Story: Boahene Asamoah
NON-TRADITIONAL Exports (NTEs) have shown strong performance over the past years, reaching $1.164 billion, above the $1 billion target for 2006.
The exports increased from $460 million in 2001 to $1,164 million in 2007, showing a growth rate of over 150 per cent.
On annual basis, the growth translates into a 20.7 per cent increase yearly.
According to a report from the Ghana Exports Promotion Council (GEPC), made available to the the Daily Graphic, total national merchandise exports of Ghana had shown positive growth over the past three years.
They have grown from $2.74 billion in 2004 to $4.19 billion in 2007, representing a 53.08 per cent growth in 2007 over the 2004 figures.
Within the same period from 2004 to 2007, NTEs grew from $705 million to $1,164 million, showing a growth rate of 65.08 per cent.
However, the percentage contribution of NTEs to total exports rose from 26.14 per cent in 2006 to 27.76 per cent in 2007.
Although the current year under review, 2007 follows the general trend of increase in NTEs achieved over the last five to six years, the export earnings achieved in 2007 exceeded the $1 billion earmarked for 2006 but falls below the expected amount of $1.2 billion forecast for the year 2007.
NTEs percentage contribution to total exports in 2004, 2005, 2006 and 2007 were about 25.74 per cent, 28.09 per cent, 26.14 per cent and 27.76 per cent respectively.
Review of NTEs Sector 2007
Total value of NTEs in 2007 was approximately $1,164 million. This depicts a growth of 30.42 per cent over the 2006 figures ($892 million). Previous year's performance showed an increase from $778 million in 2005 to $892 million in 2006, representing 14.8 per cent growth.
The performance of the sector over the period 2004-2007 is shown graphically below:
The total earnings of the non-traditional export sector in 2007 were made up of earnings from three main sub-sectors as follows:
The agricultural sector contributed by $197.24 million, representing a 16.9 per cent of the total exports. The manufacturing sector contributed $963. 5 million, representing 82.7 per cent while the handicraft sector contributed $3.79 million representing 0.32 per cent.
The GEPC report said the performance of semi processed/processed and the agricultural sub-sectors grew positively by 35.53 per cent and 11.14 per cent over the 2006 earnings. However, the handicrafts sub-sector recorded a negative growth of 15.59 per cent over 2006 earnings.
This was because major buyers of Ghanaian crafts in the United States of America (USA) turned to the Far-East, especially Indonesia, India and China for handicraft supplies with relatively good finishing and functionality.
Performance of NTEs by leading products
The 10 top performing products included cocoa paste which contributed 12 per cent worth $139.75 million, followed by canned tuna with 8.51 per cent of total exports amounting to $99.15 million.
Veneers accounted for 7.50 per cent with $87.8 million worth of veneers exported, $86.6 million worth of cocoa butter was exported, representing 7.45 per cent of total exports.
Other products including plastic wares, plywood, fresh or chilled tunas, nutural rubber sheets, shea nuts and cut pineapples, all made impressive gains during the 2007 export year. The total value of the top 10 earning products amounted to US$ 671,112,968 representing 57.63 per cent of the total NTEs for 2007.
According to reports, the increase in cocoa paste and butter earnings was due to increases in the futures prices for the product during the period on the London futures market.
Moreover, the increase in earnings was partly due to capacity expansion of a major exporter of cocoa paste, Barry Callebaut Ghana Limited and a major exporter of Cocoa butter, Cocoa Processing Company Limited.
The report said veneer sheets and plywood earnings increased significantly. This is mainly because a major exporter, John Bitar Company Limited, expanded its plant capacity and also acquired a defunct wood export company, Metro Star Limited together with its buyers.
Canned tuna also increased significantly because of the increase in the average world market price of the product and partly to the contribution of Myroc Food Processing Company Limited which did not feature in 2006.
In the agricultural sub-sector, the top export earner was frozen tuna which saw a 33.78 per cent increase from $39.4 million in 2006 to $52.8 million
Shea nuts, pineapple, cashew nuts and banana recorded negative growths of -0.88%, -29.40%, -9.99% and -3.54% respectively, compared with the 2006 performance.
Earnings from frozen tuna and other frozen fish grew significantly over the period, due to a huge investment and the utilisation of modern fishing implements by Panofi Company Limited.
Export of pineapples experienced a negative growth because of the fall in pineapple production due to many of the outgrowers leaving the industry.
Cashewnuts earnings decreased over the period due to the inability of one of the exporters, Rals Commodities Company Limited to export in the year under review. The company made US$3.2 million in the year 2006.
In the handicraft sub-sector, hides and skins were the top earners in that sector with 274 per cent increase in exports in that sector from $378,873 to $1,416,980.
