Story: Boahene Asamoah
THE Bank of Ghana (BoG) has proposed the legislation of a Fiscal Responsibility Law (FRL) to underpin the governments’ commitment to fiscal discipline and debt sustainability.
The central bank suggested expenditure targets or ceilings be embedded in the proposed FRL to limit government expenditures and promote measures to scale-up revenue mobilisation.
According to a policy briefing paper sighted by the Daily Graphic, the bank urged the government to continue with the public sector reforms and expedite the operation of the Fair Wages Commission to anchor wage bills, which was a potential source of fiscal instability in the country.
“Ghana’s success with fiscal rules will ultimately depend on government’s commitment to the process of fiscal discipline and strong governance structures to ensure that fiscal processes are followed through.”
The central bank drew attention to the need to clearly state the objectives on prudent fiscal management as well as principles on transparency and accountability as part of the proposed law.
“Experiences also suggest that critical elements which account for the success of fiscal rules include clearly defined objectives and targets, political commitment, strong institutions and effective enforcement mechanisms,” the paper stated.
The BoG also called for the establishment of fiscal rules and procedures that are clear, flexible and transparent, adding that “these must however be accompanied by sanctions for effective enforcement and applicable escape clauses during periods of adverse shocks.”
The Bank of Ghana said macroeconomic stabilisation was a necessary condition for economic growth and poverty reduction.
It said since 2001, prudent fiscal policies along with sound monetary policies had constituted the core of Ghana’s economic policies aimed at stabilisation.
The brief highlighted that economic improvement has been significant and macroeconomic stability achieved, with growth rates in Gross Domestic Product (GDP) increasing from 3.7 per cent in 2000, to 6.2 per cent in 2006.
Headline inflation declined from 40.5 per cent in December 2000 to 10.5 per cent in December 2006 as core inflation (excluding energy and utilities) remained within single digits, the bank said.
Interest rates have trended downwards, in tandem with the disinflation process.
“In addition to sound monetary management, fiscal adjustment contributed significantly to macro stability. Progress was made in institutional arrangements and the regulatory environment to ensure better fiscal management.”
It named some of them as the Medium-Term Expenditure Framework (MTEF), and enactment of Financial Administration Act, the Internal Audit Agency Act and the Procurement Act.
Over the past six years, Ghana’s economy has been anchored to prudent fiscal and monetary policy frameworks. This has contributed significantly to macroeconomic stability with steady growth.
To further consolidate the macroeconomic stability and anchor inflationary expectations, the Bank of Ghana adopted an inflation targeting regime in May last year.
“Although fiscal policy has remained committed to the stabilisation process, recent trends point to the need for further consolidation to ensure long-term fiscal sustainability,” the brief stated.
“Evidence gathered from international experiences with fiscal rules suggests that fiscal rules are enabling instruments for a country to stay on a transparent, prudent and sustainable fiscal path,” the brief stated.
It however said those measures were not sufficient but needed to be supported by good institutions as well as prudent expenditure and financial management measures that limited government spending and improve revenue generation.
“The key lesson for Ghana is that fiscal rules work best when government is fully committed to the process of fiscal prudence and ensures that long-term development prospects are not sacrificed by short-term gains,” the brief stated.
Wednesday, February 27, 2008
Dont Stampede govt-Into Sharing resources from oil Find-says Oteng-Gyasi
Story: Boahene Asamoah
Individuals and communities should be careful not to stampede the government into sharing the resources which will accrue from the oil find, Mr Anthony Oteng-Gyasi, the President of the Association of Ghana Industries (AGI), has cautioned.
He said concerns being raised in the media in connection with the oil find were all on how to share the revenue that would accrue from the oil find and cautioned that “we must be very careful”.
Speaking at the launch of a media advocacy project on “Using the Media to Strengthen Business Advocacy” in Accra yesterday, Mr Oteng-Gyasi said, “Concerns about the oil find should be on the opportunities for business and employment generation” that would benefit the country and help in the development of the economy.
The 12-month business advocacy project is an initiative of the Ghana Journalists Association (GJA) and supported by the Business Sector Advocacy Challenge (BUSAC) Fund and comes at the heels of the first project in 2006. It is being facilitated by KAB Governance Consult.
Mr Oteng-Gyasi, who touched on many challenges facing the nation, urged the media to give the same prominence they gave to political stories to business and economic issues as the country strove to achieve a middle-income status.
“I am calling for a cultural change in our attitude to business and requesting you, as media professionals, to use your advocacy in bringing about this change by sustained, well structured, multi-media efforts on behalf of business,” the AGI President stated.
He said the media had spearheaded the call for political independence and democratic rule in the 50-year history of the country but expressed regret that the same could not be said of the economic independence of the country since gaining political freedom.
“It is the role of the media to bring this awareness to our people. The success of our media in making concepts of democratic governance and human rights appreciated by large portions of our society can and should be replicated in economic and business advocacy,” Mr Oteng-Gyasi said.
On poverty, he indicated that “a disturbing phenomenon is the constant reminder that we are a poor nation. This is worsened by what is often offered as a logical result of our poverty”.
He stated that the argument often implied that we must, therefore, be given goods and services at low prices or preferably for free.
“What we fail to add is the need for each person to try to better himself,” adding that “the role of a leader should be to ensure conditions that allow an individual who makes the effort to do well”.
The Minister of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiatives (PSIs), Mr Joe Baidoe-Ansah, said the ministry was implementing a strategy on micro, small and medium-scale enterprises (MSMEs) designed to promote SMEs as a response to the dominance of the sector and the need to support their growth.
“In addition, the ministry has a well functioning SME division which is pursuing programmes to streamline government’s support to SMEs,” the minister added.
Mr Baidoe-Ansah said the ministry had set a public-private dialogue unit within the ministry to collate the concerns of trade associations and practitioners and present the concerns for policy considerations by the government.
The Danish Ambassador to Ghana, Mr Flemming Bjork Pedersen, in his statement, said Denmark had allocated GH¢37 million to support a Business Sector Support Programme to pursue a pro-poor development strategy in line with the country’s poverty reduction strategy.
He said the programme had the objective of creating equitable growth in production and employment achieved through the development of a competitive and vibrant private sector.
The President of the GJA, Mr Ransford Tetteh, stated that the project would, among other things, make a conscious effort to develop the capacity of a core of journalists in business advocacy and create a multi-media platform to discuss the concerns of business.
“It will also sensitise the leadership of business groups and entrepreneurs to the importance of advocacy in business and promote dialogue between policy makers and business operatives with the view to addressing the concerns of business,” he stated.
Individuals and communities should be careful not to stampede the government into sharing the resources which will accrue from the oil find, Mr Anthony Oteng-Gyasi, the President of the Association of Ghana Industries (AGI), has cautioned.
He said concerns being raised in the media in connection with the oil find were all on how to share the revenue that would accrue from the oil find and cautioned that “we must be very careful”.
Speaking at the launch of a media advocacy project on “Using the Media to Strengthen Business Advocacy” in Accra yesterday, Mr Oteng-Gyasi said, “Concerns about the oil find should be on the opportunities for business and employment generation” that would benefit the country and help in the development of the economy.
The 12-month business advocacy project is an initiative of the Ghana Journalists Association (GJA) and supported by the Business Sector Advocacy Challenge (BUSAC) Fund and comes at the heels of the first project in 2006. It is being facilitated by KAB Governance Consult.
Mr Oteng-Gyasi, who touched on many challenges facing the nation, urged the media to give the same prominence they gave to political stories to business and economic issues as the country strove to achieve a middle-income status.
“I am calling for a cultural change in our attitude to business and requesting you, as media professionals, to use your advocacy in bringing about this change by sustained, well structured, multi-media efforts on behalf of business,” the AGI President stated.
He said the media had spearheaded the call for political independence and democratic rule in the 50-year history of the country but expressed regret that the same could not be said of the economic independence of the country since gaining political freedom.
“It is the role of the media to bring this awareness to our people. The success of our media in making concepts of democratic governance and human rights appreciated by large portions of our society can and should be replicated in economic and business advocacy,” Mr Oteng-Gyasi said.
On poverty, he indicated that “a disturbing phenomenon is the constant reminder that we are a poor nation. This is worsened by what is often offered as a logical result of our poverty”.
He stated that the argument often implied that we must, therefore, be given goods and services at low prices or preferably for free.
“What we fail to add is the need for each person to try to better himself,” adding that “the role of a leader should be to ensure conditions that allow an individual who makes the effort to do well”.
The Minister of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiatives (PSIs), Mr Joe Baidoe-Ansah, said the ministry was implementing a strategy on micro, small and medium-scale enterprises (MSMEs) designed to promote SMEs as a response to the dominance of the sector and the need to support their growth.
“In addition, the ministry has a well functioning SME division which is pursuing programmes to streamline government’s support to SMEs,” the minister added.
Mr Baidoe-Ansah said the ministry had set a public-private dialogue unit within the ministry to collate the concerns of trade associations and practitioners and present the concerns for policy considerations by the government.
The Danish Ambassador to Ghana, Mr Flemming Bjork Pedersen, in his statement, said Denmark had allocated GH¢37 million to support a Business Sector Support Programme to pursue a pro-poor development strategy in line with the country’s poverty reduction strategy.
He said the programme had the objective of creating equitable growth in production and employment achieved through the development of a competitive and vibrant private sector.
The President of the GJA, Mr Ransford Tetteh, stated that the project would, among other things, make a conscious effort to develop the capacity of a core of journalists in business advocacy and create a multi-media platform to discuss the concerns of business.
“It will also sensitise the leadership of business groups and entrepreneurs to the importance of advocacy in business and promote dialogue between policy makers and business operatives with the view to addressing the concerns of business,” he stated.
Wednesday, February 20, 2008
Baah Wiredu calls on Canada to avail its expertise on oil to Ghana
Story: Boahene Asamoah & Jasmine Afari-Mintah
THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, has called on the Canadian government to avail its expertise in the legal framework covering the oil industry to enable the country to lay a strong foundation for its oil find.
Speaking during a courtesy call on him by the new Canadian High Commissioner to Ghana, Mr Darren Schemmer in Accra on Tuesday, the minister said the country was learning from many other countries across the world to ensure that resources from the oil find was put to good use.
He acknowledged the strong legal framework that Canada had adopted over its oil industry and said the country could learn from it and adopt best practises.
The minister outlined a number of initiatives that the government had undertaken such as the new educational reforms that would ensure the compulsory enrolment of pupils from the early education to the first cycle education.
He also mentioned infrastructure development, such as roads, the Bui Dam and the reactivation of the rail lines across the country as some of the projects the government was undertaking.
Mr Baah-Wiredu, also mentioned the need for support in the health and information, communications technology.
The minister said there is the need for more investments in the mining sector and called for partnership between the two countries in that direction.
Mr Baah-Wiredu stressed the need to expand trading relations between the two countries to cover more areas such ICT software development.
He acknowledged the immense support the Canadian government had given to the country for its budgetary support.
He assured the High Commissioner that the government would ensure a free and fair elections during this year’s general elections and stressed the need for development partners not to hold back projected budgetary support in anticipation of any set backs in this year’s elections.
Mr Schemmer, for his part also acknowledged the long standing partnership between Ghana and Canada.
He said he was at the ministry to familiarise himself with the government’s projects as well as to meet the minister and introduce himself and assured the minister of Canada’s support for the country’s economic development.
He said Canada had supported Ghana through Canadian International Development Agency (CIDA) to achieve equitable and sustainable poverty reduction.
Canada’s support for Ghana are carried out through four main channels namely; country to country (bilateral), regional organisations, multilateral institutions and partnership between Canadian and Ghanaian profit and non profit entities.
Currently the Canadian government has supported Ghana with a 93 million Canadian dollar through the multi-donor budgetary support and a further 85 million Canadian dollars for the food and agricultural budgetary support programme.
Additionally, the Canadian government has made available an amount of 14.5 million Canadian dollars under the district wide assistance project and also a 12 million Canadian dollar for a community driven initiative for food security programme among many others.
THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, has called on the Canadian government to avail its expertise in the legal framework covering the oil industry to enable the country to lay a strong foundation for its oil find.
Speaking during a courtesy call on him by the new Canadian High Commissioner to Ghana, Mr Darren Schemmer in Accra on Tuesday, the minister said the country was learning from many other countries across the world to ensure that resources from the oil find was put to good use.
He acknowledged the strong legal framework that Canada had adopted over its oil industry and said the country could learn from it and adopt best practises.
The minister outlined a number of initiatives that the government had undertaken such as the new educational reforms that would ensure the compulsory enrolment of pupils from the early education to the first cycle education.
He also mentioned infrastructure development, such as roads, the Bui Dam and the reactivation of the rail lines across the country as some of the projects the government was undertaking.
Mr Baah-Wiredu, also mentioned the need for support in the health and information, communications technology.
The minister said there is the need for more investments in the mining sector and called for partnership between the two countries in that direction.
Mr Baah-Wiredu stressed the need to expand trading relations between the two countries to cover more areas such ICT software development.
He acknowledged the immense support the Canadian government had given to the country for its budgetary support.
He assured the High Commissioner that the government would ensure a free and fair elections during this year’s general elections and stressed the need for development partners not to hold back projected budgetary support in anticipation of any set backs in this year’s elections.
Mr Schemmer, for his part also acknowledged the long standing partnership between Ghana and Canada.
He said he was at the ministry to familiarise himself with the government’s projects as well as to meet the minister and introduce himself and assured the minister of Canada’s support for the country’s economic development.
He said Canada had supported Ghana through Canadian International Development Agency (CIDA) to achieve equitable and sustainable poverty reduction.
Canada’s support for Ghana are carried out through four main channels namely; country to country (bilateral), regional organisations, multilateral institutions and partnership between Canadian and Ghanaian profit and non profit entities.
Currently the Canadian government has supported Ghana with a 93 million Canadian dollar through the multi-donor budgetary support and a further 85 million Canadian dollars for the food and agricultural budgetary support programme.
Additionally, the Canadian government has made available an amount of 14.5 million Canadian dollars under the district wide assistance project and also a 12 million Canadian dollar for a community driven initiative for food security programme among many others.
Workshop on mining held in Accra
Story: Boahene Asamoah
THE Minister of Lands, Forestry and Mines, Mrs Esther Obeng Dapaah, has called on all stakeholders in the mining industry to collaborate their efforts to raise the living standards of people in the mining communities.
In a speech read on her behalf at a one-day workshop on enhancing the benefits of mining in Accra yesterday, the minister said “the donor community, mining firms, and civil society groups must work closely together to ensure that the benefits of mining are used to raise the living standards of the people”.
The workshop, which was organised by the Ghana Chamber of Mines in collaboration with the World Bank and the International Council on Mining and Metals (ICMM) and United Nations Centre for Trade and Development (UNCTAD, brought together stakeholders from all the mining firms, as well as policy makers, civil society groups and some local representatives.
Mrs Dapaah also called for the identification of new collaborators and actors to deepen the level of collaboration and also with the aim of reducing poverty.
He said the country was also playing a leadership role in the extractive industry to ensure transparency to ensure that all stakeholders knew the use of mining resources in the country.
Mrs Dapaah stated that the government was committed to ensuring the development of the mining sector, since it played a critical role in the economic development of the country.
The Managing Director of the Minerals Commission, Mr Ben Aryee, stated that mining had the potential to impact positively on the economic development of the country.
He, however, said that there should be ways to ensure the effective management of mineral resources that would trickle down to the ordinary people.
Presenting findings of research conducted in four countries on the challenge of Mineral Wealth: Using resource endowments to foster sustainable development, Ms Kathryn McPhail of the ICMM, called for new partnerships to ensure the socio-economic benefits of mining activities.
She said while it was not always the case that mining could promote economic development, evidence from the four countries suggested that mining could promote economic growth and development.
The four countries on which the research work was done were Ghana, Tanzania, Chile and Peru.
Ms MacPhail stated that in the case of Ghana, economic stability had led to a $5 billion investment in the mining industry over the past few years.
She said the research revealed that in Obuasi, the standard of living was better than most other districts in the country.
“Mining resurgence can promote economic growth and poverty reduction,” she stated.
She added that about 46 per cent of procurements in the mining industry were done locally, adding that “local procurement is fundamental to reduce poverty”.
Ms McPhail indicated that mining activities could make strong contributions by way of taxes and employment opportunities.
THE Minister of Lands, Forestry and Mines, Mrs Esther Obeng Dapaah, has called on all stakeholders in the mining industry to collaborate their efforts to raise the living standards of people in the mining communities.
In a speech read on her behalf at a one-day workshop on enhancing the benefits of mining in Accra yesterday, the minister said “the donor community, mining firms, and civil society groups must work closely together to ensure that the benefits of mining are used to raise the living standards of the people”.
The workshop, which was organised by the Ghana Chamber of Mines in collaboration with the World Bank and the International Council on Mining and Metals (ICMM) and United Nations Centre for Trade and Development (UNCTAD, brought together stakeholders from all the mining firms, as well as policy makers, civil society groups and some local representatives.
Mrs Dapaah also called for the identification of new collaborators and actors to deepen the level of collaboration and also with the aim of reducing poverty.
He said the country was also playing a leadership role in the extractive industry to ensure transparency to ensure that all stakeholders knew the use of mining resources in the country.
Mrs Dapaah stated that the government was committed to ensuring the development of the mining sector, since it played a critical role in the economic development of the country.
The Managing Director of the Minerals Commission, Mr Ben Aryee, stated that mining had the potential to impact positively on the economic development of the country.
He, however, said that there should be ways to ensure the effective management of mineral resources that would trickle down to the ordinary people.
Presenting findings of research conducted in four countries on the challenge of Mineral Wealth: Using resource endowments to foster sustainable development, Ms Kathryn McPhail of the ICMM, called for new partnerships to ensure the socio-economic benefits of mining activities.
She said while it was not always the case that mining could promote economic development, evidence from the four countries suggested that mining could promote economic growth and development.
The four countries on which the research work was done were Ghana, Tanzania, Chile and Peru.
Ms MacPhail stated that in the case of Ghana, economic stability had led to a $5 billion investment in the mining industry over the past few years.
She said the research revealed that in Obuasi, the standard of living was better than most other districts in the country.
“Mining resurgence can promote economic growth and poverty reduction,” she stated.
