small and medium scale enterprises.
“The 2006-2008 strategic plan of the bank was reviewed and the board of your bank approved a revised organogram in order to align departments and units to the new strategic choices which have been crafted and to sustain our competitive posture in the banking industry”, Dr Jebuni stated.
Giving the outlook, Dr Jebuni stated that the bank would strengthen its use of information, communication and technology (ICT) to ensure quality and timely service delivery.
That, he said would be undertaken by integrating the accounting software into the bank’s commercial banking application to enable it improve on its financial efficiency.
“We will also introduce Internet and SMS banking and credit cards for more convenience banking solutions”, he stated.
The Managing Director of the Bank, Mr Daniel Charles Gyimah, said “the bank’s attention will be geared towards generating more non-interest income in order to reduce the over reliance on traditional interest income”.
He was hopeful that the positive economic outlook for this year would provide the right environment and the platform for the banking industry in general and the bank in particular.
Thursday, May 01, 2008
Our tariffs must be structured, transparent — Baidoe-Ansah
Story: Boahene Asamoah
THE Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Joe Baidoe-Ansah, has said there is the need for a well structured and a transparent approach to tariff reviews to ensure compliance with international best practices.
“This will offer the private sector refuge against unfair competition as is the case in other countries that use tariffs to protect local industry against unfair competition,” the minister said.
Speaking at a stakeholders’ meeting on the establishment of a tariff advisory board in Accra on Thursday, Mr Baidoe-Ansah stated that the lack of structured processes for seeking tariff review had led to many economic operators and the private sector to exert pressure on the government to back their demands for an adhoc tariff review.
“This is not the best”, the minister stated, adding that the ministry was seeking through consultative meeting to solicit inputs from stakeholders to bring into operation a Tariff Advisory Board (TAB).
The Minister explained that the establishment of the board was consistent with other policy initiatives and actions that were already underway, including the development of a competition law among others.
“Our goal under this thematic area or component is to provide a level playing field for all our economic operators through effective and systematic application of a transparent tariff regime.
The Minister said the establishment of the board constituted one of the ministries major series of programmes under the imports/exports component under the Trade Sector Support Programme (TSSP).
“Tariffs are at the core of our trade policy matters. Tariffs can be an effective tool not only for revenue but can also serve as a vital instrument for enhancing the competitiveness of domestic industries and for promoting the welfare of consumers”, Mr Baidoe-Ansah stated.
The minister underscored the objectives of the country’s trade policy and the TSSP which was meant to improve the legal and regulatory framework for business and consumers and thereby increase the country’s competitiveness in both the domestic and international markets.
Recently, the Board Chairman of Aluworks Limited, manufacturers and exporters of semi-finished aluminium products, Mr William E. Inkumsah hinted that the company had presented a petition to the government for import tariffs to be slapped on imported aluminium products coming into the country.
He said the proposal was to ensure the survival of the aluminium industry on cheap imports from especially China, which had flooded the Ghanaian market in particular and the West African markets in general.
Mr Inkumsah said the government was studying the proposal and was hopeful that it would consider the request to place tariffs on imported aluminium coils into the country.
Some industry players have also called on the government to impose taxes on cheap imported wax prints and textile which had almost brought the textile industry on its knees.
Again, during the 2004 budget statement, the government imposed tariffs on poultry imports into the country, only for the government to withdraw the tariffs.
THE Minister of Trade, Industry, Private Sector Development and President’s Special Initiative (PSI), Mr Joe Baidoe-Ansah, has said there is the need for a well structured and a transparent approach to tariff reviews to ensure compliance with international best practices.
“This will offer the private sector refuge against unfair competition as is the case in other countries that use tariffs to protect local industry against unfair competition,” the minister said.
Speaking at a stakeholders’ meeting on the establishment of a tariff advisory board in Accra on Thursday, Mr Baidoe-Ansah stated that the lack of structured processes for seeking tariff review had led to many economic operators and the private sector to exert pressure on the government to back their demands for an adhoc tariff review.
“This is not the best”, the minister stated, adding that the ministry was seeking through consultative meeting to solicit inputs from stakeholders to bring into operation a Tariff Advisory Board (TAB).
The Minister explained that the establishment of the board was consistent with other policy initiatives and actions that were already underway, including the development of a competition law among others.
“Our goal under this thematic area or component is to provide a level playing field for all our economic operators through effective and systematic application of a transparent tariff regime.
The Minister said the establishment of the board constituted one of the ministries major series of programmes under the imports/exports component under the Trade Sector Support Programme (TSSP).
“Tariffs are at the core of our trade policy matters. Tariffs can be an effective tool not only for revenue but can also serve as a vital instrument for enhancing the competitiveness of domestic industries and for promoting the welfare of consumers”, Mr Baidoe-Ansah stated.
The minister underscored the objectives of the country’s trade policy and the TSSP which was meant to improve the legal and regulatory framework for business and consumers and thereby increase the country’s competitiveness in both the domestic and international markets.
Recently, the Board Chairman of Aluworks Limited, manufacturers and exporters of semi-finished aluminium products, Mr William E. Inkumsah hinted that the company had presented a petition to the government for import tariffs to be slapped on imported aluminium products coming into the country.
He said the proposal was to ensure the survival of the aluminium industry on cheap imports from especially China, which had flooded the Ghanaian market in particular and the West African markets in general.
Mr Inkumsah said the government was studying the proposal and was hopeful that it would consider the request to place tariffs on imported aluminium coils into the country.
Some industry players have also called on the government to impose taxes on cheap imported wax prints and textile which had almost brought the textile industry on its knees.
Again, during the 2004 budget statement, the government imposed tariffs on poultry imports into the country, only for the government to withdraw the tariffs.
SG-SSB to sustain growth through innovation
Story: Boahene Asamoah
THE Board Chairman of SG-SSB, Mr Philippe Vigue, has said that the bank will continue to look for innovative ways of maintaining profits and ensure growth in the bank’s operations.
“We will continue to seek ways to strengthen and develop our operations and I am confident about the future”, Mr Vigue stated.
The Board chairman made this known when he addressed shareholders at the annual general meeting in Accra.
He explained that his confidence about the future was because the economy remained sound and the environment, positive due to the pursuance of prudent and appropriate macro economic policies of the government.
Giving the financial performance of the bank for the past year, Mr Vigue stated that the bank recorded a net profit of GH¢11.6 million as against the previous year’s figure of GH¢9.9 million recorded in 2006.
He said “net banking income increased by 12 per cent and current operating expenses grew by 18 per cent”.
The Board chairman noted that shareholders funds also increased from GH¢57.4 million to GH¢58.4 million representing an increase of 2 per cent.
The board recommended a dividend pay out of GH¢0.03. Having already paid an interim dividend of GH¢0.03, brings the total dividend to GH¢0.06 per share.
In his address, the Managing Director of the Bank, Mr Allain Bellissard, said during the year under review the bank witnessed an efficient growth in its treasury, positive evolution in business banking and strong growth in its retail banking, among others.
He said the bank also saw an increased financial support to the Small and Medium Scale Enterprises (SMEs) market segment and assured the shareholders that the financial support to that sector would be built upon.
“The segment is considered a major strategic business portfolio and therefore, in 2008 your bank will increase lending to the sector to combine with aggressive marketing, improved customer care and contact as well as monitoring to sustain portfolio quality”, Mr Bellissard stated.
Again, he said credit to business customers increased by 44.7 per cent over the previous year’s figure, which was fuelled by exposures to multinational and large local corporate businesses, particularly in the Information and Communication Technology (ICT), real estate and other productive sectors of the economy.
“Your bank’s commitment to the development of Ghana’s economy was underscored by the active role it played towards the success of Societe Generale and its partner lenders, regarding the $900 million sydincation for the 2007/2008 cocoa season”, the Management Director stated.
THE Board Chairman of SG-SSB, Mr Philippe Vigue, has said that the bank will continue to look for innovative ways of maintaining profits and ensure growth in the bank’s operations.
“We will continue to seek ways to strengthen and develop our operations and I am confident about the future”, Mr Vigue stated.
The Board chairman made this known when he addressed shareholders at the annual general meeting in Accra.
He explained that his confidence about the future was because the economy remained sound and the environment, positive due to the pursuance of prudent and appropriate macro economic policies of the government.
Giving the financial performance of the bank for the past year, Mr Vigue stated that the bank recorded a net profit of GH¢11.6 million as against the previous year’s figure of GH¢9.9 million recorded in 2006.
He said “net banking income increased by 12 per cent and current operating expenses grew by 18 per cent”.
The Board chairman noted that shareholders funds also increased from GH¢57.4 million to GH¢58.4 million representing an increase of 2 per cent.
The board recommended a dividend pay out of GH¢0.03. Having already paid an interim dividend of GH¢0.03, brings the total dividend to GH¢0.06 per share.
In his address, the Managing Director of the Bank, Mr Allain Bellissard, said during the year under review the bank witnessed an efficient growth in its treasury, positive evolution in business banking and strong growth in its retail banking, among others.
He said the bank also saw an increased financial support to the Small and Medium Scale Enterprises (SMEs) market segment and assured the shareholders that the financial support to that sector would be built upon.
“The segment is considered a major strategic business portfolio and therefore, in 2008 your bank will increase lending to the sector to combine with aggressive marketing, improved customer care and contact as well as monitoring to sustain portfolio quality”, Mr Bellissard stated.
Again, he said credit to business customers increased by 44.7 per cent over the previous year’s figure, which was fuelled by exposures to multinational and large local corporate businesses, particularly in the Information and Communication Technology (ICT), real estate and other productive sectors of the economy.