The ten leading general product categories each contributed over US$30 million to NTEs earnings. The lead earning category, cocoa products, contributed 21.11 per cent to total NTE earnings in 2007, while rubber and rubber products, the tenth earning category, contributed 2.63 per cent to total NTE earnings in 2007.
The 10 leading general product categories were made up of seven processed or semi processed and three agricultural products. One out of the ten product categories, namely; horticultural products recorded a negative growth of -6.37 per cent in 2007 compared with 2006.
The performance of the NTE sector by markets indicates that the markets of the European Union and ECOWAS absorbed 46.55 per cent and 31.36 per cent respectively of NTE exports from Ghana. Other African countries and other developed countries as well as other countries including emerging or transitional economies/markets absorbed 2.36 per cent, 9.25 per cent , 10.48 per cent respectively of NTE exports from Ghana. This is shown in the chart above.
According to the GEPC report, a comparison of the performance of the various markets in 2007 to 2006 reveals that all the markets recorded positive growth. The EU market performance grew by 29.10 per cent whereas the markets of the other African countries, other developed countries and other countries including emerging markets grew by 8.97 per cent, 8.93 per cent and 14.89 per cent respectively.
In 2007, Ghana's single largest market for the NTEs was the United Kingdom, absorbing 11.42 per cent of total NTEs during the period
Nigeria which was overtaken by Burkina Faso in 2005 and 2006 has resurfaced as Ghana's leading market in the ECOWAS sub region.
Significantly, there was a positive growth in Nigeria's market share of total NTEs of 67.93 per cent in 2007 relative to 2006. Burkina Faso, the second most important market in the sub region registered a negative growth of 8.13 per cent in 2007 market share over 2006.
Sunday, April 06, 2008
Tullow Oil pays $2.3 million tax
Tullow Oil (fin)
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
Tullow Oil pays $2.3 million tax
Tullow Oil (fin)
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
Story: Boahene Asamoah
TULLOW Oil Plc, an oil exploration, developing and producing company, has presented a cheque for $2.3 million withholding tax to the Internal Revenue Service (IRS) for two operations it carried out last year.
At the presentation ceremony in Accra today, the Commissioner of the IRS, Major (retd) Dan Ablorh-Quarcoo, commended the company for their initiative, adding that in most cases the service had to chase companies to pay their withholding taxes.
He said the company had demonstrated high sense of responsibility by adopting self compliance in the payment of the witholding tax.
The Country Manager of Tullow Oil Plc, Mr Kofi Esson, said the payment of the tax was part of the company’s obligation to the state and that the tax represented two operations the company undertook last year.
Tullow Oil signed an agreement with the Ghana National Petroleum Corporation (GNPC) to explore, develop and produce oil in the country last year.
Picture:
ECOBANK is Best Emerging Market Bank
ECOBANK has been selected as the Best Emerging Market Bank in Cote d'Ivoire, in an exclusive survey to be published in the May 2008 issue of Global Finance magazine.
Global Finance editors - with input from analysts in the industry, corporate executives and banking consultants, selected ECOBANK based on the criteria which includes growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.
A statement issued by the bank quoted Mr Joseph D. Giarraputo, Publisher and President of Global Finance, as saying “We have identified the banks that provide service to corporations seeking to take advantage of substantial opportunities for growth in a sometimes challenging environment”.
It said the ECOBANK Group's Chief Executive Officer, Arnold Ekpe, said “The choice of ECOBANK confirms our position as a leader in the emerging African banking industry and our long-term commitment to the African continent”.
Ms Evelyne Tall, ECOBANK Executive Regional Director for the UEMOA Region, stated that “we are proud of this distinction. It highlights our commitment as a world-class Pan- African bank, to provide convenient, accessible and reliable banking and financial products and services to our customers in Africa”, the statement added.
Mr Charles Daboiko, Managing Director of Ecobank Côte d'Ivoire said “this distinction rewards our dedication to provide superior customer service, before and during difficult times. It motivates us to work harder for our customers, including investors, during this post-conflict era”.
Incorporated in 1985, ECOBANK Transnational Incorporated (ETI) is the parent company of the largest independent regional banking group in Africa.
The ECOBANK Group currently operates in 22 African countries, namely: Benin, Burkina-Faso, Cameroon, Cape Verde, Central African Republic, Chad, Congo-Brazzaville, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Malawi, Mali, Niger, Nigeria, Liberia, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, and Togo.
In addition, ETI is listed on the stock exchanges in Lagos, Accra and Abidjan (BRV).
The group has over 8,000 employees in over 450 branches. ECOBANK is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro-businesses and individuals.
Global Finance, which celebrates its 21st year of publishing in 2008, has 50,000 subscribers and more than 284,000 readers in over 158 countries. This audience includes chairmen, presidents, CEOs, CFOs, treasurers and other financial officers responsible for making investments and strategic business decisions for large global companies and financial institutions.
