Story: Boahene Asamoah
CIVIL Society groups across Africa have said that African countries could still have access to the European markets if they do not sign the Economic Partnership Agreement (EPA) with the European Union (EU).
According to the civil society organisations, “the EU is bound by obligation under the Cotonou agreement, which has the force of international treaty with the ACP to maintain market access for countries that decide not to sign the EPAs.”
They described as false the European Union’s (EU’s) assertion that products from Africa would not have access to EU markets if African countries failed to sign the Economic Partnership Agreement.
“African countries do not need to sign EPAs to maintain their current market access levels to the European Union”, the civil society groups stated.
At a press conference, after a three-day strategic meeting in Accra, Civil Society Groups from about 30 African countries condemned the EU for abusing the December deadline to put unjustifiable pressure on African governments to concede to its terms.
Mr Thomas Deve, Project Officer for Mwengo, a Civil Society group from Zimbabwe, said African had everything to lose and nothing to gain by signing the Economic Partnership Agreements with the EU.
He said African countries could adopt the General System of Preference plus (GSP+) which would enable African countries to have access to EU market at levels similar to what they enjoy currently, adding that, “this can even be improved”.
He said “signing the EPA will trigger severe loss of jobs, threaten the peace of the continent, strangle Africa’s right to evolve and pursue its own agenda and lead to recolonisation of Africa by Europe.
Mr Deve added that the EPA, if signed would lead to the elimination of tariffs but any tariff reduction and elimination would necessarily involve huge fiscal costs and many costs of implementation for Africa and other African and Pacific (ACP) countries.
He said the EU promise of €2 billion under the European Development Fund (EDF) to help with the cost of adjustment under the EPAs was false, misplaced and at best self-serving.
He said the EU was also manipulating the expiration of the Cotonou waiver on December 31, 2007 to send panic waves to African leaders that African exporters will not have access to the European market after the deadline.
Mr Deve said
He expressed regret that in spite of the severe handicaps of the EPAs and the damage they would inflict on African economies and peoples, African leaders continued to negotiate for the EPAs, adding that “this is too much a price to pay”.
Mr Deve stated that the Cotonou agreement provided for countries not to sign on EPAs and said “African civil society organisations therefore call on our governments and negotiators to call the bluff of the European Union and reject the EPAs”.
Tuesday, October 16, 2007
Ghana, South Africa to strengthen eco ties
Story: Boahene Asamoah
GHANA and South Africa have agreed to strengthen trade links in agriculture, market access and investment in agro-processing.
The two countries also agreed to ensure technology transfer , co-operation in eco-tourism, infrastructural development and cultivation of forest plantation.
This was the outcome of a three-day technical meeting between the two countries on the Implementation of the Decisions on Trade, Investment, Tourism and Mining of the Permanent Joint Commission for Co-operation held in Accra.
Ghana and South Africa established a Permanent Joint Commission for Co-operation in Pretoria in May, 2007.
Following the establishment of the commission, a three-member delegation from the West African Bilateral Department of Trade and Industry of South Africa visited the country last week to begin a four-day technical meeting.
The South African delegation was led by Mrs Hester Obisi, the Director of the West Africa Bilaterals, Department of Trade and Industry of South Africa. The Ghanaian delegation was headed by the Executive Secretary of the Ghana Exports Promotion Council (GEPC), Mr Edward Collins Boateng.
A report issued at the end of the four-day technical meeting recommended the harmonisation of rules, regulations and standards for import and export of fauna and flora.
The report said Ghana reiterated the importance of the agro-processing sector to its economic development, and called for the deepening of Ghana-South African ties.
The delegates also agreed on exploring the possibility of accessing the Southern African Development Commission (SADC) markets through South Africa.
According to the report, Ghana invited South Africa to take advantage of opportunities in the agri-business and agro-processing industry to invest in the sector.
To that end, the two countries took note of the existing feasibility studies undertaken by the Federation of Associations of Ghanaian Exporters (FAGE) and the Post Harvest Technologies of South Africa for the establishment of an agro-processing factory in the country.
The report said the South African delegation was interested in learning from Ghana about some projects like the President’s Special Initiative, low cost housing, human resource development, bio fuels, transportation and communications infrastructure, tourism infrastructure, small business and co-operatives development and waste management.
The report said the two countries agreed on the need for an appropriate legal framework for preferential market access arrangements between the two countries, and also to speed up the legal process to ensure the coming into force of the bilateral trade agreement and the Memorandum of Understanding on economic co-operation.
GHANA and South Africa have agreed to strengthen trade links in agriculture, market access and investment in agro-processing.
The two countries also agreed to ensure technology transfer , co-operation in eco-tourism, infrastructural development and cultivation of forest plantation.
This was the outcome of a three-day technical meeting between the two countries on the Implementation of the Decisions on Trade, Investment, Tourism and Mining of the Permanent Joint Commission for Co-operation held in Accra.
Ghana and South Africa established a Permanent Joint Commission for Co-operation in Pretoria in May, 2007.
Following the establishment of the commission, a three-member delegation from the West African Bilateral Department of Trade and Industry of South Africa visited the country last week to begin a four-day technical meeting.
The South African delegation was led by Mrs Hester Obisi, the Director of the West Africa Bilaterals, Department of Trade and Industry of South Africa. The Ghanaian delegation was headed by the Executive Secretary of the Ghana Exports Promotion Council (GEPC), Mr Edward Collins Boateng.
A report issued at the end of the four-day technical meeting recommended the harmonisation of rules, regulations and standards for import and export of fauna and flora.
The report said Ghana reiterated the importance of the agro-processing sector to its economic development, and called for the deepening of Ghana-South African ties.
The delegates also agreed on exploring the possibility of accessing the Southern African Development Commission (SADC) markets through South Africa.
According to the report, Ghana invited South Africa to take advantage of opportunities in the agri-business and agro-processing industry to invest in the sector.
To that end, the two countries took note of the existing feasibility studies undertaken by the Federation of Associations of Ghanaian Exporters (FAGE) and the Post Harvest Technologies of South Africa for the establishment of an agro-processing factory in the country.
The report said the South African delegation was interested in learning from Ghana about some projects like the President’s Special Initiative, low cost housing, human resource development, bio fuels, transportation and communications infrastructure, tourism infrastructure, small business and co-operatives development and waste management.
The report said the two countries agreed on the need for an appropriate legal framework for preferential market access arrangements between the two countries, and also to speed up the legal process to ensure the coming into force of the bilateral trade agreement and the Memorandum of Understanding on economic co-operation.
Ghana can achieve MDGs'- Karlsson
Story: Boahene Asamoah
THE World Bank Country Director, Mr Mats Karlsson, has said the country was on course to achieving the Millennium Development Goals (MDGs) ahead of its peers given the good macro-economic stability of the economy.
He said achieving the MGD “is within range” adding that “we need to take all the opportunities and actions to ensure accelerated growth”.
Mr Karlsson stated that with the current situation regarding next year’s polls, there was the need to take bold and decisive actions that would not derail the progress so far made.
Mr Karlsson made this remarks at the World Bank’s Development Dialogue Series held in Accra yesterday.
The three-day dialogue series is on theme “Meeting the Challenges of Accelerated and Shared Growth in Ghana”. The dialogue was also to launch a comprehensive report on the Country Economic Memorandum (CEM) Dissemination.
He expressed optimism that the country could be the first among its peers to achieve the MDGs if the country could sustain its momentum of growth.
Mr Karlsson, however, said there were challenges that confronted the country such as the energy crisis and the large infrastructural gap that needed to be filled.
He said reaching the international markets was a good step but said it also came with challenges and said “ lets focus on how we can accelerate growth by taking actions that makes a real difference”.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, stated that infrastructural gaps especially in energy, water and sanitation needed to be addressed.
He said “the energy crisis has threatened the viability of many businesses, especially the manufacturing services shows how much more work we have on our hands”.
The minister said the government with the assistance of the former United Nations Secretary-General, Mr Kofi Annan was in touch with the Norwegian government to draw on their expertise in addressing the emerging oil discovery, its regulatory issues and other relevant matters.
“We need to overcome these constraints that remove us from our ultimate goals by continuing to improve the overall policy environment in key areas”, the minister stated.
The Governor of the Bank of Ghana, Dr Paul Acquah stated that the central bank was developing a strategic integrated framework for the development of the financial sector in the country.
He said the framework would add the micro and small operators to the internal global financial system to ensure the development of the economy.
Dr Acquah said evidence available indicated that all emerging economies have been able to achieve success with low inflation and said achieving a macro-economic stability was not sufficient to achieve growth and development.
He said there was the need to address the infrastructural gaps , ensure good economic management as well as deepen macro-economic stability.
The Executive Director of the Centre for Policy Analysis (CEPA), Dr Joe Abbey stated that there was the need to extend the cocoa hi-tech programme to cover other agricultural products to make the country reap the benefits of high prices on the international market.
Mr Kwame Pianim the Chairman of the Public Utilities Regulatory Commission (PURC), said there was the need to adopt the CEM report and implement it to suit the Ghanaian situation.
The World Bank development Dialogue series which started following a meeting with President Kufuor in February 2006 was aimed at promoting vibrant policy discourse on the country’s development agenda and to engage stakeholders in the country’s economic policies.
THE World Bank Country Director, Mr Mats Karlsson, has said the country was on course to achieving the Millennium Development Goals (MDGs) ahead of its peers given the good macro-economic stability of the economy.
He said achieving the MGD “is within range” adding that “we need to take all the opportunities and actions to ensure accelerated growth”.
Mr Karlsson stated that with the current situation regarding next year’s polls, there was the need to take bold and decisive actions that would not derail the progress so far made.
Mr Karlsson made this remarks at the World Bank’s Development Dialogue Series held in Accra yesterday.
The three-day dialogue series is on theme “Meeting the Challenges of Accelerated and Shared Growth in Ghana”. The dialogue was also to launch a comprehensive report on the Country Economic Memorandum (CEM) Dissemination.
He expressed optimism that the country could be the first among its peers to achieve the MDGs if the country could sustain its momentum of growth.
Mr Karlsson, however, said there were challenges that confronted the country such as the energy crisis and the large infrastructural gap that needed to be filled.
He said reaching the international markets was a good step but said it also came with challenges and said “ lets focus on how we can accelerate growth by taking actions that makes a real difference”.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, stated that infrastructural gaps especially in energy, water and sanitation needed to be addressed.
He said “the energy crisis has threatened the viability of many businesses, especially the manufacturing services shows how much more work we have on our hands”.
The minister said the government with the assistance of the former United Nations Secretary-General, Mr Kofi Annan was in touch with the Norwegian government to draw on their expertise in addressing the emerging oil discovery, its regulatory issues and other relevant matters.
“We need to overcome these constraints that remove us from our ultimate goals by continuing to improve the overall policy environment in key areas”, the minister stated.
The Governor of the Bank of Ghana, Dr Paul Acquah stated that the central bank was developing a strategic integrated framework for the development of the financial sector in the country.
He said the framework would add the micro and small operators to the internal global financial system to ensure the development of the economy.
Dr Acquah said evidence available indicated that all emerging economies have been able to achieve success with low inflation and said achieving a macro-economic stability was not sufficient to achieve growth and development.
He said there was the need to address the infrastructural gaps , ensure good economic management as well as deepen macro-economic stability.
The Executive Director of the Centre for Policy Analysis (CEPA), Dr Joe Abbey stated that there was the need to extend the cocoa hi-tech programme to cover other agricultural products to make the country reap the benefits of high prices on the international market.
Mr Kwame Pianim the Chairman of the Public Utilities Regulatory Commission (PURC), said there was the need to adopt the CEM report and implement it to suit the Ghanaian situation.
The World Bank development Dialogue series which started following a meeting with President Kufuor in February 2006 was aimed at promoting vibrant policy discourse on the country’s development agenda and to engage stakeholders in the country’s economic policies.
BoG/MiDA sign $82.4 million agreement
Story: Boahene Asamoah
THE Millennium Development Authority (MiDA) and the Bank of Ghana (BoG) yesterday signed an $82.4 million agreement for the implementation of an agricultural credit and financial service activities under the Millennium Challenge Compact.
The amount comprise a revolving facility of $58.4 million under the Agricultural Credit Activity — which includes $40.7 million as credit and $17.7 million for capacity building — and $24 million for the financial services activity.
The Chief Executive Officer of MiDA, Mr Martin Esson Benjamin, said at the ceremony that the agricultural credit programme of the fund would be issued to support an on-lending facility for the production of high-value horticultural and staple food crops and to finance related value chain activities in the 23 districts covered under the Millennium Challenge Account (MCA).
The MiDA is the authority set up to manage Ghana’s $547 million MCA compact signed between Ghana and the United States of America (USA).
Mr Esson-Benjamin stated that under the agriculture credit programme, funds would be made available through participating financial institutions to be accredited by the BoG.
He said group loans would be granted to farmer-based institutions which graduated from MiDA-run training programmes and also to support micro and small enterprises engaged in production, transportation, storage, marketing, processing and related value added activities involving high value horticultural crops.
He said the financial services activity which was in two parts was aimed at improving the National Payment system.
MiDA is providing a grant for the cheque codeline clearing system and the automated clearing house system at the BoG as well as funding the review of the National Payment System laws, the CEO stated.
Under the financial services activity, MCA funds would be used to sponsor a three-year nation-wide public awareness campaign on the use of the payment systems available through the banking sector.
Mr Esson-Benjamin added that MiDA would also fund the computerisation and automation of all rural banks in the country and to some extent, savings and loans companies, in collaboration with the ARB Apex Bank.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the agreement was in line with the bank’s financial sector strategy.
He said the central bank had started the Ghana Interbank Payment System, a comprehensive platform for the financial sector, which involved the use of a biometric smart card.
Dr Acquah said the system would ensure an electronic means of payment that would be used to reach a large majority of the unbanked in the country.
THE Millennium Development Authority (MiDA) and the Bank of Ghana (BoG) yesterday signed an $82.4 million agreement for the implementation of an agricultural credit and financial service activities under the Millennium Challenge Compact.
The amount comprise a revolving facility of $58.4 million under the Agricultural Credit Activity — which includes $40.7 million as credit and $17.7 million for capacity building — and $24 million for the financial services activity.
The Chief Executive Officer of MiDA, Mr Martin Esson Benjamin, said at the ceremony that the agricultural credit programme of the fund would be issued to support an on-lending facility for the production of high-value horticultural and staple food crops and to finance related value chain activities in the 23 districts covered under the Millennium Challenge Account (MCA).
The MiDA is the authority set up to manage Ghana’s $547 million MCA compact signed between Ghana and the United States of America (USA).
Mr Esson-Benjamin stated that under the agriculture credit programme, funds would be made available through participating financial institutions to be accredited by the BoG.
He said group loans would be granted to farmer-based institutions which graduated from MiDA-run training programmes and also to support micro and small enterprises engaged in production, transportation, storage, marketing, processing and related value added activities involving high value horticultural crops.
He said the financial services activity which was in two parts was aimed at improving the National Payment system.
MiDA is providing a grant for the cheque codeline clearing system and the automated clearing house system at the BoG as well as funding the review of the National Payment System laws, the CEO stated.
Under the financial services activity, MCA funds would be used to sponsor a three-year nation-wide public awareness campaign on the use of the payment systems available through the banking sector.
Mr Esson-Benjamin added that MiDA would also fund the computerisation and automation of all rural banks in the country and to some extent, savings and loans companies, in collaboration with the ARB Apex Bank.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the agreement was in line with the bank’s financial sector strategy.
He said the central bank had started the Ghana Interbank Payment System, a comprehensive platform for the financial sector, which involved the use of a biometric smart card.
Dr Acquah said the system would ensure an electronic means of payment that would be used to reach a large majority of the unbanked in the country.
Entreprenuers urged to seek knowledge
Story: Boahene Asamoah
THE Chief Executive Officer of Empretech Ghana Foundation, Nana Tweneboa-Boateng, has called on Ghanaian entrepreneurs to continuously upgrade their knowledge to stay on top of their businesses.
Speaking at the Greater Accra Chapter of the Ghana National Chamber of Commerce and Industry in Accra, Nana Tweneboa-Boateng stated that “mere wishes to establish a copy was not enough to start a business, but rather one must exhibit relative knowledge and capacity to go into business.”
The CEO said many people were doing business without attaining any training programmes to update their knowledge in acquiring the relevant managerial skills, and said that had accounted for the poor entrepreneurial spirit in the country.
Nana Tweneboa-Boateng, therefore, called on members of the chamber to take advantage of the numerous training programmes the foundation and other institutions offered to exhibit skills in management and entrepreneurship.
He said global trends in doing business required that entrepreneurs constantly upgraded their skills and knowledge in order to be on top of their jobs.
He again called on members of the chamber to be proactive in seeking information that would position them to take advantage of the many opportunities that existed in the country.
A senior official of Leaseafric Ghana Limited, a leasing company, Mr Ekow Denise, said leasing offered great opportunities for small-and medium-scale enterprises (SMEs) in the country.
He said leasing offered SMEs the opportunity to lease equipment necessary for expansion of their business, while giving them the opportunity to improve on their cash flow.
Mr Denise said unlike other financial sources, leasing could provide total finance for the purchase of equipment, explaining that that was a simple method of accessing equipment for use.