“Your bank’s commitment to the development of Ghana’s economy was underscored by the active role it played towards the success of Societe Generale and its partner lenders, regarding the $900 million sydincation for the 2007/2008 cocoa season”, the Management Director stated.
Build human resources on negotiation skills-African governments advised
Story: Boahene Asamoah
The lack of trained human resources to negotiate on behalf of the state has been a major source of exploitation of the continent’s natural resources, the Chief Executive Officer of the African Investments Limited, Mr Kwasi Abeasi, has said.
He said African countries had comparative advantages that could be harnessed and fully exploited to yield greater resources for the continent, but lacked such personnel who understood the major issues.
In an interview on Globalisation and its effects on Africa at the ongoing United Nations Conference on Trade and Development (UNCTAD) in Accra, Mr Abeasi, who was one-time the Chief Executive Officer of the Ghana Investments Promotion Centre (GIPC), called on African governments to build human resources on negotiation skills.
He said “Africa had natural resources as its main comparative advantage”, adding that in negotiating for its exploit emphasis should be placed on value addition”.
He said globalisation had come to stay, and African economies should better be prepared to play their part in the global village, adding that Africa had all it takes to compete in the global world.
On the effects of Foreign Direct Investment (FDI), Mr Abeasi said “Africa needs FDIs to complement its domestic resources to develop”.
He said FDIs also had the potential to bring in the technical know-how that was needed badly for the continent’s rapid development.
He dismissed suggestions that FDI was not needed and stated that while local resource mobilisation was crucial, FDI was indeed a welcome relief to many African economies.
Mr Abeasi, however, stated that the focus should be on FDI that would be able to target where a country had both comparative and competitive advantages.
Mr Abeasi stated that there was also the need to create the enabling environment that would ensure that Africa took full advantage of FDI to the continent.
The UNCTAD XII conference would, among other things, discuss such topics as globalisation, Global Systems of Trade and Preferences (GSTP) and Trade and Gender: Perspectives for sustainable growth and poverty reduction.
Other topics are; Making sustainability standards work for pro-poor agricultural development and trade, Creating an institutional environment conducive to increased foreign investment, and sustainable development.
There will also be regional group meetings, which would consist of Africa, European Union and Group of 77 and China.
The lack of trained human resources to negotiate on behalf of the state has been a major source of exploitation of the continent’s natural resources, the Chief Executive Officer of the African Investments Limited, Mr Kwasi Abeasi, has said.
He said African countries had comparative advantages that could be harnessed and fully exploited to yield greater resources for the continent, but lacked such personnel who understood the major issues.
In an interview on Globalisation and its effects on Africa at the ongoing United Nations Conference on Trade and Development (UNCTAD) in Accra, Mr Abeasi, who was one-time the Chief Executive Officer of the Ghana Investments Promotion Centre (GIPC), called on African governments to build human resources on negotiation skills.
He said “Africa had natural resources as its main comparative advantage”, adding that in negotiating for its exploit emphasis should be placed on value addition”.
He said globalisation had come to stay, and African economies should better be prepared to play their part in the global village, adding that Africa had all it takes to compete in the global world.
On the effects of Foreign Direct Investment (FDI), Mr Abeasi said “Africa needs FDIs to complement its domestic resources to develop”.
He said FDIs also had the potential to bring in the technical know-how that was needed badly for the continent’s rapid development.
He dismissed suggestions that FDI was not needed and stated that while local resource mobilisation was crucial, FDI was indeed a welcome relief to many African economies.
Mr Abeasi, however, stated that the focus should be on FDI that would be able to target where a country had both comparative and competitive advantages.
Mr Abeasi stated that there was also the need to create the enabling environment that would ensure that Africa took full advantage of FDI to the continent.
The UNCTAD XII conference would, among other things, discuss such topics as globalisation, Global Systems of Trade and Preferences (GSTP) and Trade and Gender: Perspectives for sustainable growth and poverty reduction.
Other topics are; Making sustainability standards work for pro-poor agricultural development and trade, Creating an institutional environment conducive to increased foreign investment, and sustainable development.
There will also be regional group meetings, which would consist of Africa, European Union and Group of 77 and China.
"Lets tackle social inequality"-UNCTAD Secreatary-General
Story: Boahene Asamoah
THE Secretary-General of the United Nation’s Conference on Trade and Development (UNCTAD), Mr Supachai Panitchpakdi, has called on countries to tackle and address the issue of economic and social inequality brought about by globalisation.
“We must tackle poverty” and “reverse the trend of inequality,” Mr Panitchpakdi stated at the ongoing UNCTAD XII conference in Accra.
Contributing to a discussion on Enhancing Coherence at all Levels for Sustainable Economic Development and Poverty Reduction in Global Policy Making, including the contribution of regional approaches, Mr Panitchpakdi said globalisation had come to stay and “the least we can do is take care of the poor”.
He said there was growing disparity between the rich and poor and also increasing regional disparities in trade.
Mr Panitchpakdi suggested that while there was the need for sustainable growth, it was equally important to ensure the quality of growth that would ensure that resources were deployed to the productive sectors of the economy.
He said in most cases, some countries accepted investments that had led to the movement of resources from the productive sectors, stressing that “this is not the kind of investments we want”.
Mr Panitchpakdi, who touched on states and markets and the social conditions, stated that in many cases growth had led to child labour, which was not conducive to the entire communities.
The Secretary General questioned whether South-South co-operation would spur trade and investments that would ensure labour-intensive jobs.
Again, he asked whether the issues of Small and Medium Scale Enterprise (SMEs) support could work to improve trade and investments among countries.
Mr Panitchpakdi called for “ inclusive growth that will incorporate women and gender equality and ensure equal treatment”.
In her presentation, the President of Finland, Ms Tarjas Halomen, urged developing countries to respond positively to the globalisation phenomenon and not to give up on it.
She also called on women to be active participants in the development process to ensure the development of their respective countries.
Ms Halomen stated that it would be unwise to neglect gender issues in the economic development of any country and stated that women should be encouraged to participate in business and other economic activities to ensure that they benefited directly.
The Netherlands Minister of Development Co-operation, Mr Albert Koenders, observed that there was indeed increasingly inequalities with regards to globalisation.
He said African countries should take advantage of globalisation, especially in the agricultural sector, where it could generate a lot of employment opportunities for the continent.
“One needs to choose their own growth path,” Mr Koenders stated, adding that that was one of the surest ways to take advantage of globalisation.
The minister reiterated the need to build and strengthen regional blocs and trade, as well as enforce rules and regulations that would ensure the development of regional trade and investments.
Touching on trade liberalisation, he said the challenge was to develop comparative advantage and ensure global equitable integration.
THE Secretary-General of the United Nation’s Conference on Trade and Development (UNCTAD), Mr Supachai Panitchpakdi, has called on countries to tackle and address the issue of economic and social inequality brought about by globalisation.
“We must tackle poverty” and “reverse the trend of inequality,” Mr Panitchpakdi stated at the ongoing UNCTAD XII conference in Accra.
Contributing to a discussion on Enhancing Coherence at all Levels for Sustainable Economic Development and Poverty Reduction in Global Policy Making, including the contribution of regional approaches, Mr Panitchpakdi said globalisation had come to stay and “the least we can do is take care of the poor”.
He said there was growing disparity between the rich and poor and also increasing regional disparities in trade.
Mr Panitchpakdi suggested that while there was the need for sustainable growth, it was equally important to ensure the quality of growth that would ensure that resources were deployed to the productive sectors of the economy.
He said in most cases, some countries accepted investments that had led to the movement of resources from the productive sectors, stressing that “this is not the kind of investments we want”.
Mr Panitchpakdi, who touched on states and markets and the social conditions, stated that in many cases growth had led to child labour, which was not conducive to the entire communities.
The Secretary General questioned whether South-South co-operation would spur trade and investments that would ensure labour-intensive jobs.
Again, he asked whether the issues of Small and Medium Scale Enterprise (SMEs) support could work to improve trade and investments among countries.
Mr Panitchpakdi called for “ inclusive growth that will incorporate women and gender equality and ensure equal treatment”.
In her presentation, the President of Finland, Ms Tarjas Halomen, urged developing countries to respond positively to the globalisation phenomenon and not to give up on it.
She also called on women to be active participants in the development process to ensure the development of their respective countries.
Ms Halomen stated that it would be unwise to neglect gender issues in the economic development of any country and stated that women should be encouraged to participate in business and other economic activities to ensure that they benefited directly.
The Netherlands Minister of Development Co-operation, Mr Albert Koenders, observed that there was indeed increasingly inequalities with regards to globalisation.
He said African countries should take advantage of globalisation, especially in the agricultural sector, where it could generate a lot of employment opportunities for the continent.
“One needs to choose their own growth path,” Mr Koenders stated, adding that that was one of the surest ways to take advantage of globalisation.
The minister reiterated the need to build and strengthen regional blocs and trade, as well as enforce rules and regulations that would ensure the development of regional trade and investments.
Touching on trade liberalisation, he said the challenge was to develop comparative advantage and ensure global equitable integration.
UNCTAD-What it stands for
Compiled by Boahene Asamoah
THE United Nation’s Conference on Trade and Development (UNCTAD) was established in 1964 to, among other things, promote the development-friendly integration of developing countries into the world economy.
In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions.
Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.)
The prominent Argentinean economist, Raúl Prebisch, who had headed the United Nations Economic Commission for Latin America and the Caribbean, became the organisation's first Secretary-General.
The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964.
Given the magnitude of the problems at stake and the need to address them, the conference was institutionalised to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support.
Over the past years UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.
The organisation works to fulfil this mandate by carrying out three key functions:
It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building.