She added that about 46 per cent of procurements in the mining industry were done locally, adding that “local procurement is fundamental to reduce poverty”.
Ms McPhail indicated that mining activities could make strong contributions by way of taxes and employment opportunities.
Monday, February 18, 2008
Re-capitalisation of banks—Banker’s Association welcomes idea
Story: Boahene Asamoah
THE Executive Secretary of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, has welcomed the Bank of Ghana’s (BoG) proposal for bank’s to re-capitalise within a period of four years.
“We are not averse to the recapitalisation of banks,” he said, adding that “our concern was to ensure that banks grow in tandem with the economic growth of the Ghanaian economy”.
Speaking in an interview, Mr Mensah said the time period the Central Bank gave to the banks to re-capitalise would obviously offer them the opportunity to plan and strategise their operations.
The Bank of Ghana, in the latter part of last year, served notice to banks under a consultative proposal to raise their minimum capital requirement from the present GH¢7 million to GH¢60 million by the end of this year.
However, the BoG has come out with a statement that has set the new minimum capital requirement for obtaining a class one banking licence or a universal banking license at GH¢60 million with a caveat.
According to the Central Bank, the existing banks were required to attain a minimum capitalisation of GH¢ 60 million by December 31, 2009. However, Ghanaian-owned banks were given a longer time period to meet the new minimum capital requirement.
It also stated that under the directive, banks with local majority share ownership would have to attain a capitalisation of at least GH¢25 million by the end of 2010 and GH¢60 million by 2012.
According to the BoG, the capitalisation requirement constituted part of the bank’s strategy to deepen the financial sector and support Ghana’s drive for accelerated growth to achieve middle-income status.
Mr Mensah said banks had all along been conscious of the need to raise their capital in order to meet the challenges and position themselves in order to take advantage of opportunities that the economy would present.
He said the position of the banks had always been to ensure a phase approach that would fall in line with the country’s vision of attaining a middle-income status by 2015.
He said the new policy from the Central Bank would position banks, especially the local ones to make strategic choices that would help them to recapitalise.
Industry players say while there would be consolidation of banks in the country, local banks would have the opportunity to look for opportunities that existed to enable them meet the new capital requirement.
Some stock market analysts anticipate initial public offers from banks to raise capital through from the Ghana Stock Exchange, which has seen the oversubscription of equities listed on the bourse over the past two years.
According to some industry players, the previous consultative position of the BoG, where it would have created a three-tier banking sector in the country would not have been a healthy development.
Only six banks, including two local banks would have been able to raise the capital while 10 other local banks would not have been to meet the new capital requirements, making them susceptible to foreign interest.
This situation would have made all the financial transactions in the country to be routed through foreign banks, a situation that would have dire consequences for the economy.
According to Mr Mensah, although the oil find presents an opportunity to banks, experience from other countries suggests that many banks do not actually patronise the oil business, because of the huge capital requirement and the risk associated with such ventures.
The Executive Secretary, however, indicated that with the new capital requirement, banks in the country would be able to finance some of the big projects such as the yearly cocoa syndication.
THE Executive Secretary of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, has welcomed the Bank of Ghana’s (BoG) proposal for bank’s to re-capitalise within a period of four years.
“We are not averse to the recapitalisation of banks,” he said, adding that “our concern was to ensure that banks grow in tandem with the economic growth of the Ghanaian economy”.
Speaking in an interview, Mr Mensah said the time period the Central Bank gave to the banks to re-capitalise would obviously offer them the opportunity to plan and strategise their operations.
The Bank of Ghana, in the latter part of last year, served notice to banks under a consultative proposal to raise their minimum capital requirement from the present GH¢7 million to GH¢60 million by the end of this year.
However, the BoG has come out with a statement that has set the new minimum capital requirement for obtaining a class one banking licence or a universal banking license at GH¢60 million with a caveat.
According to the Central Bank, the existing banks were required to attain a minimum capitalisation of GH¢ 60 million by December 31, 2009. However, Ghanaian-owned banks were given a longer time period to meet the new minimum capital requirement.
It also stated that under the directive, banks with local majority share ownership would have to attain a capitalisation of at least GH¢25 million by the end of 2010 and GH¢60 million by 2012.
According to the BoG, the capitalisation requirement constituted part of the bank’s strategy to deepen the financial sector and support Ghana’s drive for accelerated growth to achieve middle-income status.
Mr Mensah said banks had all along been conscious of the need to raise their capital in order to meet the challenges and position themselves in order to take advantage of opportunities that the economy would present.
He said the position of the banks had always been to ensure a phase approach that would fall in line with the country’s vision of attaining a middle-income status by 2015.
He said the new policy from the Central Bank would position banks, especially the local ones to make strategic choices that would help them to recapitalise.
Industry players say while there would be consolidation of banks in the country, local banks would have the opportunity to look for opportunities that existed to enable them meet the new capital requirement.
Some stock market analysts anticipate initial public offers from banks to raise capital through from the Ghana Stock Exchange, which has seen the oversubscription of equities listed on the bourse over the past two years.
According to some industry players, the previous consultative position of the BoG, where it would have created a three-tier banking sector in the country would not have been a healthy development.
Only six banks, including two local banks would have been able to raise the capital while 10 other local banks would not have been to meet the new capital requirements, making them susceptible to foreign interest.
This situation would have made all the financial transactions in the country to be routed through foreign banks, a situation that would have dire consequences for the economy.
According to Mr Mensah, although the oil find presents an opportunity to banks, experience from other countries suggests that many banks do not actually patronise the oil business, because of the huge capital requirement and the risk associated with such ventures.
The Executive Secretary, however, indicated that with the new capital requirement, banks in the country would be able to finance some of the big projects such as the yearly cocoa syndication.
Security for US President's Tour
President Bush arrives (fin) Read by E. agyeI
Story: Mary Mensah & Boahene Asamoah
THE Ghana Police Service, in collaboration with the American security agencies, has put in place stringent and comprehensive arrangements to ensure a peaceful and successful three-day visit by the US President, George Bush.
The arrangements will see the deployment of over 1,000 security men, comprising all specialised units within the Police Service and the Armed Forces, at vantage points, especially around the Kotoka International Airport and the hotel where the US President and his entourage would lodge.
Three American planes have already landed at the Kotoka International Airport, discharging men and equipment from the American service.
According to a police source, on Tuesday, February 19, the day of the American President’s arrival, no person or vehicle would be allowed around the airport area for an hour prior to his arrival.
The US presidential jet, the Air Force One, is expected to touch down, together with two other large planes, one carrying the presidential press corps and the other White House staff, at the Kotoka International Airport at exactly 7:30 p.m., with President George Bush and his wife on board.
The source said the road from the airport to the La Palm Royal Beach Hotel would also be closed to traffic and no vehicle would be allowed there till late in the night.
The following day, when President Bush is scheduled to meet President Kufuor, the road from Teshie to the Castle at Osu would be blocked.
Two US Naval ships have also landed in Ghana and are currently patrolling the coast.
According to the source, Ghana had been selected as the operational base for the three West African countries where President Bush would visit, namely, Liberia, Benin and Ghana, and added that all the operational structures had been put in place to co-ordinate affairs.
It said the selection of Ghana as a base for the three African countries showed the trust that the US government had in the security agencies in Ghana.
It noted that there would be some inconvenience on the road and appealed to residents of Accra and motorists to bear with the security agencies and respect the sirens when they heard them in order to make the visit a memorable one.
Announcing President Bush’s State Visit at a news conference in Accra earlier in the week, the Minister of Foreign Affairs, Mr Akwasi Osei-Adjei, had said it would offer the platform for bilateral trade discussions between Ghana and the United States, reports Boahene Asamoah.
Mr Osei-Adjei said the visit was a reciprocal gesture for a similar one extended to President Kufuor during the early part of his administration.
The minister said the visit would offer the two leaders the opportunity to discuss issues on free trade, economic opportunities and other initiatives such as the Africa Growth and Opportunities Act (AGOA) and the Millennium Challenge Account (MCA).
Mr Osei-Adjei stated that relations between the two countries were on a high pedestal and said issues of democratic governance, private sector development and economic co-operation would also form part of the discussions.
The minister stated that Ghana’s role in peacekeeping missions would also be discussed.
Ghana and the US have enjoyed considerable high-level bilateral co-operation over the years.
Ghana currently exports apparels and other products under the AGOA initiative signed into law by former President Clinton.
The country has also been a beneficiary of $547 million under the MCA aimed at supporting the agricultural sector and infrastructural development in the country.
Many Ghanaians have been successful in the US immigration lottery over the past years, making Ghana one of the highest application nations.
To further give a boost to Ghana-US relations, the US last year completed and commissioned a multi-million dollar office complex in Ghana.
As part of President Bush’s visit, a State Dinner will be held in his honour. He will also visit the US Embassy to meet with US volunteers in Ghana, go to the Ghana International School and hold high-level discussions at the seat of government, the Christianborg Castle, Osu.
President Bush has initiated several programmes in Africa, including the malaria initiative, the $40 billion HIV/AIDS programme for Africa, among many other initiatives.
The US President began his trip to Africa, which will take him to Benin, Tanzania, Rwanda, Ghana and Liberia, on February 15.
The trip will be an opportunity for him to review at firsthand, since his last visit in 2003, the significant progress in efforts to increase economic development and fight HIV/AIDS, malaria and other treatable diseases as a result of the US’s robust programmes in these areas.
President Bush will also meet with President Yayi of Benin, President Kikwete of Tanzania, President Kagame of Rwanda and President Johnson-Sirleaf of Liberia to discuss how the US can continue to partner African countries to support continued democratic reforms, respect for human rights, free trade, open investment regimes and economic opportunities across the continent.
Story: Mary Mensah & Boahene Asamoah
THE Ghana Police Service, in collaboration with the American security agencies, has put in place stringent and comprehensive arrangements to ensure a peaceful and successful three-day visit by the US President, George Bush.
The arrangements will see the deployment of over 1,000 security men, comprising all specialised units within the Police Service and the Armed Forces, at vantage points, especially around the Kotoka International Airport and the hotel where the US President and his entourage would lodge.
Three American planes have already landed at the Kotoka International Airport, discharging men and equipment from the American service.
According to a police source, on Tuesday, February 19, the day of the American President’s arrival, no person or vehicle would be allowed around the airport area for an hour prior to his arrival.
The US presidential jet, the Air Force One, is expected to touch down, together with two other large planes, one carrying the presidential press corps and the other White House staff, at the Kotoka International Airport at exactly 7:30 p.m., with President George Bush and his wife on board.
The source said the road from the airport to the La Palm Royal Beach Hotel would also be closed to traffic and no vehicle would be allowed there till late in the night.
The following day, when President Bush is scheduled to meet President Kufuor, the road from Teshie to the Castle at Osu would be blocked.
Two US Naval ships have also landed in Ghana and are currently patrolling the coast.
According to the source, Ghana had been selected as the operational base for the three West African countries where President Bush would visit, namely, Liberia, Benin and Ghana, and added that all the operational structures had been put in place to co-ordinate affairs.
It said the selection of Ghana as a base for the three African countries showed the trust that the US government had in the security agencies in Ghana.
It noted that there would be some inconvenience on the road and appealed to residents of Accra and motorists to bear with the security agencies and respect the sirens when they heard them in order to make the visit a memorable one.
Announcing President Bush’s State Visit at a news conference in Accra earlier in the week, the Minister of Foreign Affairs, Mr Akwasi Osei-Adjei, had said it would offer the platform for bilateral trade discussions between Ghana and the United States, reports Boahene Asamoah.
Mr Osei-Adjei said the visit was a reciprocal gesture for a similar one extended to President Kufuor during the early part of his administration.
The minister said the visit would offer the two leaders the opportunity to discuss issues on free trade, economic opportunities and other initiatives such as the Africa Growth and Opportunities Act (AGOA) and the Millennium Challenge Account (MCA).
Mr Osei-Adjei stated that relations between the two countries were on a high pedestal and said issues of democratic governance, private sector development and economic co-operation would also form part of the discussions.
The minister stated that Ghana’s role in peacekeeping missions would also be discussed.
Ghana and the US have enjoyed considerable high-level bilateral co-operation over the years.
Ghana currently exports apparels and other products under the AGOA initiative signed into law by former President Clinton.
The country has also been a beneficiary of $547 million under the MCA aimed at supporting the agricultural sector and infrastructural development in the country.
Many Ghanaians have been successful in the US immigration lottery over the past years, making Ghana one of the highest application nations.
To further give a boost to Ghana-US relations, the US last year completed and commissioned a multi-million dollar office complex in Ghana.
As part of President Bush’s visit, a State Dinner will be held in his honour. He will also visit the US Embassy to meet with US volunteers in Ghana, go to the Ghana International School and hold high-level discussions at the seat of government, the Christianborg Castle, Osu.
President Bush has initiated several programmes in Africa, including the malaria initiative, the $40 billion HIV/AIDS programme for Africa, among many other initiatives.
The US President began his trip to Africa, which will take him to Benin, Tanzania, Rwanda, Ghana and Liberia, on February 15.
The trip will be an opportunity for him to review at firsthand, since his last visit in 2003, the significant progress in efforts to increase economic development and fight HIV/AIDS, malaria and other treatable diseases as a result of the US’s robust programmes in these areas.
President Bush will also meet with President Yayi of Benin, President Kikwete of Tanzania, President Kagame of Rwanda and President Johnson-Sirleaf of Liberia to discuss how the US can continue to partner African countries to support continued democratic reforms, respect for human rights, free trade, open investment regimes and economic opportunities across the continent.
Sustained economic growth will ensure more jobs
INDUSTRY leaders in the country have said it is refreshing to have heard President Kufuor acknowledge the need to move from macro-economic stability in the economy to growth at his last State of the Nation Address delivered on Thursday. Reports Boahene Asamoah.
According to them, while macro-economic stability was a necessary condition for economic growth, it was not sufficient.
Speaking in two separate interviews, the presidents of the Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry, Mr Wilson Atta Krofah, and the Association of Ghana Industries (AGI), Mr Tony Oteng-Gyasi, stressed the need for the necessary policies to be pursued to ensure growth in the economy.
According to Mr Oteng-Gyasi, “sustained economic growth is the surest way to go to ensure employment generation and economic development”.
He, however, said the process of ensuring economic take-off should not be left to the next government to pursue, saying that the present government ought to start the process of ensuring economic growth.
Mr Oteng-Gyasi mentioned the need to look at the micro level to address constraints that affected the different micro sectors of the economy, adding that such a policy would help to address the shortfalls in the various sectors and fashion out a strategy to address the constraints in each sector.
He also mentioned the need for a second look to be taken at the Labour Law, stressing that a “one-size” labour policy for all sectors was not appropriate.
The President of the AGI stated that the Labour Law, as it existed now, did not address the concerns of all the sectors of the economy, adding that “there should be specific labour laws for different sectors”.
On the interest charges by banks, Mr Oteng-Gyasi said the central bank had to play a more facilitating role by ensuring that banks reduced interest rates.
“These are the kind of policies that will help to anchor industrial take-off,” he stated.
For his part, Mr Krofah stated that while there had been some achievement in maintaining macro-economic stability, a lot still needed to be done.
He said the issue of mechanised agriculture needed to be given priority attention, since that would lead to industrialisation of the economy and propel economic growth and development.
He said there was the need for the government to pursue that agenda more vigorously to attract investments into the agricultural sector as part of its policy to modernise agriculture.
Mr Krofah noted that agricultural mechanisation had the potential to break the back of unemployment in the country and also accelerate the country’s pace of development.
On the oil find in the country, Mr Krofah said the government must ensure that the country benefited from the find, adding that “the country must be able to negotiate for about 30 per cent of the deal instead of the current 10 per cent being speculated”.
Again, he said Ghanaian entrepreneurs must be encouraged to take advantage of downstream businesses associated with the oil industry, stressing that “Ghanaian entrepreneurs must take centre stage in this business”.
The President of the GNCCI welcomed President’s Kufuor’s decision to set up a committee that would manage the resources from the oil find to yield greater benefits for all Ghanaians.
According to them, while macro-economic stability was a necessary condition for economic growth, it was not sufficient.
Speaking in two separate interviews, the presidents of the Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry, Mr Wilson Atta Krofah, and the Association of Ghana Industries (AGI), Mr Tony Oteng-Gyasi, stressed the need for the necessary policies to be pursued to ensure growth in the economy.
According to Mr Oteng-Gyasi, “sustained economic growth is the surest way to go to ensure employment generation and economic development”.
He, however, said the process of ensuring economic take-off should not be left to the next government to pursue, saying that the present government ought to start the process of ensuring economic growth.
Mr Oteng-Gyasi mentioned the need to look at the micro level to address constraints that affected the different micro sectors of the economy, adding that such a policy would help to address the shortfalls in the various sectors and fashion out a strategy to address the constraints in each sector.
He also mentioned the need for a second look to be taken at the Labour Law, stressing that a “one-size” labour policy for all sectors was not appropriate.
The President of the AGI stated that the Labour Law, as it existed now, did not address the concerns of all the sectors of the economy, adding that “there should be specific labour laws for different sectors”.
On the interest charges by banks, Mr Oteng-Gyasi said the central bank had to play a more facilitating role by ensuring that banks reduced interest rates.
“These are the kind of policies that will help to anchor industrial take-off,” he stated.
For his part, Mr Krofah stated that while there had been some achievement in maintaining macro-economic stability, a lot still needed to be done.
He said the issue of mechanised agriculture needed to be given priority attention, since that would lead to industrialisation of the economy and propel economic growth and development.
He said there was the need for the government to pursue that agenda more vigorously to attract investments into the agricultural sector as part of its policy to modernise agriculture.
Mr Krofah noted that agricultural mechanisation had the potential to break the back of unemployment in the country and also accelerate the country’s pace of development.
On the oil find in the country, Mr Krofah said the government must ensure that the country benefited from the find, adding that “the country must be able to negotiate for about 30 per cent of the deal instead of the current 10 per cent being speculated”.
Again, he said Ghanaian entrepreneurs must be encouraged to take advantage of downstream businesses associated with the oil industry, stressing that “Ghanaian entrepreneurs must take centre stage in this business”.
The President of the GNCCI welcomed President’s Kufuor’s decision to set up a committee that would manage the resources from the oil find to yield greater benefits for all Ghanaians.