THE Chief Executive Officer of Empretech Ghana Foundation, Nana Tweneboa-Boateng, has called on Ghanaian entrepreneurs to continuously upgrade their knowledge to stay on top of their businesses.
Speaking at the Greater Accra Chapter of the Ghana National Chamber of Commerce and Industry in Accra, Nana Tweneboa-Boateng stated that “mere wishes to establish a copy was not enough to start a business, but rather one must exhibit relative knowledge and capacity to go into business.”
The CEO said many people were doing business without attaining any training programmes to update their knowledge in acquiring the relevant managerial skills, and said that had accounted for the poor entrepreneurial spirit in the country.
Nana Tweneboa-Boateng, therefore, called on members of the chamber to take advantage of the numerous training programmes the foundation and other institutions offered to exhibit skills in management and entrepreneurship.
He said global trends in doing business required that entrepreneurs constantly upgraded their skills and knowledge in order to be on top of their jobs.
He again called on members of the chamber to be proactive in seeking information that would position them to take advantage of the many opportunities that existed in the country.
A senior official of Leaseafric Ghana Limited, a leasing company, Mr Ekow Denise, said leasing offered great opportunities for small-and medium-scale enterprises (SMEs) in the country.
He said leasing offered SMEs the opportunity to lease equipment necessary for expansion of their business, while giving them the opportunity to improve on their cash flow.
Mr Denise said unlike other financial sources, leasing could provide total finance for the purchase of equipment, explaining that that was a simple method of accessing equipment for use.
Inflation up by 0.3%
Story: Boahene Asamoah
THE Consumer Price Index (CPI), which measures the annual rate of changes in the prices of goods and services in the country, for the month of August this year, inched up by 0.3 per cent to 10.4 per cent, from the previous month’s figure of 10.1 per cent.
Announcing the figures at the press conference yesterday, the Deputy Government Statistician, Prof. Nicholas N.N. Nsowah-Nuamah, said the non-food group contributed to the upward increase of the CPI by 0.47 points.
The rate showed signs of easing off after dropping to 10.7 per cent in June from 11 per cent recorded in May. In the month of April the rate stood at 10.5 per cent
Earlier in the year the rate had fallen from 10.9 to 10.4 per cent between January and February 2007.
Prof Nsowah-Nuamah said under the non-food group, transportation contributed the highest of the CPI, with a gain of 0.21 points, and pointed out that the food and beverages group contributed negatively to the change.
In July, the National Petroleum Authority (NPA) announced an increase in the petroleum. Anaylsts believe that the upward move in the petroleum prices might have caused the increase in transportation.
Prof Nsowah-Nuamah said the health group under the non-food component also increased by 0.06 points, while housing, water, electricity, gas and other utilities accounted for 0.05 points increase.
He said within the food and beverages group, fish recorded the highest downward movement of negative 0.16 points to the change in the national index with smoked herrings, ‘kpala’ and dried fish contributing negatives of 0.17 points, 0.02 points and 0.01 points respectively.
The Ghana Statistical Service has re-based the CPI year to 2002 from the old base year of 1997, starting from January this year.
The new base year featured a number of changes as compared to the old one, which included the updates in the weights of the consumption basket from the 1991/1992 Ghana Living Standards Survey (GLSS) expenditure levels to the 1989/1999 GLSS expenditure levels”.
Additionally, the presentation of the CPI had been expanded to include indices on the 10 regions of the country.
THE Consumer Price Index (CPI), which measures the annual rate of changes in the prices of goods and services in the country, for the month of August this year, inched up by 0.3 per cent to 10.4 per cent, from the previous month’s figure of 10.1 per cent.
Announcing the figures at the press conference yesterday, the Deputy Government Statistician, Prof. Nicholas N.N. Nsowah-Nuamah, said the non-food group contributed to the upward increase of the CPI by 0.47 points.
The rate showed signs of easing off after dropping to 10.7 per cent in June from 11 per cent recorded in May. In the month of April the rate stood at 10.5 per cent
Earlier in the year the rate had fallen from 10.9 to 10.4 per cent between January and February 2007.
Prof Nsowah-Nuamah said under the non-food group, transportation contributed the highest of the CPI, with a gain of 0.21 points, and pointed out that the food and beverages group contributed negatively to the change.
In July, the National Petroleum Authority (NPA) announced an increase in the petroleum. Anaylsts believe that the upward move in the petroleum prices might have caused the increase in transportation.
Prof Nsowah-Nuamah said the health group under the non-food component also increased by 0.06 points, while housing, water, electricity, gas and other utilities accounted for 0.05 points increase.
He said within the food and beverages group, fish recorded the highest downward movement of negative 0.16 points to the change in the national index with smoked herrings, ‘kpala’ and dried fish contributing negatives of 0.17 points, 0.02 points and 0.01 points respectively.
The Ghana Statistical Service has re-based the CPI year to 2002 from the old base year of 1997, starting from January this year.
The new base year featured a number of changes as compared to the old one, which included the updates in the weights of the consumption basket from the 1991/1992 Ghana Living Standards Survey (GLSS) expenditure levels to the 1989/1999 GLSS expenditure levels”.
Additionally, the presentation of the CPI had been expanded to include indices on the 10 regions of the country.
Revenue Board to deepen its supervisory role
Story: Boahene Asamoah
THE Revenue Agency Governing Board (RAGB) is to deepen its supervisory role over all the tax agencies, to help reduce to the barest minimum processes of tax procedures at the country’s ports.
It will also undertake capacity building to strengthen the human resource needs of the tax agencies.
At the Tax Collectors Awards in Accra, the Chairman of the RAGB, Mr Kwabena Osei, said the move was part of the board’s strategies to ensure efficiency in tax mobilisation in the country.
He said there was the need to ensure efficiency in tax processes in order to strengthen the human resources of the tax agencies to ensure that the country generated the needed revenues.
The RAGB instituted the awards scheme three years ago to reward its stakeholders. The two previous awards were given to companies and organisations.
This year’s award is the first to be awarded to staff of the three main tax collection agencies, namely, the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS) and the Value Added Tax (VAT) Service.
In all, about 50 personnel from the three tax organisations from all over the country were rewarded for their dedication to duty and also for helping to increase tax revenue.
Mr Osei said over the past five years, revenue had increased from GH¢6.6 billion (¢6.65 trillion) to GH¢23.7 billion (¢23.7 billion) and expressed the hope that the trend in the increase of tax revenue would be sustained.
He said the agency would pursue policies that would ensure that tax revenue was enhanced to ensure that the government was able to generate the needed resources for development.
Mr Osei said as a first step, the agency would next year sponsor two persons each who had distinguished themselves from the three agencies to undergo training abroad as part of a programme to enhance the capacity of the staff and also to motivate them.
A Minister of State at the Ministry of Finance and Economic Planning, Mr Anthony Akoto-Osei, said the ministry was devising strategies that would ensure tax compliance of all individuals and companies to ensure that the country derived maximum revenue for development.
He said the government was mindful of the fact that there was also the need to motivate the staff of the revenue agencies and said the government was in support of the award scheme.
Mr Akoto-Osei stated that although indications were that as of July this year the revenue target had been exceeded by 1.3 per cent, there was the need for the agencies to double their efforts.
He said there was also the need to broaden the tax base to rope in more people to accelerate the country’s development agenda.
The Executive Secretary of the RAGB, Mr Harry Owusu, stated that the awards were meant to recognise the contributions of staff of the three agencies who had distinguished themselves creditably during the course of last year.
THE Revenue Agency Governing Board (RAGB) is to deepen its supervisory role over all the tax agencies, to help reduce to the barest minimum processes of tax procedures at the country’s ports.
It will also undertake capacity building to strengthen the human resource needs of the tax agencies.
At the Tax Collectors Awards in Accra, the Chairman of the RAGB, Mr Kwabena Osei, said the move was part of the board’s strategies to ensure efficiency in tax mobilisation in the country.
He said there was the need to ensure efficiency in tax processes in order to strengthen the human resources of the tax agencies to ensure that the country generated the needed revenues.
The RAGB instituted the awards scheme three years ago to reward its stakeholders. The two previous awards were given to companies and organisations.
This year’s award is the first to be awarded to staff of the three main tax collection agencies, namely, the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS) and the Value Added Tax (VAT) Service.
In all, about 50 personnel from the three tax organisations from all over the country were rewarded for their dedication to duty and also for helping to increase tax revenue.
Mr Osei said over the past five years, revenue had increased from GH¢6.6 billion (¢6.65 trillion) to GH¢23.7 billion (¢23.7 billion) and expressed the hope that the trend in the increase of tax revenue would be sustained.
He said the agency would pursue policies that would ensure that tax revenue was enhanced to ensure that the government was able to generate the needed resources for development.
Mr Osei said as a first step, the agency would next year sponsor two persons each who had distinguished themselves from the three agencies to undergo training abroad as part of a programme to enhance the capacity of the staff and also to motivate them.
A Minister of State at the Ministry of Finance and Economic Planning, Mr Anthony Akoto-Osei, said the ministry was devising strategies that would ensure tax compliance of all individuals and companies to ensure that the country derived maximum revenue for development.
He said the government was mindful of the fact that there was also the need to motivate the staff of the revenue agencies and said the government was in support of the award scheme.
Mr Akoto-Osei stated that although indications were that as of July this year the revenue target had been exceeded by 1.3 per cent, there was the need for the agencies to double their efforts.
He said there was also the need to broaden the tax base to rope in more people to accelerate the country’s development agenda.
The Executive Secretary of the RAGB, Mr Harry Owusu, stated that the awards were meant to recognise the contributions of staff of the three agencies who had distinguished themselves creditably during the course of last year.
Ghana to host stock exchanges conference
Story: Boahene Asamoah
GHANA will next month host the 11th African Securities Exchanges Association (ASEA) conference and annual general meeting in Accra.
ASEA is made up of 18 Stock Exchanges, across 25 African countries.
Delegates from mainly African countries and other countries are expected to participate in the three-day conference, which will provide the participants the opportunity to forge partnership and collaboration between African bourses and other exchanges.
The conference is expected to bring together government officials, regulators, stock brokers, fund managers and investment analysts from all over the world.
Launching the 11th ASEA conference in Accra yesterday, the Managing Director of the Ghana Stock Exchange (GSE), Mr K.S. Yamoah said the conference would be on the theme “African Capital Markets; The next Investment Frontier” and it was aimed at focusing on important issues affecting African capital markets.
The conference would look at tapping the specific experiences of different African markets to assist in accelerating economic growth through greater and quality investment in Africa.
It would also help in strategising by African stock exchanges to play more meaningful roles in the development of their respective economies.
Mr Yamoah stated that the association was established with the objective of establishing a systematic mutual co-operation; exchange of information, materials and persons; mutual assistance as well as the organisation of joint programmes between the members.
He said the association also offered assistance to members in the establishment of stock exchanges and the development of financial instruments and the promotion of stockbrokers and dealers.
Mr Yamoah said the theme was appropriate as fund managers all over the world had begun to look at African capital markets as a means of diversifying their investment portfolio.
The General Manager of the GSE, Mr Ekow Afedzi, said the conference would comprise an annual general meeting and a conference.
Mr Afedzi said for the first time there would be a policy roundtable to bring together policy makers and other stakeholders to fashion out policies that would develop further the African capital markets.
Kenya, South Africa, Nigeria, Egypt, Mauritius and Zambia among other countries have hosted the ASEA conference in the past.
Speakers would include Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, Dr Mrs Ndi Okereke-Onyiuke, Director General of the Nigerian Stock Exchange and other speakers from Africa and abroad.
GHANA will next month host the 11th African Securities Exchanges Association (ASEA) conference and annual general meeting in Accra.
ASEA is made up of 18 Stock Exchanges, across 25 African countries.
Delegates from mainly African countries and other countries are expected to participate in the three-day conference, which will provide the participants the opportunity to forge partnership and collaboration between African bourses and other exchanges.
The conference is expected to bring together government officials, regulators, stock brokers, fund managers and investment analysts from all over the world.
Launching the 11th ASEA conference in Accra yesterday, the Managing Director of the Ghana Stock Exchange (GSE), Mr K.S. Yamoah said the conference would be on the theme “African Capital Markets; The next Investment Frontier” and it was aimed at focusing on important issues affecting African capital markets.
The conference would look at tapping the specific experiences of different African markets to assist in accelerating economic growth through greater and quality investment in Africa.
It would also help in strategising by African stock exchanges to play more meaningful roles in the development of their respective economies.
Mr Yamoah stated that the association was established with the objective of establishing a systematic mutual co-operation; exchange of information, materials and persons; mutual assistance as well as the organisation of joint programmes between the members.
He said the association also offered assistance to members in the establishment of stock exchanges and the development of financial instruments and the promotion of stockbrokers and dealers.
Mr Yamoah said the theme was appropriate as fund managers all over the world had begun to look at African capital markets as a means of diversifying their investment portfolio.
The General Manager of the GSE, Mr Ekow Afedzi, said the conference would comprise an annual general meeting and a conference.
Mr Afedzi said for the first time there would be a policy roundtable to bring together policy makers and other stakeholders to fashion out policies that would develop further the African capital markets.
Kenya, South Africa, Nigeria, Egypt, Mauritius and Zambia among other countries have hosted the ASEA conference in the past.
Speakers would include Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, Dr Mrs Ndi Okereke-Onyiuke, Director General of the Nigerian Stock Exchange and other speakers from Africa and abroad.
Auto leasing: A vital tool for equipment financing
Story: Boahene Asamoah
AUTO-LEASING has become one of the important means of equipment financing in the country’s leasing sector, representing about 48.4 per cent of assets financed as of the end of last year.
According to a report on Leasing in Ghana by the International Finance Corporation (IFC), construction and mining lease accounts for 24.93 per cent, production equipment represents 16.93 per cent, office equipment, 7.96 per cent and other forms of lease accounts for 2.31 per cent.
The PNDC Law 331 of 1993 defined finance lease as a written agreement between two parties whereby one of the parties (known as lessor) undertakes to lease to the lessee for the latter’s use only and against payment of mutually agreed lease rentals over a specified non-cancellable period.
The report said there had been tremendous growth in the leasing sector of the economy as a result of the awareness created and regulation in the financial sector.
Additionally, there has been an increase in the number of leasing firms from five to 12 as result of the Banking Act 2004, which mandates banks to undertake universal banking concept.
These firms are Leasafric Ghana, Horizon Leasing dxz & Finance Company, Ghana Leasing Company, Dalex Finance and Leasing, and IFS Finance and Leasing. These are non-bank lessors. The bank lessors are Ecobank, Merchant Bank, Ghana, Barclays Bank Ghana, Stanbic Bank Ghana, Guaranty Trust Bank, Zenith Bank Ghana and Amalgamated Bank Ghana
The leasing industry had been dominated by non-bank lessors over the past few years and the banks are beginning to take over the business.
Significantly, the independent leasing companies are losing market share to the bank lessors and this trend is expected to continue.
As of the end of 2006, bank lessors led the way in the value of leases with 51 per cent as against 49 per cent by non-bank lessors.
Total market share for non-bank lessors (gross lease receivable) also decreased from about 80 per cent in 2005 to less than 53 per cent in 2006.
According to the report, the growth in the domestic leasing market has been driven mainly by the bank lessors. In 2006, the total value of equipment acquired through a lease (new lease, bank and non-bank) increased by more than 114 per cent over that of 2005.
Within the same period, the value of new leases written by bank lessors increased by more than 119 per cent.
There has been consistent growth in the leasing sector in the country since 2001. However, the growth between 2005 and 2006 was especially remarkable.
Total lease portfolio (gross lease receivables increased from GH¢27.3 million (¢273 billion) to over GH¢47.4 million (¢474 billion), representing an overall growth of 73.6 per cent. The growth is attributed to banks’ lessors whose portfolio increased by almost 300 per cent.
The non-bank lessors have also significantly increased their levels of activity. Total value of new lease written by non-bank lessors increased by over 108 per cent while their overall lease portfolio increased by 17.17 per cent, indicating the total growth in the industry.
In terms of the regional distribution of leases, Greater Accra accounts for 82 per cent of all leases. This, the report indicates, is that all the non-bank leasing companies which control the market are located in Accra and do not have branches in other regions.
However, the report states that with banks now involved in leasing and with wider branch networks, it is expected that the number of leases booked from the other regions would gradually increase.
The Ashanti Region accounts for eight per cent, Western Region six per cent, Central and Eastern regions three and one per cent respectively.
The duration of a finance lease transaction in the country ranges from 12 months to 60 months. Typically, the average lease period for a leasing transaction is 36 months. However, operating lease agreements are usually less than 12 months.
Some of the prominent non-bank companies that offer leasing products in the country are Leasafric Ghana, Horizon Leasing & Finance Company, Ghana Leasing Company, Dalex Finance and Leasing, and IFS Finance and Leasing.
AUTO-LEASING has become one of the important means of equipment financing in the country’s leasing sector, representing about 48.4 per cent of assets financed as of the end of last year.
According to a report on Leasing in Ghana by the International Finance Corporation (IFC), construction and mining lease accounts for 24.93 per cent, production equipment represents 16.93 per cent, office equipment, 7.96 per cent and other forms of lease accounts for 2.31 per cent.