It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organisations and donor countries in the delivery of technical assistance.
The Secretary-General of UNCTAD is Dr Supachai Panitchpakdi (Thailand), who took office on September 1, 2005.
In performing its functions, the secretariat works together with member governments and interacts with organisations of the United Nations system and regional commissions, as well as governmental institutions, non-governmental organisations, the private sector, including trade and industry associations; research institutes and universities worldwide.
The 1960s and 1970s
In its early decades of operation, UNCTAD gained authoritative standing:
*As an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the “New International Economic Order”.
*For its analytical research and policy advice on development issues.
Agreements launched by UNCTAD during this time include:
The Generalized System of Preferences (1968), whereby developed economies grant improved market access to exports from developing countries.
A number of International Commodities Agreements, which aimed at stabilising the prices of export products crucial for developing countries.
The Convention on a Code of Conduct for Liner Conferences, which strengthened the ability of developing countries to maintain national merchant fleets.
The adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. This work later evolved into what is today known as “Trade and Competition Policies”.
In addition to these, UNCTAD was a key contributor to the definition of the target of 0.7 per cent of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970.
It also spearheaded the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.
In the 1980s, UNCTAD was faced with a changing economic and political environment:
There was a significant transformation in economic thinking. Development strategies became more market-oriented, focusing on trade liberalisation and privatisation of state enterprises.
A number of developing countries were plunged into severe debt crises. Despite structural adjustment programmes by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the “lost decade”, particularly in Latin America.
Economic interdependence in the world also increased greatly.
In the light of these developments, UNCTAD multiplied efforts aimed at:
Strengthening the analytical content of its intergovernmental debate, particularly regarding macroeconomic management and international financial and monetary issues.
It was also aimed at broadening the scope of its activities to assist developing countries in their efforts to integrate into the world trading system. In this context,
the technical assistance provided by UNCTAD to developing countries was particularly important in the Uruguay Round of Trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS).
UNCTAD’s work on trade efficiency (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade.
UNCTAD assisted developing countries in the rescheduling of official debt in the Paris Club negotiations.
Promoting South-South cooperation.
In 1989, the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the agreement has been ratified by 44 countries.
UNCTAD addressed the concerns of the poorest nations by organising the first UN Conference on Least Developed Countries in 1981. Since then, two other international conferences have been held at 10-year intervals.
Key developments in the international context:
The conclusion of the Uruguay Round of Trade negotiations under the GATT resulted in the establishment of the World Trade Organisation in 1995, which led to a strengthening of the legal framework governing international trade.
A spectacular increase in international financial flows led to increasing financial instability and volatility.
Against this background, UNCTAD’s analysis gave early warning concerning the risks and the destructive impact of financial crises on development. Consequently, UNCTAD emphasised the need for a more development-oriented “international financial architecture”.
Foreign direct investment flows became a major component of globalisation.
UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its 10th conference, held in Bangkok in February 2000, adopted a political declaration – “The Spirit of Bangkok” – as a strategy to address the development agenda in a globalising world.
In recent times, UNCTAD has further focused its analytical research on the linkages between trade, investment, technology and enterprise development.
It has also put forward a “positive agenda” for developing countries in international trade negotiations, designed to assist developing countries to better understand the complexity of the multilateral trade negotiations and in formulating their positions.
UNCTAD expanded work on international investment issues, following the merger into UNCTAD of the New York–based United Nations Centre on Transnational Corporations in 1993 and has expanded and diversified its technical assistance, which covers a wide range of areas, including training trade negotiators and addressing trade-related issues; debt management, investment policy reviews and the promotion of entrepreneurship; commodities; competition law and policy; and trade and environment.
UNCTAD XI
UNCTAD has continued to play a crucial role in emphasising the development dimension of issues in the fields of international trade and investment and related areas.
In particular, UNCTAD has been addressing the imbalances of globalisation and the need to overcome the supply constraints of developing countries, so as to ensure development gains and poverty reduction.
This is captured in the theme of the UNCTAD XI Ministerial Conference, Enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries.
The Trade and Development Board
In the four years between the meetings of the conferences, UNCTAD’s work is guided by the Trade and Development Board. Board membership is open to all members of UNCTAD, and accredited intergovernmental and non-governmental organisations enjoy observer status.
The board meets in Geneva once a year in regular session and up to three times a year in executive sessions to deal with ad hoc policy and institutional issues.
The Commissions
The Trade and Development Board currently has three commissions that meet once a year to address policy issues in specific areas and provide guidance for the work of the secretariat. These commissions are the Commission on Trade in Goods and Services; the Commodities, Commission on Investment, Technology and Related Financial Issues,
and Commission on Enterprise, Business Facilitation and Development.
The UNCTAD Secretariat also services the Commission on Science and Technology for Development (CSTD), which is a subsidiary body of the United Nations Economic and Social Council.
These commissions allow governments to exchange views on policy issues in their respective ambits.
As in all of UNCTAD’s intergovernmental bodies, decisions of the commissions are taken by consensus, and thus agreed conclusions and recommendations reflect the collective political will of UNCTAD’s membership.
Expert Meetings
The work of the commissions is supported by discussions among specialised technical experts in specific fields. Up to 10 such expert meetings are convened by the commissions every year. They allow the government representatives attending the commissions to take advantage of valuable technical input from academics, practitioners and the private sector.
THE United Nation’s Conference on Trade and Development (UNCTAD) was established in 1964 to, among other things, promote the development-friendly integration of developing countries into the world economy.
In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions.
Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.)
The prominent Argentinean economist, Raúl Prebisch, who had headed the United Nations Economic Commission for Latin America and the Caribbean, became the organisation's first Secretary-General.
The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964.
Given the magnitude of the problems at stake and the need to address them, the conference was institutionalised to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support.
Over the past years UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.
The organisation works to fulfil this mandate by carrying out three key functions:
It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building.
It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organisations and donor countries in the delivery of technical assistance.
The Secretary-General of UNCTAD is Dr Supachai Panitchpakdi (Thailand), who took office on September 1, 2005.
In performing its functions, the secretariat works together with member governments and interacts with organisations of the United Nations system and regional commissions, as well as governmental institutions, non-governmental organisations, the private sector, including trade and industry associations; research institutes and universities worldwide.
The 1960s and 1970s
In its early decades of operation, UNCTAD gained authoritative standing:
*As an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the “New International Economic Order”.
*For its analytical research and policy advice on development issues.
Agreements launched by UNCTAD during this time include:
The Generalized System of Preferences (1968), whereby developed economies grant improved market access to exports from developing countries.
A number of International Commodities Agreements, which aimed at stabilising the prices of export products crucial for developing countries.
The Convention on a Code of Conduct for Liner Conferences, which strengthened the ability of developing countries to maintain national merchant fleets.
The adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. This work later evolved into what is today known as “Trade and Competition Policies”.
In addition to these, UNCTAD was a key contributor to the definition of the target of 0.7 per cent of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970.
It also spearheaded the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.
In the 1980s, UNCTAD was faced with a changing economic and political environment:
There was a significant transformation in economic thinking. Development strategies became more market-oriented, focusing on trade liberalisation and privatisation of state enterprises.
A number of developing countries were plunged into severe debt crises. Despite structural adjustment programmes by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the “lost decade”, particularly in Latin America.
Economic interdependence in the world also increased greatly.
In the light of these developments, UNCTAD multiplied efforts aimed at:
Strengthening the analytical content of its intergovernmental debate, particularly regarding macroeconomic management and international financial and monetary issues.
It was also aimed at broadening the scope of its activities to assist developing countries in their efforts to integrate into the world trading system. In this context,
the technical assistance provided by UNCTAD to developing countries was particularly important in the Uruguay Round of Trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS).
UNCTAD’s work on trade efficiency (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade.
UNCTAD assisted developing countries in the rescheduling of official debt in the Paris Club negotiations.
Promoting South-South cooperation.
In 1989, the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the agreement has been ratified by 44 countries.
UNCTAD addressed the concerns of the poorest nations by organising the first UN Conference on Least Developed Countries in 1981. Since then, two other international conferences have been held at 10-year intervals.
Key developments in the international context:
The conclusion of the Uruguay Round of Trade negotiations under the GATT resulted in the establishment of the World Trade Organisation in 1995, which led to a strengthening of the legal framework governing international trade.
A spectacular increase in international financial flows led to increasing financial instability and volatility.
Against this background, UNCTAD’s analysis gave early warning concerning the risks and the destructive impact of financial crises on development. Consequently, UNCTAD emphasised the need for a more development-oriented “international financial architecture”.
Foreign direct investment flows became a major component of globalisation.
UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its 10th conference, held in Bangkok in February 2000, adopted a political declaration – “The Spirit of Bangkok” – as a strategy to address the development agenda in a globalising world.
In recent times, UNCTAD has further focused its analytical research on the linkages between trade, investment, technology and enterprise development.
It has also put forward a “positive agenda” for developing countries in international trade negotiations, designed to assist developing countries to better understand the complexity of the multilateral trade negotiations and in formulating their positions.
UNCTAD expanded work on international investment issues, following the merger into UNCTAD of the New York–based United Nations Centre on Transnational Corporations in 1993 and has expanded and diversified its technical assistance, which covers a wide range of areas, including training trade negotiators and addressing trade-related issues; debt management, investment policy reviews and the promotion of entrepreneurship; commodities; competition law and policy; and trade and environment.
UNCTAD XI
UNCTAD has continued to play a crucial role in emphasising the development dimension of issues in the fields of international trade and investment and related areas.
In particular, UNCTAD has been addressing the imbalances of globalisation and the need to overcome the supply constraints of developing countries, so as to ensure development gains and poverty reduction.