Global Finance also targets the 8,000 key portfolio investors who control over 80 per cent of all assets under professional management.
Global Finance editors - with input from analysts in the industry, corporate executives and banking consultants, selected ECOBANK based on the criteria which includes growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.
A statement issued by the bank quoted Mr Joseph D. Giarraputo, Publisher and President of Global Finance, as saying “We have identified the banks that provide service to corporations seeking to take advantage of substantial opportunities for growth in a sometimes challenging environment”.
It said the ECOBANK Group's Chief Executive Officer, Arnold Ekpe, said “The choice of ECOBANK confirms our position as a leader in the emerging African banking industry and our long-term commitment to the African continent”.
Ms Evelyne Tall, ECOBANK Executive Regional Director for the UEMOA Region, stated that “we are proud of this distinction. It highlights our commitment as a world-class Pan- African bank, to provide convenient, accessible and reliable banking and financial products and services to our customers in Africa”, the statement added.
Mr Charles Daboiko, Managing Director of Ecobank Côte d'Ivoire said “this distinction rewards our dedication to provide superior customer service, before and during difficult times. It motivates us to work harder for our customers, including investors, during this post-conflict era”.
Incorporated in 1985, ECOBANK Transnational Incorporated (ETI) is the parent company of the largest independent regional banking group in Africa.
The ECOBANK Group currently operates in 22 African countries, namely: Benin, Burkina-Faso, Cameroon, Cape Verde, Central African Republic, Chad, Congo-Brazzaville, Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea-Bissau, Malawi, Mali, Niger, Nigeria, Liberia, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, and Togo.
In addition, ETI is listed on the stock exchanges in Lagos, Accra and Abidjan (BRV).
The group has over 8,000 employees in over 450 branches. ECOBANK is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organisations, medium, small and micro-businesses and individuals.
Global Finance, which celebrates its 21st year of publishing in 2008, has 50,000 subscribers and more than 284,000 readers in over 158 countries. This audience includes chairmen, presidents, CEOs, CFOs, treasurers and other financial officers responsible for making investments and strategic business decisions for large global companies and financial institutions.
Global Finance also targets the 8,000 key portfolio investors who control over 80 per cent of all assets under professional management.
Prudential Bank to roll out e-banking products
Story: Boahene Asamoah
THE Managing Director of Prudential Bank Ghana Limited, Mr Stephen Sekyere-Abankwa, has said the bank would soon role out electronic banking products in its bid to attract more customers to the bank.
He said the introduction of electronic banking services “will provide convenient, time saving and easy access to banking services”.
Mr Sekyere-Abankwa made this known during the official inauguration of the branch office of the bank at Weija, a suburb of Accra, last Wednesday.
The managing director mentioned some of the electronic banking services as the Auto Teller Machines (ATMs), mobile phone banking, debit and credit cards, point of sale terminals, e-payment, e-marketing and Internet banking.
He said the new services being introduced would complement the traditional banking services that the bank had over the years offered to its numerous customers.
Mr Sekyere-Abankwa said the new branch at Weija was necessitated by the rapid expansion of the area and brings to two, the number of branches in that area.
“The bank plans to add seven more branches to its branch network by the middle of the year 2009,” he stated.
He said the bank had established its presence firmly in the banking sector of the economy and had delivered excellent performance in banking services and products that had made the bank to win numerous awards.
He said the bank was recognised for its service during the Ghana Banking Awards over the past two years and was adjudged the Best Bank in Long Term Loan Financing in 2005.
“The name Prudential Bank Limited is now synonymous with excellence, and today, we have brought our services to the business centre of Weija,” he said, adding, “We assure you that you will find us a vital partner in the growth of your businesses.”
Mr Sekyere-Abankwa encouraged micro, small and medium-scale enterprises to do business with the banks to ensure the growth of their business.
THE Managing Director of Prudential Bank Ghana Limited, Mr Stephen Sekyere-Abankwa, has said the bank would soon role out electronic banking products in its bid to attract more customers to the bank.
He said the introduction of electronic banking services “will provide convenient, time saving and easy access to banking services”.
Mr Sekyere-Abankwa made this known during the official inauguration of the branch office of the bank at Weija, a suburb of Accra, last Wednesday.
The managing director mentioned some of the electronic banking services as the Auto Teller Machines (ATMs), mobile phone banking, debit and credit cards, point of sale terminals, e-payment, e-marketing and Internet banking.
He said the new services being introduced would complement the traditional banking services that the bank had over the years offered to its numerous customers.
Mr Sekyere-Abankwa said the new branch at Weija was necessitated by the rapid expansion of the area and brings to two, the number of branches in that area.