Tuesday, February 12, 2008
We’l continue with sound policies — Dr Acquah
Story: Boahene Asamoah
THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.
THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.
Thursday, February 07, 2008
Petty traders cash in on CAN ‘08 as sales of promotional materials increase
Story: Boahene Asamoah
TRADERS in the nation’s capital, Accra, and other regional capitals, are cashing in on the promotional materials associated with the Africa Nations Cup, which is billed to kick off on Sunday.
Various paraphernalia branded in red, gold and green, which are the country’s national colours, seemed to be the moving business in town over the past three weeks.
This clearly brings Ghanaian ingenuity to the fore.
Along the major roads of Accra and in the central business district, it is common to see many of such paraphernalia being displayed in shops or by hawkers.
The items being sold are a variety of flags, T-shirts, bracelets, headscarves, baseball cups, slippers (what is called in the local parlance Charlie wote), chains, stickers, pens, belts, socks, cups and many others.
Interestingly, traders who dealt in various goods have switched from the selling of their wares to the selling of CAN 2008 souvenirs.
The high demand for these items, is reminiscent of a similar situation during the Black Stars’ maiden appearance in the World Cup in 2006.
The performance of the national team in that tournament brought high levels of national patriotism unprecedented in the country with many items and even buildings being decorated in the national colours.
Before the Africa Cup of Nations kicks off on Sunday, traders are optimistic of higher sales, a situation which has led to the gradual upward price adjustments.
According to Ms Felicia Sakyi, a trader at Kaneshie, she had invested about GH¢1,000 (¢10 million) in the business. Until three weeks ago, she dealt in men’s apparel, but had now switched to selling the paraphernalia.
She said although the demand for the items had been slow, she was banking her hopes on the Black Stars to win their first match, a situation, she said would trigger greater demand.
Ms Sakyi stated that she makes an average of about Gh¢30 daily from the sales of the paraphernalia and was optimistic that sales would peak by Saturday as it was normal for shoppers to always wait to do last minute shopping.
Another trader, Adwoa Nyarkowaah, said the business was gradually picking up as the event drew near.
She said currently, she made daily sales of about GH¢50 from the various items.
Ms Nyarkowaah was also optimistic that should the Black Stars progress in the tournament, it was likely that the various stocks of paraphernalia would run out.
“I am praying to God for the Black Stars to go to the finals”, she said, adding that “this will boost our business”.
A hawker on the Graphic Road, who gave his name as Yaw Ofori, said, he had switched from selling dog chains to selling the mini Ghana flags.
He said it was natural in business to take advantage of products that were patronised by drivers and passengers and sell them along the road.
Master Ofori said he also made GH¢20 daily sales which was much better than what he made previously and prayed that the Black Stars would go further in the competition to enhance his sales.
“Aside being a Ghanaian, which presupposes that I have to be patriotic, the second thing is that I need to survive and the Black Stars’ performance would greatly ensure my survival in this scorching sun”, Ofori stated.
TRADERS in the nation’s capital, Accra, and other regional capitals, are cashing in on the promotional materials associated with the Africa Nations Cup, which is billed to kick off on Sunday.
Various paraphernalia branded in red, gold and green, which are the country’s national colours, seemed to be the moving business in town over the past three weeks.
This clearly brings Ghanaian ingenuity to the fore.
Along the major roads of Accra and in the central business district, it is common to see many of such paraphernalia being displayed in shops or by hawkers.
The items being sold are a variety of flags, T-shirts, bracelets, headscarves, baseball cups, slippers (what is called in the local parlance Charlie wote), chains, stickers, pens, belts, socks, cups and many others.
Interestingly, traders who dealt in various goods have switched from the selling of their wares to the selling of CAN 2008 souvenirs.
The high demand for these items, is reminiscent of a similar situation during the Black Stars’ maiden appearance in the World Cup in 2006.
The performance of the national team in that tournament brought high levels of national patriotism unprecedented in the country with many items and even buildings being decorated in the national colours.
Before the Africa Cup of Nations kicks off on Sunday, traders are optimistic of higher sales, a situation which has led to the gradual upward price adjustments.
According to Ms Felicia Sakyi, a trader at Kaneshie, she had invested about GH¢1,000 (¢10 million) in the business. Until three weeks ago, she dealt in men’s apparel, but had now switched to selling the paraphernalia.
She said although the demand for the items had been slow, she was banking her hopes on the Black Stars to win their first match, a situation, she said would trigger greater demand.
Ms Sakyi stated that she makes an average of about Gh¢30 daily from the sales of the paraphernalia and was optimistic that sales would peak by Saturday as it was normal for shoppers to always wait to do last minute shopping.
Another trader, Adwoa Nyarkowaah, said the business was gradually picking up as the event drew near.
She said currently, she made daily sales of about GH¢50 from the various items.
Ms Nyarkowaah was also optimistic that should the Black Stars progress in the tournament, it was likely that the various stocks of paraphernalia would run out.
“I am praying to God for the Black Stars to go to the finals”, she said, adding that “this will boost our business”.
A hawker on the Graphic Road, who gave his name as Yaw Ofori, said, he had switched from selling dog chains to selling the mini Ghana flags.
He said it was natural in business to take advantage of products that were patronised by drivers and passengers and sell them along the road.
Master Ofori said he also made GH¢20 daily sales which was much better than what he made previously and prayed that the Black Stars would go further in the competition to enhance his sales.
“Aside being a Ghanaian, which presupposes that I have to be patriotic, the second thing is that I need to survive and the Black Stars’ performance would greatly ensure my survival in this scorching sun”, Ofori stated.
Govt sheds of 50% stake in SIC Hope to raise GH¢30million
SIC lists Shares (fin)
Story: Boahene Asamoah & Paul Akweterh Mensah
STATE Insurance Company Limited has officially launched its much-awaited Initial Public Offer (IPO) to shed off the government’s 50 per cent stake in the company in Accra yesterday.
A total amount of about GH¢30 million (¢300 billion) is expected to be raised through the sale of 97,822,500 million shares at Gp 30 (¢3000) per share.
Out the total shares, 10 per cent, which is 19,564,500 has been allocated to the staff of the company as part of incentives to motivate the staff under an Employee Share Ownership Plan (ESOP).
The government has indicated that it would offer an additional 10 per cent should the shares be oversubscribed, to bring its shareholding to 40 per cent.
The company over the past five years had delivered profitability with profits soaring from GH¢550,000 (¢5.5 billion) in 2002 to GH¢2.95 million ( ¢29.5 billion at the end of last year.
The half-year performance of the company for the 2007, however, showed net profits dropping slightly to GH¢1.4 million (¢14.1 billion) from the 2006 figure of GH¢1.597 million (¢15.97 billion) for the same period.
The three-week flotation offer will end by December 21, 2007, after which it is expected to be listed on the Ghana Stock Exchange.
SIC would be the second insurance company to be listed on the Ghana bourse if its IPO becomes successful.
Speaking at the function, the Managing Director of the SIC, Mr Peter Osei-Duah, said that the company would partner the government to develop the necessary regulation that would ensure that local insurance companies benefited from the business of oil find in the country.
He cautioned that if the country failed to act to ensure that local insurance companies played an active role in the oil discovery in the country, it stood to lose tremendous resources from the activities of the oil rigging business.
Mr Osei-Duah expressed worry that the big multi-national oil drilling companies would resort to undertaken insurance with their global partners, thereby by-passing local insurance companies in the insurance business.
“We want to partner government to ensure the enforcement of regulations that would ensure that local insurance companies benefit from the oil drilling activities in the country”.
The managing director said the company was positioning itself strategically to take full advantage of the oil business in the country and assured prospective shareholders that the prospects of the company looked brighter.
A Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Osei-Akoto, said the government was selling part of the company as part of the government’s efforts to develop the Ghanaian capital market, to release state-owned entities from governmental controls to enable them to compete more effectively and reduce the government’s involvement in the running of commercial businesses.
He called on other insurance companies to take advantage of the capital market to raise long-term capital to expand their businesses.
The Commissioner of the National Insurance Commission, Ms Josephine Amoah, stated that the years ahead would present a lot of challenges for the insurance sector and urged them to position themselves to brace up for the challenges ahead.
She mentioned that the minimum capitalisation of insurance companies in the country of $1 million each for the life and general business was still too small.
The Board Chairman of the company, Prof Isaac Mensah Ofori, called on the general public to invest in the company as the company had good prospects.
SIC, has a total of 45 per cent market share in an industry that has 22 such companies.
Story: Boahene Asamoah & Paul Akweterh Mensah
STATE Insurance Company Limited has officially launched its much-awaited Initial Public Offer (IPO) to shed off the government’s 50 per cent stake in the company in Accra yesterday.
A total amount of about GH¢30 million (¢300 billion) is expected to be raised through the sale of 97,822,500 million shares at Gp 30 (¢3000) per share.
Out the total shares, 10 per cent, which is 19,564,500 has been allocated to the staff of the company as part of incentives to motivate the staff under an Employee Share Ownership Plan (ESOP).
The government has indicated that it would offer an additional 10 per cent should the shares be oversubscribed, to bring its shareholding to 40 per cent.
The company over the past five years had delivered profitability with profits soaring from GH¢550,000 (¢5.5 billion) in 2002 to GH¢2.95 million ( ¢29.5 billion at the end of last year.
The half-year performance of the company for the 2007, however, showed net profits dropping slightly to GH¢1.4 million (¢14.1 billion) from the 2006 figure of GH¢1.597 million (¢15.97 billion) for the same period.
The three-week flotation offer will end by December 21, 2007, after which it is expected to be listed on the Ghana Stock Exchange.
SIC would be the second insurance company to be listed on the Ghana bourse if its IPO becomes successful.
Speaking at the function, the Managing Director of the SIC, Mr Peter Osei-Duah, said that the company would partner the government to develop the necessary regulation that would ensure that local insurance companies benefited from the business of oil find in the country.
He cautioned that if the country failed to act to ensure that local insurance companies played an active role in the oil discovery in the country, it stood to lose tremendous resources from the activities of the oil rigging business.
Mr Osei-Duah expressed worry that the big multi-national oil drilling companies would resort to undertaken insurance with their global partners, thereby by-passing local insurance companies in the insurance business.
“We want to partner government to ensure the enforcement of regulations that would ensure that local insurance companies benefit from the oil drilling activities in the country”.
The managing director said the company was positioning itself strategically to take full advantage of the oil business in the country and assured prospective shareholders that the prospects of the company looked brighter.
A Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Osei-Akoto, said the government was selling part of the company as part of the government’s efforts to develop the Ghanaian capital market, to release state-owned entities from governmental controls to enable them to compete more effectively and reduce the government’s involvement in the running of commercial businesses.
He called on other insurance companies to take advantage of the capital market to raise long-term capital to expand their businesses.
The Commissioner of the National Insurance Commission, Ms Josephine Amoah, stated that the years ahead would present a lot of challenges for the insurance sector and urged them to position themselves to brace up for the challenges ahead.
She mentioned that the minimum capitalisation of insurance companies in the country of $1 million each for the life and general business was still too small.
The Board Chairman of the company, Prof Isaac Mensah Ofori, called on the general public to invest in the company as the company had good prospects.
SIC, has a total of 45 per cent market share in an industry that has 22 such companies.
Ecobank opens three branches
Story: Boahene Asamoah
ECOBANK Ghana Limited has opened three new branches simultaneously in its effort to become a leader in the retail banking sector in the country.
The three branches, which are located at various places, are situated at the South Industrial Area, near the Agblogloshie Market, Spintex Road and the Accra Shopping Mall branch, near the Tetteh Quarshie Interchange.
The new branches come with new designs that are meant to enhance personal interactions between customers and the bank tellers and to offer customers warmth and comfort.
The branches are also fitted with ATMs and E-lobbies that offer the customer the opportunity to check his/her banking transactions online.
Speaking at the ceremony, the Group Chief Executive Officer (CEO) of Ecobank Transnational Incorporated (ETI), Mr Arnold Ekpe, said the new branch concept was the first to be introduced in the country, due to the important role that the Ghana subsidiary played in the group.
He said the new concept was also to position the bank’s new face as the pan-African bank committed to the African continent.
Mr Ekpe said the bank was on course to becoming the biggest bank in Africa as results of its presence in over 20 countries, adding that “Africa is our strategy”.
The Group CEO stated that the bank would soon enter the micro-finance sector to support micro-businesses across Africa to ensure the development of the continent and challenged the employees of the bank to put more emphasis on the customer service delivery.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selormey, said the expansion of banking services in the country was not by chance, but was as a response to regulatory issues.
He commended the bank for its initiative to expand more branches and offer new designs that also took into consideration facilities for the physically challenged in society.
The Managing Director of the Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the bank remained committed to expanding its retail outlet, and stated that the new face represented the ever-improving customer service of the bank to reach to all segments of the banking public.
The total branch network of the bank comes to 29, with a total of 72 ATMs network throughout the country with the opening of the three branches.
Ecobank Ghana Limited is part of a Pan-African Banking Group with affiliates in 20 African countries.
Ecobank Ghana was adjudged the Bank of the Year by Corporate Initiative Ghana (CIG) for this year, an award which it has won five times.
ECOBANK Ghana Limited has opened three new branches simultaneously in its effort to become a leader in the retail banking sector in the country.
The three branches, which are located at various places, are situated at the South Industrial Area, near the Agblogloshie Market, Spintex Road and the Accra Shopping Mall branch, near the Tetteh Quarshie Interchange.
The new branches come with new designs that are meant to enhance personal interactions between customers and the bank tellers and to offer customers warmth and comfort.
The branches are also fitted with ATMs and E-lobbies that offer the customer the opportunity to check his/her banking transactions online.
Speaking at the ceremony, the Group Chief Executive Officer (CEO) of Ecobank Transnational Incorporated (ETI), Mr Arnold Ekpe, said the new branch concept was the first to be introduced in the country, due to the important role that the Ghana subsidiary played in the group.
He said the new concept was also to position the bank’s new face as the pan-African bank committed to the African continent.
Mr Ekpe said the bank was on course to becoming the biggest bank in Africa as results of its presence in over 20 countries, adding that “Africa is our strategy”.
The Group CEO stated that the bank would soon enter the micro-finance sector to support micro-businesses across Africa to ensure the development of the continent and challenged the employees of the bank to put more emphasis on the customer service delivery.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selormey, said the expansion of banking services in the country was not by chance, but was as a response to regulatory issues.
He commended the bank for its initiative to expand more branches and offer new designs that also took into consideration facilities for the physically challenged in society.
The Managing Director of the Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said the bank remained committed to expanding its retail outlet, and stated that the new face represented the ever-improving customer service of the bank to reach to all segments of the banking public.
The total branch network of the bank comes to 29, with a total of 72 ATMs network throughout the country with the opening of the three branches.
Ecobank Ghana Limited is part of a Pan-African Banking Group with affiliates in 20 African countries.
Ecobank Ghana was adjudged the Bank of the Year by Corporate Initiative Ghana (CIG) for this year, an award which it has won five times.
Prudent economic management must continue - GNCCI
Story: Boahene Asamoah
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry in the country, has called on the government to maintain prudent management of the economy this election year to ensure that gains made so far are not derailed.
“We expect the government to maintain a prudent management of the economy in an electioneering year with all the temptations to overspend, leading to excessive borrowing from the banking sector, thereby crowding out the private sector from access to bank credit,” the chamber said.
In a New Year message, the President of the chamber, Mr Wilson Attah Krofah, also urged the government to seriously pursue the modernisation of agriculture through mechanisation, delivery of extension services, including the supply of high yield crop seedlings and the provision of suitable irrigation facilities.
“There is also the need to organise more efficient marketing systems for food crops nationally,” Mr Krofah stated, adding that “these arrangements will lead to improvement in the purchasing power of large majority of the rural population engaged in farming.”
Mr Krofah stated that the chamber would continue to pursue vigorously the ECOWAS integration to allow for free movement of people, goods and services across the sub-region.
“The chamber believes strongly that Ghana stands to benefit tremendously from an integrated West African market with over 250 million people, as it will help to expand the market for our local manufacturing industries,” Mr Krofah stated.
He said the chamber was already working with its Burkinabe counterpart for the supply of meat to Ghana and the export of manufactured products from Ghana.
On the oil find in the country, the President of the chamber implored Ghanaian entrepreneurs to gear up to participate fully in what he described as a “profitable and competitive market”.
He said there were indications that there was an influx of international business operations into the country to explore business opportunities associated with the oil industry and encouraged Ghanaian entities not to stand aloof.
“Looking into the future, the oil found in the Western Region, promises buoyant and profitable business opportunities,” Mr Krofah stated, and added that the chamber was ready and prepared to put its services at the disposal of all interested Ghanaian entrepreneurs to make the necessary contacts internationally.
On the political front, he said the chamber would like to see a more civil electioneering campaign from all political parties to ensure that the political climate remained stable, and that campaigns should be based on issues and how contesting parties planned to improve the standard of living of Ghanaians.
Mr Krofah stated that last year trade and industry faced a lot of challenges such as the energy crises and the influx of cheaper imports, but expressed optimism that this year would offer a more favourable and friendlier business climate.
THE Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry in the country, has called on the government to maintain prudent management of the economy this election year to ensure that gains made so far are not derailed.
“We expect the government to maintain a prudent management of the economy in an electioneering year with all the temptations to overspend, leading to excessive borrowing from the banking sector, thereby crowding out the private sector from access to bank credit,” the chamber said.
In a New Year message, the President of the chamber, Mr Wilson Attah Krofah, also urged the government to seriously pursue the modernisation of agriculture through mechanisation, delivery of extension services, including the supply of high yield crop seedlings and the provision of suitable irrigation facilities.
“There is also the need to organise more efficient marketing systems for food crops nationally,” Mr Krofah stated, adding that “these arrangements will lead to improvement in the purchasing power of large majority of the rural population engaged in farming.”
Mr Krofah stated that the chamber would continue to pursue vigorously the ECOWAS integration to allow for free movement of people, goods and services across the sub-region.
“The chamber believes strongly that Ghana stands to benefit tremendously from an integrated West African market with over 250 million people, as it will help to expand the market for our local manufacturing industries,” Mr Krofah stated.
He said the chamber was already working with its Burkinabe counterpart for the supply of meat to Ghana and the export of manufactured products from Ghana.
On the oil find in the country, the President of the chamber implored Ghanaian entrepreneurs to gear up to participate fully in what he described as a “profitable and competitive market”.