This is captured in the theme of the UNCTAD XI Ministerial Conference, Enhancing coherence between national development strategies and global economic processes towards economic growth and development, particularly of developing countries.
The Trade and Development Board
In the four years between the meetings of the conferences, UNCTAD’s work is guided by the Trade and Development Board. Board membership is open to all members of UNCTAD, and accredited intergovernmental and non-governmental organisations enjoy observer status.
The board meets in Geneva once a year in regular session and up to three times a year in executive sessions to deal with ad hoc policy and institutional issues.
The Commissions
The Trade and Development Board currently has three commissions that meet once a year to address policy issues in specific areas and provide guidance for the work of the secretariat. These commissions are the Commission on Trade in Goods and Services; the Commodities, Commission on Investment, Technology and Related Financial Issues,
and Commission on Enterprise, Business Facilitation and Development.
The UNCTAD Secretariat also services the Commission on Science and Technology for Development (CSTD), which is a subsidiary body of the United Nations Economic and Social Council.
These commissions allow governments to exchange views on policy issues in their respective ambits.
As in all of UNCTAD’s intergovernmental bodies, decisions of the commissions are taken by consensus, and thus agreed conclusions and recommendations reflect the collective political will of UNCTAD’s membership.
Expert Meetings
The work of the commissions is supported by discussions among specialised technical experts in specific fields. Up to 10 such expert meetings are convened by the commissions every year. They allow the government representatives attending the commissions to take advantage of valuable technical input from academics, practitioners and the private sector.
President Inuagurates e-zwich
Story: Nehemia Owusu-Achiaw & Boahene Asamoah
THE President, Mr John Agyekum Kufuor, yesterday inaugurated the national electronic payment system, popularly called e-zwich, with a call on micro, small and medium businesses to take advantage of the platform to be part of the financial system.
“Small and medium-scale businesses and those involved in micro-credit transactions must be encouraged to take advantage of this new platform to be linked to the financial system so as to benefit from the various services that the financial sector can offer,” he said.
Delivering the keynote address, President Kufuor stated that the main objective of the platform was to extend the coverage of financial services and transactions to a large segment of the population, adding that “this system is safe, secure and efficient”.
The e-zwich is a biometrics smart card which works both online and off-line which is meant to ensure cashless transaction and rope in the large untapped informal sector.
The President said the e-zwich would facilitate access to and transfer of money and remove the cumbersome and insecure processes of using cash.
President Kufuor underscored the importance of technology among emerging and developed countries which remained dependent on cash and paper transactions.
“Ghana must, therefore, phase itself from such dependency as it steadily progresses into the middle-income status,” he stated.
President Kufuor said in spite of the impressive growth of financial institutions as a result of reforms and stability in macro-economic environment, there were still a lot of people outside the financial system.
“An estimated 80 per cent of eligible population is still either ‘unbanked’ or ‘under-banked’ and seems to have no access to financial services,” he added.
The President again called on those responsible for the payment of wages, salaries, pension and other social support funds to consider the use of e-zwich to bring transparency and integrity to the payrolls.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the e-zwich platform would transform the payment system into one that was state-of-the-art of the future to serve all financial institutions in the country.
“It is a platform to link all the existing 25 banking institutions, savings and loans companies, 123 rural banks and their branches and provide access to financial services and the national payment system for all economic transactions,” Dr Acquah stated.
He added that the platform provided a level playing field for institutions to compete on comparative advantage and innovation to drive the financial services industry.
“The e-zwich smart card can be used by anyone, everywhere to do business. It can store value, your money and your savings and you can use it to buy anything, anywhere, thanks to the e-zwich platform,” the Governor stated.
The acting President of the Ghana Association of Bankers (GAB), Mr Joe N. B. Tetteh, said the members of the association welcomed the introduction of the electronic platform as it had the potential to ensure an effective intermediation function of the financial system and the efficiency of funds flow as integral to the overall functioning of the system.
“The project is a manifestation of the banking fraternity’s contract to make Ghana a financial hub, with the government, the private sector and the community joining hands to ensure that the community at large is given easy and secure access to banking services,” Mr Tetteh said.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, stated that the government would continue to undertake reforms that would further propel the financial services sector to become the financial hub in the sub-region.
THE President, Mr John Agyekum Kufuor, yesterday inaugurated the national electronic payment system, popularly called e-zwich, with a call on micro, small and medium businesses to take advantage of the platform to be part of the financial system.
“Small and medium-scale businesses and those involved in micro-credit transactions must be encouraged to take advantage of this new platform to be linked to the financial system so as to benefit from the various services that the financial sector can offer,” he said.
Delivering the keynote address, President Kufuor stated that the main objective of the platform was to extend the coverage of financial services and transactions to a large segment of the population, adding that “this system is safe, secure and efficient”.
The e-zwich is a biometrics smart card which works both online and off-line which is meant to ensure cashless transaction and rope in the large untapped informal sector.
The President said the e-zwich would facilitate access to and transfer of money and remove the cumbersome and insecure processes of using cash.
President Kufuor underscored the importance of technology among emerging and developed countries which remained dependent on cash and paper transactions.
“Ghana must, therefore, phase itself from such dependency as it steadily progresses into the middle-income status,” he stated.
President Kufuor said in spite of the impressive growth of financial institutions as a result of reforms and stability in macro-economic environment, there were still a lot of people outside the financial system.
“An estimated 80 per cent of eligible population is still either ‘unbanked’ or ‘under-banked’ and seems to have no access to financial services,” he added.
The President again called on those responsible for the payment of wages, salaries, pension and other social support funds to consider the use of e-zwich to bring transparency and integrity to the payrolls.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the e-zwich platform would transform the payment system into one that was state-of-the-art of the future to serve all financial institutions in the country.
“It is a platform to link all the existing 25 banking institutions, savings and loans companies, 123 rural banks and their branches and provide access to financial services and the national payment system for all economic transactions,” Dr Acquah stated.
He added that the platform provided a level playing field for institutions to compete on comparative advantage and innovation to drive the financial services industry.
“The e-zwich smart card can be used by anyone, everywhere to do business. It can store value, your money and your savings and you can use it to buy anything, anywhere, thanks to the e-zwich platform,” the Governor stated.
The acting President of the Ghana Association of Bankers (GAB), Mr Joe N. B. Tetteh, said the members of the association welcomed the introduction of the electronic platform as it had the potential to ensure an effective intermediation function of the financial system and the efficiency of funds flow as integral to the overall functioning of the system.
“The project is a manifestation of the banking fraternity’s contract to make Ghana a financial hub, with the government, the private sector and the community joining hands to ensure that the community at large is given easy and secure access to banking services,” Mr Tetteh said.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, stated that the government would continue to undertake reforms that would further propel the financial services sector to become the financial hub in the sub-region.
DVLA automates its operations
Story: Boahene Asamoah
THE Driver and Vehicle Licensing Authority (DVLA) has launched its automated services project aimed at speedy customer service delivery.
The project is expected to reduce especially the number of paper work and the number of hours for services offered by the authority.
Launching the project, the Minister of Transportation, Dr Richard Anane, said the automation of DVLA’s activities would deal with the menace of the “Goro” boys whose activities was a thorn in the flesh of the authority.
He said “today’s occasion sets the DVLA on the course to matching up to the much touted world class standard”.
Dr Anane pledged the government’s support to the authority to continue to implement programmes in the interest of the nation.
The minister reiterated the number of reforms that the authority had undertaken since 2001, such as the opening of more branches throughout the country, and mentioned that a number of infrastructural facilities had also been undertaken.
He also mentioned the setting up of a client service unit and a banking facility at the authority’s premises as part of the reforms.
The Chief Executive Officer of the DVLA, Mr Joe Osei Owusu, stated that the automated project would help address the long period in processing of documents at its offices.
“It goes without saying that DVLA will be better placed to serve its customers better by automating its services delivery system and operations,” he stated, adding that “DVLA sees this project as an indispensable component of the process towards making it a world-class service provider”.
He said the project would also help in the monitoring of all DVLA’s activities nationwide and would ensure compliance of laid down standards and procedures and harmonise all the authority’s processes.
Mr Owusu stated that the automation project would encompass the authority’s area of work including its administrative and external works.
“The success or failure of a project such as this, aimed at improving service delivery and better equipping the DVLA to carry out its mandate therefore, would have a strong impact on the socio-economic development of the nation in the long term,” the chief executive officer stated.
THE Driver and Vehicle Licensing Authority (DVLA) has launched its automated services project aimed at speedy customer service delivery.
The project is expected to reduce especially the number of paper work and the number of hours for services offered by the authority.
Launching the project, the Minister of Transportation, Dr Richard Anane, said the automation of DVLA’s activities would deal with the menace of the “Goro” boys whose activities was a thorn in the flesh of the authority.
He said “today’s occasion sets the DVLA on the course to matching up to the much touted world class standard”.
Dr Anane pledged the government’s support to the authority to continue to implement programmes in the interest of the nation.
The minister reiterated the number of reforms that the authority had undertaken since 2001, such as the opening of more branches throughout the country, and mentioned that a number of infrastructural facilities had also been undertaken.
He also mentioned the setting up of a client service unit and a banking facility at the authority’s premises as part of the reforms.
The Chief Executive Officer of the DVLA, Mr Joe Osei Owusu, stated that the automated project would help address the long period in processing of documents at its offices.
“It goes without saying that DVLA will be better placed to serve its customers better by automating its services delivery system and operations,” he stated, adding that “DVLA sees this project as an indispensable component of the process towards making it a world-class service provider”.