“The bank plans to add seven more branches to its branch network by the middle of the year 2009,” he stated.
He said the bank had established its presence firmly in the banking sector of the economy and had delivered excellent performance in banking services and products that had made the bank to win numerous awards.
He said the bank was recognised for its service during the Ghana Banking Awards over the past two years and was adjudged the Best Bank in Long Term Loan Financing in 2005.
“The name Prudential Bank Limited is now synonymous with excellence, and today, we have brought our services to the business centre of Weija,” he said, adding, “We assure you that you will find us a vital partner in the growth of your businesses.”
Mr Sekyere-Abankwa encouraged micro, small and medium-scale enterprises to do business with the banks to ensure the growth of their business.
Sunday, March 30, 2008
Inflation goes up
Story: Boahene Asamoah
The annualised rate of inflation for the month of February has hit 13.2 per cent sending strong signals to economic watchers as to whether a single digit inflation would remain elusive to the country.
This is the fourth consecutive time inflation rate has urged up, having increased consistently from 10.14 per cent in October 2007 to 11.40 per cent in November, to 12.75 in December to 12.81 in January and then to 13.2 per cent.
What is worrying is that the food component of the consumer price index seems to have contributed to the increase in the inflation figure for February.
Although it was anticipated that food prices could increase as a result of the floods that hit the three northern regions which happens to be the food basket of the country and the cyclical nature of food prices during this period of the year.
The last previous upward movement in the inflation rate has by and large been attributed to the increase in the non-food component especially the upward increase in fuel prices in November and the higher spending patterns of the consumers during the yuletide in December.
Ghana has struggled to achieve a single digit inflation. In 1999 a nine per cent inflation rate was achieved, whiles in 2006, inflation inched closer to the single digit inflation.
The 2007 year started with inflation rate of 10.89 per cent in January and fell to 10.42 and 10.19 per cent in February and March respectively.
However, inflation rose again in April to 10.50 and 11.02 per cent May as a results of insufficient supply of staples such as maize, yam, cassava and plantain.
The February 2008 inflation increase was also due to high prices of some basic foodstuffs such as fish, bread and cereals were the major cause of the upward surge in inflation.
Considering the anticipated fuel price increases for this month as a result of the continous crude oil prices on the world market, the outlook of the economy look quiet uncertain.
The cyclical nature of the food prices normally would have started in March, but because of the floods this year’s food component impact on the CPI seemed to have started quiet early.
Again the rains seems to have delayed slightly which could
Last June for instance, the inflation rate declined which is the
The weakening of the currency especially against the United States dollar is also a source of great concern to economy.
The outlook of the economy seemed unbalanced although there has been some improvements such as the non-traditional exports hitting an all-time record of $1 billion at the end of the year, and also gold and cocoa prices hitting near records.
However, the continuous increase in crude oil prices coupled with
The annualised rate of inflation for the month of February has hit 13.2 per cent sending strong signals to economic watchers as to whether a single digit inflation would remain elusive to the country.
This is the fourth consecutive time inflation rate has urged up, having increased consistently from 10.14 per cent in October 2007 to 11.40 per cent in November, to 12.75 in December to 12.81 in January and then to 13.2 per cent.
What is worrying is that the food component of the consumer price index seems to have contributed to the increase in the inflation figure for February.
Although it was anticipated that food prices could increase as a result of the floods that hit the three northern regions which happens to be the food basket of the country and the cyclical nature of food prices during this period of the year.
The last previous upward movement in the inflation rate has by and large been attributed to the increase in the non-food component especially the upward increase in fuel prices in November and the higher spending patterns of the consumers during the yuletide in December.
Ghana has struggled to achieve a single digit inflation. In 1999 a nine per cent inflation rate was achieved, whiles in 2006, inflation inched closer to the single digit inflation.
The 2007 year started with inflation rate of 10.89 per cent in January and fell to 10.42 and 10.19 per cent in February and March respectively.
However, inflation rose again in April to 10.50 and 11.02 per cent May as a results of insufficient supply of staples such as maize, yam, cassava and plantain.
The February 2008 inflation increase was also due to high prices of some basic foodstuffs such as fish, bread and cereals were the major cause of the upward surge in inflation.
Considering the anticipated fuel price increases for this month as a result of the continous crude oil prices on the world market, the outlook of the economy look quiet uncertain.
The cyclical nature of the food prices normally would have started in March, but because of the floods this year’s food component impact on the CPI seemed to have started quiet early.
Again the rains seems to have delayed slightly which could
Last June for instance, the inflation rate declined which is the
The weakening of the currency especially against the United States dollar is also a source of great concern to economy.
The outlook of the economy seemed unbalanced although there has been some improvements such as the non-traditional exports hitting an all-time record of $1 billion at the end of the year, and also gold and cocoa prices hitting near records.