He said there were indications that there was an influx of international business operations into the country to explore business opportunities associated with the oil industry and encouraged Ghanaian entities not to stand aloof.
“Looking into the future, the oil found in the Western Region, promises buoyant and profitable business opportunities,” Mr Krofah stated, and added that the chamber was ready and prepared to put its services at the disposal of all interested Ghanaian entrepreneurs to make the necessary contacts internationally.
On the political front, he said the chamber would like to see a more civil electioneering campaign from all political parties to ensure that the political climate remained stable, and that campaigns should be based on issues and how contesting parties planned to improve the standard of living of Ghanaians.
Mr Krofah stated that last year trade and industry faced a lot of challenges such as the energy crises and the influx of cheaper imports, but expressed optimism that this year would offer a more favourable and friendlier business climate.
NTHC to review fund portfolio
Story: Boahene Asamoah
THE Managing Director of NTHC, an investment firm, Dr Albert N Q Barnor, has said that management would review the portfolio mix of its Horizon Fund to ensure higher returns on investments.
He said presently the fund’s investments in equities on the stock market was skewed towards the agro-processing companies which had not been too impressive.
In an interview shortly after the first annual general meeting of the Horizon Fund, Dr Barnor stated that there was need to review the firm’s investment portfolio to ensure higher returns for investors.
He assured investors in the NTHC Horizon Fund that the prospects of the fund looked much better this year, admitting that there had been some internal problems within the organisation, which had affected the fund’s performance.
Presenting the financial report for the year ended 2006, the Board Chairman of the fund, Mr Gaylord Kemevor, said the outlook of the fund looked good as the current macroeconomic conditions were expected to continue.
“The board is very optimistic about the performance of the fund in the coming year to enhance shareholders’ value. Strategies have been put in place to re-align our asset allocation mix to achieve a higher return than the benchmark Ghana Stock Exchange All Share Index,” the board chairman stated.
He said despite all the challenges the company faced during the year under review, the fund managed to make a modest nominal return of one per cent in 2006 as compared to a nominal return of four per cent in 2005.
Mr Kemevor said total subscriptions to the fund declined significantly whilst redemptions increased.
A total of 248 new shareholders bought shares valued at GH¢26,740 in 2006 as compared to 399 new shareholders who purchased shares valued at GH¢75,440, he stated.
During the period under review, a total of GH¢310,000 was redeemed by 303 shareholders in 2005 as compared to GH¢350,000 by 416 shareholders in 2005.
“The fund intends to position itself by enhancing its visibility through advertisements, as well as identifying ways of reaching out to potential investors across the country,” Mr Kemevo stated.
THE Managing Director of NTHC, an investment firm, Dr Albert N Q Barnor, has said that management would review the portfolio mix of its Horizon Fund to ensure higher returns on investments.
He said presently the fund’s investments in equities on the stock market was skewed towards the agro-processing companies which had not been too impressive.
In an interview shortly after the first annual general meeting of the Horizon Fund, Dr Barnor stated that there was need to review the firm’s investment portfolio to ensure higher returns for investors.
He assured investors in the NTHC Horizon Fund that the prospects of the fund looked much better this year, admitting that there had been some internal problems within the organisation, which had affected the fund’s performance.
Presenting the financial report for the year ended 2006, the Board Chairman of the fund, Mr Gaylord Kemevor, said the outlook of the fund looked good as the current macroeconomic conditions were expected to continue.
“The board is very optimistic about the performance of the fund in the coming year to enhance shareholders’ value. Strategies have been put in place to re-align our asset allocation mix to achieve a higher return than the benchmark Ghana Stock Exchange All Share Index,” the board chairman stated.
He said despite all the challenges the company faced during the year under review, the fund managed to make a modest nominal return of one per cent in 2006 as compared to a nominal return of four per cent in 2005.
Mr Kemevor said total subscriptions to the fund declined significantly whilst redemptions increased.
A total of 248 new shareholders bought shares valued at GH¢26,740 in 2006 as compared to 399 new shareholders who purchased shares valued at GH¢75,440, he stated.
During the period under review, a total of GH¢310,000 was redeemed by 303 shareholders in 2005 as compared to GH¢350,000 by 416 shareholders in 2005.
“The fund intends to position itself by enhancing its visibility through advertisements, as well as identifying ways of reaching out to potential investors across the country,” Mr Kemevo stated.
Graphic and Apex Bank to collaborate to reduce poverty
Story: Boahene Asamoah
THE Graphic Communications Group Limited (GCGL) and the ARB Apex Bank, the association of rural banks, have agreed to collaborate to improve the lives of residents of rural communities in the country through education and dissemination of information on savings culture.
This follows discussions held at the GCGL when the newly-appointed Managing Director of the Apex Bank, Mr Eric Osei-Bonsu, paid a courtesy call on the Managing Director of the GCGL, Mr Ibrahim Awal, in his office in Accra yesterday.
Mr Osei-Bonsu, who was accompanied by the Head of Finance, Mr Kwadwo Aye Kusi, and Mrs Eunice Osei-Bonsu, the Head of Corporate Affairs, both of the bank, said the GCGL, through the dissemination of information, could educate rural people on the need to invest through savings.
He said the successful implementation of the ARB Apex banking concept in the country had endeared the concept to many countries who now wanted to replicate it.
He added that the bank was repositioning itself, in view of the challenges and opportunities that the banking scene presented.
The managing director of the Apex Bank said in view of that, the bank was going to undertake a re-branding exercise under a new corporate strategy that would reposition it and called for support from the GCGL to help it to achieve its corporate objectives.
He said the Millennium Challenge Account (MCA) had made available $18 million to help network all rural banks and added that with the introduction of the EZWICH by the Central bank, the banking scene was going to be even more exciting.
Mr Osei-Bonsu said the courtesy call was also to introduce himself to the management of the GCGL to further deepen the already cordial relationship that existed between the two organisations.
For his part, Mr Awal, who was flanked by the General Manager, Finance, Mr Baah Adade, the Editor of the Daily Graphic, Mr Ransford Tetteh, and the Public Affairs Manager, Mr Albert Sam, all of the GCGL, suggested the setting up of a joint committee between the two organisations to come up with cogent proposals to fashion out the extent of collaboration between the two organisations.
He again suggested weekly and quarterly publications in the Daily Graphic, the flagship of the company’s products, to help push the new branding and corporate image of the bank.
Mr Awal recognised the immense contribution of rural and community banks in the country and said the company was ready to partner the bank in its drive to help alleviate poverty.
He commended the bank for increasing its subscription of the company’s products by some of its members across the country but stated that there was still room for improvement.
Mr Tetteh said the impressive performance of rural and community banks culminated in the number of awards to some rural banks during the last Ghana Club 100 awards and assured those banks of the paper’s support for their activities.
THE Graphic Communications Group Limited (GCGL) and the ARB Apex Bank, the association of rural banks, have agreed to collaborate to improve the lives of residents of rural communities in the country through education and dissemination of information on savings culture.
This follows discussions held at the GCGL when the newly-appointed Managing Director of the Apex Bank, Mr Eric Osei-Bonsu, paid a courtesy call on the Managing Director of the GCGL, Mr Ibrahim Awal, in his office in Accra yesterday.
Mr Osei-Bonsu, who was accompanied by the Head of Finance, Mr Kwadwo Aye Kusi, and Mrs Eunice Osei-Bonsu, the Head of Corporate Affairs, both of the bank, said the GCGL, through the dissemination of information, could educate rural people on the need to invest through savings.
He said the successful implementation of the ARB Apex banking concept in the country had endeared the concept to many countries who now wanted to replicate it.
He added that the bank was repositioning itself, in view of the challenges and opportunities that the banking scene presented.
The managing director of the Apex Bank said in view of that, the bank was going to undertake a re-branding exercise under a new corporate strategy that would reposition it and called for support from the GCGL to help it to achieve its corporate objectives.
He said the Millennium Challenge Account (MCA) had made available $18 million to help network all rural banks and added that with the introduction of the EZWICH by the Central bank, the banking scene was going to be even more exciting.
Mr Osei-Bonsu said the courtesy call was also to introduce himself to the management of the GCGL to further deepen the already cordial relationship that existed between the two organisations.
For his part, Mr Awal, who was flanked by the General Manager, Finance, Mr Baah Adade, the Editor of the Daily Graphic, Mr Ransford Tetteh, and the Public Affairs Manager, Mr Albert Sam, all of the GCGL, suggested the setting up of a joint committee between the two organisations to come up with cogent proposals to fashion out the extent of collaboration between the two organisations.
He again suggested weekly and quarterly publications in the Daily Graphic, the flagship of the company’s products, to help push the new branding and corporate image of the bank.
Mr Awal recognised the immense contribution of rural and community banks in the country and said the company was ready to partner the bank in its drive to help alleviate poverty.
He commended the bank for increasing its subscription of the company’s products by some of its members across the country but stated that there was still room for improvement.
Mr Tetteh said the impressive performance of rural and community banks culminated in the number of awards to some rural banks during the last Ghana Club 100 awards and assured those banks of the paper’s support for their activities.
Rural banks to get a new facelift
Story: Boahene Asamoah
THE ARB Apex Bank, a mini central bank of rural and community banks in the country, is to adopt a new corporate strategic plan that would ensure that all the 127 rural and community banks become a branch of the Apex Bank.
According to the new Managing Director, Mr Eric Osei-Bonsu, the new five-year corporate plan would spell out the modalities that would ensure an effective, smooth implementation.
He said the strategy was also to reposition the bank to become a major player in the financial sector of the economy.
Speaking in an interview during a courtesy call on the Management of Graphic Communications Group Limited in Accra, Mr Osei-Bonsu acknowledged that while that feat was a tall order, it was a vision that would be pursued vigorously.
He said the 127 rural and community banks had a combined capitalisation of about GH¢330 million (¢3.3 trillion) which made the rural banks a force to reckon with.
He acknowledged that the banking scene was changing, with some new banks strategically focused on rural and community financial service.
That, he said, should compel a new strategy that would ensure that rural and community banks became positioned strongly to play a meaningful financial intermediary in the rural economy.
He said the ARB Apex Bank, the first such kind in Africa, was a success story and had attracted many other countries to study how the system worked.
In view of that, he said, the bank would be looking to replicate such projects within the sub-region to ensure its impact on the people in the sub-region.
He said $18 million had been made available from the Millennium Challenge Account (MCA) to help network all rural and community banks.
Mr Osei-Bonsu said the bank had also launched the Apex link that offered quick and safe transfer of funds from one rural bank to other parts of the country.
THE ARB Apex Bank, a mini central bank of rural and community banks in the country, is to adopt a new corporate strategic plan that would ensure that all the 127 rural and community banks become a branch of the Apex Bank.
According to the new Managing Director, Mr Eric Osei-Bonsu, the new five-year corporate plan would spell out the modalities that would ensure an effective, smooth implementation.
He said the strategy was also to reposition the bank to become a major player in the financial sector of the economy.
Speaking in an interview during a courtesy call on the Management of Graphic Communications Group Limited in Accra, Mr Osei-Bonsu acknowledged that while that feat was a tall order, it was a vision that would be pursued vigorously.
He said the 127 rural and community banks had a combined capitalisation of about GH¢330 million (¢3.3 trillion) which made the rural banks a force to reckon with.
He acknowledged that the banking scene was changing, with some new banks strategically focused on rural and community financial service.
That, he said, should compel a new strategy that would ensure that rural and community banks became positioned strongly to play a meaningful financial intermediary in the rural economy.
He said the ARB Apex Bank, the first such kind in Africa, was a success story and had attracted many other countries to study how the system worked.
In view of that, he said, the bank would be looking to replicate such projects within the sub-region to ensure its impact on the people in the sub-region.
He said $18 million had been made available from the Millennium Challenge Account (MCA) to help network all rural and community banks.
Mr Osei-Bonsu said the bank had also launched the Apex link that offered quick and safe transfer of funds from one rural bank to other parts of the country.
Kraft Export attracts $80,000 facility
Story: Boahene Asamoah
ECOBANK Ghana Limited has extended an $80,000 credit facility to Kraft Export Consult, an exporter of artefacts, under the Improved Access to Credit for West Africa programme which was launched last year.
The $300,000 programme, which was facilitated by the United States Agency for International Development (USAID) and supported by ECOBANK Transnational Incorporated (ETI), the parent company of ECOBANK, is to support small- and medium-scale enterprises (SMEs) in West Africa to grow their businesses.
Kraft Export Consult from Ghana is the first beneficiary of the loan programme.
Speaking at the ceremony, an Executive Director of ETI, Mr Patrick Akinwuntan, said the credit facility demonstrated the commitment of USAID and ECOBANK to the development of the West African sub-region by empowering entrepreneurs in the region.
He expressed gratitude to USAID for its commitment and said the ECOBANK Group was equally committed to ensuring the development of the sub-region, adding that the bank had made substantial commitments in the sub-region.
The USAID Director for West Africa, Mr Patrick Henderson, said “increasing access to finance for trade and investment is a pre-requisite for firms trying to break into the export markets”.
He acknowledged that many Ghanaian apparel exporters had succeeded in landing large orders from major buyers in the USA under the Africa Growth and Opportunities Act (AGOA), adding that “without finance to buy the cloth to meet the order, Ghanaian apparel exporters cannot compete”.
The Managing Director of Kraft Consult, Mr Robert Darko, said the company was pleased to participate in the four workshops hosted by the Improving Access to Finance programme and expressed his appreciation for the loan and the knowledge acquired.
“The loan from ECOBANK will enable us to increase our production capacity from 13 40-foot containers to 16 40-foot containers,” he said, adding that that translated into more jobs for producers.
Kraft Consult supplies artefacts to Pier 1, one of the largest speciality retailers of imported home furnishings and decor in the United States.
It is expected that the credit facility will increase its exports by 25 per cent and create 390 new jobs for artisans.
ECOBANK Ghana Limited has extended an $80,000 credit facility to Kraft Export Consult, an exporter of artefacts, under the Improved Access to Credit for West Africa programme which was launched last year.
The $300,000 programme, which was facilitated by the United States Agency for International Development (USAID) and supported by ECOBANK Transnational Incorporated (ETI), the parent company of ECOBANK, is to support small- and medium-scale enterprises (SMEs) in West Africa to grow their businesses.
Kraft Export Consult from Ghana is the first beneficiary of the loan programme.
Speaking at the ceremony, an Executive Director of ETI, Mr Patrick Akinwuntan, said the credit facility demonstrated the commitment of USAID and ECOBANK to the development of the West African sub-region by empowering entrepreneurs in the region.
He expressed gratitude to USAID for its commitment and said the ECOBANK Group was equally committed to ensuring the development of the sub-region, adding that the bank had made substantial commitments in the sub-region.
The USAID Director for West Africa, Mr Patrick Henderson, said “increasing access to finance for trade and investment is a pre-requisite for firms trying to break into the export markets”.
He acknowledged that many Ghanaian apparel exporters had succeeded in landing large orders from major buyers in the USA under the Africa Growth and Opportunities Act (AGOA), adding that “without finance to buy the cloth to meet the order, Ghanaian apparel exporters cannot compete”.
The Managing Director of Kraft Consult, Mr Robert Darko, said the company was pleased to participate in the four workshops hosted by the Improving Access to Finance programme and expressed his appreciation for the loan and the knowledge acquired.
“The loan from ECOBANK will enable us to increase our production capacity from 13 40-foot containers to 16 40-foot containers,” he said, adding that that translated into more jobs for producers.
Kraft Consult supplies artefacts to Pier 1, one of the largest speciality retailers of imported home furnishings and decor in the United States.
It is expected that the credit facility will increase its exports by 25 per cent and create 390 new jobs for artisans.
Tuesday, November 27, 2007
Experts express opinion on the Budget
Story: Boahene Asamoah
SOME economists and investment analysts have expressed varied opinions about the 2008 Budget Statement and Economic Policy Statement presented to Parliament yesterday by the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu.
In an interview shortly after the delivery of the almost two-hour abridged version of the budget statement, the experts were unanimous in their opinion that the budget was comprehensive.
The new World Bank Country Director for Ghana, Mr Ishac Diwan, said the country’s focus on infrastructural development, as outlined in the 2008 budget, was surely the way to go if the country aimed at attaining a middle- income status.
Mr Diwan said “infrastructure is a major contributor to growth and development”, adding that it provided the needed tools to facilitate business and growth.
Mr Diwan, who is also the Country Director for Liberia, Burkina Faso, Sierra Leone and Guinea, said the government’s targets as outlined in the economic policy statement were realistic but he was quick to add that economic growth and developed hinged on good policies and projects.
He said the World Bank would study the budget and offer any suggestion and support that the government needed to achieve its targets.
The main thrust of the 2008 budget is hinged on “growth through massive infrastructure development”.
This year’s budget, as is characteristic of the government, is titled, “A Good and Brighter Future” and it is focused on investments in the road, energy and water infrastructure provision.
For his part, a former Minister for Public Sector Reforms, Dr Paa Kwesi Nduom, warned of potential industrial unrest as a result of what he said was the silence of the 2008 budget statement on pay reforms.
Dr Nduom, who is a presidential aspirant of the Convention People’s Party (CPP) and Member of Parliament (MP), said the budget did not address pay reforms adequately, adding that that could be a source of potential industrial unrest in the country.
Dr Nduom, who was in charge of restructuring pay reforms and the setting up of the Fair Wages Commission, again observed that the government needed to implement its policies concerning the energy situation, especially the expansion of the Osagyefo Power Barge.
He expressed concern about the decline in the performance of the manufacturing sector and said the budget again did not specify what was being done to address the constraints.
Dr Nduom said the government needed to address the issue of the importation of cheap products, a situation which he said was hurting local industries, saying that “no country has been able to develop without its manufacturing sector”.
“The manufacturing sector provides jobs for the people and there is the need to support that sector,” he added.
For his part, Dr Sam Mensah, an investment analyst, said the budget provided good news for the private sector in the area of regulatory framework improvement.
He mentioned, for instance, the government’s policy on capital allowance and stamp duty as some of the initiatives to support the private sector.
On the government’s decision to introduce a 10-year yield bond to stimulate secondary trading activity, Dr Mensah stated that it was critical, since it would provide a local bench mark for investors.