He said the project would also help in the monitoring of all DVLA’s activities nationwide and would ensure compliance of laid down standards and procedures and harmonise all the authority’s processes.
Mr Owusu stated that the automation project would encompass the authority’s area of work including its administrative and external works.
“The success or failure of a project such as this, aimed at improving service delivery and better equipping the DVLA to carry out its mandate therefore, would have a strong impact on the socio-economic development of the nation in the long term,” the chief executive officer stated.
20 Corporate bodies open off-shore banking facilities
Story: Boahene Asamoah
TWENTY corporate bodies and 91 individuals from 14 countries mainly from the United States, the United Kingdom and China have established an off-shore banking facility in the country, the Managing Director of Barclays Bank Ghana, Mrs Margaret Mwanakatwe has stated.
Speaking at the 29th annual Management Day organised by the University of Ghana Business School, Mrs Mwanakatwe said “the large volumes of deposits that will flow will form the basis of developing more lending solutions to Ghana’s private sector”.
She said that the offshore banking services established in the country in September last year offered great opportunities of attracting Foreign Direct Investments into the economy.
Mrs Mwanakatwe who was speaking on the topic “Offshore Banking and the Ghanaian Economy” mentioned other benefits that the off-shore banking concepts would bring as aircraft financing and leasing, ship registration, trust incorporation assets management, insurance pension funds, consultancy services among others.
She dispelled suggestions that off-shore banking was associated with underground economy, organised crime and money laundering, stating that while Ghana’s off-shore banking was evolving and that the bank has learnt from best practises and has put in place strict rules and procedures that would check all such illegal transfers.
She noted that although off-shore banks may decide not to report their income to other tax authorities and have no legal obligation to do so, that did not make the non-declaration of the income by the tax payer or the evasion of the tax on that income, illegal.
Mrs Mwanakatwe cited examples of countries which had made use off-shore banking services such as Bermuda which had a population of about 70,000 and which ha attracted about 28 per cent of the world’s captive insurance market with 1,491 insurance companies having assets worth over $290 billion.
She added that the country’s banks held assets worth over $22 billion and the financial services sector accounted for 26 per cent of the Gross Domestic Product.
“Indeed off-shore banking provides a more friendly legal regulation, tax benefits and protection for customers”, adding that “offshore banking however is not only about access to investments products and opportunities that might not be available from domestic banks.
The Head of Banking Supervision, Mr Dela Selormey, said parliament had recently passed the anti money laundering act which was part of processes to check the transfer of illegal funds into the banking system.
He said the bank of Ghana would establish the Financial Intelligence Centre in collaboration with stakeholders to complement the activities of the banks to check the safety and soundness and to protect foreign deposits.
Mr Selormey stated that the central bank has adopted several policies such as the Customer Due Diligence (CDD) and the Know Your Customer (KYC) policies which were all meant to address some of the challenges that confronted the banking sector.
He also stated that the off-shore banking concept would help mobilise international funds, strengthen infrastructure of the banking sector and also improved the human resources of the country as well as ensure transfer of skills to the economy.
Mr Selormey mentioned some of the challenges that confronted the country in terms of attracting foreign direct investments as the need to sustain political stability, ensure efficient and effective legal system as well as ensure good corporate governance practices.
TWENTY corporate bodies and 91 individuals from 14 countries mainly from the United States, the United Kingdom and China have established an off-shore banking facility in the country, the Managing Director of Barclays Bank Ghana, Mrs Margaret Mwanakatwe has stated.
Speaking at the 29th annual Management Day organised by the University of Ghana Business School, Mrs Mwanakatwe said “the large volumes of deposits that will flow will form the basis of developing more lending solutions to Ghana’s private sector”.
She said that the offshore banking services established in the country in September last year offered great opportunities of attracting Foreign Direct Investments into the economy.
Mrs Mwanakatwe who was speaking on the topic “Offshore Banking and the Ghanaian Economy” mentioned other benefits that the off-shore banking concepts would bring as aircraft financing and leasing, ship registration, trust incorporation assets management, insurance pension funds, consultancy services among others.
She dispelled suggestions that off-shore banking was associated with underground economy, organised crime and money laundering, stating that while Ghana’s off-shore banking was evolving and that the bank has learnt from best practises and has put in place strict rules and procedures that would check all such illegal transfers.
She noted that although off-shore banks may decide not to report their income to other tax authorities and have no legal obligation to do so, that did not make the non-declaration of the income by the tax payer or the evasion of the tax on that income, illegal.
Mrs Mwanakatwe cited examples of countries which had made use off-shore banking services such as Bermuda which had a population of about 70,000 and which ha attracted about 28 per cent of the world’s captive insurance market with 1,491 insurance companies having assets worth over $290 billion.
She added that the country’s banks held assets worth over $22 billion and the financial services sector accounted for 26 per cent of the Gross Domestic Product.
“Indeed off-shore banking provides a more friendly legal regulation, tax benefits and protection for customers”, adding that “offshore banking however is not only about access to investments products and opportunities that might not be available from domestic banks.
The Head of Banking Supervision, Mr Dela Selormey, said parliament had recently passed the anti money laundering act which was part of processes to check the transfer of illegal funds into the banking system.
He said the bank of Ghana would establish the Financial Intelligence Centre in collaboration with stakeholders to complement the activities of the banks to check the safety and soundness and to protect foreign deposits.
Mr Selormey stated that the central bank has adopted several policies such as the Customer Due Diligence (CDD) and the Know Your Customer (KYC) policies which were all meant to address some of the challenges that confronted the banking sector.
He also stated that the off-shore banking concept would help mobilise international funds, strengthen infrastructure of the banking sector and also improved the human resources of the country as well as ensure transfer of skills to the economy.
Mr Selormey mentioned some of the challenges that confronted the country in terms of attracting foreign direct investments as the need to sustain political stability, ensure efficient and effective legal system as well as ensure good corporate governance practices.
Sunday, April 06, 2008
Inflation goes up
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.
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.
Non-traditional exports post strong growth
Story: Boahene Asamoah
NON-TRADITIONAL Exports (NTEs) have shown strong performance over the past years, reaching $1.164 billion, above the $1 billion target for 2006.
The exports increased from $460 million in 2001 to $1,164 million in 2007, showing a growth rate of over 150 per cent.
On annual basis, the growth translates into a 20.7 per cent increase yearly.
According to a report from the Ghana Exports Promotion Council (GEPC), made available to the the Daily Graphic, total national merchandise exports of Ghana had shown positive growth over the past three years.
They have grown from $2.74 billion in 2004 to $4.19 billion in 2007, representing a 53.08 per cent growth in 2007 over the 2004 figures.
Within the same period from 2004 to 2007, NTEs grew from $705 million to $1,164 million, showing a growth rate of 65.08 per cent.
However, the percentage contribution of NTEs to total exports rose from 26.14 per cent in 2006 to 27.76 per cent in 2007.
Although the current year under review, 2007 follows the general trend of increase in NTEs achieved over the last five to six years, the export earnings achieved in 2007 exceeded the $1 billion earmarked for 2006 but falls below the expected amount of $1.2 billion forecast for the year 2007.
NTEs percentage contribution to total exports in 2004, 2005, 2006 and 2007 were about 25.74 per cent, 28.09 per cent, 26.14 per cent and 27.76 per cent respectively.
Review of NTEs Sector 2007
Total value of NTEs in 2007 was approximately $1,164 million. This depicts a growth of 30.42 per cent over the 2006 figures ($892 million). Previous year's performance showed an increase from $778 million in 2005 to $892 million in 2006, representing 14.8 per cent growth.
The performance of the sector over the period 2004-2007 is shown graphically below:
The total earnings of the non-traditional export sector in 2007 were made up of earnings from three main sub-sectors as follows:
The agricultural sector contributed by $197.24 million, representing a 16.9 per cent of the total exports. The manufacturing sector contributed $963. 5 million, representing 82.7 per cent while the handicraft sector contributed $3.79 million representing 0.32 per cent.
The GEPC report said the performance of semi processed/processed and the agricultural sub-sectors grew positively by 35.53 per cent and 11.14 per cent over the 2006 earnings. However, the handicrafts sub-sector recorded a negative growth of 15.59 per cent over 2006 earnings.
This was because major buyers of Ghanaian crafts in the United States of America (USA) turned to the Far-East, especially Indonesia, India and China for handicraft supplies with relatively good finishing and functionality.
Performance of NTEs by leading products
The 10 top performing products included cocoa paste which contributed 12 per cent worth $139.75 million, followed by canned tuna with 8.51 per cent of total exports amounting to $99.15 million.
Veneers accounted for 7.50 per cent with $87.8 million worth of veneers exported, $86.6 million worth of cocoa butter was exported, representing 7.45 per cent of total exports.
Other products including plastic wares, plywood, fresh or chilled tunas, nutural rubber sheets, shea nuts and cut pineapples, all made impressive gains during the 2007 export year. The total value of the top 10 earning products amounted to US$ 671,112,968 representing 57.63 per cent of the total NTEs for 2007.
According to reports, the increase in cocoa paste and butter earnings was due to increases in the futures prices for the product during the period on the London futures market.
Moreover, the increase in earnings was partly due to capacity expansion of a major exporter of cocoa paste, Barry Callebaut Ghana Limited and a major exporter of Cocoa butter, Cocoa Processing Company Limited.
The report said veneer sheets and plywood earnings increased significantly. This is mainly because a major exporter, John Bitar Company Limited, expanded its plant capacity and also acquired a defunct wood export company, Metro Star Limited together with its buyers.
Canned tuna also increased significantly because of the increase in the average world market price of the product and partly to the contribution of Myroc Food Processing Company Limited which did not feature in 2006.