The PNDC Law 331 of 1993 defined finance lease as a written agreement between two parties whereby one of the parties (known as lessor) undertakes to lease to the lessee for the latter’s use only and against payment of mutually agreed lease rentals over a specified non-cancellable period.
The report said there had been tremendous growth in the leasing sector of the economy as a result of the awareness created and regulation in the financial sector.
Additionally, there has been an increase in the number of leasing firms from five to 12 as result of the Banking Act 2004, which mandates banks to undertake universal banking concept.
These firms are Leasafric Ghana, Horizon Leasing dxz & Finance Company, Ghana Leasing Company, Dalex Finance and Leasing, and IFS Finance and Leasing. These are non-bank lessors. The bank lessors are Ecobank, Merchant Bank, Ghana, Barclays Bank Ghana, Stanbic Bank Ghana, Guaranty Trust Bank, Zenith Bank Ghana and Amalgamated Bank Ghana
The leasing industry had been dominated by non-bank lessors over the past few years and the banks are beginning to take over the business.
Significantly, the independent leasing companies are losing market share to the bank lessors and this trend is expected to continue.
As of the end of 2006, bank lessors led the way in the value of leases with 51 per cent as against 49 per cent by non-bank lessors.
Total market share for non-bank lessors (gross lease receivable) also decreased from about 80 per cent in 2005 to less than 53 per cent in 2006.
According to the report, the growth in the domestic leasing market has been driven mainly by the bank lessors. In 2006, the total value of equipment acquired through a lease (new lease, bank and non-bank) increased by more than 114 per cent over that of 2005.
Within the same period, the value of new leases written by bank lessors increased by more than 119 per cent.
There has been consistent growth in the leasing sector in the country since 2001. However, the growth between 2005 and 2006 was especially remarkable.
Total lease portfolio (gross lease receivables increased from GH¢27.3 million (¢273 billion) to over GH¢47.4 million (¢474 billion), representing an overall growth of 73.6 per cent. The growth is attributed to banks’ lessors whose portfolio increased by almost 300 per cent.
The non-bank lessors have also significantly increased their levels of activity. Total value of new lease written by non-bank lessors increased by over 108 per cent while their overall lease portfolio increased by 17.17 per cent, indicating the total growth in the industry.
In terms of the regional distribution of leases, Greater Accra accounts for 82 per cent of all leases. This, the report indicates, is that all the non-bank leasing companies which control the market are located in Accra and do not have branches in other regions.
However, the report states that with banks now involved in leasing and with wider branch networks, it is expected that the number of leases booked from the other regions would gradually increase.
The Ashanti Region accounts for eight per cent, Western Region six per cent, Central and Eastern regions three and one per cent respectively.
The duration of a finance lease transaction in the country ranges from 12 months to 60 months. Typically, the average lease period for a leasing transaction is 36 months. However, operating lease agreements are usually less than 12 months.
Some of the prominent non-bank companies that offer leasing products in the country are Leasafric Ghana, Horizon Leasing & Finance Company, Ghana Leasing Company, Dalex Finance and Leasing, and IFS Finance and Leasing.
Professionals must change mindset — Winful
Read by BS
KPMG (fin)
Story: Boahene Asamoah
A SENIOR Partner at KPMG, an international tax, audit and advisory firm, Mr Joseph B. Winful, has called for a change of mindset of Ghanaian professionals to ensure high ethical standards in their professional duties.
He also called for the enforcement of rules, regulations and codes of conduct for professional bodies to ensure that the right thing was done.
Speaking at a seminar on Professional Ethics and its Relevance to Good Governance in Accra, Mr Winful stated that professionals were equally to be blamed for the woes and the poverty that had bedevilled the country and the African continent at large.
The one-day seminar was in collaboration with the Institute of Chartered Accountants, Ghana (ICAG).
He said in most cases, professionals had compromised and shown incompetence, adding that there was also pervasive cronyism that had contributed to lower ethical standards within professional bodies in the country.
The senior partner urged all professionals to take personal responsibility for their actions and also to subject themselves to higher principles, as well as exercise self- management.
Mr Wilful stated that there was the need to ensure that rules and regulations were applied to the letter, and also to ensure that there was no fear or favour in the application of professionalism.
The Director of Budget at the Ministry of Finance and Economic Planning, Mr Kwabena Adjei Mensah, who spoke on behalf of the Minister, Mr Kwadwo Baah-Wiredu, said the governments over the past years had improved the budgetary process by ensuring transparency, making it broad-based and was linked to the country’s development agenda.
He said “ a strong financial management is not a luxury but a requirement”, adding that the government was committed to improving further the financial management of the country.
He also urged professionals to ensure a balance between assessment, humility and diligence to ensure high ethical standards.
The President of the ICAG, Prof Ato Ghartey, said the issue of ethics was an important one, saying that “we are made to see compliance with culture, the law, regulation or ethical code as the goal more than the standing point of ethical decision making”.
KPMG (fin)
Story: Boahene Asamoah
A SENIOR Partner at KPMG, an international tax, audit and advisory firm, Mr Joseph B. Winful, has called for a change of mindset of Ghanaian professionals to ensure high ethical standards in their professional duties.
He also called for the enforcement of rules, regulations and codes of conduct for professional bodies to ensure that the right thing was done.
Speaking at a seminar on Professional Ethics and its Relevance to Good Governance in Accra, Mr Winful stated that professionals were equally to be blamed for the woes and the poverty that had bedevilled the country and the African continent at large.
The one-day seminar was in collaboration with the Institute of Chartered Accountants, Ghana (ICAG).
He said in most cases, professionals had compromised and shown incompetence, adding that there was also pervasive cronyism that had contributed to lower ethical standards within professional bodies in the country.
The senior partner urged all professionals to take personal responsibility for their actions and also to subject themselves to higher principles, as well as exercise self- management.
Mr Wilful stated that there was the need to ensure that rules and regulations were applied to the letter, and also to ensure that there was no fear or favour in the application of professionalism.
The Director of Budget at the Ministry of Finance and Economic Planning, Mr Kwabena Adjei Mensah, who spoke on behalf of the Minister, Mr Kwadwo Baah-Wiredu, said the governments over the past years had improved the budgetary process by ensuring transparency, making it broad-based and was linked to the country’s development agenda.
He said “ a strong financial management is not a luxury but a requirement”, adding that the government was committed to improving further the financial management of the country.
He also urged professionals to ensure a balance between assessment, humility and diligence to ensure high ethical standards.
The President of the ICAG, Prof Ato Ghartey, said the issue of ethics was an important one, saying that “we are made to see compliance with culture, the law, regulation or ethical code as the goal more than the standing point of ethical decision making”.
‘Take advantage of credit facilities’
Story: Boahene Asamoah
THE Managing Director of the Guarantee Fund for Private Investments in West Africa (GARI), Mr Pierre Yaovi Sedjro, has called on the private sector in Ghana to take advantage of opportunities offered by the fund to expand their business activities in the sub-region.
He expressed regret that given the increasing economic activities in the country, the fund had been able to approve only one proposal in the country since its 11 years of existence.
“This is a drop in the ocean, given the increasing economic activity in Ghana”, Mr Sedjro stated.
Mr Sedjro made this known at the forum on Financial Guarantee for Investments, which was organised by GARI with support from ProInvest and Perform Strategy in Accra yesterday.
He said the sub-region had huge potential for the private sector to do business, especially in the small and medium scale Enterprises (SMEs) sector.
He said over the past 11 years, the fund had provided funds to the tune of $162 million and had invested a total of $1.174 billion in over 100 projects across the sub-region.
“In spite of these achievements, it is a modest one since the potential in the sub-region is huge”, Mr Sedjro stated.
He said the fund was determined to contribute to the development of the private sector and support the operations of the financial sector to ensure investments and development.
The First Counsellor and Head of Marco-Economic and Trade Sector of the delegation of the European Commission in Ghana, Mr Dick Naezer, said there were tremendous opportunities for development in the sub-region and added that that would only come about when there was an investment-friendly climate.
He said the adoption of the Growth and Poverty Reduction Strategy (GPRS II) by the government was a clear indication that the growth component was very important in the country’s development agenda.
He said private investments were also an important source of development and indicated that over the past few years private sources of funds were pushing away public funding in the sub-region.
Mr Naezer said the forum was timely since the sub-region was strengthening its regional integration process.
The chairman of the of the Board of Administrators of the Eximgaranty Ghana Limited, Mr Felix Ntirakwa, said the synergy between Eximgaranty and GARI was to support the private sector to effectively access funds for development.
He called on participants to take advantage of the funds available to enable them grow their businesses beyond the shores of this country.
THE Managing Director of the Guarantee Fund for Private Investments in West Africa (GARI), Mr Pierre Yaovi Sedjro, has called on the private sector in Ghana to take advantage of opportunities offered by the fund to expand their business activities in the sub-region.
He expressed regret that given the increasing economic activities in the country, the fund had been able to approve only one proposal in the country since its 11 years of existence.
“This is a drop in the ocean, given the increasing economic activity in Ghana”, Mr Sedjro stated.
Mr Sedjro made this known at the forum on Financial Guarantee for Investments, which was organised by GARI with support from ProInvest and Perform Strategy in Accra yesterday.
He said the sub-region had huge potential for the private sector to do business, especially in the small and medium scale Enterprises (SMEs) sector.
He said over the past 11 years, the fund had provided funds to the tune of $162 million and had invested a total of $1.174 billion in over 100 projects across the sub-region.
“In spite of these achievements, it is a modest one since the potential in the sub-region is huge”, Mr Sedjro stated.
He said the fund was determined to contribute to the development of the private sector and support the operations of the financial sector to ensure investments and development.
The First Counsellor and Head of Marco-Economic and Trade Sector of the delegation of the European Commission in Ghana, Mr Dick Naezer, said there were tremendous opportunities for development in the sub-region and added that that would only come about when there was an investment-friendly climate.
He said the adoption of the Growth and Poverty Reduction Strategy (GPRS II) by the government was a clear indication that the growth component was very important in the country’s development agenda.
He said private investments were also an important source of development and indicated that over the past few years private sources of funds were pushing away public funding in the sub-region.
Mr Naezer said the forum was timely since the sub-region was strengthening its regional integration process.
The chairman of the of the Board of Administrators of the Eximgaranty Ghana Limited, Mr Felix Ntirakwa, said the synergy between Eximgaranty and GARI was to support the private sector to effectively access funds for development.
He called on participants to take advantage of the funds available to enable them grow their businesses beyond the shores of this country.
Producer Price Index inched up by 0.83
Story: Boahene Asamoah
THE Producer Price Index (PPI), which measures the average changeover time in the prices received by domestic producers for the production of their goods and services, inched up by 0.83 per cent for the month of August this year.
For the month of July, however, it edged up by 0.99 per cent.
Briefing the press in Accra on Friday, the Deputy Government Statistician, Prof. Nicholas N.N. Nsowah-Nuamah, said the manufacturing index inched up by 0.81 per cent, while the index for mining and quarrying also edged up by 1.29 per cent.
He said the utilities index, on the other hand, remained unchanged for the period under review and explained that the rise in the mining index was from the mining of non-ferrous metal ores, excluding uranium and thorium.
The deputy director said that the index for quarrying of stone, sand and clay inched by 0.32 after recording no change in the previous month, while the index for salt mining slightly went up 0.18 per cent after it dropped by 7.72 per cent in the previous month.
Prof. Nsowah-Nuamah said “the manufacture of plastic products, manufacturers of footwear, other fabricated metal products, metalworking service activities, refined petroleum production, processing and preservation of meat, fish, fruit, vegetables, oil and fats all showed increases in their indices”.
He said the utilities index, which comprised production, transmission and distribution of electricity and collection, purification and distribution of water, remained unchanged following the same trend in the previous month’s index.
The PPI measures price change from the perspective of the producer. This contrasts with other measures such as the Consumer Price Index (CPI), which measure price change from the purchasers’ perspective.
Prices of approximately 950 items are collected from 209 establishments each month to determine the changes in the index.
THE Producer Price Index (PPI), which measures the average changeover time in the prices received by domestic producers for the production of their goods and services, inched up by 0.83 per cent for the month of August this year.
For the month of July, however, it edged up by 0.99 per cent.
Briefing the press in Accra on Friday, the Deputy Government Statistician, Prof. Nicholas N.N. Nsowah-Nuamah, said the manufacturing index inched up by 0.81 per cent, while the index for mining and quarrying also edged up by 1.29 per cent.
He said the utilities index, on the other hand, remained unchanged for the period under review and explained that the rise in the mining index was from the mining of non-ferrous metal ores, excluding uranium and thorium.
The deputy director said that the index for quarrying of stone, sand and clay inched by 0.32 after recording no change in the previous month, while the index for salt mining slightly went up 0.18 per cent after it dropped by 7.72 per cent in the previous month.
Prof. Nsowah-Nuamah said “the manufacture of plastic products, manufacturers of footwear, other fabricated metal products, metalworking service activities, refined petroleum production, processing and preservation of meat, fish, fruit, vegetables, oil and fats all showed increases in their indices”.
He said the utilities index, which comprised production, transmission and distribution of electricity and collection, purification and distribution of water, remained unchanged following the same trend in the previous month’s index.
The PPI measures price change from the perspective of the producer. This contrasts with other measures such as the Consumer Price Index (CPI), which measure price change from the purchasers’ perspective.
Prices of approximately 950 items are collected from 209 establishments each month to determine the changes in the index.
Ecobank launches junior saver account
Story: Boahene Asamoah & Anasthasia Esenam Dzovor
ECOBANK Ghana Limited has introduced the Junior Saver Account, ushering in a new concept of banking for children and teenagers in the country.
The product is a lifestyle and educative savings account, specifically designed to provide various levels of interaction between the Junior Saver and the bank, makes the child part of the banking process.
Speaking at the launch of the product in Accra last Saturday, the Managing Director of the bank, Mr Samuel Ashitey Adjei, said the new product was not comparable to any other product on the market and was designed specifically to satisfy the younger generation.
He said “the Ecobank Junior Saver Account, a value added lifestyle and educative saving product for children and teens, had been developed to provide not only a banking account for children, but also an avenue for educating and exposing them to the concept of fund management”.
He said the product makes savings an enjoyable activity for children, inculcates and encourages a savings culture in the Ghanaian economy.
Mr Ashitey added that the new product offered the account holder benefits and privileges from the product partners such Junior Graphic, Vanguard Assurance, EEP Books, Techy Kids, I Net Technology, Nestle, Frankies, A&C Playground, Cocoa Processing Company, Fan Milk, Malta Guinness Quench and the Artbureau.
He said together these partners offer unique advantages for holders of the Junior Saver Account.
Mr Adjei said the bank’s strategic goal of becoming the best retail bank in the country was on course and that the bank’s strategic goal was “premised on a passion to offer the customer real value, convenience, reliability and accessibility”.
He said the bank’s network had increased from 21 at the beginning of the year to 26, while its Auto Teller Machines (ATMs) stands at 49 currently, making it the highest in the country.
Ecobank until 2005 was a corporate banking institution. Following the passage of the Banking Act 2004, which allows all banks to undertake the universal banking concept, the bank has positioned itself to play an active role in the retail business.
Mr Adjei said in view of the overall vision of the Ecobank group to become a world class African bank and set the pace in its markets, the bank introduced the first credit card in the country this year.
He added that “ our performance on the stock exchange has been phenomenal, and as at the close of business on September 25, 2007 Ecobank Ghana’s share price stood at GH¢1.580 (¢15,802) approximately 44 per cent increased over the Initial Public Offer price of GH¢1.100 (¢11,000).
A Deputy Minister of Women and Children’s Affairs, Mr Daniel Dugan, said the product fits directly into his ministry’s mission of promoting the welfare of women and children in the country.
“We see this package as a positive contribution to the development of children in the country and a great boost to the government’s efforts at encouraging savings in the country”, he added.
The Director-General of the Ghana Education Service, Mr Samuel Bannerman-Mensah, said the launch of the Ecobank Junior Saver Product would complement the new educational reform by assisting with the moulding of children.
“The Ecobank Junior Saver Product would make banking a more pleasant experience for every child. The main drivers of the product are education, interactivity and lifestyle approach to banking”, he concluded.
ECOBANK Ghana Limited has introduced the Junior Saver Account, ushering in a new concept of banking for children and teenagers in the country.
The product is a lifestyle and educative savings account, specifically designed to provide various levels of interaction between the Junior Saver and the bank, makes the child part of the banking process.
Speaking at the launch of the product in Accra last Saturday, the Managing Director of the bank, Mr Samuel Ashitey Adjei, said the new product was not comparable to any other product on the market and was designed specifically to satisfy the younger generation.
He said “the Ecobank Junior Saver Account, a value added lifestyle and educative saving product for children and teens, had been developed to provide not only a banking account for children, but also an avenue for educating and exposing them to the concept of fund management”.
He said the product makes savings an enjoyable activity for children, inculcates and encourages a savings culture in the Ghanaian economy.
Mr Ashitey added that the new product offered the account holder benefits and privileges from the product partners such Junior Graphic, Vanguard Assurance, EEP Books, Techy Kids, I Net Technology, Nestle, Frankies, A&C Playground, Cocoa Processing Company, Fan Milk, Malta Guinness Quench and the Artbureau.
He said together these partners offer unique advantages for holders of the Junior Saver Account.