He said that was riding on the back of the government’s successful introduction of two- and three-year bonds on the secondary market and also the foray into the international market to source the $700 million euro bond.
The government has projected a 6.3 per cent Gross Domestic Product (GDP) growth for 2008, with a six to eight per cent inflation target.
SOME economists and investment analysts have expressed varied opinions about the 2008 Budget Statement and Economic Policy Statement presented to Parliament yesterday by the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu.
In an interview shortly after the delivery of the almost two-hour abridged version of the budget statement, the experts were unanimous in their opinion that the budget was comprehensive.
The new World Bank Country Director for Ghana, Mr Ishac Diwan, said the country’s focus on infrastructural development, as outlined in the 2008 budget, was surely the way to go if the country aimed at attaining a middle- income status.
Mr Diwan said “infrastructure is a major contributor to growth and development”, adding that it provided the needed tools to facilitate business and growth.
Mr Diwan, who is also the Country Director for Liberia, Burkina Faso, Sierra Leone and Guinea, said the government’s targets as outlined in the economic policy statement were realistic but he was quick to add that economic growth and developed hinged on good policies and projects.
He said the World Bank would study the budget and offer any suggestion and support that the government needed to achieve its targets.
The main thrust of the 2008 budget is hinged on “growth through massive infrastructure development”.
This year’s budget, as is characteristic of the government, is titled, “A Good and Brighter Future” and it is focused on investments in the road, energy and water infrastructure provision.
For his part, a former Minister for Public Sector Reforms, Dr Paa Kwesi Nduom, warned of potential industrial unrest as a result of what he said was the silence of the 2008 budget statement on pay reforms.
Dr Nduom, who is a presidential aspirant of the Convention People’s Party (CPP) and Member of Parliament (MP), said the budget did not address pay reforms adequately, adding that that could be a source of potential industrial unrest in the country.
Dr Nduom, who was in charge of restructuring pay reforms and the setting up of the Fair Wages Commission, again observed that the government needed to implement its policies concerning the energy situation, especially the expansion of the Osagyefo Power Barge.
He expressed concern about the decline in the performance of the manufacturing sector and said the budget again did not specify what was being done to address the constraints.
Dr Nduom said the government needed to address the issue of the importation of cheap products, a situation which he said was hurting local industries, saying that “no country has been able to develop without its manufacturing sector”.
“The manufacturing sector provides jobs for the people and there is the need to support that sector,” he added.
For his part, Dr Sam Mensah, an investment analyst, said the budget provided good news for the private sector in the area of regulatory framework improvement.
He mentioned, for instance, the government’s policy on capital allowance and stamp duty as some of the initiatives to support the private sector.
On the government’s decision to introduce a 10-year yield bond to stimulate secondary trading activity, Dr Mensah stated that it was critical, since it would provide a local bench mark for investors.
He said that was riding on the back of the government’s successful introduction of two- and three-year bonds on the secondary market and also the foray into the international market to source the $700 million euro bond.
The government has projected a 6.3 per cent Gross Domestic Product (GDP) growth for 2008, with a six to eight per cent inflation target.
Government focuses on infrastructural development
Story:Boahene Asamoah & Samuel Doe Ablordeppey
THE government is to embark on aggressive infrastructural projects, mainly on water, roads and energy, to bring real improvements in those sectors.
An estimated GH¢819.71 million will be spent on those three areas alone to facilitate the much needed accelerated growth.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, announced this in Accra when he presented the 2008 Budget Statement and Economic Policy of the government to Parliament yesterday.
“The focus of the 2008 Budget will be 'Growth through massive Infrastructure Development'. The areas identified are roads, water and energy,” the minister said.
The budget is targeting a real Gross Domestic Product (GDP) growth of at least 7.0 per cent; inflation rate of between 6.0 and 8.0 per cent; an average inflation of 7.0 per cent and an accumulation of international reserves equivalent to at least three months of import cover.
The budget would also achieve an overall budget deficit of 4.0 per cent of GDP.
He said to support the country’s development blueprint, the Growth and Poverty Reduction (GPRS II) steps would be taken to integrate rural and urban economies and ensure lower transport costs through the provision of safe and reliable road infrastructure and services.
In that regard, the Finance Minister said the government had allocated an estimated GH¢199.2 million to fund all 166 districts to construct and tar 15 kilometres of roads in each district next year.
He said the criteria for selection of the roads would be developed by the end of the year to ensure that the project started next year.
Mr Baah-Wiredu said banks and financial institutions would be called upon to intermediate in financing the projects.
An amount of $200 million from the sovereign bond proceeds would be spent in the road sector, including the dualisation of the Accra-Kumasi highway, while $90 million of that proceeds would be devoted to building the western corridor of the railway network.
On the improvement of water infrastructure, the Finance Minister said an estimated GH¢7.47 million would be spent on providing good drinking water for five communities in each of the 166 districts.
Improving the energy sector would also engage the attention of the government next year during which major medium and long-term measures would be adopted to increase the energy generation and distribution with a $460-million funding from the sovereign bond proceeds.
The projects would include the firing of the Osagyefo Power Barge at Effasu, the execution of the Bui Hydro Electric Power project, as well as the Hemang and Awisam Hydro Electricity Power projects on the Pra River, Mr Baah-Wiredu announced.
He added that other hydro-electric power projects to come on stream would include that on Ankobra River; the Tanoso Hydro Electric Power on the Tano River; and the Juale Hydro River on Oti River. An amount of ??????? will be spent in the energy sector with focus on the transmission and distribution network.
He said the government would partner the private sector through Public Private Partnership (PPP) to achieve those goals.
On the whole, the budget estimates total receipts for the country for the 2008 fiscal year at GH¢7.11 billion, equivalent to 43.6 per cent of GDP, with domestic revenue, consisting of tax and non-tax revenue, projected at GH¢4.76 billion.
On the other hand, out of the estimated GH¢7.11 billion of total payments, GH¢1.728 billion or 10.6 per cent of GDP, has been earmarked for statutory payments, while GH¢5.378 billion will be for discretionary payments.
THE government is to embark on aggressive infrastructural projects, mainly on water, roads and energy, to bring real improvements in those sectors.
An estimated GH¢819.71 million will be spent on those three areas alone to facilitate the much needed accelerated growth.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, announced this in Accra when he presented the 2008 Budget Statement and Economic Policy of the government to Parliament yesterday.
“The focus of the 2008 Budget will be 'Growth through massive Infrastructure Development'. The areas identified are roads, water and energy,” the minister said.
The budget is targeting a real Gross Domestic Product (GDP) growth of at least 7.0 per cent; inflation rate of between 6.0 and 8.0 per cent; an average inflation of 7.0 per cent and an accumulation of international reserves equivalent to at least three months of import cover.
The budget would also achieve an overall budget deficit of 4.0 per cent of GDP.
He said to support the country’s development blueprint, the Growth and Poverty Reduction (GPRS II) steps would be taken to integrate rural and urban economies and ensure lower transport costs through the provision of safe and reliable road infrastructure and services.
In that regard, the Finance Minister said the government had allocated an estimated GH¢199.2 million to fund all 166 districts to construct and tar 15 kilometres of roads in each district next year.
He said the criteria for selection of the roads would be developed by the end of the year to ensure that the project started next year.
Mr Baah-Wiredu said banks and financial institutions would be called upon to intermediate in financing the projects.
An amount of $200 million from the sovereign bond proceeds would be spent in the road sector, including the dualisation of the Accra-Kumasi highway, while $90 million of that proceeds would be devoted to building the western corridor of the railway network.
On the improvement of water infrastructure, the Finance Minister said an estimated GH¢7.47 million would be spent on providing good drinking water for five communities in each of the 166 districts.
Improving the energy sector would also engage the attention of the government next year during which major medium and long-term measures would be adopted to increase the energy generation and distribution with a $460-million funding from the sovereign bond proceeds.
The projects would include the firing of the Osagyefo Power Barge at Effasu, the execution of the Bui Hydro Electric Power project, as well as the Hemang and Awisam Hydro Electricity Power projects on the Pra River, Mr Baah-Wiredu announced.
He added that other hydro-electric power projects to come on stream would include that on Ankobra River; the Tanoso Hydro Electric Power on the Tano River; and the Juale Hydro River on Oti River. An amount of ??????? will be spent in the energy sector with focus on the transmission and distribution network.
He said the government would partner the private sector through Public Private Partnership (PPP) to achieve those goals.
On the whole, the budget estimates total receipts for the country for the 2008 fiscal year at GH¢7.11 billion, equivalent to 43.6 per cent of GDP, with domestic revenue, consisting of tax and non-tax revenue, projected at GH¢4.76 billion.
On the other hand, out of the estimated GH¢7.11 billion of total payments, GH¢1.728 billion or 10.6 per cent of GDP, has been earmarked for statutory payments, while GH¢5.378 billion will be for discretionary payments.
GOIL Lists on the stock market
Story: Boahene Asamoah & Eleanor Gurney
THE Ghana Oil Company Limited (GOIL), a local oil marketing company (OMC), was formally listed on the Ghana Stock Exchange (GSE) after a successful initial public offer (IPO) that was over-subscribed by over 100 per cent.
During the first day of trading, the shares of GOIL traded at GH¢0.2150. The company has thus become the second OMC and the 32nd company to be listed on the market.
At a ceremony to officially list the shares of the company on the first list of the GSE, the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, reiterated the government’s commitment to use the stock exchange for the divestiture of state-owned enterprises.
He said GOIL was being listed in order to stimulate secondary market activities and improve the financial leverage of the company, as well as encourage other Ghanaian private companies to also list on the stock market.
The minister also said the government was going to list a 10-year bond on the local market to help to stimulate secondary market activities and deepen the development of the capital market.
Mr Baah-Wiredu called on the management of GOIL to ensure its transparency and observe disclosure obligations that companies listed on the stock market were mandated to do.
The Board Chairman of GOIL, Mr Freddie Blay, said with the discovery of oil in the country, the company was positioning itself to take advantage of the opportunities that the industry presented.
He revealed that the company was looking at areas such as bitumen making and the building of oil refineries so that it could play a strategic role in the country’s oil industry.
Mr Blay, who is the Second Deputy Speaker of Parliament and Member of Parliament, assured shareholders that the company would adhere to the principles of transparency in its business dealings.
The Managing Director of the company, Mr Yaw Agyeman-Duah, said the company had good prospects and was poised to play a key role in the country’s oil industry.
He revealed that the company had already started the refurbishment on its outlets and had replaced the Ghana colours with orange to reflect its new image.
Mr Agyeman-Duah also said the company recently launched its G-Plus product, which has high octane particularly suited to vehicles driving in the Ghanaian environment.
The Managing Director of the GSE, Mr K.S. Yamoah, said the excess demand for the shares of GOIL during its IPO was an indication of how the Ghanaian public was ready to participate in activities on the stock market.
He called on the management of GOIL to position itself to take advantage of the opportunities that the oil find presented to the company, such as lifting oil and the marketing of other profitable products.
GOIL currently controls an 18 per cent market share of the downstream oil marketing business, as well as a 28 per cent market share of the lubricants market.
The company originally offered 42.7 per cent of its shares to the public to raise GH¢17.96 million (¢179.63 billion) to carry out an ambitious reinvigoration, rehabilitation and expansion programme.
The shares were, however, over-subscribed by over 100 per cent, forcing the government to release additional shares to satisfy the investing public.
THE Ghana Oil Company Limited (GOIL), a local oil marketing company (OMC), was formally listed on the Ghana Stock Exchange (GSE) after a successful initial public offer (IPO) that was over-subscribed by over 100 per cent.
During the first day of trading, the shares of GOIL traded at GH¢0.2150. The company has thus become the second OMC and the 32nd company to be listed on the market.
At a ceremony to officially list the shares of the company on the first list of the GSE, the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, reiterated the government’s commitment to use the stock exchange for the divestiture of state-owned enterprises.
He said GOIL was being listed in order to stimulate secondary market activities and improve the financial leverage of the company, as well as encourage other Ghanaian private companies to also list on the stock market.
The minister also said the government was going to list a 10-year bond on the local market to help to stimulate secondary market activities and deepen the development of the capital market.
Mr Baah-Wiredu called on the management of GOIL to ensure its transparency and observe disclosure obligations that companies listed on the stock market were mandated to do.
The Board Chairman of GOIL, Mr Freddie Blay, said with the discovery of oil in the country, the company was positioning itself to take advantage of the opportunities that the industry presented.
He revealed that the company was looking at areas such as bitumen making and the building of oil refineries so that it could play a strategic role in the country’s oil industry.
Mr Blay, who is the Second Deputy Speaker of Parliament and Member of Parliament, assured shareholders that the company would adhere to the principles of transparency in its business dealings.
The Managing Director of the company, Mr Yaw Agyeman-Duah, said the company had good prospects and was poised to play a key role in the country’s oil industry.
He revealed that the company had already started the refurbishment on its outlets and had replaced the Ghana colours with orange to reflect its new image.
Mr Agyeman-Duah also said the company recently launched its G-Plus product, which has high octane particularly suited to vehicles driving in the Ghanaian environment.
The Managing Director of the GSE, Mr K.S. Yamoah, said the excess demand for the shares of GOIL during its IPO was an indication of how the Ghanaian public was ready to participate in activities on the stock market.
He called on the management of GOIL to position itself to take advantage of the opportunities that the oil find presented to the company, such as lifting oil and the marketing of other profitable products.
GOIL currently controls an 18 per cent market share of the downstream oil marketing business, as well as a 28 per cent market share of the lubricants market.
The company originally offered 42.7 per cent of its shares to the public to raise GH¢17.96 million (¢179.63 billion) to carry out an ambitious reinvigoration, rehabilitation and expansion programme.
The shares were, however, over-subscribed by over 100 per cent, forcing the government to release additional shares to satisfy the investing public.
Wednesday, November 14, 2007
Government must place its proposal on EPA on the table
Story: Boahene Asamoah
THE Head of Programmes at the Third World Network (TWN), a civil society organisation, Mr Tetteh Hormeko, has called on the government to come clean on its preferred option on the Economic Partnership Agreement (EPA) on the on-going negotiations with the European Commission (EC).
He said it was not enough for the government to state that it would not sign the agreement and that the government ought to put on the negotiating table its proposals of the revised Generalised System of Preferences, also known as GSP+.
West African Ministers meeting on October 5, 2007 in Abidjan, Cote d’Ivoire stated that they would not be able to meet the December 31, 2007 deadline for the signing of the new trade agreement with the European Commission (EC).
The EPAs are reciprocal trade agreements between the European Union (EU) and the African, Caribbean and Pacific (ACP) Countries to replace the trade chapters of the Cotonou Agreement when the non-reciprocal preferential trade agreement expires next year.
Addressing a press conference on the present situation of the EPAs, Mr Homerku, stated that while the EC had made a two-stage proposal, which he described as a modified version of the EPAs, members of the African, Caribbean and Pacific (ACP) countries had not presented any option of their choice to its negotiating counterpart.
He said the GSP+ could also guarantee a World Trade Organisation (WTO) compatible preferential and non-reciprocal trade between the EU and ACP countries, in spite of claims that ACP countries would not be able to access the EU market if they failed to sign the EPAs by the end of the year.
Mr Homerku expressed worry that while the EU had ignored suggestions for the current trade waiver with the ACP countries to be extended, its had nonetheless presented what he termed “a front-loaded EPAs” which it expected African countries to sign up to by the end of November this year.
He said the two-stage proposal was “totally unacceptable to civil society groups,” adding that it amounted to signing the EPAs.
Mr Homerku explained that under the two-stage proposal, the EC was urging all ACP countries to sign the agreement that allowed for the full liberalisation of the goods or products sector, while the ACP committed itself to signing the two remaining agreements which were services and intellectual property rights at a later date.
He said the issues civil society groups raised in the EPAs, such as undermining the competitiveness of African products, the loss of jobs and taxes, specific goods to be liberalised and sensitive products, had still not been resolved, while the EC was pushing for a two-stage proposal.
Mr Homerku stated that the EC was exerting undue pressure on individual countries as well as other regional blocs to sign the EPAs and that there was the need for all ACP countries to present their options.
ACP countries are now on the verge of negotiating new regional trade agreements — called Economic Partnership Agreements — with the European Union (EU) which will diverge radically from past trading relationships.
THE Head of Programmes at the Third World Network (TWN), a civil society organisation, Mr Tetteh Hormeko, has called on the government to come clean on its preferred option on the Economic Partnership Agreement (EPA) on the on-going negotiations with the European Commission (EC).
He said it was not enough for the government to state that it would not sign the agreement and that the government ought to put on the negotiating table its proposals of the revised Generalised System of Preferences, also known as GSP+.
West African Ministers meeting on October 5, 2007 in Abidjan, Cote d’Ivoire stated that they would not be able to meet the December 31, 2007 deadline for the signing of the new trade agreement with the European Commission (EC).
The EPAs are reciprocal trade agreements between the European Union (EU) and the African, Caribbean and Pacific (ACP) Countries to replace the trade chapters of the Cotonou Agreement when the non-reciprocal preferential trade agreement expires next year.
Addressing a press conference on the present situation of the EPAs, Mr Homerku, stated that while the EC had made a two-stage proposal, which he described as a modified version of the EPAs, members of the African, Caribbean and Pacific (ACP) countries had not presented any option of their choice to its negotiating counterpart.
He said the GSP+ could also guarantee a World Trade Organisation (WTO) compatible preferential and non-reciprocal trade between the EU and ACP countries, in spite of claims that ACP countries would not be able to access the EU market if they failed to sign the EPAs by the end of the year.
Mr Homerku expressed worry that while the EU had ignored suggestions for the current trade waiver with the ACP countries to be extended, its had nonetheless presented what he termed “a front-loaded EPAs” which it expected African countries to sign up to by the end of November this year.
He said the two-stage proposal was “totally unacceptable to civil society groups,” adding that it amounted to signing the EPAs.
Mr Homerku explained that under the two-stage proposal, the EC was urging all ACP countries to sign the agreement that allowed for the full liberalisation of the goods or products sector, while the ACP committed itself to signing the two remaining agreements which were services and intellectual property rights at a later date.
He said the issues civil society groups raised in the EPAs, such as undermining the competitiveness of African products, the loss of jobs and taxes, specific goods to be liberalised and sensitive products, had still not been resolved, while the EC was pushing for a two-stage proposal.