However, the continuous increase in crude oil prices coupled with
UBA open more branches
Story: Boahene Asamoah
THE United Bank of Africa (UBA), Ghana has opened six new branches in Accra simultaneously as part of its strategy to enter into the retail business.
The new branches are located in Madina, Teshie, Spintex Road, East Legon, Dzorwolo and the Ring Road Central all in Accra.
The new branches also come with new model edifices designed with the customers in mind and conforms to the bank’s new banking edifices throughout its operation in Africa, Europe and America.
Speaking at the opening of the new branches at the Ring Road Central branch of the bank in Accra yesterday, the Managing Director and Chief Executive Officer (CEO) of the bank, Mr Nnamdi Okonko, said “ the opening of our additional six branches is a reflection of our expansionary posture and shows that we are on course as far as the bank’s branch roll-out strategy is concerned”.
He said “UBA bank also aims to develop a branch foot-print and delivery that will ensure that the banks services are always within reach of valued customers and thus position ourselves among the top five banks in terms of geographical reach”.
Mr Okonko said the bank which presently has 12 branches including the six new branches would add four more branches next month, adding that “UBA Ghana will continue its policy of opening new branches across all regions of the country”.
That he said would be supported with a roll-out of electronic channels such as point-of-sale terminals and auto teller machines in line with the objectives of the Ghana Inter-Bank Payment Settlement.
He said the strategic location of the new branches was to address the constraints of proximity to ensure that the bank’s services and products reached the door steps of the customer.
“It is a further opportunity to reach out to the mass retail customers who for various reasons, such as high initial deposit requirements and access to business loans have decided to stay out of the mainstream banking”, the CEO stated.
UBA Ghana, a subsidiary of UBA Plc one of the largest banking groups in Africa has expanded its operations to other countries in Africa, which includes, Liberia, Cote D’Ivoire Cameroun and Sierra Leone. The bank recently opened in London as Capital (Europe).
THE United Bank of Africa (UBA), Ghana has opened six new branches in Accra simultaneously as part of its strategy to enter into the retail business.
The new branches are located in Madina, Teshie, Spintex Road, East Legon, Dzorwolo and the Ring Road Central all in Accra.
The new branches also come with new model edifices designed with the customers in mind and conforms to the bank’s new banking edifices throughout its operation in Africa, Europe and America.
Speaking at the opening of the new branches at the Ring Road Central branch of the bank in Accra yesterday, the Managing Director and Chief Executive Officer (CEO) of the bank, Mr Nnamdi Okonko, said “ the opening of our additional six branches is a reflection of our expansionary posture and shows that we are on course as far as the bank’s branch roll-out strategy is concerned”.
He said “UBA bank also aims to develop a branch foot-print and delivery that will ensure that the banks services are always within reach of valued customers and thus position ourselves among the top five banks in terms of geographical reach”.
Mr Okonko said the bank which presently has 12 branches including the six new branches would add four more branches next month, adding that “UBA Ghana will continue its policy of opening new branches across all regions of the country”.
That he said would be supported with a roll-out of electronic channels such as point-of-sale terminals and auto teller machines in line with the objectives of the Ghana Inter-Bank Payment Settlement.
He said the strategic location of the new branches was to address the constraints of proximity to ensure that the bank’s services and products reached the door steps of the customer.
“It is a further opportunity to reach out to the mass retail customers who for various reasons, such as high initial deposit requirements and access to business loans have decided to stay out of the mainstream banking”, the CEO stated.
UBA Ghana, a subsidiary of UBA Plc one of the largest banking groups in Africa has expanded its operations to other countries in Africa, which includes, Liberia, Cote D’Ivoire Cameroun and Sierra Leone. The bank recently opened in London as Capital (Europe).
All set for e-Zwich introduction
Story: Boahene Asamoah
ALL is set for the introduction of the national electronic payment system, the e-Zwich, next month.
So far necessary tests on the system, such as the user acceptance test, have been completed, proving a high user acceptance.
The Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GIPPS), Mr Fred France, who gave the assurance said staff of banks and other point of sale outlets had undergone the necessary training needed to introduce the project in the coming month.
Speaking to a cross-section of the media in Accra, Mr France stated that the e-Zwich would afford everybody the opportunity to access financial services using a biometric smart card.
GIPPS has been established by the Bank of Ghana to work with banks to improve the payment systems to provide a range of technology-driven solutions and associated support services to improve the general efficiency of the payment systems.
The system is to provide an overall affordable and convenient public access to banking services.
Mr France stated that from April, there was going to be mass deployment of Point of Sale (PoS) terminals throughout the country, adding that it would also be a period of piloting the project.
The Chief Operating Officer of GIPPS, Mr Yooku Korsah, explained that the e-Zwich would offer a common platform for electronic payment system transactions, integrate all existing bank switches and also enable both online and off-line payment and settlement transactions.