Mr Adjei said the bank’s strategic goal of becoming the best retail bank in the country was on course and that the bank’s strategic goal was “premised on a passion to offer the customer real value, convenience, reliability and accessibility”.
He said the bank’s network had increased from 21 at the beginning of the year to 26, while its Auto Teller Machines (ATMs) stands at 49 currently, making it the highest in the country.
Ecobank until 2005 was a corporate banking institution. Following the passage of the Banking Act 2004, which allows all banks to undertake the universal banking concept, the bank has positioned itself to play an active role in the retail business.
Mr Adjei said in view of the overall vision of the Ecobank group to become a world class African bank and set the pace in its markets, the bank introduced the first credit card in the country this year.
He added that “ our performance on the stock exchange has been phenomenal, and as at the close of business on September 25, 2007 Ecobank Ghana’s share price stood at GH¢1.580 (¢15,802) approximately 44 per cent increased over the Initial Public Offer price of GH¢1.100 (¢11,000).
A Deputy Minister of Women and Children’s Affairs, Mr Daniel Dugan, said the product fits directly into his ministry’s mission of promoting the welfare of women and children in the country.
“We see this package as a positive contribution to the development of children in the country and a great boost to the government’s efforts at encouraging savings in the country”, he added.
The Director-General of the Ghana Education Service, Mr Samuel Bannerman-Mensah, said the launch of the Ecobank Junior Saver Product would complement the new educational reform by assisting with the moulding of children.
“The Ecobank Junior Saver Product would make banking a more pleasant experience for every child. The main drivers of the product are education, interactivity and lifestyle approach to banking”, he concluded.
Privatisation of state enterprises-“Let’s encourage local investors”
Story: Boahene Asamoah
read by ho
AN Executive Director of Strategic African Securities (SAS), Ms Abena Amoah, has called on the government to give local investors the opportunity to own part of state-owned enterprises (SoEs) it intends to privatise by listing shares on the Ghana Stock Exchange.
She said since the Government was holding such SoEs in trust for the people of Ghana, it was appropriate that local investors would be given the opportunity to be part of such companies, when they were privatised.
Speaking in an interview, Ms Amoah stated that if the Government intended to sell such SOEs to a strategic investor, floating such shares on the stock market would not prevent strategic investors from buying shares in such companies.
“The stock market is critical to the development of every economy,” Ms Amoah stated adding that “this is what has created wealth for so many economies”.
She said there had been tremendous interest by Ghanaians as in the recent Initial Public Offers (IPOs) and rights issues, saying that there were over 50,000 applicants for the Ghana Commercial Bank rights issue.
Additionally, she stated that there were over 10,000 applicants for the Ecobank Ghana’s IPO launched last year, pointing out that there had also been over subscription of such issues at very short offer periods.
She called on the government to also hasten its own policy of using the stock exchange as an exit strategy in the privatisation of state-owned enterprises.
Ms Amoah said “the process has been too slow” adding that more companies needed to come on board.
She said investors were still waiting for IPOs of companies such as Ghana Telecom, Westel and Twifo Oil Palm Plantation.
The government announced in the 2006 budget statement that it would use the GSE as its exit strategy for the privatisation of SOE.
So far, Ghana Oil Company, Benso Oil Palm Plantation (BOPP) have been listed since the government made that decision. Many others such as the State Insurance Company (SIC) and Ghana Telecom among others are expected to be listed on the market in the near future.
She said the stock market offered tremendous opportunities for companies to raise capital and create wealth by way of dividend and capital appreciation.
“Through IPOs companies have raised capital and created wealth for its shareholders, she stated.
She added that by listing on the stock market companies could employ the services of foreign skilled labour to manage the affairs of the companies, stressing that Ghanaian managers could learn from those expertise.
“Foreign investment and labour skills transfer are critical,”adding that “it confers the benefit of being part of an international company while others strive to be part of an institution of international standing.”
Ms Amoah again stated that listing on the stock market had ensured transparency in the management of companies and in most cases had ensured efficient management, since the companies were accountable to their shareholders.
She said the country needed to step up the game of deepening the stock market activities if it hoped to play in the emerging economies of the world by encouraging listings on the stock market, adding that privatisation would ensure that companies raised capital and created wealth.
read by ho
AN Executive Director of Strategic African Securities (SAS), Ms Abena Amoah, has called on the government to give local investors the opportunity to own part of state-owned enterprises (SoEs) it intends to privatise by listing shares on the Ghana Stock Exchange.
She said since the Government was holding such SoEs in trust for the people of Ghana, it was appropriate that local investors would be given the opportunity to be part of such companies, when they were privatised.
Speaking in an interview, Ms Amoah stated that if the Government intended to sell such SOEs to a strategic investor, floating such shares on the stock market would not prevent strategic investors from buying shares in such companies.
“The stock market is critical to the development of every economy,” Ms Amoah stated adding that “this is what has created wealth for so many economies”.
She said there had been tremendous interest by Ghanaians as in the recent Initial Public Offers (IPOs) and rights issues, saying that there were over 50,000 applicants for the Ghana Commercial Bank rights issue.
Additionally, she stated that there were over 10,000 applicants for the Ecobank Ghana’s IPO launched last year, pointing out that there had also been over subscription of such issues at very short offer periods.
She called on the government to also hasten its own policy of using the stock exchange as an exit strategy in the privatisation of state-owned enterprises.
Ms Amoah said “the process has been too slow” adding that more companies needed to come on board.
She said investors were still waiting for IPOs of companies such as Ghana Telecom, Westel and Twifo Oil Palm Plantation.
The government announced in the 2006 budget statement that it would use the GSE as its exit strategy for the privatisation of SOE.
So far, Ghana Oil Company, Benso Oil Palm Plantation (BOPP) have been listed since the government made that decision. Many others such as the State Insurance Company (SIC) and Ghana Telecom among others are expected to be listed on the market in the near future.
She said the stock market offered tremendous opportunities for companies to raise capital and create wealth by way of dividend and capital appreciation.
“Through IPOs companies have raised capital and created wealth for its shareholders, she stated.
She added that by listing on the stock market companies could employ the services of foreign skilled labour to manage the affairs of the companies, stressing that Ghanaian managers could learn from those expertise.
“Foreign investment and labour skills transfer are critical,”adding that “it confers the benefit of being part of an international company while others strive to be part of an institution of international standing.”
Ms Amoah again stated that listing on the stock market had ensured transparency in the management of companies and in most cases had ensured efficient management, since the companies were accountable to their shareholders.
She said the country needed to step up the game of deepening the stock market activities if it hoped to play in the emerging economies of the world by encouraging listings on the stock market, adding that privatisation would ensure that companies raised capital and created wealth.
Monday, September 17, 2007
Don’t sign economic pact - Civil Society
`Stop EPA (fin) read by ho
Story: Boahene Asamoah & Ras Liberty Amewode
SOME Civil Society groups across the African Continent have reiterated their calls on their governments not to sign the Economic Partnership Agreements (EPAs) with the European Union (EU).
According to them, the signing of the agreement would mortgage the future of Africans to the Europeans.
Regional blocs made up of countries in the African, Caribbean and Pacific (ACP) Countries, such as the Economic Community of West African States (ECOWAS), the Eastern and Southern Africa (ESA) and the Southern Africa Development Community (SADC) and their EU counterparts are supposed to sign the EPAs by December this year.
In an interview after the opening of a three-day Africa-wide Civil Society meeting on EPAs in Accra yesterday, Mrs Aulline H. Mabika from Zimbabwe, said “the signing of the EPAs would mortgage the future of our generations.”
Civil Society groups from about 15 African countries and Europe are attending the meeting, which is to strategise the final lapse of the campaign to “Stop EPAs”.
Mrs Mabika said there was the need for a comprehensive trade agreement that would involve all stakeholders and respect the needs of Africans, saying the EPAs as they stood neither were consultative enough nor had strong development agenda for African countries.
“The issues of social services, poverty eradication and health are not properly addressed,” she stated.
Mrs Mabika stated that all the regions in Africa were not adequately prepared for the EPAs as the continent lacked the capacity to address the issues inherent in the trade agreement.
She said for Zimbabwe the issues were critical as the country was being made to sign the agreement under ESA instead of SADEC.
Mrs Mabika stated that the country would then have to determine under which customs treaty it would operate if the country went ahead to sign the agreements under ESA.
She said what continent needed was strong negotiators and ensuring that the process towards the signing of the agreement involved the ordinary people of Africa.
For his part, the Head of Programmes of Third World Network, Mr Tetteh Hormeku, said the signing of the agreement would spell doom for most African countries.
He said at the moment some countries were requesting for draft agreements, excuses he said were a confirmation that the various blocs were not ready for the agreements.
Mr Hormeku said persuading their various governments not to sign the EPAs was as much a challenge as getting the people who would directly bear the brunt of the agreement to be active players in the attempt to stop the EPAs.
The Co-ordinator of the Third World Network, Dr Yao Graham, said the meeting would afford participants to draw up strategies to ensure that they intensified their activities as the time drew closer.
Dr Graham called for the active involvement of the media to ensure that the objectives of stopping the EPAs was achieved.
African, Caribbean and Pacific (ACP) countries are negotiating for EPAs which are aimed at defining the future trade and economic relations between the EU and regional blocs such as ECOWAS and ESA, when the Cotonou Agreement expires in 2007.
The Cotonou Agreement was signed in June 2000 to replace the various Lome Conventions, through which the ACP countries accessed EU markets for almost three decades tariff and quota-free.
Negotiations on the EPAs started in September 2002 and are supposed to be concluded by the end of this year.
The need for the EPAs came in the wake of complaints from non-ACP countries in 1994 that the preferential and non-reciprocal trade that existed between ACP and EU countries was not in accordance with the World Trade Organisation (WTO) rules, which the WTO agreed with, saying the ACP countries will have unfair advantage.
Story: Boahene Asamoah & Ras Liberty Amewode
SOME Civil Society groups across the African Continent have reiterated their calls on their governments not to sign the Economic Partnership Agreements (EPAs) with the European Union (EU).
According to them, the signing of the agreement would mortgage the future of Africans to the Europeans.
Regional blocs made up of countries in the African, Caribbean and Pacific (ACP) Countries, such as the Economic Community of West African States (ECOWAS), the Eastern and Southern Africa (ESA) and the Southern Africa Development Community (SADC) and their EU counterparts are supposed to sign the EPAs by December this year.
In an interview after the opening of a three-day Africa-wide Civil Society meeting on EPAs in Accra yesterday, Mrs Aulline H. Mabika from Zimbabwe, said “the signing of the EPAs would mortgage the future of our generations.”
Civil Society groups from about 15 African countries and Europe are attending the meeting, which is to strategise the final lapse of the campaign to “Stop EPAs”.
Mrs Mabika said there was the need for a comprehensive trade agreement that would involve all stakeholders and respect the needs of Africans, saying the EPAs as they stood neither were consultative enough nor had strong development agenda for African countries.
“The issues of social services, poverty eradication and health are not properly addressed,” she stated.
Mrs Mabika stated that all the regions in Africa were not adequately prepared for the EPAs as the continent lacked the capacity to address the issues inherent in the trade agreement.
She said for Zimbabwe the issues were critical as the country was being made to sign the agreement under ESA instead of SADEC.
Mrs Mabika stated that the country would then have to determine under which customs treaty it would operate if the country went ahead to sign the agreements under ESA.
She said what continent needed was strong negotiators and ensuring that the process towards the signing of the agreement involved the ordinary people of Africa.
For his part, the Head of Programmes of Third World Network, Mr Tetteh Hormeku, said the signing of the agreement would spell doom for most African countries.
He said at the moment some countries were requesting for draft agreements, excuses he said were a confirmation that the various blocs were not ready for the agreements.
Mr Hormeku said persuading their various governments not to sign the EPAs was as much a challenge as getting the people who would directly bear the brunt of the agreement to be active players in the attempt to stop the EPAs.
The Co-ordinator of the Third World Network, Dr Yao Graham, said the meeting would afford participants to draw up strategies to ensure that they intensified their activities as the time drew closer.
Dr Graham called for the active involvement of the media to ensure that the objectives of stopping the EPAs was achieved.
African, Caribbean and Pacific (ACP) countries are negotiating for EPAs which are aimed at defining the future trade and economic relations between the EU and regional blocs such as ECOWAS and ESA, when the Cotonou Agreement expires in 2007.
The Cotonou Agreement was signed in June 2000 to replace the various Lome Conventions, through which the ACP countries accessed EU markets for almost three decades tariff and quota-free.
Negotiations on the EPAs started in September 2002 and are supposed to be concluded by the end of this year.
The need for the EPAs came in the wake of complaints from non-ACP countries in 1994 that the preferential and non-reciprocal trade that existed between ACP and EU countries was not in accordance with the World Trade Organisation (WTO) rules, which the WTO agreed with, saying the ACP countries will have unfair advantage.
Economy still reobust, inspite of crisis
Story: Boahene Asamoah
THE Centre for Policy Analysis (CEPA), a policy and research think-tank, has said that in spite of the energy crisis the economy looks poised for a take-off of a sustained accelerated growth which could bring about the much needed development.
However, CEPA warned that some inherent problems such as the over-blotted wage bill and the inability to meet revenue targets and the government’s expenditure could derail the process.
Speaking at the yearly launch of CEPA’s “Current State of the Ghanaian Economy” in Accra yesterday, the Executive Director of CEPA, Dr Joe Abbey, said the cornerstone of Ghana’s macro-economic stability has been prudent and complementary to fiscal macroeconomics stability”.
He added that “this must continue if Ghana is to reduce interest rates, increase private investment and continue to receive favourable investment ratings and continued donor support.
Dr Abbey however, stated there was the need to deal decisively with the main short term threats to fiscal prudence and called for the urgent improvement in the framework for the management of the public sector wage bill.
“Failing that, budget implementation would continue to weaken as the wage bill progressively crowds out other important areas of public spending not to mention the possible adverse consequences for employment in the formal sector”, he stated.
He said IMF analysis of the country’s economic performance stated that after years of sustained consolidation, the fiscal deficit including grants widened to 7.7 per cent of GPD in 2006 from 2.3 per cent of GDP in 2005.
On government revenue, he said tax revenue was on target, however non-tax revenue was the area which recorded significant shortfalls in collection and added that “ there has been significant volatility in revenue mobilisation in this category of government revenue.
Dr Abbey said on account of this situation the total tax revenue could fall short of budgetary target by almost five per cent.
On government expenditure, Dr Abbey stated that contrary to the out-turn for 2006, reported in the 2007 budget, the year ended with a much wider deficit than planned resulting in substantial domestic borrowing by government instead of net repayment.
He said the revenue shortfalls and the additional expenditures would mean large deficits that must be appropriately financed in macro-economics stability whichwas to be sustained as required by the GPRS II.
Dr Abbey said the government’s successful issue of a sovereign bond of $500 million was seen in financial circles as a “hugely important step for a sub-Saharan African country” other than South Africa to have entered the international capital market.
He said given the B+ sovereign rating, mobilisation of loan finance on reasonable terms does not appear to pose much challenge to the country.
Dr Abbey proposed the setting up of a special fund to be named Jubilee Development Fund (JDF) to ensure that all loan proceeds as well as any such identified and dedicated resources mobilised in support for the accelerated growth and development objective would be deposited into the account.
“This is to ensure transparency and accountability”, he added.
THE Centre for Policy Analysis (CEPA), a policy and research think-tank, has said that in spite of the energy crisis the economy looks poised for a take-off of a sustained accelerated growth which could bring about the much needed development.
However, CEPA warned that some inherent problems such as the over-blotted wage bill and the inability to meet revenue targets and the government’s expenditure could derail the process.
Speaking at the yearly launch of CEPA’s “Current State of the Ghanaian Economy” in Accra yesterday, the Executive Director of CEPA, Dr Joe Abbey, said the cornerstone of Ghana’s macro-economic stability has been prudent and complementary to fiscal macroeconomics stability”.
He added that “this must continue if Ghana is to reduce interest rates, increase private investment and continue to receive favourable investment ratings and continued donor support.
Dr Abbey however, stated there was the need to deal decisively with the main short term threats to fiscal prudence and called for the urgent improvement in the framework for the management of the public sector wage bill.
“Failing that, budget implementation would continue to weaken as the wage bill progressively crowds out other important areas of public spending not to mention the possible adverse consequences for employment in the formal sector”, he stated.
He said IMF analysis of the country’s economic performance stated that after years of sustained consolidation, the fiscal deficit including grants widened to 7.7 per cent of GPD in 2006 from 2.3 per cent of GDP in 2005.
On government revenue, he said tax revenue was on target, however non-tax revenue was the area which recorded significant shortfalls in collection and added that “ there has been significant volatility in revenue mobilisation in this category of government revenue.
Dr Abbey said on account of this situation the total tax revenue could fall short of budgetary target by almost five per cent.
On government expenditure, Dr Abbey stated that contrary to the out-turn for 2006, reported in the 2007 budget, the year ended with a much wider deficit than planned resulting in substantial domestic borrowing by government instead of net repayment.
He said the revenue shortfalls and the additional expenditures would mean large deficits that must be appropriately financed in macro-economics stability whichwas to be sustained as required by the GPRS II.