In the agricultural sub-sector, the top export earner was frozen tuna which saw a 33.78 per cent increase from $39.4 million in 2006 to $52.8 million
Shea nuts, pineapple, cashew nuts and banana recorded negative growths of -0.88%, -29.40%, -9.99% and -3.54% respectively, compared with the 2006 performance.
Earnings from frozen tuna and other frozen fish grew significantly over the period, due to a huge investment and the utilisation of modern fishing implements by Panofi Company Limited.
Export of pineapples experienced a negative growth because of the fall in pineapple production due to many of the outgrowers leaving the industry.
Cashewnuts earnings decreased over the period due to the inability of one of the exporters, Rals Commodities Company Limited to export in the year under review. The company made US$3.2 million in the year 2006.
In the handicraft sub-sector, hides and skins were the top earners in that sector with 274 per cent increase in exports in that sector from $378,873 to $1,416,980.
The ten leading general product categories each contributed over US$30 million to NTEs earnings. The lead earning category, cocoa products, contributed 21.11 per cent to total NTE earnings in 2007, while rubber and rubber products, the tenth earning category, contributed 2.63 per cent to total NTE earnings in 2007.
The 10 leading general product categories were made up of seven processed or semi processed and three agricultural products. One out of the ten product categories, namely; horticultural products recorded a negative growth of -6.37 per cent in 2007 compared with 2006.
The performance of the NTE sector by markets indicates that the markets of the European Union and ECOWAS absorbed 46.55 per cent and 31.36 per cent respectively of NTE exports from Ghana. Other African countries and other developed countries as well as other countries including emerging or transitional economies/markets absorbed 2.36 per cent, 9.25 per cent , 10.48 per cent respectively of NTE exports from Ghana. This is shown in the chart above.
According to the GEPC report, a comparison of the performance of the various markets in 2007 to 2006 reveals that all the markets recorded positive growth. The EU market performance grew by 29.10 per cent whereas the markets of the other African countries, other developed countries and other countries including emerging markets grew by 8.97 per cent, 8.93 per cent and 14.89 per cent respectively.
In 2007, Ghana's single largest market for the NTEs was the United Kingdom, absorbing 11.42 per cent of total NTEs during the period
Nigeria which was overtaken by Burkina Faso in 2005 and 2006 has resurfaced as Ghana's leading market in the ECOWAS sub region.
Significantly, there was a positive growth in Nigeria's market share of total NTEs of 67.93 per cent in 2007 relative to 2006. Burkina Faso, the second most important market in the sub region registered a negative growth of 8.13 per cent in 2007 market share over 2006.
NON-TRADITIONAL Exports (NTEs) have shown strong performance over the past years, reaching $1.164 billion, above the $1 billion target for 2006.
The exports increased from $460 million in 2001 to $1,164 million in 2007, showing a growth rate of over 150 per cent.
On annual basis, the growth translates into a 20.7 per cent increase yearly.
According to a report from the Ghana Exports Promotion Council (GEPC), made available to the the Daily Graphic, total national merchandise exports of Ghana had shown positive growth over the past three years.
They have grown from $2.74 billion in 2004 to $4.19 billion in 2007, representing a 53.08 per cent growth in 2007 over the 2004 figures.
Within the same period from 2004 to 2007, NTEs grew from $705 million to $1,164 million, showing a growth rate of 65.08 per cent.
However, the percentage contribution of NTEs to total exports rose from 26.14 per cent in 2006 to 27.76 per cent in 2007.
Although the current year under review, 2007 follows the general trend of increase in NTEs achieved over the last five to six years, the export earnings achieved in 2007 exceeded the $1 billion earmarked for 2006 but falls below the expected amount of $1.2 billion forecast for the year 2007.
NTEs percentage contribution to total exports in 2004, 2005, 2006 and 2007 were about 25.74 per cent, 28.09 per cent, 26.14 per cent and 27.76 per cent respectively.
Review of NTEs Sector 2007
Total value of NTEs in 2007 was approximately $1,164 million. This depicts a growth of 30.42 per cent over the 2006 figures ($892 million). Previous year's performance showed an increase from $778 million in 2005 to $892 million in 2006, representing 14.8 per cent growth.
The performance of the sector over the period 2004-2007 is shown graphically below:
The total earnings of the non-traditional export sector in 2007 were made up of earnings from three main sub-sectors as follows:
The agricultural sector contributed by $197.24 million, representing a 16.9 per cent of the total exports. The manufacturing sector contributed $963. 5 million, representing 82.7 per cent while the handicraft sector contributed $3.79 million representing 0.32 per cent.
The GEPC report said the performance of semi processed/processed and the agricultural sub-sectors grew positively by 35.53 per cent and 11.14 per cent over the 2006 earnings. However, the handicrafts sub-sector recorded a negative growth of 15.59 per cent over 2006 earnings.
This was because major buyers of Ghanaian crafts in the United States of America (USA) turned to the Far-East, especially Indonesia, India and China for handicraft supplies with relatively good finishing and functionality.
Performance of NTEs by leading products
The 10 top performing products included cocoa paste which contributed 12 per cent worth $139.75 million, followed by canned tuna with 8.51 per cent of total exports amounting to $99.15 million.
Veneers accounted for 7.50 per cent with $87.8 million worth of veneers exported, $86.6 million worth of cocoa butter was exported, representing 7.45 per cent of total exports.
Other products including plastic wares, plywood, fresh or chilled tunas, nutural rubber sheets, shea nuts and cut pineapples, all made impressive gains during the 2007 export year. The total value of the top 10 earning products amounted to US$ 671,112,968 representing 57.63 per cent of the total NTEs for 2007.
According to reports, the increase in cocoa paste and butter earnings was due to increases in the futures prices for the product during the period on the London futures market.
Moreover, the increase in earnings was partly due to capacity expansion of a major exporter of cocoa paste, Barry Callebaut Ghana Limited and a major exporter of Cocoa butter, Cocoa Processing Company Limited.
The report said veneer sheets and plywood earnings increased significantly. This is mainly because a major exporter, John Bitar Company Limited, expanded its plant capacity and also acquired a defunct wood export company, Metro Star Limited together with its buyers.
Canned tuna also increased significantly because of the increase in the average world market price of the product and partly to the contribution of Myroc Food Processing Company Limited which did not feature in 2006.
In the agricultural sub-sector, the top export earner was frozen tuna which saw a 33.78 per cent increase from $39.4 million in 2006 to $52.8 million
Shea nuts, pineapple, cashew nuts and banana recorded negative growths of -0.88%, -29.40%, -9.99% and -3.54% respectively, compared with the 2006 performance.
Earnings from frozen tuna and other frozen fish grew significantly over the period, due to a huge investment and the utilisation of modern fishing implements by Panofi Company Limited.
Export of pineapples experienced a negative growth because of the fall in pineapple production due to many of the outgrowers leaving the industry.
Cashewnuts earnings decreased over the period due to the inability of one of the exporters, Rals Commodities Company Limited to export in the year under review. The company made US$3.2 million in the year 2006.
In the handicraft sub-sector, hides and skins were the top earners in that sector with 274 per cent increase in exports in that sector from $378,873 to $1,416,980.
The ten leading general product categories each contributed over US$30 million to NTEs earnings. The lead earning category, cocoa products, contributed 21.11 per cent to total NTE earnings in 2007, while rubber and rubber products, the tenth earning category, contributed 2.63 per cent to total NTE earnings in 2007.
The 10 leading general product categories were made up of seven processed or semi processed and three agricultural products. One out of the ten product categories, namely; horticultural products recorded a negative growth of -6.37 per cent in 2007 compared with 2006.
The performance of the NTE sector by markets indicates that the markets of the European Union and ECOWAS absorbed 46.55 per cent and 31.36 per cent respectively of NTE exports from Ghana. Other African countries and other developed countries as well as other countries including emerging or transitional economies/markets absorbed 2.36 per cent, 9.25 per cent , 10.48 per cent respectively of NTE exports from Ghana. This is shown in the chart above.
According to the GEPC report, a comparison of the performance of the various markets in 2007 to 2006 reveals that all the markets recorded positive growth. The EU market performance grew by 29.10 per cent whereas the markets of the other African countries, other developed countries and other countries including emerging markets grew by 8.97 per cent, 8.93 per cent and 14.89 per cent respectively.
In 2007, Ghana's single largest market for the NTEs was the United Kingdom, absorbing 11.42 per cent of total NTEs during the period
Nigeria which was overtaken by Burkina Faso in 2005 and 2006 has resurfaced as Ghana's leading market in the ECOWAS sub region.
Significantly, there was a positive growth in Nigeria's market share of total NTEs of 67.93 per cent in 2007 relative to 2006. Burkina Faso, the second most important market in the sub region registered a negative growth of 8.13 per cent in 2007 market share over 2006.
Tullow Oil pays $2.3 million tax
Tullow Oil (fin)
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
Tullow Oil pays $2.3 million tax
Tullow Oil (fin)
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
ECOBANK is Best Emerging Market Bank
ECOBANK has been selected as the Best Emerging Market Bank in Cote d'Ivoire, in an exclusive survey to be published in the May 2008 issue of Global Finance magazine.
Global Finance editors - with input from analysts in the industry, corporate executives and banking consultants, selected ECOBANK based on the criteria which includes growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.
A statement issued by the bank quoted Mr Joseph D. Giarraputo, Publisher and President of Global Finance, as saying “We have identified the banks that provide service to corporations seeking to take advantage of substantial opportunities for growth in a sometimes challenging environment”.