He said currently about 46 per cent of banks were concentrated in the Greater Accra Region and such banks were limited in terms of branch network throughout the country.
Mr Korsah said there was a large unbanked public, while there was strong competition for the few who were doing business with the banks.
Again, the heavy dependence on cash for payment as well as limited infrastructure for electronic payment, such as low ATM spread, insufficient Point of Sale (PoS) terminals and unreliable power and communication networks were some of the reasons that had accounted for the introduction of the national payment system, Mr Korsah stated.
He said the e-Zwich used a biometrics card for both off-line and online and also works on Global System of Mobile (GSM) communications, adding that “from both a merchant and the bank’s perspective, it is a very safe platform”.”
Mr Korsah said banks in the country had up to June this year to make their ATMs compatible to the e-Zwich platform.
ALL is set for the introduction of the national electronic payment system, the e-Zwich, next month.
So far necessary tests on the system, such as the user acceptance test, have been completed, proving a high user acceptance.
The Chief Executive Officer of the Ghana Interbank Payment and Settlement Systems (GIPPS), Mr Fred France, who gave the assurance said staff of banks and other point of sale outlets had undergone the necessary training needed to introduce the project in the coming month.
Speaking to a cross-section of the media in Accra, Mr France stated that the e-Zwich would afford everybody the opportunity to access financial services using a biometric smart card.
GIPPS has been established by the Bank of Ghana to work with banks to improve the payment systems to provide a range of technology-driven solutions and associated support services to improve the general efficiency of the payment systems.
The system is to provide an overall affordable and convenient public access to banking services.
Mr France stated that from April, there was going to be mass deployment of Point of Sale (PoS) terminals throughout the country, adding that it would also be a period of piloting the project.
The Chief Operating Officer of GIPPS, Mr Yooku Korsah, explained that the e-Zwich would offer a common platform for electronic payment system transactions, integrate all existing bank switches and also enable both online and off-line payment and settlement transactions.
He said currently about 46 per cent of banks were concentrated in the Greater Accra Region and such banks were limited in terms of branch network throughout the country.
Mr Korsah said there was a large unbanked public, while there was strong competition for the few who were doing business with the banks.
Again, the heavy dependence on cash for payment as well as limited infrastructure for electronic payment, such as low ATM spread, insufficient Point of Sale (PoS) terminals and unreliable power and communication networks were some of the reasons that had accounted for the introduction of the national payment system, Mr Korsah stated.
He said the e-Zwich used a biometrics card for both off-line and online and also works on Global System of Mobile (GSM) communications, adding that “from both a merchant and the bank’s perspective, it is a very safe platform”.”
Mr Korsah said banks in the country had up to June this year to make their ATMs compatible to the e-Zwich platform.
AMAL Bank improves profit base
Story: Boahene Asamoah
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Amalgamated Bank Ghana Limited has increased its net interest income by 108 per cent from GH¢6.3 million in 2006 to GH¢14.8 million last year.
The bank’s operating income also went up by 123 per cent from GH¢ 5.5 million in 2006 to GH¢12.3 million in 2007, bringing profit after tax to GH¢1.1 million in 2007 from a net loss of GH¢417,218 recorded in the previous year.
The Board Chairman of the bank, Mr Stephen Ata announced at the 8th annual general meeting of the bank that total assets also saw a significant growth of 125 per cent from GH¢66.35 million in 2006 to GH¢149.38 million as of December 2007.
“The appreciable growth in the total assets base was funded by the 126 per cent growth in deposit liabilities from GH¢55.64 million in the previous year to GH¢125.7 million in 2007,” Mr Ata stated.
Shareholders funds also increased from GH¢7.533 million to GH¢14.232 million by December 2007 as a result of the injection of additional GH¢5.091 million received from shareholders and the growth in retained profit.
The management of the bank said the introduction of the electronic payment platform, e-Zwich, by the Bank of Ghana (BoG) is essential for the economy to move from being cash based to a cashless regime.
“Information technology infrastructure in the banking sector is crucial if the economy is to move from being predominantly cash based to an economy with reduced cash transactions,” Mr Ata, said.
Mr Ata said the bank was working assiduously towards becoming e-Zwich compliant before the system became operational on April 1, 2008.
The BoG will from next month introduce the national payment system platform in a bid to encourage electronic payments in the country.
Giving an overview of the bank’s performance in the country over 2007, the board chairman stated that the bank was finalising plans to raise additional capital to position it to become a dominant player in the retail business of the banking sector in the country.
The plan will also enable Amalbank to raise additional capital to meet the BoG’s requirement for banks to raise their existing capital requirements from the present GH¢7 million to GH¢60 million by the end of 2009.