Dr Abbey said the government’s successful issue of a sovereign bond of $500 million was seen in financial circles as a “hugely important step for a sub-Saharan African country” other than South Africa to have entered the international capital market.
He said given the B+ sovereign rating, mobilisation of loan finance on reasonable terms does not appear to pose much challenge to the country.
Dr Abbey proposed the setting up of a special fund to be named Jubilee Development Fund (JDF) to ensure that all loan proceeds as well as any such identified and dedicated resources mobilised in support for the accelerated growth and development objective would be deposited into the account.
“This is to ensure transparency and accountability”, he added.
Lets develop home grown policies
Story: Boahene Asamoah
THE Chief Adviser to the President, Mrs Mary Chinery-Hesse, has said that there is the need for the country to develop what she termed “home-grown” development policies that suited the countries peculiar development paradigm.
That, she said, was critical because the country could not always rely on the prescription of its development partners.
At the launch of 2007 “Ghana Economic Review and Outlook” by the Centre for Policy Analysis (CEPA) in Accra yesterday, Mrs Chinery-Hesse advocated for the establishment of national policy think tanks in the country that would fashion out the country’s development agenda.
She said the new role of CEPA should be to focus on policy formulation instead of the current system where it criticises government’s economic policies.
The Chief Presidential Adviser said “it is good to be independent, but it is equally important that CEPA becomes part of the process that drives policy formulation”.
Mrs Chinery-Hesse, who is also a board member of CEPA, said the future of CEPA must be to partner the government, the National Development Planning Commission (NDPC) and other agencies and departments to ensure good development policies that would shape the country’s economic and development agenda.
She said CEPA had proven that it had the quality human resources and capability to undertake research, analysis and advocacy that was of international standards.
Mrs Chinery-Hesse recounted the establishment of the CEPA in 1994 by some development partners and which had grown to become a national asset of international repute.
She said there was the need to ensure that CEPA led the way in think tank organisations in the country by becoming a co-ordinating institution and called for greater collaboration of all such institutions to ensure that the country benefited from the ideas and specialisation of such institutions.
A Senior Research Fellow at CEPA, Dr Samuel Ashong, who launched the books, said over the past 10 years, the CEPA flagship had delivered authentic, unbiased and independent annual reviews of the state of the Ghanaian economy while providing concrete recommendations to improve economic management and governance.
He said “sound and critical economic analyses have always underpinned the information in these reports”.
He said the key medium-term challenges included decisive resolution of the energy crisis to enable real economic growth at an average rate of 6.5 per cent per annum, consolidating macro-economic stability and pursuing structural reforms, particularly in the financial sector, to bolster private sector-led growth.
Dr Ashong stated again that maintaining a competitive exchange rate to ensure that micro-level incentives for investments and growth were in consonance with the export-led growth strategy was also a challenge.
The CEPA Flagship, Ghana Economic Review and Outlook, is a 122-page comprehensive technical document tailored to the needs of professionals in the field of economic policy making, analysis and governance.
Five volumes were produced under CEPA’s selected economic issues series to facilitate dissemination of the findings in the flagship. They are Public Finance and Fiscal Operations: The Case for Fiscal Anchor, Monetary and Exchange Rate in the Large, Current State of the Ghanaian Economy, The Energy Crisis and Growth Performance of the Economy, Public Expenditure Management in Ghana: 2001-2006.
THE Chief Adviser to the President, Mrs Mary Chinery-Hesse, has said that there is the need for the country to develop what she termed “home-grown” development policies that suited the countries peculiar development paradigm.
That, she said, was critical because the country could not always rely on the prescription of its development partners.
At the launch of 2007 “Ghana Economic Review and Outlook” by the Centre for Policy Analysis (CEPA) in Accra yesterday, Mrs Chinery-Hesse advocated for the establishment of national policy think tanks in the country that would fashion out the country’s development agenda.
She said the new role of CEPA should be to focus on policy formulation instead of the current system where it criticises government’s economic policies.
The Chief Presidential Adviser said “it is good to be independent, but it is equally important that CEPA becomes part of the process that drives policy formulation”.
Mrs Chinery-Hesse, who is also a board member of CEPA, said the future of CEPA must be to partner the government, the National Development Planning Commission (NDPC) and other agencies and departments to ensure good development policies that would shape the country’s economic and development agenda.
She said CEPA had proven that it had the quality human resources and capability to undertake research, analysis and advocacy that was of international standards.
Mrs Chinery-Hesse recounted the establishment of the CEPA in 1994 by some development partners and which had grown to become a national asset of international repute.
She said there was the need to ensure that CEPA led the way in think tank organisations in the country by becoming a co-ordinating institution and called for greater collaboration of all such institutions to ensure that the country benefited from the ideas and specialisation of such institutions.
A Senior Research Fellow at CEPA, Dr Samuel Ashong, who launched the books, said over the past 10 years, the CEPA flagship had delivered authentic, unbiased and independent annual reviews of the state of the Ghanaian economy while providing concrete recommendations to improve economic management and governance.
He said “sound and critical economic analyses have always underpinned the information in these reports”.
He said the key medium-term challenges included decisive resolution of the energy crisis to enable real economic growth at an average rate of 6.5 per cent per annum, consolidating macro-economic stability and pursuing structural reforms, particularly in the financial sector, to bolster private sector-led growth.
Dr Ashong stated again that maintaining a competitive exchange rate to ensure that micro-level incentives for investments and growth were in consonance with the export-led growth strategy was also a challenge.
The CEPA Flagship, Ghana Economic Review and Outlook, is a 122-page comprehensive technical document tailored to the needs of professionals in the field of economic policy making, analysis and governance.
Five volumes were produced under CEPA’s selected economic issues series to facilitate dissemination of the findings in the flagship. They are Public Finance and Fiscal Operations: The Case for Fiscal Anchor, Monetary and Exchange Rate in the Large, Current State of the Ghanaian Economy, The Energy Crisis and Growth Performance of the Economy, Public Expenditure Management in Ghana: 2001-2006.
Africa will still have access to EU marketsIf it refuses to sign the EPAs
Story: Boahene Asamoah
CIVIL Society groups across Africa have said that African countries could still have access to the European markets if they do not sign the Economic Partnership Agreement (EPA) with the European Union (EU).
According to the civil society organisations, “the EU is bound by obligation under the Cotonou agreement, which has the force of international treaty with the ACP to maintain market access for countries that decide not to sign the EPAs.”
They described as false the European Union’s (EU’s) assertion that products from Africa would not have access to EU markets if African countries failed to sign the Economic Partnership Agreement.
“African countries do not need to sign EPAs to maintain their current market access levels to the European Union”, the civil society groups stated.
At a press conference, after a three-day strategic meeting in Accra, Civil Society Groups from about 30 African countries condemned the EU for abusing the December deadline to put unjustifiable pressure on African governments to concede to its terms.
Mr Thomas Deve, Project Officer for Mwengo, a Civil Society group from Zimbabwe, said African had everything to lose and nothing to gain by signing the Economic Partnership Agreements with the EU.
He said African countries could adopt the General System of Preference plus (GSP+) which would enable African countries to have access to EU market at levels similar to what they enjoy currently, adding that, “this can even be improved”.
He said “signing the EPA will trigger severe loss of jobs, threaten the peace of the continent, strangle Africa’s right to evolve and pursue its own agenda and lead to recolonisation of Africa by Europe.
Mr Deve added that the EPA, if signed would lead to the elimination of tariffs but any tariff reduction and elimination would necessarily involve huge fiscal costs and many costs of implementation for Africa and other African and Pacific (ACP) countries.
He said the EU promise of €2 billion under the European Development Fund (EDF) to help with the cost of adjustment under the EPAs was false, misplaced and at best self-serving.
He said the EU was also manipulating the expiration of the Cotonou waiver on December 31, 2007 to send panic waves to African leaders that African exporters will not have access to the European market after the deadline.
Mr Deve said
He expressed regret that in spite of the severe handicaps of the EPAs and the damage they would inflict on African economies and peoples, African leaders continued to negotiate for the EPAs, adding that “this is too much a price to pay”.
Mr Deve stated that the Cotonou agreement provided for countries not to sign on EPAs and said “African civil society organisations therefore call on our governments and negotiators to call the bluff of the European Union and reject the EPAs”.
CIVIL Society groups across Africa have said that African countries could still have access to the European markets if they do not sign the Economic Partnership Agreement (EPA) with the European Union (EU).
According to the civil society organisations, “the EU is bound by obligation under the Cotonou agreement, which has the force of international treaty with the ACP to maintain market access for countries that decide not to sign the EPAs.”
They described as false the European Union’s (EU’s) assertion that products from Africa would not have access to EU markets if African countries failed to sign the Economic Partnership Agreement.
“African countries do not need to sign EPAs to maintain their current market access levels to the European Union”, the civil society groups stated.
At a press conference, after a three-day strategic meeting in Accra, Civil Society Groups from about 30 African countries condemned the EU for abusing the December deadline to put unjustifiable pressure on African governments to concede to its terms.
Mr Thomas Deve, Project Officer for Mwengo, a Civil Society group from Zimbabwe, said African had everything to lose and nothing to gain by signing the Economic Partnership Agreements with the EU.
He said African countries could adopt the General System of Preference plus (GSP+) which would enable African countries to have access to EU market at levels similar to what they enjoy currently, adding that, “this can even be improved”.
He said “signing the EPA will trigger severe loss of jobs, threaten the peace of the continent, strangle Africa’s right to evolve and pursue its own agenda and lead to recolonisation of Africa by Europe.
Mr Deve added that the EPA, if signed would lead to the elimination of tariffs but any tariff reduction and elimination would necessarily involve huge fiscal costs and many costs of implementation for Africa and other African and Pacific (ACP) countries.
He said the EU promise of €2 billion under the European Development Fund (EDF) to help with the cost of adjustment under the EPAs was false, misplaced and at best self-serving.
He said the EU was also manipulating the expiration of the Cotonou waiver on December 31, 2007 to send panic waves to African leaders that African exporters will not have access to the European market after the deadline.
Mr Deve said
He expressed regret that in spite of the severe handicaps of the EPAs and the damage they would inflict on African economies and peoples, African leaders continued to negotiate for the EPAs, adding that “this is too much a price to pay”.
Mr Deve stated that the Cotonou agreement provided for countries not to sign on EPAs and said “African civil society organisations therefore call on our governments and negotiators to call the bluff of the European Union and reject the EPAs”.
Ghana, South Africa to strengthen eco ties
Story: Boahene Asamoah
GHANA and South Africa have agreed to strengthen trade links in agriculture, market access and investment in agro-processing.
The two countries also agreed to ensure technology transfer , co-operation in eco-tourism, infrastructural development and cultivation of forest plantation.
This was the outcome of a three-day technical meeting between the two countries on the Implementation of the Decisions on Trade, Investment, Tourism and Mining of the Permanent Joint Commission for Co-operation held in Accra.
Ghana and South Africa established a Permanent Joint Commission for Co-operation in Pretoria in May, 2007.
Following the establishment of the commission, a three-member delegation from the West African Bilateral Department of Trade and Industry of South Africa visited the country last week to begin a four-day technical meeting.
The South African delegation was led by Mrs Hester Obisi, the Director of the West Africa Bilaterals, Department of Trade and Industry of South Africa. The Ghanaian delegation was headed by the Executive Secretary of the Ghana Exports Promotion Council (GEPC), Mr Edward Collins Boateng.
A report issued at the end of the four-day technical meeting recommended the harmonisation of rules, regulations and standards for import and export of fauna and flora.
The report said Ghana reiterated the importance of the agro-processing sector to its economic development, and called for the deepening of Ghana-South African ties.
The delegates also agreed on exploring the possibility of accessing the Southern African Development Commission (SADC) markets through South Africa.
According to the report, Ghana invited South Africa to take advantage of opportunities in the agri-business and agro-processing industry to invest in the sector.
To that end, the two countries took note of the existing feasibility studies undertaken by the Federation of Associations of Ghanaian Exporters (FAGE) and the Post Harvest Technologies of South Africa for the establishment of an agro-processing factory in the country.
The report said the South African delegation was interested in learning from Ghana about some projects like the President’s Special Initiative, low cost housing, human resource development, bio fuels, transportation and communications infrastructure, tourism infrastructure, small business and co-operatives development and waste management.
The report said the two countries agreed on the need for an appropriate legal framework for preferential market access arrangements between the two countries, and also to speed up the legal process to ensure the coming into force of the bilateral trade agreement and the Memorandum of Understanding on economic co-operation.
GHANA and South Africa have agreed to strengthen trade links in agriculture, market access and investment in agro-processing.
The two countries also agreed to ensure technology transfer , co-operation in eco-tourism, infrastructural development and cultivation of forest plantation.
This was the outcome of a three-day technical meeting between the two countries on the Implementation of the Decisions on Trade, Investment, Tourism and Mining of the Permanent Joint Commission for Co-operation held in Accra.
Ghana and South Africa established a Permanent Joint Commission for Co-operation in Pretoria in May, 2007.
Following the establishment of the commission, a three-member delegation from the West African Bilateral Department of Trade and Industry of South Africa visited the country last week to begin a four-day technical meeting.
The South African delegation was led by Mrs Hester Obisi, the Director of the West Africa Bilaterals, Department of Trade and Industry of South Africa. The Ghanaian delegation was headed by the Executive Secretary of the Ghana Exports Promotion Council (GEPC), Mr Edward Collins Boateng.
A report issued at the end of the four-day technical meeting recommended the harmonisation of rules, regulations and standards for import and export of fauna and flora.
The report said Ghana reiterated the importance of the agro-processing sector to its economic development, and called for the deepening of Ghana-South African ties.
The delegates also agreed on exploring the possibility of accessing the Southern African Development Commission (SADC) markets through South Africa.
According to the report, Ghana invited South Africa to take advantage of opportunities in the agri-business and agro-processing industry to invest in the sector.
To that end, the two countries took note of the existing feasibility studies undertaken by the Federation of Associations of Ghanaian Exporters (FAGE) and the Post Harvest Technologies of South Africa for the establishment of an agro-processing factory in the country.
The report said the South African delegation was interested in learning from Ghana about some projects like the President’s Special Initiative, low cost housing, human resource development, bio fuels, transportation and communications infrastructure, tourism infrastructure, small business and co-operatives development and waste management.
The report said the two countries agreed on the need for an appropriate legal framework for preferential market access arrangements between the two countries, and also to speed up the legal process to ensure the coming into force of the bilateral trade agreement and the Memorandum of Understanding on economic co-operation.
BoG-MiDA sign $82.4 agreement
Story: Boahene Asamoah
THE Millennium Development Authority (MiDA) and the Bank of Ghana (BoG) yesterday signed an $82.4 million agreement for the implementation of an agricultural credit and financial service activities under the Millennium Challenge Compact.
The amount comprise a revolving facility of $58.4 million under the Agricultural Credit Activity — which includes $40.7 million as credit and $17.7 million for capacity building — and $24 million for the financial services activity.
The Chief Executive Officer of MiDA, Mr Martin Esson Benjamin, said at the ceremony that the agricultural credit programme of the fund would be issued to support an on-lending facility for the production of high-value horticultural and staple food crops and to finance related value chain activities in the 23 districts covered under the Millennium Challenge Account (MCA).
The MiDA is the authority set up to manage Ghana’s $547 million MCA compact signed between Ghana and the United States of America (USA).
Mr Esson-Benjamin stated that under the agriculture credit programme, funds would be made available through participating financial institutions to be accredited by the BoG.
He said group loans would be granted to farmer-based institutions which graduated from MiDA-run training programmes and also to support micro and small enterprises engaged in production, transportation, storage, marketing, processing and related value added activities involving high value horticultural crops.
He said the financial services activity which was in two parts was aimed at improving the National Payment system.
MiDA is providing a grant for the cheque codeline clearing system and the automated clearing house system at the BoG as well as funding the review of the National Payment System laws, the CEO stated.
Under the financial services activity, MCA funds would be used to sponsor a three-year nation-wide public awareness campaign on the use of the payment systems available through the banking sector.
Mr Esson-Benjamin added that MiDA would also fund the computerisation and automation of all rural banks in the country and to some extent, savings and loans companies, in collaboration with the ARB Apex Bank.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the agreement was in line with the bank’s financial sector strategy.
He said the central bank had started the Ghana Interbank Payment System, a comprehensive platform for the financial sector, which involved the use of a biometric smart card.
Dr Acquah said the system would ensure an electronic means of payment that would be used to reach a large majority of the unbanked in the country.
THE Millennium Development Authority (MiDA) and the Bank of Ghana (BoG) yesterday signed an $82.4 million agreement for the implementation of an agricultural credit and financial service activities under the Millennium Challenge Compact.
The amount comprise a revolving facility of $58.4 million under the Agricultural Credit Activity — which includes $40.7 million as credit and $17.7 million for capacity building — and $24 million for the financial services activity.
The Chief Executive Officer of MiDA, Mr Martin Esson Benjamin, said at the ceremony that the agricultural credit programme of the fund would be issued to support an on-lending facility for the production of high-value horticultural and staple food crops and to finance related value chain activities in the 23 districts covered under the Millennium Challenge Account (MCA).
The MiDA is the authority set up to manage Ghana’s $547 million MCA compact signed between Ghana and the United States of America (USA).