It said the ECOBANK Group's Chief Executive Officer, Arnold Ekpe, said “The choice of ECOBANK confirms our position as a leader in the emerging African banking industry and our long-term commitment to the African continent”.
Ms Evelyne Tall, ECOBANK Executive Regional Director for the UEMOA Region, stated that “we are proud of this distinction. It highlights our commitment as a world-class Pan- African bank, to provide convenient, accessible and reliable banking and financial products and services to our customers in Africa”, the statement added.
Mr Charles Daboiko, Managing Director of Ecobank Côte d'Ivoire said “this distinction rewards our dedication to provide superior customer service, before and during difficult times. It motivates us to work harder for our customers, including investors, during this post-conflict era”.
Incorporated in 1985, ECOBANK Transnational Incorporated (ETI) is the parent company of the largest independent regional banking group in Africa.
The ECOBANK Group currently operates in 22 African countries, namely: Benin, Burkina-Faso, Cameroon, Cape Verde, Central African Republic, Chad, Congo-Brazzaville, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Malawi, Mali, Niger, Nigeria, Liberia, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, and Togo.
In addition, ETI is listed on the stock exchanges in Lagos, Accra and Abidjan (BRV).
The group has over 8,000 employees in over 450 branches. ECOBANK is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro-businesses and individuals.
Global Finance, which celebrates its 21st year of publishing in 2008, has 50,000 subscribers and more than 284,000 readers in over 158 countries. This audience includes chairmen, presidents, CEOs, CFOs, treasurers and other financial officers responsible for making investments and strategic business decisions for large global companies and financial institutions.
Global Finance also targets the 8,000 key portfolio investors who control over 80 per cent of all assets under professional management.
Global Finance editors - with input from analysts in the industry, corporate executives and banking consultants, selected ECOBANK based on the criteria which includes growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.
A statement issued by the bank quoted Mr Joseph D. Giarraputo, Publisher and President of Global Finance, as saying “We have identified the banks that provide service to corporations seeking to take advantage of substantial opportunities for growth in a sometimes challenging environment”.
It said the ECOBANK Group's Chief Executive Officer, Arnold Ekpe, said “The choice of ECOBANK confirms our position as a leader in the emerging African banking industry and our long-term commitment to the African continent”.
Ms Evelyne Tall, ECOBANK Executive Regional Director for the UEMOA Region, stated that “we are proud of this distinction. It highlights our commitment as a world-class Pan- African bank, to provide convenient, accessible and reliable banking and financial products and services to our customers in Africa”, the statement added.
Mr Charles Daboiko, Managing Director of Ecobank Côte d'Ivoire said “this distinction rewards our dedication to provide superior customer service, before and during difficult times. It motivates us to work harder for our customers, including investors, during this post-conflict era”.
Incorporated in 1985, ECOBANK Transnational Incorporated (ETI) is the parent company of the largest independent regional banking group in Africa.
The ECOBANK Group currently operates in 22 African countries, namely: Benin, Burkina-Faso, Cameroon, Cape Verde, Central African Republic, Chad, Congo-Brazzaville, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Malawi, Mali, Niger, Nigeria, Liberia, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, and Togo.
In addition, ETI is listed on the stock exchanges in Lagos, Accra and Abidjan (BRV).
The group has over 8,000 employees in over 450 branches. ECOBANK is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro-businesses and individuals.
Global Finance, which celebrates its 21st year of publishing in 2008, has 50,000 subscribers and more than 284,000 readers in over 158 countries. This audience includes chairmen, presidents, CEOs, CFOs, treasurers and other financial officers responsible for making investments and strategic business decisions for large global companies and financial institutions.
Global Finance also targets the 8,000 key portfolio investors who control over 80 per cent of all assets under professional management.
Prudential Bank to roll out e-banking products
Story: Boahene Asamoah
THE Managing Director of Prudential Bank Ghana Limited, Mr Stephen Sekyere-Abankwa, has said the bank would soon role out electronic banking products in its bid to attract more customers to the bank.
He said the introduction of electronic banking services “will provide convenient, time saving and easy access to banking services”.
Mr Sekyere-Abankwa made this known during the official inauguration of the branch office of the bank at Weija, a suburb of Accra, last Wednesday.
The managing director mentioned some of the electronic banking services as the Auto Teller Machines (ATMs), mobile phone banking, debit and credit cards, point of sale terminals, e-payment, e-marketing and Internet banking.
He said the new services being introduced would complement the traditional banking services that the bank had over the years offered to its numerous customers.
Mr Sekyere-Abankwa said the new branch at Weija was necessitated by the rapid expansion of the area and brings to two, the number of branches in that area.
“The bank plans to add seven more branches to its branch network by the middle of the year 2009,” he stated.
He said the bank had established its presence firmly in the banking sector of the economy and had delivered excellent performance in banking services and products that had made the bank to win numerous awards.
He said the bank was recognised for its service during the Ghana Banking Awards over the past two years and was adjudged the Best Bank in Long Term Loan Financing in 2005.
“The name Prudential Bank Limited is now synonymous with excellence, and today, we have brought our services to the business centre of Weija,” he said, adding, “We assure you that you will find us a vital partner in the growth of your businesses.”
Mr Sekyere-Abankwa encouraged micro, small and medium-scale enterprises to do business with the banks to ensure the growth of their business.
THE Managing Director of Prudential Bank Ghana Limited, Mr Stephen Sekyere-Abankwa, has said the bank would soon role out electronic banking products in its bid to attract more customers to the bank.
He said the introduction of electronic banking services “will provide convenient, time saving and easy access to banking services”.
Mr Sekyere-Abankwa made this known during the official inauguration of the branch office of the bank at Weija, a suburb of Accra, last Wednesday.
The managing director mentioned some of the electronic banking services as the Auto Teller Machines (ATMs), mobile phone banking, debit and credit cards, point of sale terminals, e-payment, e-marketing and Internet banking.
He said the new services being introduced would complement the traditional banking services that the bank had over the years offered to its numerous customers.
Mr Sekyere-Abankwa said the new branch at Weija was necessitated by the rapid expansion of the area and brings to two, the number of branches in that area.
“The bank plans to add seven more branches to its branch network by the middle of the year 2009,” he stated.
He said the bank had established its presence firmly in the banking sector of the economy and had delivered excellent performance in banking services and products that had made the bank to win numerous awards.
He said the bank was recognised for its service during the Ghana Banking Awards over the past two years and was adjudged the Best Bank in Long Term Loan Financing in 2005.
“The name Prudential Bank Limited is now synonymous with excellence, and today, we have brought our services to the business centre of Weija,” he said, adding, “We assure you that you will find us a vital partner in the growth of your businesses.”
Mr Sekyere-Abankwa encouraged micro, small and medium-scale enterprises to do business with the banks to ensure the growth of their business.
Sunday, March 30, 2008
Inflation goes up
Story: Boahene Asamoah
The annualised rate of inflation for the month of February has hit 13.2 per cent sending strong signals to economic watchers as to whether a single digit inflation would remain elusive to the country.
This is the fourth consecutive time inflation rate has urged up, having increased consistently from 10.14 per cent in October 2007 to 11.40 per cent in November, to 12.75 in December to 12.81 in January and then to 13.2 per cent.
What is worrying is that the food component of the consumer price index seems to have contributed to the increase in the inflation figure for February.
Although it was anticipated that food prices could increase as a result of the floods that hit the three northern regions which happens to be the food basket of the country and the cyclical nature of food prices during this period of the year.
The last previous upward movement in the inflation rate has by and large been attributed to the increase in the non-food component especially the upward increase in fuel prices in November and the higher spending patterns of the consumers during the yuletide in December.
Ghana has struggled to achieve a single digit inflation. In 1999 a nine per cent inflation rate was achieved, whiles in 2006, inflation inched closer to the single digit inflation.
The 2007 year started with inflation rate of 10.89 per cent in January and fell to 10.42 and 10.19 per cent in February and March respectively.
However, inflation rose again in April to 10.50 and 11.02 per cent May as a results of insufficient supply of staples such as maize, yam, cassava and plantain.
The February 2008 inflation increase was also due to high prices of some basic foodstuffs such as fish, bread and cereals were the major cause of the upward surge in inflation.
Considering the anticipated fuel price increases for this month as a result of the continous crude oil prices on the world market, the outlook of the economy look quiet uncertain.
The cyclical nature of the food prices normally would have started in March, but because of the floods this year’s food component impact on the CPI seemed to have started quiet early.
Again the rains seems to have delayed slightly which could
Last June for instance, the inflation rate declined which is the
The weakening of the currency especially against the United States dollar is also a source of great concern to economy.
The outlook of the economy seemed unbalanced although there has been some improvements such as the non-traditional exports hitting an all-time record of $1 billion at the end of the year, and also gold and cocoa prices hitting near records.
However, the continuous increase in crude oil prices coupled with
The annualised rate of inflation for the month of February has hit 13.2 per cent sending strong signals to economic watchers as to whether a single digit inflation would remain elusive to the country.
This is the fourth consecutive time inflation rate has urged up, having increased consistently from 10.14 per cent in October 2007 to 11.40 per cent in November, to 12.75 in December to 12.81 in January and then to 13.2 per cent.
What is worrying is that the food component of the consumer price index seems to have contributed to the increase in the inflation figure for February.
Although it was anticipated that food prices could increase as a result of the floods that hit the three northern regions which happens to be the food basket of the country and the cyclical nature of food prices during this period of the year.
The last previous upward movement in the inflation rate has by and large been attributed to the increase in the non-food component especially the upward increase in fuel prices in November and the higher spending patterns of the consumers during the yuletide in December.