“The strategic focus for 2008, among others, will be to consolidate the gains made in previous years by improving upon service quality to grow customer loyalty and profitability,” Mr Ata said.
The Managing Director of the bank, Mr Oluwole Ajomale, said management would pursue the branch network expansion programme already underway in its bid to penetrate the market further and be closer to the banking public.
“We will seek to introduce innovative and customer friendly products and services to distinguish ourselves in the market as innovative product leaders,” Mr Ajomale stated.
He said the bank during the year under review increased its branch network from five to 10 and had added two more branches this year, bringing the total number of branches to 12.
Intercontinental Bank rolls out two products
Story: Boahene Asamoah
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
THE Intercontinental Bank Ghana Limited has introduced two new products, namely, the Auto Loan Promo and the I-Cash International, onto the country’s financial service industry.
Launching the products in Accra, the Managing Director and Chief Executive Officer of the bank, Mr Albert O. Mmegwa, said the bank had made conscious efforts to identify the needs of its customers and had come out with innovative and tailored products to meet their needs.
“This is to give the best to our customers and provide them with the financial flexibility needed to go about their day-to-day businesses”, he said.
Mr Mmegwa said the I-Cash was designed to help travellers and traders to remit funds within the West African sub-region to meet their financial obligations.
The product would initially be accessed by travellers and traders in Ghana and Nigeria using Intercontinental Bank Ghana and Intercontinental Bank Plc of Nigeria structures and branch network in the two countries, the CEO stated.
He said the services would be extended to include other countries in West Africa as the bank rolled out new subsidiaries.
Mr Mmegwa stated that the customers and general public would have the benefit of security for their cash, same day delivery of funds, lower cost of transfer, safer and easier means of sending money within the sub-region.
Touching on the auto loan, the managing director stated that the bank, together with its partners in the automobile industry, came out with the package, to offer the opportunity to individuals, corporate entities and NGOs to own brand new cars.
Mr Mmegwa said access to vehicles was no longer a luxury in today's world, adding that “vehicles are essential accessories to social life to the extent that the lack of it could make life sometimes so uncomfortable.
“All one has to do is to pick a car of his choice from any of our automobile partners, namely Universal Motors, Auto Plaza, Silver Star Auto Ltd, Auto Parts, Rana Motors and Honda Place and pay five per cent of the value of the car as deposit and drive a brand new car”, he stated.
The Managing Director used the occasion to announce the opening of two new branches of the bank at Madina and Agbogbloshie, which brings the total number of branches of the bank to seven in Accra.
The Minister of Finance and Economic Planning in a speech read on his behalf by Mr Paul Asimenu, the Director of Legal Division, commended the bank for initiative to facilitate a fast and secure money transfer system between Ghana and Nigeria.
“The targeted beneficiaries are the business persons who transact trade finance deals and those carrying out commercial activities between our countries and across the region and beyond”, he added.
The minister said: “I see this cross-border product as one very important step in promoting interstate commerce.”
Mr Baah-Wiredu, however, cautioned that the bank needed to establish strong measures to secure all transactions through the use of the product to instil confidence in the business publics and prevent criminals and groups from using the product for illegal purposes.
West Africa needs import, export bank, Says Chambas
Story: Boahene Asamoah
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
THE President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, has proposed the establishment of a West African Export and Import (WAEXIM) Bank to promote trade within the sub-region.
Dr Chambas said the proposed bank would directly grant short, medium and long-term loans to exporters under a co-financing syndication arrangement with eligible banks.
The proposal stems from what, Dr Chambas said, was the “constraints militating against our effective utilisation of the openings under the African Growth and Opportunities Act (AGOA) due to inadequate financing.”
He said “the WAEXIM bank should also aim at fostering a sustainable expansion and diversification of ECOWAS trade.”
Dr Chambas announced the proposal at the first Regional Conference on Trade Finance for Non-traditional Exports in West Africa in Accra on Tuesday.
The President of the ECOWAS Commission said, such a bank should provide facilities such as direct lending, rediscounting and refinancing facility for the promotion of trade in the region.
According to Dr Chambas, banks in the sub-region advanced insufficient loans to small- and medium-scale enterprises (SMEs) that prevented them from undertaking huge transactions.
“It is, therefore, necessary to upgrade this project to the level of a financial institution designed to take care of the trade financing needs of the region”, the President of the Commission stated.
He acknowledged that in spite of efforts of traders and business people in the sub-region intra-West African trade remained at very low levels that undermined the march towards a common market.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, in a speech read on his behalf by the Chief Director of the Ministry, Nana Juaben-Boateng Sirebour, said the government would continue to pursue policies that would create the enabling environment for businesses to grow.
He commended Ecobank Transnational Incorporated (ETI) and the United States Agency for International Development (USAID) for their initiative to support the growth of the SMEs in the sub-region.