Mr Esson-Benjamin stated that under the agriculture credit programme, funds would be made available through participating financial institutions to be accredited by the BoG.
He said group loans would be granted to farmer-based institutions which graduated from MiDA-run training programmes and also to support micro and small enterprises engaged in production, transportation, storage, marketing, processing and related value added activities involving high value horticultural crops.
He said the financial services activity which was in two parts was aimed at improving the National Payment system.
MiDA is providing a grant for the cheque codeline clearing system and the automated clearing house system at the BoG as well as funding the review of the National Payment System laws, the CEO stated.
Under the financial services activity, MCA funds would be used to sponsor a three-year nation-wide public awareness campaign on the use of the payment systems available through the banking sector.
Mr Esson-Benjamin added that MiDA would also fund the computerisation and automation of all rural banks in the country and to some extent, savings and loans companies, in collaboration with the ARB Apex Bank.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the agreement was in line with the bank’s financial sector strategy.
He said the central bank had started the Ghana Interbank Payment System, a comprehensive platform for the financial sector, which involved the use of a biometric smart card.
Dr Acquah said the system would ensure an electronic means of payment that would be used to reach a large majority of the unbanked in the country.
Inflation up by 0.3%
Story: Boahene Asamoah
THE Consumer Price Index (CPI), which measures the annual rate of changes in the prices of goods and services in the country, for the month of August this year, inched up by 0.3 per cent to 10.4 per cent, from the previous month’s figure of 10.1 per cent.
Announcing the figures at the press conference yesterday, the Deputy Government Statistician, Prof. Nicholas N.N. Nsowah-Nuamah, said the non-food group contributed to the upward increase of the CPI by 0.47 points.
The rate showed signs of easing off after dropping to 10.7 per cent in June from 11 per cent recorded in May. In the month of April the rate stood at 10.5 per cent
Earlier in the year the rate had fallen from 10.9 to 10.4 per cent between January and February 2007.
Prof Nsowah-Nuamah said under the non-food group, transportation contributed the highest of the CPI, with a gain of 0.21 points, and pointed out that the food and beverages group contributed negatively to the change.
In July, the National Petroleum Authority (NPA) announced an increase in the petroleum. Anaylsts believe that the upward move in the petroleum prices might have caused the increase in transportation.
Prof Nsowah-Nuamah said the health group under the non-food component also increased by 0.06 points, while housing, water, electricity, gas and other utilities accounted for 0.05 points increase.
He said within the food and beverages group, fish recorded the highest downward movement of negative 0.16 points to the change in the national index with smoked herrings, ‘kpala’ and dried fish contributing negatives of 0.17 points, 0.02 points and 0.01 points respectively.
The Ghana Statistical Service has re-based the CPI year to 2002 from the old base year of 1997, starting from January this year.
The new base year featured a number of changes as compared to the old one, which included the updates in the weights of the consumption basket from the 1991/1992 Ghana Living Standards Survey (GLSS) expenditure levels to the 1989/1999 GLSS expenditure levels”.
Additionally, the presentation of the CPI had been expanded to include indices on the 10 regions of the country.
THE Consumer Price Index (CPI), which measures the annual rate of changes in the prices of goods and services in the country, for the month of August this year, inched up by 0.3 per cent to 10.4 per cent, from the previous month’s figure of 10.1 per cent.
Announcing the figures at the press conference yesterday, the Deputy Government Statistician, Prof. Nicholas N.N. Nsowah-Nuamah, said the non-food group contributed to the upward increase of the CPI by 0.47 points.
The rate showed signs of easing off after dropping to 10.7 per cent in June from 11 per cent recorded in May. In the month of April the rate stood at 10.5 per cent
Earlier in the year the rate had fallen from 10.9 to 10.4 per cent between January and February 2007.
Prof Nsowah-Nuamah said under the non-food group, transportation contributed the highest of the CPI, with a gain of 0.21 points, and pointed out that the food and beverages group contributed negatively to the change.
In July, the National Petroleum Authority (NPA) announced an increase in the petroleum. Anaylsts believe that the upward move in the petroleum prices might have caused the increase in transportation.
Prof Nsowah-Nuamah said the health group under the non-food component also increased by 0.06 points, while housing, water, electricity, gas and other utilities accounted for 0.05 points increase.
He said within the food and beverages group, fish recorded the highest downward movement of negative 0.16 points to the change in the national index with smoked herrings, ‘kpala’ and dried fish contributing negatives of 0.17 points, 0.02 points and 0.01 points respectively.
The Ghana Statistical Service has re-based the CPI year to 2002 from the old base year of 1997, starting from January this year.
The new base year featured a number of changes as compared to the old one, which included the updates in the weights of the consumption basket from the 1991/1992 Ghana Living Standards Survey (GLSS) expenditure levels to the 1989/1999 GLSS expenditure levels”.
Additionally, the presentation of the CPI had been expanded to include indices on the 10 regions of the country.
Monday, August 27, 2007
Monetary union A must for West Afric
Story: Boahene Asamoah
THE Director-General of the West African Institute for Financial and Economic Management (WAIFEM), Dr Chris Itsede, has called on member states of the West African Monetary Zone (WAMZ) to enter into monetary co-operation under a framework of currency convertibility and macroeconomics policy harmonisation.
That, he said, “if actualised, will pave the way for the realisation of the ultimate goal of a single currency and centralised monetary authority”.
Speaking at the opening workshop on Practical Aspects of Economic and Financial Analysis for journalists in Lagos, Nigeria, Dr Itsede stated that the rising trend of globalisation strongly underscored the urgent need for WAMZ member states to enter into a monetary co-operation.
The workshop was to upgrade the knowledge and skills of editors, journalists and other media practitioners from West Africa on economic and financial policy formulation, analysis, performance, monitoring and reporting.
He observed that the issue of national currencies for intra-regional trade finance in West Africa had generated debate on the issue for some time and called on policy makers to hasten the process of currency convertibility.
He mentioned some of the benefits in formalising the use of WAMZ currencies in intra-regional trade transactions as the opportunity to trade in a bigger markets, reduction in transaction costs and the elimination of exchange rate risks among participating countries.
The director-general, however, stated that while the informal sector was actively involved in the free convertibility of regional currencies, the bulk of intra-regional trade was still based on cash transactions.
“This form of trade has little prospects of meeting the objective of a single economic space in the sub-region,” he stated.
On the single monetary zone, he said, “while the WAMZ project is on course to materialise in December 2009, intra-WAMZ trade can be promoted, through the use of local currencies in intra-regional transactions.”
Dr Itsede stated the latest progress report that indicated noticeable improvement in macroeconomic convergence in the region, adding that two countries, Nigeria and The Gambia, met all the four primary convergence criteria, while Ghana, Guinea and Sierra Leone met two, one and three of the primary criteria respectively.
The director-general of WAIFEM said “the press plays a critical role of informing and educating the public about economic and financial policy choices and transmitting feedback to policymakers on the impact and effects of their policies in order for a corrective action to be taken”. Dr Itsede stated.
Twenty-nine middle, senior and executive level officials involved in editing, reporting and producing macroeconomic and financial news from the public and private sectors of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone attended the one-week workshop.
THE Director-General of the West African Institute for Financial and Economic Management (WAIFEM), Dr Chris Itsede, has called on member states of the West African Monetary Zone (WAMZ) to enter into monetary co-operation under a framework of currency convertibility and macroeconomics policy harmonisation.
That, he said, “if actualised, will pave the way for the realisation of the ultimate goal of a single currency and centralised monetary authority”.
Speaking at the opening workshop on Practical Aspects of Economic and Financial Analysis for journalists in Lagos, Nigeria, Dr Itsede stated that the rising trend of globalisation strongly underscored the urgent need for WAMZ member states to enter into a monetary co-operation.
The workshop was to upgrade the knowledge and skills of editors, journalists and other media practitioners from West Africa on economic and financial policy formulation, analysis, performance, monitoring and reporting.
He observed that the issue of national currencies for intra-regional trade finance in West Africa had generated debate on the issue for some time and called on policy makers to hasten the process of currency convertibility.
He mentioned some of the benefits in formalising the use of WAMZ currencies in intra-regional trade transactions as the opportunity to trade in a bigger markets, reduction in transaction costs and the elimination of exchange rate risks among participating countries.
The director-general, however, stated that while the informal sector was actively involved in the free convertibility of regional currencies, the bulk of intra-regional trade was still based on cash transactions.
“This form of trade has little prospects of meeting the objective of a single economic space in the sub-region,” he stated.
On the single monetary zone, he said, “while the WAMZ project is on course to materialise in December 2009, intra-WAMZ trade can be promoted, through the use of local currencies in intra-regional transactions.”
Dr Itsede stated the latest progress report that indicated noticeable improvement in macroeconomic convergence in the region, adding that two countries, Nigeria and The Gambia, met all the four primary convergence criteria, while Ghana, Guinea and Sierra Leone met two, one and three of the primary criteria respectively.
The director-general of WAIFEM said “the press plays a critical role of informing and educating the public about economic and financial policy choices and transmitting feedback to policymakers on the impact and effects of their policies in order for a corrective action to be taken”. Dr Itsede stated.
Twenty-nine middle, senior and executive level officials involved in editing, reporting and producing macroeconomic and financial news from the public and private sectors of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone attended the one-week workshop.
Another US programme to boost agric
Story: Boahene Asamoah Lucy & Adoma Yeboah
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
ADB, Stanbic merger must benefit farmers- J.H. Mensah
J.H. Mensah (fin)
Story: Boahene Asamoah
THE Chairman of the National Development Planning Commission, Mr J.H. Mensah has said that any arrangement or instrument that would ensure that farmers benefited under the proposed merger between Agricultural Development Bank (ADB) and the Stanbic Bank, should be pursued.
He said the argument of the proposed merger should be that of “an instrument providing for the welfare of farmers”, adding “that ADB is not an instrument for the staff and management’s welfare”.
He cautioned the country to take a lesson from the defunct Ghana Airways, where, he said, was the airline was used as a welfare for management and staff in which the country was saddled with a huge loss of $670 million.
Stanbic Bank, a subsidiary of Standard Bank of South Africa, one of the biggest banks in Africa, has launched a bid to take-over the shares of Bank of Ghana, which has 49 per cent shares in the bank.
However, unionised staff and some civil society groups have also launched its opposition to the bid for the merger with Standard Bank, citing fears of the bank’s losing its support for the agricultural sector and also loss of jobs.
Mr Mensah who made this known at the opening of a two-day Bank of Ghana Golden Jubilee Anniversary Symposium in Accra yesterday said “the argument is not about the intended beneficiaries in the proposed take-over” adding the “argument should be the instrument for providing for the welfare of farmers” and further urged the Bank of Ghana to go ahead with any arrangement that would ensure the welfare of farmers in the country.
The symposium which forms part of the 50 years celebration of the Bank of Ghana is on the theme “50 years of Central Banking and the Millennium Development Goals”.
On the performance of the central bank in the country over the past 50 years, Mr Mensah said the Bank of Ghana had played a crucial role in the various turning points in the country’s history and said the challenge now was how to fashion out a programme to ensure the achievement of the MDGs by 2015.
“This economy has to move more faster than it should and begin to leap”, he stated adding that BoG has a play a critical role in facilitating the envisaged growth and development.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu stated that the achievement of the Millennium Development Goals (MDGs) by 2015 called for an accelerated growth and the adoption of pro-poor policies.
He said the country over the past six years had achieved the remarkable stability needed for economic growth and development.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the process of accelerated growth posed a great challenge to all, especially in developing countries such as Ghana.
That, he said stemmed from rising expectations as a result of significant structural reforms and dis-inflation among other policies.
He said the Bank of Ghana had chosen inflation targeting as the core of its monetary policies and was committed to it.
Dr Acquah said the symposium would discuss issues of monetary policy, financial markets, mutual funds, global competitiveness and accelerating growth strategies and business environment.
Story: Boahene Asamoah
THE Chairman of the National Development Planning Commission, Mr J.H. Mensah has said that any arrangement or instrument that would ensure that farmers benefited under the proposed merger between Agricultural Development Bank (ADB) and the Stanbic Bank, should be pursued.
He said the argument of the proposed merger should be that of “an instrument providing for the welfare of farmers”, adding “that ADB is not an instrument for the staff and management’s welfare”.
He cautioned the country to take a lesson from the defunct Ghana Airways, where, he said, was the airline was used as a welfare for management and staff in which the country was saddled with a huge loss of $670 million.
Stanbic Bank, a subsidiary of Standard Bank of South Africa, one of the biggest banks in Africa, has launched a bid to take-over the shares of Bank of Ghana, which has 49 per cent shares in the bank.
However, unionised staff and some civil society groups have also launched its opposition to the bid for the merger with Standard Bank, citing fears of the bank’s losing its support for the agricultural sector and also loss of jobs.
Mr Mensah who made this known at the opening of a two-day Bank of Ghana Golden Jubilee Anniversary Symposium in Accra yesterday said “the argument is not about the intended beneficiaries in the proposed take-over” adding the “argument should be the instrument for providing for the welfare of farmers” and further urged the Bank of Ghana to go ahead with any arrangement that would ensure the welfare of farmers in the country.
The symposium which forms part of the 50 years celebration of the Bank of Ghana is on the theme “50 years of Central Banking and the Millennium Development Goals”.
On the performance of the central bank in the country over the past 50 years, Mr Mensah said the Bank of Ghana had played a crucial role in the various turning points in the country’s history and said the challenge now was how to fashion out a programme to ensure the achievement of the MDGs by 2015.
“This economy has to move more faster than it should and begin to leap”, he stated adding that BoG has a play a critical role in facilitating the envisaged growth and development.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu stated that the achievement of the Millennium Development Goals (MDGs) by 2015 called for an accelerated growth and the adoption of pro-poor policies.
He said the country over the past six years had achieved the remarkable stability needed for economic growth and development.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the process of accelerated growth posed a great challenge to all, especially in developing countries such as Ghana.
That, he said stemmed from rising expectations as a result of significant structural reforms and dis-inflation among other policies.
He said the Bank of Ghana had chosen inflation targeting as the core of its monetary policies and was committed to it.
Dr Acquah said the symposium would discuss issues of monetary policy, financial markets, mutual funds, global competitiveness and accelerating growth strategies and business environment.
PPI inches up
Proofread by era
Story: Boahene Asamoah
THE Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers or the production of goods and services for the month of June inched up b y 1.39 per cent.
This was as a result of the upward increase in the manufacturing index which climbed up by 2.54 per cent.
For the month of May, the all industry index stood at 3.20 per cent.
Announcing the index, the acting Government Statistician, Prof Nicholas N.N. Nsowah-Nuamah, said the utility index did not show any change, whiles the mining index dropped by 4.9 per cent.
He said the mining index continued to fall after decreasing by 3.24 per cent in May this year, adding that “the fall in the June index is accounted for by the decrease for mining of non-ferrous metal ores except uranium and thorium ores of 4.40 per cent, following a similar decline of 3.40 per cent”.
Prof Nsowah-Nuamah said the index for quarrying of stone, sand and clay remained basically the same at 0.03 per cent since the previous quarrying month of May did not change.
The acting Government Statistician explained that the manufacture of plastic products, basic chemicals, wood, cork straw and plating materials, grain mill product, starches and prepared animal feeds spearheaded the rise in the manufacturing index.
He said the manufacturing of motor vehicles, trailers and semi-trailer and manufacture of other food products showed high declines in their index.
Prof Nsowah-Nuamah said the utilities which comprised of production and distribution of electricity and water did not change, after it jumped 17.73 per cent in May 2007.
The PPI measures price change from the perspective of the purchaser and contrasts with other measures such as the Consumer Price Index (CPI).
Prices of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for almost every industry from mining, manufacturing, and the utilities sector of the Ghanaian economy.
Story: Boahene Asamoah
THE Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers or the production of goods and services for the month of June inched up b y 1.39 per cent.
This was as a result of the upward increase in the manufacturing index which climbed up by 2.54 per cent.
For the month of May, the all industry index stood at 3.20 per cent.
Announcing the index, the acting Government Statistician, Prof Nicholas N.N. Nsowah-Nuamah, said the utility index did not show any change, whiles the mining index dropped by 4.9 per cent.
He said the mining index continued to fall after decreasing by 3.24 per cent in May this year, adding that “the fall in the June index is accounted for by the decrease for mining of non-ferrous metal ores except uranium and thorium ores of 4.40 per cent, following a similar decline of 3.40 per cent”.
Prof Nsowah-Nuamah said the index for quarrying of stone, sand and clay remained basically the same at 0.03 per cent since the previous quarrying month of May did not change.
The acting Government Statistician explained that the manufacture of plastic products, basic chemicals, wood, cork straw and plating materials, grain mill product, starches and prepared animal feeds spearheaded the rise in the manufacturing index.
He said the manufacturing of motor vehicles, trailers and semi-trailer and manufacture of other food products showed high declines in their index.
Prof Nsowah-Nuamah said the utilities which comprised of production and distribution of electricity and water did not change, after it jumped 17.73 per cent in May 2007.
The PPI measures price change from the perspective of the purchaser and contrasts with other measures such as the Consumer Price Index (CPI).
Prices of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for almost every industry from mining, manufacturing, and the utilities sector of the Ghanaian economy.
Free Zones Board offers incentives to investors
Free Zones (fin)
Story: Boahene Asamoah
The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.