Ghana has struggled to achieve a single digit inflation. In 1999 a nine per cent inflation rate was achieved, whiles in 2006, inflation inched closer to the single digit inflation.
The 2007 year started with inflation rate of 10.89 per cent in January and fell to 10.42 and 10.19 per cent in February and March respectively.
However, inflation rose again in April to 10.50 and 11.02 per cent May as a results of insufficient supply of staples such as maize, yam, cassava and plantain.
The February 2008 inflation increase was also due to high prices of some basic foodstuffs such as fish, bread and cereals were the major cause of the upward surge in inflation.
Considering the anticipated fuel price increases for this month as a result of the continous crude oil prices on the world market, the outlook of the economy look quiet uncertain.
The cyclical nature of the food prices normally would have started in March, but because of the floods this year’s food component impact on the CPI seemed to have started quiet early.
Again the rains seems to have delayed slightly which could
Last June for instance, the inflation rate declined which is the
The weakening of the currency especially against the United States dollar is also a source of great concern to economy.
The outlook of the economy seemed unbalanced although there has been some improvements such as the non-traditional exports hitting an all-time record of $1 billion at the end of the year, and also gold and cocoa prices hitting near records.
However, the continuous increase in crude oil prices coupled with
UBA open more branches
Story: Boahene Asamoah
THE United Bank of Africa (UBA), Ghana has opened six new branches in Accra simultaneously as part of its strategy to enter into the retail business.
The new branches are located in Madina, Teshie, Spintex Road, East Legon, Dzorwolo and the Ring Road Central all in Accra.
The new branches also come with new model edifices designed with the customers in mind and conforms to the bank’s new banking edifices throughout its operation in Africa, Europe and America.
Speaking at the opening of the new branches at the Ring Road Central branch of the bank in Accra yesterday, the Managing Director and Chief Executive Officer (CEO) of the bank, Mr Nnamdi Okonko, said “ the opening of our additional six branches is a reflection of our expansionary posture and shows that we are on course as far as the bank’s branch roll-out strategy is concerned”.
He said “UBA bank also aims to develop a branch foot-print and delivery that will ensure that the banks services are always within reach of valued customers and thus position ourselves among the top five banks in terms of geographical reach”.
Mr Okonko said the bank which presently has 12 branches including the six new branches would add four more branches next month, adding that “UBA Ghana will continue its policy of opening new branches across all regions of the country”.
That he said would be supported with a roll-out of electronic channels such as point-of-sale terminals and auto teller machines in line with the objectives of the Ghana Inter-Bank Payment Settlement.
He said the strategic location of the new branches was to address the constraints of proximity to ensure that the bank’s services and products reached the door steps of the customer.
“It is a further opportunity to reach out to the mass retail customers who for various reasons, such as high initial deposit requirements and access to business loans have decided to stay out of the mainstream banking”, the CEO stated.
UBA Ghana, a subsidiary of UBA Plc one of the largest banking groups in Africa has expanded its operations to other countries in Africa, which includes, Liberia, Cote D’Ivoire Cameroun and Sierra Leone. The bank recently opened in London as Capital (Europe).
THE United Bank of Africa (UBA), Ghana has opened six new branches in Accra simultaneously as part of its strategy to enter into the retail business.
The new branches are located in Madina, Teshie, Spintex Road, East Legon, Dzorwolo and the Ring Road Central all in Accra.
The new branches also come with new model edifices designed with the customers in mind and conforms to the bank’s new banking edifices throughout its operation in Africa, Europe and America.
Speaking at the opening of the new branches at the Ring Road Central branch of the bank in Accra yesterday, the Managing Director and Chief Executive Officer (CEO) of the bank, Mr Nnamdi Okonko, said “ the opening of our additional six branches is a reflection of our expansionary posture and shows that we are on course as far as the bank’s branch roll-out strategy is concerned”.
He said “UBA bank also aims to develop a branch foot-print and delivery that will ensure that the banks services are always within reach of valued customers and thus position ourselves among the top five banks in terms of geographical reach”.
Mr Okonko said the bank which presently has 12 branches including the six new branches would add four more branches next month, adding that “UBA Ghana will continue its policy of opening new branches across all regions of the country”.
That he said would be supported with a roll-out of electronic channels such as point-of-sale terminals and auto teller machines in line with the objectives of the Ghana Inter-Bank Payment Settlement.
He said the strategic location of the new branches was to address the constraints of proximity to ensure that the bank’s services and products reached the door steps of the customer.
“It is a further opportunity to reach out to the mass retail customers who for various reasons, such as high initial deposit requirements and access to business loans have decided to stay out of the mainstream banking”, the CEO stated.
UBA Ghana, a subsidiary of UBA Plc one of the largest banking groups in Africa has expanded its operations to other countries in Africa, which includes, Liberia, Cote D’Ivoire Cameroun and Sierra Leone. The bank recently opened in London as Capital (Europe).
All set for e-Zwich introduction
Story: Boahene Asamoah
ALL is set for the introduction of the national electronic payment system, the e-Zwich, next month.
So far necessary tests on the system, such as the user acceptance test, have been completed, proving a high user acceptance.
The Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GIPPS), Mr Fred France, who gave the assurance said staff of banks and other point of sale outlets had undergone the necessary training needed to introduce the project in the coming month.
Speaking to a cross-section of the media in Accra, Mr France stated that the e-Zwich would afford everybody the opportunity to access financial services using a biometric smart card.
GIPPS has been established by the Bank of Ghana to work with banks to improve the payment systems to provide a range of technology-driven solutions and associated support services to improve the general efficiency of the payment systems.
The system is to provide an overall affordable and convenient public access to banking services.
Mr France stated that from April, there was going to be mass deployment of Point of Sale (PoS) terminals throughout the country, adding that it would also be a period of piloting the project.
The Chief Operating Officer of GIPPS, Mr Yooku Korsah, explained that the e-Zwich would offer a common platform for electronic payment system transactions, integrate all existing bank switches and also enable both online and off-line payment and settlement transactions.
He said currently about 46 per cent of banks were concentrated in the Greater Accra Region and such banks were limited in terms of branch network throughout the country.
Mr Korsah said there was a large unbanked public, while there was strong competition for the few who were doing business with the banks.
Again, the heavy dependence on cash for payment as well as limited infrastructure for electronic payment, such as low ATM spread, insufficient Point of Sale (PoS) terminals and unreliable power and communication networks were some of the reasons that had accounted for the introduction of the national payment system, Mr Korsah stated.
He said the e-Zwich used a biometrics card for both off-line and online and also works on Global System of Mobile (GSM) communications, adding that “from both a merchant and the bank’s perspective, it is a very safe platform”.”
Mr Korsah said banks in the country had up to June this year to make their ATMs compatible to the e-Zwich platform.
ALL is set for the introduction of the national electronic payment system, the e-Zwich, next month.
So far necessary tests on the system, such as the user acceptance test, have been completed, proving a high user acceptance.
The Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GIPPS), Mr Fred France, who gave the assurance said staff of banks and other point of sale outlets had undergone the necessary training needed to introduce the project in the coming month.
Speaking to a cross-section of the media in Accra, Mr France stated that the e-Zwich would afford everybody the opportunity to access financial services using a biometric smart card.
GIPPS has been established by the Bank of Ghana to work with banks to improve the payment systems to provide a range of technology-driven solutions and associated support services to improve the general efficiency of the payment systems.
The system is to provide an overall affordable and convenient public access to banking services.
Mr France stated that from April, there was going to be mass deployment of Point of Sale (PoS) terminals throughout the country, adding that it would also be a period of piloting the project.
The Chief Operating Officer of GIPPS, Mr Yooku Korsah, explained that the e-Zwich would offer a common platform for electronic payment system transactions, integrate all existing bank switches and also enable both online and off-line payment and settlement transactions.
He said currently about 46 per cent of banks were concentrated in the Greater Accra Region and such banks were limited in terms of branch network throughout the country.
Mr Korsah said there was a large unbanked public, while there was strong competition for the few who were doing business with the banks.
Again, the heavy dependence on cash for payment as well as limited infrastructure for electronic payment, such as low ATM spread, insufficient Point of Sale (PoS) terminals and unreliable power and communication networks were some of the reasons that had accounted for the introduction of the national payment system, Mr Korsah stated.
He said the e-Zwich used a biometrics card for both off-line and online and also works on Global System of Mobile (GSM) communications, adding that “from both a merchant and the bank’s perspective, it is a very safe platform”.”
Mr Korsah said banks in the country had up to June this year to make their ATMs compatible to the e-Zwich platform.
AMAL Bank improves profit base
Story: Boahene Asamoah
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Intercontinental Bank rolls out two products
Story: Boahene Asamoah
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
West Africa needs import, export bank, Says Chambas
Story: Boahene Asamoah
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
GCB launches two new products
Story: Boahene Asamoah
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
Smuggling impedes operations of local manufacturers
Story: Boahene Asamoah
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
Shareholders stop CAL Bank proposal — To raise capital base to GH¢200 million
Story: Boahene Asamoah
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
Ecobank to sustain expansion programm
Story: Boahene Asamoah
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
GCB draws 3-year corporate plan - To consolidate and expand its operations
Story: Boahene Asamoah
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
Monday, March 17, 2008
lecturer warns of national disaster
Story: Boahene Asamoah
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
Eight sign service charters
Story: Boahene Asamoah
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
Inflation goes up again
Story: Boahene Asamoah
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
Thursday, March 13, 2008
Audit Service to network offices
Story: Boahene Asamoah
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
Wednesday, March 05, 2008
Minister meets US trade delegation
Story: Boahene Asamoah & Naa
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Arrow Networks begins to assemble modems
Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
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