Mr Homerku stated that the EC was exerting undue pressure on individual countries as well as other regional blocs to sign the EPAs and that there was the need for all ACP countries to present their options.
ACP countries are now on the verge of negotiating new regional trade agreements — called Economic Partnership Agreements — with the European Union (EU) which will diverge radically from past trading relationships.
Monday, November 12, 2007
Non-traditional exports-Burkina Faso a major destination
Story: Boahene Asamoah
BURKINA FASO has become a major destination for Ghana’s exports of non-traditional within the sub-region.
Figures from the Ghana Export Promotion Council (GEPC) indicate that the country exported a total of $77.1 million worth of goods to Burkina Faso in 2006, as compared to the $63.3 million, representing 21 per cent growth in the market share
Ghana’s exports to Nigeria stood at $67.6 million for 2006 which was 24.9 per cent growth of the 2005 figure of $54.2 million. Before 2005. Nigeria was the leading country in terms of exports of NTEs from Ghana.
Export products to Burkina Faso were primary household utensils, wood, plastics, salt and textile.
However, over the past two years, Nigeria placed a ban on goods from neighbouring countries hurting local exporters from Ghana.
According the Senior Export Development Officer of the GEPC, Mr Alex Dadzawa, who attributed the rise in the country’s exports to Burkina Faso to the observation of the ECOWAS Trade Liberalisation Scheme.
He said this led to free flow of goods into the country without any taxes.
Ghana last year exported non-traditional exports to the tune of $893 million, representing a 14.8 per cent growth over the 2005 figure of $778 million. The target of $1 billion is however yet to be achieved.
According to figures from the GEPC, emerging economies accounted for 11.90 per cent of the country’s exports of NTEs, while other developed countries outside the EU also accounted for 11.07 per cent and other African countries constituted only 2.82 per cent.
The GEPC report indicated that during the periods of 2005 to 2006, all the markets recorded positive growth with the exception of the ECOWAS market that recorded a negative growth of -0.52 per cent.
The decline was as a result of the relative difficulty in accessing the Nigeria market even by companies with approval under the ETLS.
The EU market performance grew by 13.88 per cent while the markets in the other African countries, other developed countries, including emerging markets grew by 34 per cent, 33.55 per cent and 47.22 per cent respectively.
In 2006, Ghana’s single largest market for the NTEs was the United Kingdom which accounted for 12.12 per cent of total NTEs, worth $108.2 million, representing a decline of 4.6 per cent of the previous year’s figure of $113.5 million.
Cocoa paste veneer sheets, prepared tuna cocoa butter, plywood frozen tuna, shea nuts, cut fresh pineapples, other prepared fish and frozen fish, accounted for 51.7 per cent of total exports worth $461.7 million dollars.
Cocoa paste which is the highest earner contributed 10.71 per cent with a value of $95.6 million, representing 226 per cent increase over the 2005 figure of $29.3 million.
This was due to significant increase in the future prices for the product last year on the London futures market. Additionally, the increase was also partly due to expansion of Barry Callebaut Ghana Limited, a major exporter of cocoa paste.
BURKINA FASO has become a major destination for Ghana’s exports of non-traditional within the sub-region.
Figures from the Ghana Export Promotion Council (GEPC) indicate that the country exported a total of $77.1 million worth of goods to Burkina Faso in 2006, as compared to the $63.3 million, representing 21 per cent growth in the market share
Ghana’s exports to Nigeria stood at $67.6 million for 2006 which was 24.9 per cent growth of the 2005 figure of $54.2 million. Before 2005. Nigeria was the leading country in terms of exports of NTEs from Ghana.
Export products to Burkina Faso were primary household utensils, wood, plastics, salt and textile.
However, over the past two years, Nigeria placed a ban on goods from neighbouring countries hurting local exporters from Ghana.
According the Senior Export Development Officer of the GEPC, Mr Alex Dadzawa, who attributed the rise in the country’s exports to Burkina Faso to the observation of the ECOWAS Trade Liberalisation Scheme.
He said this led to free flow of goods into the country without any taxes.
Ghana last year exported non-traditional exports to the tune of $893 million, representing a 14.8 per cent growth over the 2005 figure of $778 million. The target of $1 billion is however yet to be achieved.
According to figures from the GEPC, emerging economies accounted for 11.90 per cent of the country’s exports of NTEs, while other developed countries outside the EU also accounted for 11.07 per cent and other African countries constituted only 2.82 per cent.
The GEPC report indicated that during the periods of 2005 to 2006, all the markets recorded positive growth with the exception of the ECOWAS market that recorded a negative growth of -0.52 per cent.
The decline was as a result of the relative difficulty in accessing the Nigeria market even by companies with approval under the ETLS.
The EU market performance grew by 13.88 per cent while the markets in the other African countries, other developed countries, including emerging markets grew by 34 per cent, 33.55 per cent and 47.22 per cent respectively.
In 2006, Ghana’s single largest market for the NTEs was the United Kingdom which accounted for 12.12 per cent of total NTEs, worth $108.2 million, representing a decline of 4.6 per cent of the previous year’s figure of $113.5 million.
Cocoa paste veneer sheets, prepared tuna cocoa butter, plywood frozen tuna, shea nuts, cut fresh pineapples, other prepared fish and frozen fish, accounted for 51.7 per cent of total exports worth $461.7 million dollars.
Cocoa paste which is the highest earner contributed 10.71 per cent with a value of $95.6 million, representing 226 per cent increase over the 2005 figure of $29.3 million.
This was due to significant increase in the future prices for the product last year on the London futures market. Additionally, the increase was also partly due to expansion of Barry Callebaut Ghana Limited, a major exporter of cocoa paste.
Wednesday, November 07, 2007
2008 Trade fair launched
Story: Boahene Asamoah
THE General Manager of the Ghana Trade Fair Company, Mr Ofori Amanfo, has called on local entrepreneurs to take advantage of trade fairs to exhibit their products and to network with foreign companies to become competitive.
He said in spite of technological advances international fairs still provided an opportunity for exhibitors to market their products and to form partnerships.
Speaking at the launch of the 12th International Trade Fair, scheduled to take place from February 20 to March 9, next year, Mr Amanfo said there was existing evidence that some local companies had been nurtured through such international fairs.
He said the fair would attract about 350 foreign exhibitors and 950 local exhibitors for next year’s international fair.
“The fair will cut across all spheres of business, such as training, research, marketing and product development,” he said, adding that it was also to help position local companies to further attract foreign customers.
The theme for next year’s international fair “Promoting Trade and Investment Opportunities,” is to draw attention to the need for businesses to explore the opportunities that lie in such international fairs.
Mr Amanfo said the Trade Fair Company had provided adequate logistics to ensure that exhibitors went about their businesses without problems.
He urged the exhibitors to take insurance seriously in order to guarantee the safety of their wares and that the company had already instituted measures to guarantee maximum security for goods and property.
THE General Manager of the Ghana Trade Fair Company, Mr Ofori Amanfo, has called on local entrepreneurs to take advantage of trade fairs to exhibit their products and to network with foreign companies to become competitive.
He said in spite of technological advances international fairs still provided an opportunity for exhibitors to market their products and to form partnerships.
Speaking at the launch of the 12th International Trade Fair, scheduled to take place from February 20 to March 9, next year, Mr Amanfo said there was existing evidence that some local companies had been nurtured through such international fairs.
He said the fair would attract about 350 foreign exhibitors and 950 local exhibitors for next year’s international fair.
“The fair will cut across all spheres of business, such as training, research, marketing and product development,” he said, adding that it was also to help position local companies to further attract foreign customers.
The theme for next year’s international fair “Promoting Trade and Investment Opportunities,” is to draw attention to the need for businesses to explore the opportunities that lie in such international fairs.
Mr Amanfo said the Trade Fair Company had provided adequate logistics to ensure that exhibitors went about their businesses without problems.
He urged the exhibitors to take insurance seriously in order to guarantee the safety of their wares and that the company had already instituted measures to guarantee maximum security for goods and property.
Foreign invesment in tradingInvestment centre to raise the bar
GIPC (fin)
Story: Boahene Asamoah
Story: Boahene asamoah
THE Ghana Investment Promotion Centre (GIPC) has presented a proposal to the Ministry of Finance for the upward review of the minimum requirement for investors in the trading sector of the economy from the present $300,000 to $1 million.
The proposal, if approved, would require investors in that category to provide $1 million cash investment.
At a press conference in Accra on Friday, the Chief Executive Officer of the GIPC, Mr Robert Ahomkah-Lindsay, said the direction was to scale up investors with high quality capital into the trading sector.
He said contrary to public perception, the law did not bar any investor from the trading sector, adding that what the law required was investors who had capital of $300,000 in cash or in goods.
Mr Ahomkah-Linsay stated that the law also prohibited such investors from trading on the local markets.
He conceded that the monitoring role of the GIPC had not been efficient as should have been the case but stressed that every effort was being made to enforce the law to the letter.
The GIPC Chief executive said the centre was threading cautiously to ensure that its actions would not send a wrong signal to investors.
Breifing the press on the quartely results of investment coming into the country, the CEO stated that a total of GH¢880 million (¢8.8 trillion) with GH¢851 million (¢8.51 trillion) new re-investments and GH¢29 million (¢290 billion) of initial equity transfer.
That, he said, compared favourably with GH¢561 million new investments for the same period last year.
He said for the third quarter (from July to September, this year), however, a total of GH¢340.7 million (¢3.407 trillion) worth of investment was attracted into the country as compared GH¢110.87 million (¢1.108 trillion) recorded for the same period last year.
Mr Ahomka-Lindsay stated that the investments were made up of 80 new projects, with manufacturing industries accounting for 22 out of the companies, the service sector accounted for nine projects, tourism had eight companies, while building and construction attracted five investments.
The agriculture sector saw six investments, export trade attracted four investments and the general trading accounted for 26 projects.
The CEO stated that 60.6 per cent of projects were fully owned by foreign investors with a value of GH¢165 million (¢1.65 trillion), while 39.4 per cent were joint ventures with Ghanaians with a value of GH¢10 million (¢100 billion).
He said the main sources of FDI were from China, India, UK, Germany, India, but South Africa, Cote d’Ivoire and Nigeria and Benin were also making inroads into Ghana’s investment landscape.
Mr Ahomkah-Lindsay stated that the centre was embarking on new reforms to ensure effective monitoring of projects, through a multi agency task force and also to review the quota system as a tool for FDI attraction.
He said the reforms would also include duty exemptions, which was being critically looked at to ensure that companies paid the approriate taxes.
The CEO added that a possible introduction of alternative incentives for re-investments in the area of capital allowance, tax relief for recruitment and staff advancement of Ghanaians.
He called on Ghanaian companies to register with the centre to enable the centre to provide better services for them and also create a database of Ghanaian companies to determine the sectors they operated in and the level of employment.
Story: Boahene Asamoah
Story: Boahene asamoah
THE Ghana Investment Promotion Centre (GIPC) has presented a proposal to the Ministry of Finance for the upward review of the minimum requirement for investors in the trading sector of the economy from the present $300,000 to $1 million.
The proposal, if approved, would require investors in that category to provide $1 million cash investment.
At a press conference in Accra on Friday, the Chief Executive Officer of the GIPC, Mr Robert Ahomkah-Lindsay, said the direction was to scale up investors with high quality capital into the trading sector.
He said contrary to public perception, the law did not bar any investor from the trading sector, adding that what the law required was investors who had capital of $300,000 in cash or in goods.
Mr Ahomkah-Linsay stated that the law also prohibited such investors from trading on the local markets.
He conceded that the monitoring role of the GIPC had not been efficient as should have been the case but stressed that every effort was being made to enforce the law to the letter.
The GIPC Chief executive said the centre was threading cautiously to ensure that its actions would not send a wrong signal to investors.
Breifing the press on the quartely results of investment coming into the country, the CEO stated that a total of GH¢880 million (¢8.8 trillion) with GH¢851 million (¢8.51 trillion) new re-investments and GH¢29 million (¢290 billion) of initial equity transfer.
That, he said, compared favourably with GH¢561 million new investments for the same period last year.
He said for the third quarter (from July to September, this year), however, a total of GH¢340.7 million (¢3.407 trillion) worth of investment was attracted into the country as compared GH¢110.87 million (¢1.108 trillion) recorded for the same period last year.
Mr Ahomka-Lindsay stated that the investments were made up of 80 new projects, with manufacturing industries accounting for 22 out of the companies, the service sector accounted for nine projects, tourism had eight companies, while building and construction attracted five investments.
The agriculture sector saw six investments, export trade attracted four investments and the general trading accounted for 26 projects.
The CEO stated that 60.6 per cent of projects were fully owned by foreign investors with a value of GH¢165 million (¢1.65 trillion), while 39.4 per cent were joint ventures with Ghanaians with a value of GH¢10 million (¢100 billion).
He said the main sources of FDI were from China, India, UK, Germany, India, but South Africa, Cote d’Ivoire and Nigeria and Benin were also making inroads into Ghana’s investment landscape.
Mr Ahomkah-Lindsay stated that the centre was embarking on new reforms to ensure effective monitoring of projects, through a multi agency task force and also to review the quota system as a tool for FDI attraction.
He said the reforms would also include duty exemptions, which was being critically looked at to ensure that companies paid the approriate taxes.
The CEO added that a possible introduction of alternative incentives for re-investments in the area of capital allowance, tax relief for recruitment and staff advancement of Ghanaians.
He called on Ghanaian companies to register with the centre to enable the centre to provide better services for them and also create a database of Ghanaian companies to determine the sectors they operated in and the level of employment.
Create credible regulatory framework, To support the growth of businesses
Story: Boahene Asamoah & Precious Koranteng-Agyei
AN Advisor to the Tanzania President, Dr Ken Kwaku, has called for a transparent and non-discretionary regulatory framework to support the development of African economies.
He said such regulations would create equal opportunities and ensure an enabling environment for businesses to grow and expand.
In an interview, Dr Kwaku emphasised the need for support for small-and medium-scale enterprises (SMEs) on the continent to enable them to grow, since they were the pillar of every economy.
Dr Kwaku is one of the personalities attending the African Consultative Conference, which is on the theme, “Creating better business environments for enterprise development: African and Global Lessons for More Effective Donor Practices.”
He said regulations were key to economic development and stressed that in most cases, there had been too many regulations which were inconsistent with the development agenda and therefore did not encourage investments.
“The fewer regulations existed in developing countries, the higher the private sector rose above the challenges and limitations in the sector,” Dr Kwaku said.
According to him, evidence abounded in Africa which suggested that the continent lacked the regulatory framework necessary to empower businesses and create an enabling environment for them.
In some cases where such regulatory framework existed, they were not clear and needed reforms to attract the necessary investments, he added.
“Regulations must be transparent, clear and accessible,” Dr Kwaku stressed and cautioned that African countries “should not do for foreign investors what they would not do for local investors. There must be a level playing field for all.”
Dr Kwaku stated that there must also be a conscious effort by African governments to translate investment opportunities and regulations into local dialects for the indigenous people to understand.
He also called for the need to equip local investors with the requisite knowledge, explaining that education was not equivalent to knowledge.
The Presidential Advisor stated that knowledge was key if African economies were to make progress and emphasised the empowering of people with the necessary knowledge to enable them to be creative.
The Private Sector Development, in collaboration with the Donor Committee for Enterprise Development, a network of 20 bi-and multilateral development, organised the conference to engage all stakeholders in discussions on the economic pursuit of an enabling business environment to achieve accelerated growth and development.
AN Advisor to the Tanzania President, Dr Ken Kwaku, has called for a transparent and non-discretionary regulatory framework to support the development of African economies.
He said such regulations would create equal opportunities and ensure an enabling environment for businesses to grow and expand.
In an interview, Dr Kwaku emphasised the need for support for small-and medium-scale enterprises (SMEs) on the continent to enable them to grow, since they were the pillar of every economy.
Dr Kwaku is one of the personalities attending the African Consultative Conference, which is on the theme, “Creating better business environments for enterprise development: African and Global Lessons for More Effective Donor Practices.”
He said regulations were key to economic development and stressed that in most cases, there had been too many regulations which were inconsistent with the development agenda and therefore did not encourage investments.
“The fewer regulations existed in developing countries, the higher the private sector rose above the challenges and limitations in the sector,” Dr Kwaku said.
According to him, evidence abounded in Africa which suggested that the continent lacked the regulatory framework necessary to empower businesses and create an enabling environment for them.
In some cases where such regulatory framework existed, they were not clear and needed reforms to attract the necessary investments, he added.
“Regulations must be transparent, clear and accessible,” Dr Kwaku stressed and cautioned that African countries “should not do for foreign investors what they would not do for local investors. There must be a level playing field for all.”
Dr Kwaku stated that there must also be a conscious effort by African governments to translate investment opportunities and regulations into local dialects for the indigenous people to understand.
He also called for the need to equip local investors with the requisite knowledge, explaining that education was not equivalent to knowledge.
The Presidential Advisor stated that knowledge was key if African economies were to make progress and emphasised the empowering of people with the necessary knowledge to enable them to be creative.
The Private Sector Development, in collaboration with the Donor Committee for Enterprise Development, a network of 20 bi-and multilateral development, organised the conference to engage all stakeholders in discussions on the economic pursuit of an enabling business environment to achieve accelerated growth and development.
We will manage economy (centre spread)
Story: Boahene Asamoah & Precious Koranteng-Agyei
PRESIDENT John Agyekum Kufuor has said there will be no room for complacency in the management of the economy in spite of the gains made so far.
He noted that with the citizenry and the country’s development partners having high expectations of the government’s commitment to attaining a middle income status by 2015, there was the need to step up its efforts at accelerated development.
President Kufuor said this in a speech read on his behalf by a Deputy Minister of Finance and Economic Planning, Prof Gyan Baffour, at the opening of the two-day Africa Consultative Conference being held in Accra.
The conference, which is being held in Ghana for the first time, has attracted about 300 prominent personalities from all over the world, including representatives from 30 African countries.
It is on the theme “ Creating Better Business Environments for Enterprise Development: African and Global Lessons for More Effective Donor Practices”. The conference would offer participants the opportunity to take stock of business environment reforms in their respective countries, exchange ideas on good practices and chart a new course that will unleash the full potential of the private sector in Africa.
“People expect us to do more and to make use of resources better,” President Kufuor stated.