Story: Boahene Asamoah
The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.
Monday, July 30, 2007
laise with appropriate ministries-event organisers told
(fin)
Story: Boahene Asamoah
THE Chief Director at the Ministry of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiative (PSI), Mr Seth Evans Addo, has called on international events organisers to liaise with the appropriate government agencies in the planning of events to ensure their success.
He said lack of co-ordination had characterised many such events, leading to their failure to achieve the aims.
Mr Addo made this known at the launch of the first All African Business Summit in Accra on Thursday.
The summit, which comes of on September 6 to 8 this year in Accra, will attract business executives and firms from 20 African countries as well as foreign investors around the world.
Mr Addo said “it is advisable to liaise with the relevant public agencies to ensure that both planning and execution of such events are done without any hitches” and called for a mechanism to track the effectiveness of such summits so as to ensure that their objectives were achieved.
Speaking at the ceremony, a Deputy Minister of Trade, Industry, PSD and PSI, Mr Kwadwo Affram Aseidu, said the holding of the summit in the country was historical, and that this was the first time a business summit was being organised by the private sector in Africa.
He said the government would lend its support to the private sector to enable it to brace itself for the challenges of globalisation.
“The growing interest that our development partners are showing in the region, particularly the United States, the European Union, Japan, China and India presents us with a challenge”
The Chief Executive Officer and President of Kingsworld Limited, Mr Gordon Adjei, said the aim of the summit was to foster intra-African trade and present the continent as an venue for doing business.
He stated that the summit would tackle three major topics, namely; strategies for promoting successful intra-African trade, pulling down trade barriers and showcasing investment attractions in Africa.
Mr Adjei said over 20 countries had confirmed their participation in the event, and expressed the hope that many more countries would soon be attracted to the summit.
He emphasised the need for trade among African countries to ensure the development of the African continent.
Story: Boahene Asamoah
THE Chief Director at the Ministry of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiative (PSI), Mr Seth Evans Addo, has called on international events organisers to liaise with the appropriate government agencies in the planning of events to ensure their success.
He said lack of co-ordination had characterised many such events, leading to their failure to achieve the aims.
Mr Addo made this known at the launch of the first All African Business Summit in Accra on Thursday.
The summit, which comes of on September 6 to 8 this year in Accra, will attract business executives and firms from 20 African countries as well as foreign investors around the world.
Mr Addo said “it is advisable to liaise with the relevant public agencies to ensure that both planning and execution of such events are done without any hitches” and called for a mechanism to track the effectiveness of such summits so as to ensure that their objectives were achieved.
Speaking at the ceremony, a Deputy Minister of Trade, Industry, PSD and PSI, Mr Kwadwo Affram Aseidu, said the holding of the summit in the country was historical, and that this was the first time a business summit was being organised by the private sector in Africa.
He said the government would lend its support to the private sector to enable it to brace itself for the challenges of globalisation.
“The growing interest that our development partners are showing in the region, particularly the United States, the European Union, Japan, China and India presents us with a challenge”
The Chief Executive Officer and President of Kingsworld Limited, Mr Gordon Adjei, said the aim of the summit was to foster intra-African trade and present the continent as an venue for doing business.
He stated that the summit would tackle three major topics, namely; strategies for promoting successful intra-African trade, pulling down trade barriers and showcasing investment attractions in Africa.
Mr Adjei said over 20 countries had confirmed their participation in the event, and expressed the hope that many more countries would soon be attracted to the summit.
He emphasised the need for trade among African countries to ensure the development of the African continent.
Another US programme to boost agric
Story: Boahene Asamoah Lucy & Adoma Yeboah
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
New US initiative for Africa— To boost capital markets
Story: Boahene Asamoah
THE President of the United States of America (USA), Mr George W. Bush Jnr., has announced a new initiative to support the development of capital markets in Africa.
The African Financial Sector Initiative is a policy to provide technical assistance and help mobilise billions of dollars from US private funds for investments in capital markets across Africa.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, President Bush stated that the initiative would help African countries to access private equity through mutual funds to help boost investments on the continent.
“The United States of America is committed to helping Africa,” he said, adding that initiatives such as AGOA and the Millennium Challenge Accounts (MCA) were aimed at promoting trade and investments in Africa.
President Bush said "the success of AGOA is proving that open trade and international investment are the surest and fastest ways for Africa to make progress" and expressed how proud he was last year to sign into law an extension of benefits of the AGOA legislation, which he called a "vital programme".
“This is a hopeful moment in the history of Africa; the governments of many African nations are being transformed. AGOA is getting results and political reforms in Africa have inspired confidence among American investors,” the US President said.
President Bush noted that last year U.S. exports to sub-Saharan Africa increased 25 by per cent and America's imports from AGOA eligible countries rose by 88 per cent.
"I am confident that your efforts will lead to greater interest and investment in AGOA nations," he told the gathering.
He said discussions at the AGOA forum were vital to further expand and diversify trade so that economic growth could be sustained.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa. The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries.
AGOA rewards reforming countries with preferences that have been proven to help reduce barriers to trade, increase exports, create jobs, and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE President of the United States of America (USA), Mr George W. Bush Jnr., has announced a new initiative to support the development of capital markets in Africa.
The African Financial Sector Initiative is a policy to provide technical assistance and help mobilise billions of dollars from US private funds for investments in capital markets across Africa.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, President Bush stated that the initiative would help African countries to access private equity through mutual funds to help boost investments on the continent.
“The United States of America is committed to helping Africa,” he said, adding that initiatives such as AGOA and the Millennium Challenge Accounts (MCA) were aimed at promoting trade and investments in Africa.
President Bush said "the success of AGOA is proving that open trade and international investment are the surest and fastest ways for Africa to make progress" and expressed how proud he was last year to sign into law an extension of benefits of the AGOA legislation, which he called a "vital programme".
“This is a hopeful moment in the history of Africa; the governments of many African nations are being transformed. AGOA is getting results and political reforms in Africa have inspired confidence among American investors,” the US President said.
President Bush noted that last year U.S. exports to sub-Saharan Africa increased 25 by per cent and America's imports from AGOA eligible countries rose by 88 per cent.
"I am confident that your efforts will lead to greater interest and investment in AGOA nations," he told the gathering.
He said discussions at the AGOA forum were vital to further expand and diversify trade so that economic growth could be sustained.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa. The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries.
AGOA rewards reforming countries with preferences that have been proven to help reduce barriers to trade, increase exports, create jobs, and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
EPA must be flexible-Says Minister of Trade, Industy
Story: Boahene Asamoah and Lucy Adoma Yeboah
THE outgoing Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, has said that the Economic Partnership Agreements (EPAs) between African, Caribbean and Pacific (ACP) countries and the European Union (EU) should be flexible and take on board sensitive sectors of the economy of West African countries.
“The negotiations on the EPAs should be flexible, taking into consideration sensitive areas, such as fiscal policies and market access, of member countries of ECOWAS,” he said.
Mr Kyerematen said this at the ministerial session on the EPAs negotiations between West Africa and the EU Ministerial Monitoring Committee meeting in Accra yesterday.
The outgoing minister said there must also be a flexible transition period and stated that given the time frame and the need to finalise key policies, it was unlikely that agreements could be implemented in January 2008, even if they were signed in December this year.
Mr Kyerematen called for interim measures to be considered in the event that all the negotiations were met before the December 2007 deadline and acknowledged that issues such as market access and the impact of the EPAs on customs were some of the challenges facing the agreements.
He said a major challenge was the lack of capacity of West African states to supply requirements of their products and urged the EU to implement all capacity-building commitments undertaken under the Cotonou Agreement.
The minister said there was the need to build the export competitiveness of products from the sub-region, since that was “indispensable” to the EPAs and to ensure the competitiveness of African products.
The President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, said the EPAs “should not only be trade agreements but also have development dimensions”.
He said “the sum of €334 million pledged by our development partners to underpin the EPAs in the region is far below our expectations and clearly inadequate to kick-start the development of the West African economy, build our productive capacity and mitigate budgetary losses”.
The EPAs are a trade document expected to be signed by the EU and ACP countries, which include countries in the West African sub-region.
The EPAs, which are expected to be signed by December this year, have attracted criticism from civil society groups whose main concerns are access to European markets and the uncompetitiveness of products from the sub-region.
Meanwhile African countries have been charged to take advantage of the AGOA since the dispensation will not be forever.
Mr Kyerematen, gave the advice at the First Experts’ Meeting of the African Ministerial Consultative Group on AGOA in Accra yesterday.
“Let us remember that AGOA will not remain open to Africa for ever. So let us take advantage of it to transform our economies and build up our competitiveness for the present and the future,” he stressed.
Addressing participants from AGOA eligible sub-Saharan African countries, he said it was unfortunate for African countries to waste the opportunity to export any of the 6,400 products duty free and quota-free to the largest consumer market in the world, worth trillions of dollars.
The Experts’ Meeting of the African Ministerial Consultative Group is part of the 6th AGOA Forum taking place in Accra between July 16 and 19, 2007, on the theme: “Trade Grows, Africa Prospers: Optimising the Benefits Under AGOA”.
The theme for the Accra forum is to reflect on how to encourage countries to diversify their exports by taking advantage of the broad range of products eligible for preferential treatment under the act.
Mr Kyerematen said in spite of the obvious benefits to be gained by African countries from that landmark initiative, the progress made in several countries was regrettably slow, and therefore the impact on most economies insignificant.
He explained that the problem was partly due to the lack of capacity to organise production on a competitive basis to take advantage of the huge market potential in the United States.
“Many countries are yet to identify the comparative or competitive advantage that they have within the diversified product range under AGOA,” he observed.
He also blamed the shortfall on the lack of strategic focus on the kind of policy, legal, institutional and support framework that would assist the private sector to produce items which would be accepted at the international market.
Mr Kyerematen reiterated that there was the need for African countries to strive to produce a variety of products on a mass scale for export in order to create jobs, earn foreign exchange, thereby increasing the level of income, particularly for the disadvantaged and the vulnerable.
“Most of our countries have depended almost exclusively on one or two major export commodities as our economic backbone for the past five to 10 decades,” he said, adding that such countries also failed to add value to their products to enable them earn higher.
This year’s forum, unlike previous ones, has been structured as an integrated event with joint or concurrent participation by the United States and African government officials as well as private sector and civil society representatives.
An exhibition has been mounted alongside the forum at the Accra International Conference Centre (AICC) to enable some selected exhibitors to showcase their locally made products under AGOA.
Items on display are mainly garments, beverages, beads, ornaments, herbal medicines and leather wares.
THE outgoing Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, has said that the Economic Partnership Agreements (EPAs) between African, Caribbean and Pacific (ACP) countries and the European Union (EU) should be flexible and take on board sensitive sectors of the economy of West African countries.
“The negotiations on the EPAs should be flexible, taking into consideration sensitive areas, such as fiscal policies and market access, of member countries of ECOWAS,” he said.
Mr Kyerematen said this at the ministerial session on the EPAs negotiations between West Africa and the EU Ministerial Monitoring Committee meeting in Accra yesterday.
The outgoing minister said there must also be a flexible transition period and stated that given the time frame and the need to finalise key policies, it was unlikely that agreements could be implemented in January 2008, even if they were signed in December this year.
Mr Kyerematen called for interim measures to be considered in the event that all the negotiations were met before the December 2007 deadline and acknowledged that issues such as market access and the impact of the EPAs on customs were some of the challenges facing the agreements.
He said a major challenge was the lack of capacity of West African states to supply requirements of their products and urged the EU to implement all capacity-building commitments undertaken under the Cotonou Agreement.
The minister said there was the need to build the export competitiveness of products from the sub-region, since that was “indispensable” to the EPAs and to ensure the competitiveness of African products.
The President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, said the EPAs “should not only be trade agreements but also have development dimensions”.
He said “the sum of €334 million pledged by our development partners to underpin the EPAs in the region is far below our expectations and clearly inadequate to kick-start the development of the West African economy, build our productive capacity and mitigate budgetary losses”.
The EPAs are a trade document expected to be signed by the EU and ACP countries, which include countries in the West African sub-region.
The EPAs, which are expected to be signed by December this year, have attracted criticism from civil society groups whose main concerns are access to European markets and the uncompetitiveness of products from the sub-region.
Meanwhile African countries have been charged to take advantage of the AGOA since the dispensation will not be forever.
Mr Kyerematen, gave the advice at the First Experts’ Meeting of the African Ministerial Consultative Group on AGOA in Accra yesterday.
“Let us remember that AGOA will not remain open to Africa for ever. So let us take advantage of it to transform our economies and build up our competitiveness for the present and the future,” he stressed.
Addressing participants from AGOA eligible sub-Saharan African countries, he said it was unfortunate for African countries to waste the opportunity to export any of the 6,400 products duty free and quota-free to the largest consumer market in the world, worth trillions of dollars.
The Experts’ Meeting of the African Ministerial Consultative Group is part of the 6th AGOA Forum taking place in Accra between July 16 and 19, 2007, on the theme: “Trade Grows, Africa Prospers: Optimising the Benefits Under AGOA”.
The theme for the Accra forum is to reflect on how to encourage countries to diversify their exports by taking advantage of the broad range of products eligible for preferential treatment under the act.
Mr Kyerematen said in spite of the obvious benefits to be gained by African countries from that landmark initiative, the progress made in several countries was regrettably slow, and therefore the impact on most economies insignificant.
He explained that the problem was partly due to the lack of capacity to organise production on a competitive basis to take advantage of the huge market potential in the United States.
“Many countries are yet to identify the comparative or competitive advantage that they have within the diversified product range under AGOA,” he observed.
He also blamed the shortfall on the lack of strategic focus on the kind of policy, legal, institutional and support framework that would assist the private sector to produce items which would be accepted at the international market.
Mr Kyerematen reiterated that there was the need for African countries to strive to produce a variety of products on a mass scale for export in order to create jobs, earn foreign exchange, thereby increasing the level of income, particularly for the disadvantaged and the vulnerable.
“Most of our countries have depended almost exclusively on one or two major export commodities as our economic backbone for the past five to 10 decades,” he said, adding that such countries also failed to add value to their products to enable them earn higher.
This year’s forum, unlike previous ones, has been structured as an integrated event with joint or concurrent participation by the United States and African government officials as well as private sector and civil society representatives.
An exhibition has been mounted alongside the forum at the Accra International Conference Centre (AICC) to enable some selected exhibitors to showcase their locally made products under AGOA.
Items on display are mainly garments, beverages, beads, ornaments, herbal medicines and leather wares.
ECOWAS not ready for EPA-WAMI Boss
Story: Boahene Asamoah
THE Director-General of the West African Monetary Institute (WAMZ), Dr Joseph O. Nnanna, has said that member states of ECOWAS are not ready to sign the Economic Partnership Agreements (EPAs).
That was because the promises made by the European Union (EU) to African, Caribbean and Pacific (ACP) countries had not been fulfilled, he explained.
In an interview after the opening of the Ministerial Session of the Ministerial Monitoring Committee on the EPA Negotiations in Accra yesterday, Dr Nnanna said “issues of revenue loss, access to European markets and many critical constraints have not been fully addressed”.
He said the infrastructure of the sub-region had also not been fully developed and integrated to take advantage of the EPAs.
Dr Nnanna stated that the means to the economic development of the sub-region lay in intra-African trade which had not been fully exploited.
“Intra-African trade is one sure way of developing the sub-region and it will help boost investments and trade among African countries,” he said.
He cited the example of Asia where intra-Asian trade accounted for about 60 per cent of trade, while in the EU it was about 55 per cent.
He expressed regret that within the sub-region of ECOWAS, trade accounted for only 12 per cent of all trade and described it as too low for any economic development.
The director-general said efforts must be intensified to diversify trade and distribute it among ECOWAS members.
The EPAs are a set of trade agreements expected to be signed by December this year to form the legal basis of trade between the EU and ACP countries, which include countries in West Africa.
Civil society groups have largely criticised the EPAs for what they call “a lack of human face”, saying the agreements will compromise the competitiveness of African countries to export to the EU, the largest trading partner of ACP countries.
THE Director-General of the West African Monetary Institute (WAMZ), Dr Joseph O. Nnanna, has said that member states of ECOWAS are not ready to sign the Economic Partnership Agreements (EPAs).
That was because the promises made by the European Union (EU) to African, Caribbean and Pacific (ACP) countries had not been fulfilled, he explained.
In an interview after the opening of the Ministerial Session of the Ministerial Monitoring Committee on the EPA Negotiations in Accra yesterday, Dr Nnanna said “issues of revenue loss, access to European markets and many critical constraints have not been fully addressed”.
He said the infrastructure of the sub-region had also not been fully developed and integrated to take advantage of the EPAs.
Dr Nnanna stated that the means to the economic development of the sub-region lay in intra-African trade which had not been fully exploited.
“Intra-African trade is one sure way of developing the sub-region and it will help boost investments and trade among African countries,” he said.
He cited the example of Asia where intra-Asian trade accounted for about 60 per cent of trade, while in the EU it was about 55 per cent.
He expressed regret that within the sub-region of ECOWAS, trade accounted for only 12 per cent of all trade and described it as too low for any economic development.
The director-general said efforts must be intensified to diversify trade and distribute it among ECOWAS members.
The EPAs are a set of trade agreements expected to be signed by December this year to form the legal basis of trade between the EU and ACP countries, which include countries in West Africa.
Civil society groups have largely criticised the EPAs for what they call “a lack of human face”, saying the agreements will compromise the competitiveness of African countries to export to the EU, the largest trading partner of ACP countries.
AGOA eligible countries to reap benefits-— Through product diversification, capacity building
Story:Boahene Asamoah & Lucy Adoma Yeboah
ELIGIBLE countries under the African Growth and Opportunity Act (AGOA) have resolved to diversify their products and strengthen capacity building programmes to ensure that they benefited fully from the initiative.
They have also called on the private sector of the United States to invest in eligible countries and that access to finance by small- and medium-scale enterprises (SMEs) should be enhanced to ensure their participation in the initiative.
This was contained in a report delivered by Ghana’s Ambassador to the United States, Mr A.Y. Adusie, at the ongoing AGOA conference in Accra yesterday.
The report, which outlined a 22-point strategic framework for accelerating the implementation lines under the AGOA came from the Experts Meeting of the African Ministerial Consultative Group held on Monday.
The report, among other things, recommend that member countries should endeavour to formulate national trade policies that would take full advantage of the initiative, Mr Adusie said.
The group, he said, also recommended the strengthening of regional integration and the need to create the necessary infrastructure to ensure competitiveness of products from the sub-region.
The ambassador said it was also agreed that the United States (US) complimented efforts at ensuring skills training and provide technological assistance to enhance the products of AGOA eligible countries.
Making presentations on the regional deliberations, Mr Adusie observed that the regional groupings which were made up of western, central, southern, eastern and northern African countries faced similar challenges which affected their desire to take full advantage of AGOA.
He named some of the issues as low supply to meet the large demand of the US market, the stringent product requirements, high transportation cost, funding and the ability to obtain visas.
He said eligible countries also had acknowledged the need to develop exportable quantities of products to which they would add value.
“In the horticultural sector, there is the need to develop a niche market and also to diversify products,” Mr Adusie stated, and called for strong partnership among cotton producing countries.
The ambassador said that in southern Africa, the issues were how to diversify products, develop and harmonise standards, create awareness as well as develop cross border infrastructure.
In his welcoming address, the out-going Minister of Trade, Industries, Private Sector and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, said AGOA had not conferred any automatic benefits on any country but looked out for those that produced quality products and could supply in time.
He said there was, therefore, the need for individual countries to institute appropriate national strategies to enable producers to come out with the best for the US market.
Mr Kyerematen observed that Africa was yet to fully benefit from the world market since the continent attracted only two per cent of the world market.
He, therefore, advised African countries to take the AGOA initiative seriously since the opportunity for them to export 6,400 products duty- and quota-free to the United States (US) was enough to push them higher on the international market.
Mr Kyerematen took the opportunity to welcome Liberia and Mauritania who recently became AGOA eligible countries.
ELIGIBLE countries under the African Growth and Opportunity Act (AGOA) have resolved to diversify their products and strengthen capacity building programmes to ensure that they benefited fully from the initiative.
They have also called on the private sector of the United States to invest in eligible countries and that access to finance by small- and medium-scale enterprises (SMEs) should be enhanced to ensure their participation in the initiative.
This was contained in a report delivered by Ghana’s Ambassador to the United States, Mr A.Y. Adusie, at the ongoing AGOA conference in Accra yesterday.
The report, which outlined a 22-point strategic framework for accelerating the implementation lines under the AGOA came from the Experts Meeting of the African Ministerial Consultative Group held on Monday.
The report, among other things, recommend that member countries should endeavour to formulate national trade policies that would take full advantage of the initiative, Mr Adusie said.
The group, he said, also recommended the strengthening of regional integration and the need to create the necessary infrastructure to ensure competitiveness of products from the sub-region.
The ambassador said it was also agreed that the United States (US) complimented efforts at ensuring skills training and provide technological assistance to enhance the products of AGOA eligible countries.
Making presentations on the regional deliberations, Mr Adusie observed that the regional groupings which were made up of western, central, southern, eastern and northern African countries faced similar challenges which affected their desire to take full advantage of AGOA.
He named some of the issues as low supply to meet the large demand of the US market, the stringent product requirements, high transportation cost, funding and the ability to obtain visas.
He said eligible countries also had acknowledged the need to develop exportable quantities of products to which they would add value.
“In the horticultural sector, there is the need to develop a niche market and also to diversify products,” Mr Adusie stated, and called for strong partnership among cotton producing countries.
The ambassador said that in southern Africa, the issues were how to diversify products, develop and harmonise standards, create awareness as well as develop cross border infrastructure.
In his welcoming address, the out-going Minister of Trade, Industries, Private Sector and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, said AGOA had not conferred any automatic benefits on any country but looked out for those that produced quality products and could supply in time.
He said there was, therefore, the need for individual countries to institute appropriate national strategies to enable producers to come out with the best for the US market.
Mr Kyerematen observed that Africa was yet to fully benefit from the world market since the continent attracted only two per cent of the world market.
He, therefore, advised African countries to take the AGOA initiative seriously since the opportunity for them to export 6,400 products duty- and quota-free to the United States (US) was enough to push them higher on the international market.
Mr Kyerematen took the opportunity to welcome Liberia and Mauritania who recently became AGOA eligible countries.
EPACK expands access points
Story: Boahene Asamoah
DATABANK, the manager of the mutual fund, EPACK, has created a special account for Ghanaians living abroad to enable them to make medium and long-term investments to meet their financial commitments.
The Databank Homecoming Account will help Ghanaians living outside the country to meet their financial needs in the areas of real estate, retirement income, education of their wards and children and provide seed capital for start-ups.
The Executive Chairman of Databank, Mr Ken Ofori-Atta, said at the eighth annual general meeting of the EPACK in Accra on Tuesday that the product was the company’s innovation “to expand access points”.
He stated that since March this year, the company had entered into a distribution alliance with Zenith Bank Ghana Limited, to ensure that shareholders made payments into their EPACK accounts as well as withdrew cheques at all the branches of the bank.
“We are also investigating the possibility of collaborating with some information communication technology companies in the country to introduce a system which would enable investors to top up their EPACK accounts through the use of their mobile phones and special investment scratch cards,” Mr Ofori-Atta stated.
Giving details of the fund’s performance for last year, the executive chairman said the fund’s share price appreciated by 32 per cent to GH¢ 0.5708 (¢5,708) from the GH¢0.4341 (¢4,341) it recorded in 2005.
He said the fund’s market capitalisation rose by 40 per cent from GH¢10.56 million (¢105.6 billion) in 2005 to GH¢38.2 million (¢382 billion) compared to a 19 per cent appreciation in the market capitalisation of the Ghana Stock Exchange.
Mr Ofori-Atta stated that during the year under review, 9,559 new shareholders joined the fund, compared to 2,541 investors who closed their accounts.
On the outlook for this year, the chairman said “even though the stability of the economy has suffered some momentary shocks as a result of the current energy crisis and volatility in the global petroleum market, we expect the Ghanaian economy to continue to be resilient”.
He added that investors’ interest in the local market had been growing steadily and mentioned the oversubscription of the five-year Government of Ghana Bond last year as a testimony to growing investor confidence.
In a related development, the company announced a 14.47 per cent annualised yield in the Databank Money Market Fund (Mfund) as compared to the average savings rate of five per cent for the 2006 financial year.
Mr Ofori-Atta stated that given the average inflation rate of 10.24 per cent in 2006, the fund gave shareholders a real return of over four per cent during the period under review.
He said the fund’s value increased from GH¢7.28 million (¢72.8 billion) in December 2005 to GH¢11.76 billion (¢117.6 billion) at the end of last year.
He said the main challenge facing the fund was how to find new investment avenues which would not only provide yields higher than the inflation rate, but also offer better returns than those on comparable financial instruments of duration within 12 months.
“In addition, we will maximise our investments in high-yielding, but save commercial papers and certificates of deposits,” Mr Ofori-Atta said.
DATABANK, the manager of the mutual fund, EPACK, has created a special account for Ghanaians living abroad to enable them to make medium and long-term investments to meet their financial commitments.
The Databank Homecoming Account will help Ghanaians living outside the country to meet their financial needs in the areas of real estate, retirement income, education of their wards and children and provide seed capital for start-ups.
The Executive Chairman of Databank, Mr Ken Ofori-Atta, said at the eighth annual general meeting of the EPACK in Accra on Tuesday that the product was the company’s innovation “to expand access points”.
He stated that since March this year, the company had entered into a distribution alliance with Zenith Bank Ghana Limited, to ensure that shareholders made payments into their EPACK accounts as well as withdrew cheques at all the branches of the bank.
“We are also investigating the possibility of collaborating with some information communication technology companies in the country to introduce a system which would enable investors to top up their EPACK accounts through the use of their mobile phones and special investment scratch cards,” Mr Ofori-Atta stated.
Giving details of the fund’s performance for last year, the executive chairman said the fund’s share price appreciated by 32 per cent to GH¢ 0.5708 (¢5,708) from the GH¢0.4341 (¢4,341) it recorded in 2005.
He said the fund’s market capitalisation rose by 40 per cent from GH¢10.56 million (¢105.6 billion) in 2005 to GH¢38.2 million (¢382 billion) compared to a 19 per cent appreciation in the market capitalisation of the Ghana Stock Exchange.
Mr Ofori-Atta stated that during the year under review, 9,559 new shareholders joined the fund, compared to 2,541 investors who closed their accounts.
On the outlook for this year, the chairman said “even though the stability of the economy has suffered some momentary shocks as a result of the current energy crisis and volatility in the global petroleum market, we expect the Ghanaian economy to continue to be resilient”.
He added that investors’ interest in the local market had been growing steadily and mentioned the oversubscription of the five-year Government of Ghana Bond last year as a testimony to growing investor confidence.
In a related development, the company announced a 14.47 per cent annualised yield in the Databank Money Market Fund (Mfund) as compared to the average savings rate of five per cent for the 2006 financial year.
Mr Ofori-Atta stated that given the average inflation rate of 10.24 per cent in 2006, the fund gave shareholders a real return of over four per cent during the period under review.
He said the fund’s value increased from GH¢7.28 million (¢72.8 billion) in December 2005 to GH¢11.76 billion (¢117.6 billion) at the end of last year.
He said the main challenge facing the fund was how to find new investment avenues which would not only provide yields higher than the inflation rate, but also offer better returns than those on comparable financial instruments of duration within 12 months.
“In addition, we will maximise our investments in high-yielding, but save commercial papers and certificates of deposits,” Mr Ofori-Atta said.
NIB rolls out ATMs
Story: Boahene Asamoah & Rita Effah-Darteh
THE Managing Director of the National Investment Bank (NIB), Mr Daniel C. Gyimah, has said the bank will leverage on the advantages provided by information technology to transform it to be more competitive.
He said “the rapid pace of advancement in information and communication technology networking has offered a wide range of delivery channels in retail banking,” adding that “NIB will exploit these opportunities that arise from these developments and changes to remain competitive”.
Mr Gyimah made this known at the launch of the bank’s Automated Teller Machine (ATM) service dubbed Cashlink.
He said “successful financial institutions in the future would be those that were able to leverage most from the information and communications technology revolution”.
The managing director said consumers of the banking products and services were increasingly demanding more efficient banking services and becoming more knowledgeable in the power of technology.
That, he said called for innovation and creativity that would ensure that the banks took advantage of information technology to devise services and products that met the needs of its customers.
“The ability of financial institutions to deliver products and services in the most efficient and effective manner will be key to determining performance and relevance,” the managing director stated.
Mr Gyimah stated that the launch of the CashLink ATMs would pave the way for increased customer interaction with the bank.
He said the bank had commissioned five ATMs in Greater Accra, Western and Ashanti Regions, and stated that the bank would extend the ATM service across all its branches in the country.
“NIB is gradually building a reputation for innovation in products and services developed specifically for our financial needs,” the managing director stated.
The Head of ICT Department of the bank, Mr Eric Agyepong Boateng, said the bank’s ATMs provided high volumes of currency of up to GH¢25,000 (¢250 million), as against the highest of GH¢15,000 (¢150 million) by many ATMs, saying it would help to reduce cash management costs and shortages.
Mr Boateng said customers could also use the ATM to access many services, such as transfer cash from one account to another as well as purchase mobile phone credits.
Mr Boateng said the ATM had certain unique enhanced security features which included consumer awareness mirror that enabled customers by the ATM to see anybody coming from behind.
•Mr Elikem N. Kuenyehia, Managing Partner, Oxford & Beaumont Solicitors
THE Managing Director of the National Investment Bank (NIB), Mr Daniel C. Gyimah, has said the bank will leverage on the advantages provided by information technology to transform it to be more competitive.
He said “the rapid pace of advancement in information and communication technology networking has offered a wide range of delivery channels in retail banking,” adding that “NIB will exploit these opportunities that arise from these developments and changes to remain competitive”.
Mr Gyimah made this known at the launch of the bank’s Automated Teller Machine (ATM) service dubbed Cashlink.
He said “successful financial institutions in the future would be those that were able to leverage most from the information and communications technology revolution”.
The managing director said consumers of the banking products and services were increasingly demanding more efficient banking services and becoming more knowledgeable in the power of technology.
That, he said called for innovation and creativity that would ensure that the banks took advantage of information technology to devise services and products that met the needs of its customers.
“The ability of financial institutions to deliver products and services in the most efficient and effective manner will be key to determining performance and relevance,” the managing director stated.
Mr Gyimah stated that the launch of the CashLink ATMs would pave the way for increased customer interaction with the bank.
He said the bank had commissioned five ATMs in Greater Accra, Western and Ashanti Regions, and stated that the bank would extend the ATM service across all its branches in the country.
“NIB is gradually building a reputation for innovation in products and services developed specifically for our financial needs,” the managing director stated.
The Head of ICT Department of the bank, Mr Eric Agyepong Boateng, said the bank’s ATMs provided high volumes of currency of up to GH¢25,000 (¢250 million), as against the highest of GH¢15,000 (¢150 million) by many ATMs, saying it would help to reduce cash management costs and shortages.
Mr Boateng said customers could also use the ATM to access many services, such as transfer cash from one account to another as well as purchase mobile phone credits.
Mr Boateng said the ATM had certain unique enhanced security features which included consumer awareness mirror that enabled customers by the ATM to see anybody coming from behind.
•Mr Elikem N. Kuenyehia, Managing Partner, Oxford & Beaumont Solicitors
600 GIA passengers stranded at Gatwick
GIA (fin)
Story: Boahene Asamoah
ABOUT 600 passengers of the national carrier, Ghana International Airlines (GIA), are stranded at the Gatwick Airport in the United Kingdom since last Friday as result of engine failure that grounded the aircraft.
The airline, which flies one leased aircraft and operates six flights from Accra to the United Kingdom and vice versa, suffered a “bird-strike” which destroyed the engine.
Reacting to the developments in an interview, the acting Chief Executive Officer of the airline, Mr Mante Azu, denied reports that the aircraft was seized at the airport by the company that owned it.
He said the aircraft developed the “bird-strike” the day before and upon inspection, it was learnt that it could not fly as a result of engine failure.
Mr Azu stated that efforts had been made to acquire a new aircraft engine which was currently being installed and was hopeful that by today (Monday) the aircraft would be able to fly.
He explained that after the installation of the engine, there had to be test runs to make sure that the aircraft was in good shape to fly and that such test runs had to be done within a certain time.
“We have also secured a second aircraft to facilitate the flying of the backlog passengers at both Gatwick and Accra,” the acting CEO stated, adding that arrangements had also been made to ensure that some passengers joined other airlines.
Mr Azu added that there had been difficulty in securing an aircraft early enough because of the summer season, which was the season for most airlines.
He said a tentative schedule would be announced today, which would see the aircraft arriving in Accra by 2p.m. today and fly back to the UK by 3.30 p.m. the same day.
Story: Boahene Asamoah
ABOUT 600 passengers of the national carrier, Ghana International Airlines (GIA), are stranded at the Gatwick Airport in the United Kingdom since last Friday as result of engine failure that grounded the aircraft.
The airline, which flies one leased aircraft and operates six flights from Accra to the United Kingdom and vice versa, suffered a “bird-strike” which destroyed the engine.
Reacting to the developments in an interview, the acting Chief Executive Officer of the airline, Mr Mante Azu, denied reports that the aircraft was seized at the airport by the company that owned it.
He said the aircraft developed the “bird-strike” the day before and upon inspection, it was learnt that it could not fly as a result of engine failure.
Mr Azu stated that efforts had been made to acquire a new aircraft engine which was currently being installed and was hopeful that by today (Monday) the aircraft would be able to fly.
He explained that after the installation of the engine, there had to be test runs to make sure that the aircraft was in good shape to fly and that such test runs had to be done within a certain time.
“We have also secured a second aircraft to facilitate the flying of the backlog passengers at both Gatwick and Accra,” the acting CEO stated, adding that arrangements had also been made to ensure that some passengers joined other airlines.
Mr Azu added that there had been difficulty in securing an aircraft early enough because of the summer season, which was the season for most airlines.
He said a tentative schedule would be announced today, which would see the aircraft arriving in Accra by 2p.m. today and fly back to the UK by 3.30 p.m. the same day.
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