He reiterated the government’s commitment to creating a conducive business environment and said the government’s commitment had yielded the necessary recognition as one of the best reforming countries in the world.
President Kufuor said that the government was earnestly working to improve the energy situation in the country to create better business opportunities for investors.
Again, President Kufuor stated that the government had strengthened the Bank of Ghana by ensuring its independence and also positioning it to reform the financial sector of the economy, which, he noted, was critical to the country’s development agenda.
“The government would tackle major issues confronting the economy head-on,” he said and added that Ghana was hoping to attract more businesses to the economy.
The Vice President in charge of Financial and Private Sector Development of the World Bank and Chief Economist of the International Finance Corporation, Mr Michael Klein, stated that over the past years there had been tremendous reforms in Africa, which have attracted some investments to the region.
He said there was the need to pursue reforms and regulations that would transform the economies of African countries.
Mr Klein said that Africa had the opportunity to learn from best practices across the world and to adopt such practices to ensure growth and development.
He said one of the strategies to reduce poverty was to create the enabling environment that would ensure the growth of the private sector and create jobs for the people.
During the conference, development agencies would also come under the spotlight to explore how best they could improve their work in support of business environment reforms in Africa.
Ghana would also give an account of its business environment reforms so far made.
The conference is being organised by the Donor Committee for Enterprise Development, a network of 20 multilateral development agencies in co-operation with the Private Sector Development Sector Group of Ghana.
PRESIDENT John Agyekum Kufuor has said there will be no room for complacency in the management of the economy in spite of the gains made so far.
He noted that with the citizenry and the country’s development partners having high expectations of the government’s commitment to attaining a middle income status by 2015, there was the need to step up its efforts at accelerated development.
President Kufuor said this in a speech read on his behalf by a Deputy Minister of Finance and Economic Planning, Prof Gyan Baffour, at the opening of the two-day Africa Consultative Conference being held in Accra.
The conference, which is being held in Ghana for the first time, has attracted about 300 prominent personalities from all over the world, including representatives from 30 African countries.
It is on the theme “ Creating Better Business Environments for Enterprise Development: African and Global Lessons for More Effective Donor Practices”. The conference would offer participants the opportunity to take stock of business environment reforms in their respective countries, exchange ideas on good practices and chart a new course that will unleash the full potential of the private sector in Africa.
“People expect us to do more and to make use of resources better,” President Kufuor stated.
He reiterated the government’s commitment to creating a conducive business environment and said the government’s commitment had yielded the necessary recognition as one of the best reforming countries in the world.
President Kufuor said that the government was earnestly working to improve the energy situation in the country to create better business opportunities for investors.
Again, President Kufuor stated that the government had strengthened the Bank of Ghana by ensuring its independence and also positioning it to reform the financial sector of the economy, which, he noted, was critical to the country’s development agenda.
“The government would tackle major issues confronting the economy head-on,” he said and added that Ghana was hoping to attract more businesses to the economy.
The Vice President in charge of Financial and Private Sector Development of the World Bank and Chief Economist of the International Finance Corporation, Mr Michael Klein, stated that over the past years there had been tremendous reforms in Africa, which have attracted some investments to the region.
He said there was the need to pursue reforms and regulations that would transform the economies of African countries.
Mr Klein said that Africa had the opportunity to learn from best practices across the world and to adopt such practices to ensure growth and development.
He said one of the strategies to reduce poverty was to create the enabling environment that would ensure the growth of the private sector and create jobs for the people.
During the conference, development agencies would also come under the spotlight to explore how best they could improve their work in support of business environment reforms in Africa.
Ghana would also give an account of its business environment reforms so far made.
The conference is being organised by the Donor Committee for Enterprise Development, a network of 20 multilateral development agencies in co-operation with the Private Sector Development Sector Group of Ghana.
Promotion of private enterprises key
Story: Boahene Asamoah
A DIRECTOR at the African Development Bank, Mr Gabriel Negatu, has called on Development Financial Institutions (DFIs) to promote private entrepreneurship by nurturing them to grow.
He said “this sector is now widely recognised as the main engine of growth”, adding that “DFIs must, therefore, promote its growth more energetically by identifying and nurturing local entrepreneurs”.
Speaking at the annual Association of African Development Finance (AADFI) forum for Chief Executive Officers on the framework for implementation of standards and guidelines in Accra yesterday, Mr Negatu again called on DFIs to also launch studies on industrial structure and financial packaging, and assist borrowers with project formulation.
He said despite financial sector reforms in many African countries, risk-averse private banks were still unable to meet the demand for term loans.
“The ability of African entrepreneurs to harness and take advantage of global market opportunities depends in large part on the availability of affordable and accessible financial instruments and products,” he stated.
He added that despite the potential of DFIs to make significant contributions, many DFIs had failed financially.
“They also appear generally to have failed to achieve their development objectives,” he added, stating that there was no doubt that if DFIs were to contribute to national development, they needed to be empowered, strengthened, and to operate in a transparent manner.
Mr Negatu stated that firm surveys showed that access to finance was one of three biggest constraints on enterprise growth in Africa.
He said it was estimated that increasing the level of credit going to the private sector from 14 per cent of GDP to 25 per cent would provide more than US$70 billion of additional investment resources to African households and firms.
Mr Negatu said the fast globalising financial sector invariably posed a great challenge not only to the growth and efficiency of the African financial system, but also on the system's ability to provide the stimulus for sustainable growth at national and regional levels.
He suggested that African countries and development partners should build stronger and integrated domestic financial systems by ensuring macro-economic stability, strengthening financial institutions, and introducing innovative banking and non-banking instruments and products.
Additionally, he called for the need to develop appropriate and cost-effective mechanism for responding to the credit and service needs of small and medium enterprises and also build a conducive public and private policy environment, and restore investor confidence in domestic banking systems.
He said despite the importance of the financial sector to Africa's economic growth, this potential remained largely untapped, and its contribution to date remained largely marginal.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the ministry, Nana Siriboe Juaben Boateng, said the challenge for members of the association would be to tailor standards and guidelines to suit individual countries.
“Though we accept that it is imperative for the association to have a code for the operations of its members, there are different challenges in each country and sub-region,” he stated.
He stated that profit making should not be the only motive of development banks at the expense of the overall development of the nation, adding that “if indeed commercial banking is highly viable, then some of the profits should be channelled into development banking where long-term funding is needed for industrial growth”.
The Managing Director of the National Investment Bank (NIB), Mr Daniel C. Gyimah, stated that research had revealed that the call for the abolishing of DFIs was misplaced.
He said the role of DFIs in the economies of most African countries had been tremendous. He, however, conceded that there had been difficult times.
A DIRECTOR at the African Development Bank, Mr Gabriel Negatu, has called on Development Financial Institutions (DFIs) to promote private entrepreneurship by nurturing them to grow.
He said “this sector is now widely recognised as the main engine of growth”, adding that “DFIs must, therefore, promote its growth more energetically by identifying and nurturing local entrepreneurs”.
Speaking at the annual Association of African Development Finance (AADFI) forum for Chief Executive Officers on the framework for implementation of standards and guidelines in Accra yesterday, Mr Negatu again called on DFIs to also launch studies on industrial structure and financial packaging, and assist borrowers with project formulation.
He said despite financial sector reforms in many African countries, risk-averse private banks were still unable to meet the demand for term loans.
“The ability of African entrepreneurs to harness and take advantage of global market opportunities depends in large part on the availability of affordable and accessible financial instruments and products,” he stated.
He added that despite the potential of DFIs to make significant contributions, many DFIs had failed financially.
“They also appear generally to have failed to achieve their development objectives,” he added, stating that there was no doubt that if DFIs were to contribute to national development, they needed to be empowered, strengthened, and to operate in a transparent manner.
Mr Negatu stated that firm surveys showed that access to finance was one of three biggest constraints on enterprise growth in Africa.
He said it was estimated that increasing the level of credit going to the private sector from 14 per cent of GDP to 25 per cent would provide more than US$70 billion of additional investment resources to African households and firms.
Mr Negatu said the fast globalising financial sector invariably posed a great challenge not only to the growth and efficiency of the African financial system, but also on the system's ability to provide the stimulus for sustainable growth at national and regional levels.
He suggested that African countries and development partners should build stronger and integrated domestic financial systems by ensuring macro-economic stability, strengthening financial institutions, and introducing innovative banking and non-banking instruments and products.
Additionally, he called for the need to develop appropriate and cost-effective mechanism for responding to the credit and service needs of small and medium enterprises and also build a conducive public and private policy environment, and restore investor confidence in domestic banking systems.
He said despite the importance of the financial sector to Africa's economic growth, this potential remained largely untapped, and its contribution to date remained largely marginal.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the ministry, Nana Siriboe Juaben Boateng, said the challenge for members of the association would be to tailor standards and guidelines to suit individual countries.
“Though we accept that it is imperative for the association to have a code for the operations of its members, there are different challenges in each country and sub-region,” he stated.
He stated that profit making should not be the only motive of development banks at the expense of the overall development of the nation, adding that “if indeed commercial banking is highly viable, then some of the profits should be channelled into development banking where long-term funding is needed for industrial growth”.
The Managing Director of the National Investment Bank (NIB), Mr Daniel C. Gyimah, stated that research had revealed that the call for the abolishing of DFIs was misplaced.
He said the role of DFIs in the economies of most African countries had been tremendous. He, however, conceded that there had been difficult times.
Monday, November 05, 2007
Elect DCEs- Nduom
Nduom (fin) Read by E. agyeI
Story: Boahene Asamoah
A former Minister of Public Sector Reforms, Dr Paa Kwesi Nduom, has added his voice to calls for the election of district chief executives (DCEs) to deepen the decentralisation process.
“If the people are wise enough to elect a President and Members of Parliament (MPs) for their respective areas, they will be wise enough to elect their leaders in the districts,” he said.
Contributing to the debate on: “Leadership and Poverty Reduction” at the ongoing fifth African Business Leaders Forum in Accra yesterday, Dr Nduom, who is contesting the flag bearer position of the Convention People’s Party (CPP), said it was time “to walk the talk”, adding that there was the need to empower the local people to take their destiny into their own hands.
Touching on poverty reduction, he disagreed with arguments that the tag “poverty reduction” be changed to “wealth creation”.
Dr Nduom, who was charged with the designing of the country’s poverty reduction strategy, the Ghana Poverty Reduction Strategy (GPRS), during the initial stages of the government in 2001, said wealth creation would not be an appropriate term to use for people living in absolute poverty.
“We should not be reluctant to recognise that poverty exists in our country,” he stated.
He said the state had the broad responsibility of creating the enabling environment that would offer opportunities to the people and called for closer collaboration between the public and private sectors to ensure poverty reduction.
In a related development, Dr Nduom said African unity which was proposed by the country’s first President, Dr Kwame Nkrumah, was even more relevant today than ever before.
He said the failure of African leaders to unite had led to the poor state of the African continent.
“The vision for African Unity today means partnership for progress through shared knowledge with full respect for our differences,” he stated.
Dr Nduom said this when addressing 101 young leaders meeting in Accra as part of activities of the African Business Leaders Forum in Accra on Tuesday.
“The vision for the unity of African states remains an active one and is still our hope for the acceleration of the growth and development of Africa in the 21st century,” he said.
Story: Boahene Asamoah
A former Minister of Public Sector Reforms, Dr Paa Kwesi Nduom, has added his voice to calls for the election of district chief executives (DCEs) to deepen the decentralisation process.
“If the people are wise enough to elect a President and Members of Parliament (MPs) for their respective areas, they will be wise enough to elect their leaders in the districts,” he said.
Contributing to the debate on: “Leadership and Poverty Reduction” at the ongoing fifth African Business Leaders Forum in Accra yesterday, Dr Nduom, who is contesting the flag bearer position of the Convention People’s Party (CPP), said it was time “to walk the talk”, adding that there was the need to empower the local people to take their destiny into their own hands.
Touching on poverty reduction, he disagreed with arguments that the tag “poverty reduction” be changed to “wealth creation”.
Dr Nduom, who was charged with the designing of the country’s poverty reduction strategy, the Ghana Poverty Reduction Strategy (GPRS), during the initial stages of the government in 2001, said wealth creation would not be an appropriate term to use for people living in absolute poverty.
“We should not be reluctant to recognise that poverty exists in our country,” he stated.
He said the state had the broad responsibility of creating the enabling environment that would offer opportunities to the people and called for closer collaboration between the public and private sectors to ensure poverty reduction.
In a related development, Dr Nduom said African unity which was proposed by the country’s first President, Dr Kwame Nkrumah, was even more relevant today than ever before.
He said the failure of African leaders to unite had led to the poor state of the African continent.
“The vision for African Unity today means partnership for progress through shared knowledge with full respect for our differences,” he stated.
Dr Nduom said this when addressing 101 young leaders meeting in Accra as part of activities of the African Business Leaders Forum in Accra on Tuesday.
“The vision for the unity of African states remains an active one and is still our hope for the acceleration of the growth and development of Africa in the 21st century,” he said.
Move to make leasing a vibrant sector-Introduce preferential tax treatment-IFC report
Story: Boahene Asamoah
THE International Finance Corporation (IFC), the investment arm of the World Bank, has called for the government to introduce preferential tax treatments in the leasing industry to encourage local investments in the leasing sector.
“The main reason for providing preferential treatment should be to increase domestic investments, not to stimulate the leasing sector,” the report stated.
According to the IFC report on leasing in Ghana, a survey of the leasing market in the country has shown that the introduction of any preferential tax treatment should only be for a limited time period.
“The whole tax system must be considered in making such a policy decision. In many cases, some tax benefits are given to offset other disadvantages and this approach may be pragmatic and effective,” the report stated.
The report observed that to promote the leasing sector and generally to encourage investments in capital equipment, legislation and tax provisions should be amended to encourage cross-border leasing.
“This is even more important, because most capital equipment is imported,” the report stated.
It observed that legislation in the country did not permit cross-border leasing involving non-resident lessors, and even if it permitted, there was a tax provision of 15 per cent withholding tax on rental payments to a non-resident person who made cross-border leasing transactions expensive and unattractive to non-resident lessors.
The report also called for the harmonisation of the Bank of Ghana’s rules and provisions and tax requirements.
It also explained that presently, the Bank of Ghana’s (BoG) guidelines required that lessors make provisions for overdue payments and had given rates based on the period that payments were overdue.
“These guidelines are given by the BoG to protect the integrity of lessors lease portfolios. However, for tax purposes, the tax authorities do not recognise these provisions,” the report indicated.
It further stated that this situation compelled the lessor to pay taxes on an income they might not have received, adding that “this creates a mismatch between income earned and tax expense which may impact adversely on cash flow on the lessor”.
On the calculation of depreciation and capital allowances for operation leases, the report called for a change in computing of allowances from the reducing balance to the straight line method to encourage operating leases.
“These changes would make operating leases more attractive and also increase interests,” the report stated.
In Ghana, all assets are depreciated on reducing balance method for all depreciable assets other than buildings for the purpose of capital allowance. The tax rate for depreciation is between 20 and 40 per cent for all fixed assets, except mining, petroleum operating assets and buildings.
“This implies that it takes a much longer time to be fully depreciated for tax purposes,” the report stated.
The Ghana Leasing Report 2007 is an advisory service offering of the IFC, aimed at enhancing the role of leasing as an alternative financing mechanism and other businesses in the country.
The programme is sponsored by the State Secretariat for Economic Affairs of Switzerland (SECO).
In Ghana, more than 90 per cent of businesses are Small-and Medium-Scale Enterprises (SMEs), and the benefits of leasing as an alternative form of assets financing cannot be overemphasised.
THE International Finance Corporation (IFC), the investment arm of the World Bank, has called for the government to introduce preferential tax treatments in the leasing industry to encourage local investments in the leasing sector.
“The main reason for providing preferential treatment should be to increase domestic investments, not to stimulate the leasing sector,” the report stated.
According to the IFC report on leasing in Ghana, a survey of the leasing market in the country has shown that the introduction of any preferential tax treatment should only be for a limited time period.
“The whole tax system must be considered in making such a policy decision. In many cases, some tax benefits are given to offset other disadvantages and this approach may be pragmatic and effective,” the report stated.
The report observed that to promote the leasing sector and generally to encourage investments in capital equipment, legislation and tax provisions should be amended to encourage cross-border leasing.
“This is even more important, because most capital equipment is imported,” the report stated.
It observed that legislation in the country did not permit cross-border leasing involving non-resident lessors, and even if it permitted, there was a tax provision of 15 per cent withholding tax on rental payments to a non-resident person who made cross-border leasing transactions expensive and unattractive to non-resident lessors.
The report also called for the harmonisation of the Bank of Ghana’s rules and provisions and tax requirements.
It also explained that presently, the Bank of Ghana’s (BoG) guidelines required that lessors make provisions for overdue payments and had given rates based on the period that payments were overdue.
“These guidelines are given by the BoG to protect the integrity of lessors lease portfolios. However, for tax purposes, the tax authorities do not recognise these provisions,” the report indicated.
It further stated that this situation compelled the lessor to pay taxes on an income they might not have received, adding that “this creates a mismatch between income earned and tax expense which may impact adversely on cash flow on the lessor”.
On the calculation of depreciation and capital allowances for operation leases, the report called for a change in computing of allowances from the reducing balance to the straight line method to encourage operating leases.
“These changes would make operating leases more attractive and also increase interests,” the report stated.
In Ghana, all assets are depreciated on reducing balance method for all depreciable assets other than buildings for the purpose of capital allowance. The tax rate for depreciation is between 20 and 40 per cent for all fixed assets, except mining, petroleum operating assets and buildings.
“This implies that it takes a much longer time to be fully depreciated for tax purposes,” the report stated.
The Ghana Leasing Report 2007 is an advisory service offering of the IFC, aimed at enhancing the role of leasing as an alternative financing mechanism and other businesses in the country.
The programme is sponsored by the State Secretariat for Economic Affairs of Switzerland (SECO).
In Ghana, more than 90 per cent of businesses are Small-and Medium-Scale Enterprises (SMEs), and the benefits of leasing as an alternative form of assets financing cannot be overemphasised.
Ghana’s Soverign Bond
Story: Boahene Asamoah
AN Executive Director of Strategic African Securities (SAS), Ms Abena Amoah, has said that the country must make good its financial obligations under the sovereign bond to sustain investor confidence and justify further forays into the international capital market.
In an interview on the implications of the country’s successful sourcing of $750 million eurobond on the international financial market, Ms Amoah stated that “meeting our obligations would enable the country to go for more funds for our development agenda.”
Ghana raised $750 million through an eurobond in London on September 27. The country intends to apply the funds into the energy and transportation sectors as part of its efforts to bridge the infrastructural gap.
The entire loan would be retired with the final interest paid on October 4, 2017.
The Ghana eurobond traded the day after its issue at $101 above the par value of $100 compared to Turkey, which traded below the par value three days after its issue. The Turkish bond was issued three days ahead of the one by Ghana.
Ms Amoah, an astute financial analyst, stated that “it is a good foray”, but cautioned that “it is not all sweet and perfect, but a pure commercial transaction.”
She said since issues of debt forgiveness and cancellation did not apply on the international financial markets, the country needed to show its commitment by rigidly making its payments on time.
She said the overwhelming response to the oversubscription of the sovereign bond was an indication of investor confidence in the country.
Ghana, which went on the international market for the first market time, saw its sovereign bond denominated in the dollar, oversubscribed by over 400 per cent, amounting to $3.7 billion.
Ms Amoah stated that many factors also contributed to the oversubscription which included the strong macroeconomic performance of the economy and the general favourable outlook for the economy.
Cocoa and gold prices, the two main foreign exchange earners for the country, have seen considerable price appreciation on the international market, hitting almost all time record. Cocoa and gold prices are now $942 and $772 respectively as of today.
Additionally, she mentioned investors appetite for new instruments following the falling of the United States interest rates on a 10-year government bonds to 4.61 per cent as of September 29.
Ms Amoah said offering investors an investment instruments with an interest yield of 8.5 per cent on a 10-year eurobond was also a very attractive offer, adding that the country’s B+ rating and the recently announced oil discovery were both contributory factors.
She added that the implications of the oversubscription were that private fund managers were increasingly looking at emerging markets such as Ghana to invest their funds.
Ms Amoah commended the team that went on the road show for selling Ghana and its performance over the past years.
The government has indicated its intention to use the funds in two major areas of the economy.
The energy and transportation ministries have begun the process of using up to $375 million from the $750 million eurobond proceeds this year for expansion and upgrade of infrastructure.
The energy sector will use about $200 million for rehabilitation and upgrade of generation, transmission and distribution, while the transportation ministry will also utilise the rest for road construction, particularly the 200-kilometre stretch of the Ofankor-Kumasi Highway, a dual carriageway.
Analysts say the country needs over $300 million annually over the next few years to finance its infrastructural gap in the areas of energy, water and transportation, and that funds from development partners were woefully inadequate if such infrastructural challenges must be overcome.
AN Executive Director of Strategic African Securities (SAS), Ms Abena Amoah, has said that the country must make good its financial obligations under the sovereign bond to sustain investor confidence and justify further forays into the international capital market.
In an interview on the implications of the country’s successful sourcing of $750 million eurobond on the international financial market, Ms Amoah stated that “meeting our obligations would enable the country to go for more funds for our development agenda.”
Ghana raised $750 million through an eurobond in London on September 27. The country intends to apply the funds into the energy and transportation sectors as part of its efforts to bridge the infrastructural gap.
The entire loan would be retired with the final interest paid on October 4, 2017.
The Ghana eurobond traded the day after its issue at $101 above the par value of $100 compared to Turkey, which traded below the par value three days after its issue. The Turkish bond was issued three days ahead of the one by Ghana.
Ms Amoah, an astute financial analyst, stated that “it is a good foray”, but cautioned that “it is not all sweet and perfect, but a pure commercial transaction.”
She said since issues of debt forgiveness and cancellation did not apply on the international financial markets, the country needed to show its commitment by rigidly making its payments on time.
She said the overwhelming response to the oversubscription of the sovereign bond was an indication of investor confidence in the country.
Ghana, which went on the international market for the first market time, saw its sovereign bond denominated in the dollar, oversubscribed by over 400 per cent, amounting to $3.7 billion.
Ms Amoah stated that many factors also contributed to the oversubscription which included the strong macroeconomic performance of the economy and the general favourable outlook for the economy.
Cocoa and gold prices, the two main foreign exchange earners for the country, have seen considerable price appreciation on the international market, hitting almost all time record. Cocoa and gold prices are now $942 and $772 respectively as of today.
Additionally, she mentioned investors appetite for new instruments following the falling of the United States interest rates on a 10-year government bonds to 4.61 per cent as of September 29.
Ms Amoah said offering investors an investment instruments with an interest yield of 8.5 per cent on a 10-year eurobond was also a very attractive offer, adding that the country’s B+ rating and the recently announced oil discovery were both contributory factors.
She added that the implications of the oversubscription were that private fund managers were increasingly looking at emerging markets such as Ghana to invest their funds.
Ms Amoah commended the team that went on the road show for selling Ghana and its performance over the past years.
The government has indicated its intention to use the funds in two major areas of the economy.
The energy and transportation ministries have begun the process of using up to $375 million from the $750 million eurobond proceeds this year for expansion and upgrade of infrastructure.
The energy sector will use about $200 million for rehabilitation and upgrade of generation, transmission and distribution, while the transportation ministry will also utilise the rest for road construction, particularly the 200-kilometre stretch of the Ofankor-Kumasi Highway, a dual carriageway.
Analysts say the country needs over $300 million annually over the next few years to finance its infrastructural gap in the areas of energy, water and transportation, and that funds from development partners were woefully inadequate if such infrastructural challenges must be overcome.
Shoprite opens in Accra
Story: Boahene Asamoah
SHOPRITE, one of Africa’s largest food retailers, says it will source 20 per cent of its products from the local market to stimulate demand and the development of local products.
The company said its policy was to support local suppliers, nurture enterprises in Africa and offer products with the best quality at the lowest prices.
Speaking to a cross section of journalists at the weekend, the General Manager of Shoprite Ghana, Mr Johann Koegelenberg, said the company had responded to President Kufuor’s call for international business operators to invest in the country.
The company is expected to open its doors to the Ghanaian public on November 1, 2007.
Currently operating in 16 countries outside its South African base, Shoprite is located at the Accra shopping mall, a supermarket which offers over 13,000 products.
Mr Koegelenberg said the company was an African business firm, saying it was important for Africans to spearhead investments on the continent to ensure accelerated growth and job opportunities.
“We are part of the African renaissance that is why we are here,” he stated.
He said the company had plans to open more outlets in Accra, Kumasi and Takoradi to ensure a wide presence in the country.
The general manager stated that the country needed a convenient environment suited for family shopping and also to offer the normal Ghanaian family quality good prices.
The company, which according to him employed 114 people including two expatriates, could increase its employee intake to about 160 people when operating at full capacity.
Conducting journalists round the premises of the company, Mr Koegelenberg said the 1,760 square metre supermarket had rooms for bakery, delicatessen and butchery with specialised fresh quality products and could stock about 8,000 groceries.
“One of the special features in the store is the fish counter which will offer a wide range of fresh fish and seafood sourced from the local industry,” Mr Koegelenberg stated.
Shoprite first entered the Ghanaian market in 2003 when it opened its first Usave Outlet in Accra. Since then, it was only a matter of time before the company would significantly increase its investments in the country.
Fire gutted parts of the premises of Shoprite in April this year, slowing down the opening of the shop.
SHOPRITE, one of Africa’s largest food retailers, says it will source 20 per cent of its products from the local market to stimulate demand and the development of local products.
The company said its policy was to support local suppliers, nurture enterprises in Africa and offer products with the best quality at the lowest prices.
Speaking to a cross section of journalists at the weekend, the General Manager of Shoprite Ghana, Mr Johann Koegelenberg, said the company had responded to President Kufuor’s call for international business operators to invest in the country.
The company is expected to open its doors to the Ghanaian public on November 1, 2007.
Currently operating in 16 countries outside its South African base, Shoprite is located at the Accra shopping mall, a supermarket which offers over 13,000 products.
Mr Koegelenberg said the company was an African business firm, saying it was important for Africans to spearhead investments on the continent to ensure accelerated growth and job opportunities.
“We are part of the African renaissance that is why we are here,” he stated.
He said the company had plans to open more outlets in Accra, Kumasi and Takoradi to ensure a wide presence in the country.
The general manager stated that the country needed a convenient environment suited for family shopping and also to offer the normal Ghanaian family quality good prices.
The company, which according to him employed 114 people including two expatriates, could increase its employee intake to about 160 people when operating at full capacity.
Conducting journalists round the premises of the company, Mr Koegelenberg said the 1,760 square metre supermarket had rooms for bakery, delicatessen and butchery with specialised fresh quality products and could stock about 8,000 groceries.
“One of the special features in the store is the fish counter which will offer a wide range of fresh fish and seafood sourced from the local industry,” Mr Koegelenberg stated.
Shoprite first entered the Ghanaian market in 2003 when it opened its first Usave Outlet in Accra. Since then, it was only a matter of time before the company would significantly increase its investments in the country.
Fire gutted parts of the premises of Shoprite in April this year, slowing down the opening of the shop.
Shell, dealers at cross-road
Story: Boahene Asamoah
RETAILERS of Shell products in the Accra-Tema area have appealed to the management of Shell Ghana Ltd. to extend the deadline for the termination of their dealership agreement.
According to the retailers, the December deadline set for them was too short as they would not be able to close their books.
The retailers made it clear that they had made huge capital investments in their respective businesses, and that some of them had commitments with their bankers which could not be redeemed within the stated period.
Shell Ghana Limited, in a letter to its dealers dated October 12, 2007, requested dealers to fill out an application form in respect of its new Operating Platform Change (OPC) which comes into effect on January 1, 2008.
This follows a deadlock meeting held at the head office of Shell in Accra in which management of the multi-national oil giant refused to back down on its demands for dealers to apply for a new retailer business agreement contract by the end of the year, or it would not renew its contract with the dealers.
The letters further asked the dealers to fill out the application forms and submit them by the end of October 19, 2008
In an interview, the Chairperson of the Ghana Shell Retailers Association, Ms Esther Mullings, said much as members of the association agreed to the management of Shell’s decision to switch to a new retailer agreement, the timing was too short for members to fully comply and to round off their business.
She said the new contract had also not be fully discussed with dealers and that efforts made by the dealers to get management of Shell to discuss the details of the new contract had fallen on death ears.
The members, clad in red attire, went to the Shell Head Office in an attempt to persuade management of the company to extend the deadline for the renewal of the dealership agreement to about six months to enable the members to comply.
Ms Mullings stated that information gathered indicated that the management of Shell intended to operate a cluster system where one dealer would be in charge of about three filling stations.
She said the association also intended to boycott the sale of the V-Power petrol, which was recently introduced by the company to put pressure on the management of the company to negotiate with them.
Ms Mullings said employees engaged by members could not be discharged so abruptly, while some of them had made credit commitments, particularly to industrial customers with whom they had agreements which could not be determined within the stipulated time.
“Outstanding debts owed by the afore-mentioned debtors will also require some time to recover,” she stated.
A letter from Shell Ghana Limited dated October 19, 2007 to the association, through its lawyers, stated that “Shell Ghana Limited is not terminating the contract of any of her dealers. Shell Ghana Limited will simply not renew the existing agreements when they expire.”
Some members of the association alleged that OPC would seek to reduce margins, increase the rent charges and disadvantage the dealers.
RETAILERS of Shell products in the Accra-Tema area have appealed to the management of Shell Ghana Ltd. to extend the deadline for the termination of their dealership agreement.
According to the retailers, the December deadline set for them was too short as they would not be able to close their books.
The retailers made it clear that they had made huge capital investments in their respective businesses, and that some of them had commitments with their bankers which could not be redeemed within the stated period.
Shell Ghana Limited, in a letter to its dealers dated October 12, 2007, requested dealers to fill out an application form in respect of its new Operating Platform Change (OPC) which comes into effect on January 1, 2008.
This follows a deadlock meeting held at the head office of Shell in Accra in which management of the multi-national oil giant refused to back down on its demands for dealers to apply for a new retailer business agreement contract by the end of the year, or it would not renew its contract with the dealers.
The letters further asked the dealers to fill out the application forms and submit them by the end of October 19, 2008
In an interview, the Chairperson of the Ghana Shell Retailers Association, Ms Esther Mullings, said much as members of the association agreed to the management of Shell’s decision to switch to a new retailer agreement, the timing was too short for members to fully comply and to round off their business.
She said the new contract had also not be fully discussed with dealers and that efforts made by the dealers to get management of Shell to discuss the details of the new contract had fallen on death ears.
The members, clad in red attire, went to the Shell Head Office in an attempt to persuade management of the company to extend the deadline for the renewal of the dealership agreement to about six months to enable the members to comply.
Ms Mullings stated that information gathered indicated that the management of Shell intended to operate a cluster system where one dealer would be in charge of about three filling stations.
She said the association also intended to boycott the sale of the V-Power petrol, which was recently introduced by the company to put pressure on the management of the company to negotiate with them.
Ms Mullings said employees engaged by members could not be discharged so abruptly, while some of them had made credit commitments, particularly to industrial customers with whom they had agreements which could not be determined within the stipulated time.
“Outstanding debts owed by the afore-mentioned debtors will also require some time to recover,” she stated.
A letter from Shell Ghana Limited dated October 19, 2007 to the association, through its lawyers, stated that “Shell Ghana Limited is not terminating the contract of any of her dealers. Shell Ghana Limited will simply not renew the existing agreements when they expire.”
Some members of the association alleged that OPC would seek to reduce margins, increase the rent charges and disadvantage the dealers.
"We will be prudent with the economy"- government has said
Story: Boahene Asamoah
THE government has said that it is going to ensure prudent management of the economy next year in order not to throw away the gains so far made.
Speaking at a forum on Budget Submission and Input in Accra yesterday, a Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Akoto Osei, said “in an election year, the government is not going to be populist or conservative”, adding that it was going to pursue prudent economic management of the economy.
He, however, said while pursuing prudent economic management, the government was not going to ignore its commitment to provide the requisite infrastructure in the country’s quest to attain a middle-income status.
Dr Osei said the country, for instance, needed about $4.5 billion to support the energy sector and said support from the country’s development partners was not adequate, hence the government’s intention to borrow from the international financial markets.
Focusing on the upcoming budget, the minister said there was not going to be any radical changes in the budget statement but stated that the government would focus on pursuing policies that had not been addressed in the previous budget statements.
“It is not prudent to add on to existing policies. We should rather take stock of the previous policies and pursue them,” he said.
Touching on the much talked about sale of the Agricultural Development Bank (ADB), Dr Osei said the government had not yet taken a position on the sale and assured the gathering that it would make its decision known at the appropriate time.
In her contribution, the Executive Secretary of the Ghana Employers Association (GEA), Mrs Rose Karikari Anang, commended the government for taking the initiative to take stock of its policies since 2001.
She said the association had proposed that the government take immediate steps to check what she termed “counterfeit trade”, since it hurt local industries, as well as deprived the country of the needed revenue for development.
On the energy sector, she stated that the government needed to provide its medium and long-term plan to enable the private sector to plan.
She said there was the need for the country to pursue vigorous commercial agricultural activities that were linked to the industry.
On the National Youth Employment Programme (NYEP), she said there was the need to ensure that it was sustainable and would not necessary lead to the bloating of government’s expenditure.
The Executive Director of the Centre for Policy Analysis (CEPA), Dr Joe Abbey, said the government had to keep a tight budget to ensure that progress made in macro-economic stability was not derailed.
He said last year’s budget indicated that “there were ballooning financial gaps” as a result of government borrowing from the domestic market.
Dr Abbey stated that there was pressure on government budget on expenditure and cautioned that the country needed to tread cautiously.
A Senior Economist at the Private Enterprises Foundation (PEF), Mr Moses Agyeman, said there was the need for a special fund that would support the sector.
He underscored the importance of the agricultural sector in the country’s economy and said the current structure of the banking system did not support the agricultural sector.
THE government has said that it is going to ensure prudent management of the economy next year in order not to throw away the gains so far made.
Speaking at a forum on Budget Submission and Input in Accra yesterday, a Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Akoto Osei, said “in an election year, the government is not going to be populist or conservative”, adding that it was going to pursue prudent economic management of the economy.
He, however, said while pursuing prudent economic management, the government was not going to ignore its commitment to provide the requisite infrastructure in the country’s quest to attain a middle-income status.
Dr Osei said the country, for instance, needed about $4.5 billion to support the energy sector and said support from the country’s development partners was not adequate, hence the government’s intention to borrow from the international financial markets.
Focusing on the upcoming budget, the minister said there was not going to be any radical changes in the budget statement but stated that the government would focus on pursuing policies that had not been addressed in the previous budget statements.
“It is not prudent to add on to existing policies. We should rather take stock of the previous policies and pursue them,” he said.
Touching on the much talked about sale of the Agricultural Development Bank (ADB), Dr Osei said the government had not yet taken a position on the sale and assured the gathering that it would make its decision known at the appropriate time.
In her contribution, the Executive Secretary of the Ghana Employers Association (GEA), Mrs Rose Karikari Anang, commended the government for taking the initiative to take stock of its policies since 2001.
She said the association had proposed that the government take immediate steps to check what she termed “counterfeit trade”, since it hurt local industries, as well as deprived the country of the needed revenue for development.
On the energy sector, she stated that the government needed to provide its medium and long-term plan to enable the private sector to plan.
She said there was the need for the country to pursue vigorous commercial agricultural activities that were linked to the industry.
On the National Youth Employment Programme (NYEP), she said there was the need to ensure that it was sustainable and would not necessary lead to the bloating of government’s expenditure.
The Executive Director of the Centre for Policy Analysis (CEPA), Dr Joe Abbey, said the government had to keep a tight budget to ensure that progress made in macro-economic stability was not derailed.
He said last year’s budget indicated that “there were ballooning financial gaps” as a result of government borrowing from the domestic market.
Dr Abbey stated that there was pressure on government budget on expenditure and cautioned that the country needed to tread cautiously.
A Senior Economist at the Private Enterprises Foundation (PEF), Mr Moses Agyeman, said there was the need for a special fund that would support the sector.
He underscored the importance of the agricultural sector in the country’s economy and said the current structure of the banking system did not support the agricultural sector.
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