The USAID West African Mission Director, Mr Henderson Patrick, said access to finance was critical to SMEs development and growth in the sub-region.
He said 300 entrepreneurs from six countries in the sub-region had undergone training to equip them with skills that would help them to access finance from the financial institutions.
The Managing Director of Ecobank Ghana Limited, Mr Samuel Ashitey Adjei, said access to finance for SMEs was critical, adding that there was the need for a more aggressive strategic approach to diversifying export commodities to ensure growth of African economies.
The conference which was organised jointly by ETI and the USAID brought together stakeholders to deliberate on how to finance SMEs using the USAID model.
GCB launches two new products
Story: Boahene Asamoah
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
THE Ghana Commercial Bank, the largest bank in the country in terms of branch network, has launched two new products as part of its strategy to further consolidate its position in the financial sector.
The products are the Royal Banking Service and the Commernet Plus, an electronic banking service.
Launching the products in Accra yesterday, the Managing Director of the Bank, Mr Lawrence Adu Mante, acknowledged the changing landscape of the financial sector in the country in terms of competition.
He said “ today’s banking landscape is paving way for customer empowerment where transactions and processes are being executed with increasingly little human intervention.”
Mr Adu-Mante said the Commernet Plus which was an Internet banking service was a secure site created for banking transactions which allowed the Internet registered customer to perform banking transactions.
The service also offers the viewing of details and initiative instructions, funds transfer, viewing loan account details, request for statements and cheque books, among many other functions, he stated.
“Commernet Plus is a fast and convenient way of keeping in touch with your accounts 24 hours a day, seven days a week and in fact every day throughout the year”, Mr Adu-Mante emphasised.
He noted that consumer Internet banking with its ability to reach every part of the country was of great importance to the nation and the bank, which had presence in almost all the districts in the country.
Touching on the Royal Banking Service, he said the service was not limited to the rich and affluent in society, but targeted at all businesses, entrepreneurs, students, lecturers and the general public.
He said Royal Banking customers would benefit from such service as expedite banking services, extended banking hours, access to direct service from the branch manager and free monthly statements, among others.
The bank has established a new office at Osu as the hub of its Royal Banking Services. Other outlets include the High Street branch, Burma Camp, Tantra Hill, Tetteh Quarshie, Tema Main, Harper Road, Adum and Takoradi branches.
A deputy Minister of Finance and Economic Planning, Prof George Gyan Baffour, commended the bank for its initiative to reach out to more customers through the new products.
That he said fell in line with the government’s policy of deepening the financial intermediation of the financial sector to be more proactive.
The Head of Banking Supervision of the Bank of Ghana, Mr Dela Selomey, reiterated the up-coming electronic platform called the e-Zwich, which he said would rope in more of the unbanked public in the financial sector.
He also commended the bank for networking all its 137 branches throughout the country, as that feat would enhance financial service delivery in the country.
The Ga Mantse, King Tackie Tawiah III, called on the bank to lead the way to support Small and Medium Scale Enterprises (SMEs) to propel the economy to grow.
He added his voice to calls for banks to reduce their interest rates to facilitate credit to the private sector and hence ensure rapid development of the economy.
Smuggling impedes operations of local manufacturers
Story: Boahene Asamoah
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
THE Chief Executive Officer of Unilever Ghana Limited, Mr Charles Cofie has bemoaned the high influx of smuggled goods into the country that has greatly affected the operations of the industry in the country.
He has, therefore, called on the authorities to adopt strategies that will ensure a level playing field to create fair competition in the country.
Speaking at the ‘facts behind the figures’ programme of the Ghana Stock Exchange in Accra last week, Mr Cofie said “counterfeits remain a common feature of the competitive environment, as well as low price competition”.
He cautioned that as the country was opening for investments there was the need to safeguard against smuggling which leads to price under cutting and consequently loss of revenue to the state.
Mr Cofie stated that while industry welcomes fair competition it was important to ensure a level playing field that would ensure that the country as a whole benefitted from taxes, adding that “we welcome fair compeition”.
Giving the financial performance of the company for the year 2007, Mr Cofie said the company achieved a 17.4 per cent growth in revenue amounting to GH¢139 million.
“This excellent performance was driven by exceptional growth in our export operations particularly in Spreads and orals”, he stated, adding that operating margins had improved from 11.2 per cent to 13.1 per cent.
The chief executive said profit after tax for the year also stood at GH¢12.4 million representing a 6.9 per cent improvement over that of 2006.
“This represents a very strong performance which has been driven by strong growth, improved margins and lower tax charge”, Mr Cofie stated.
Mr Cofie mentioned that the Home and Personal Care (HPC) division delivered 20 per cent growth adding that “our focus on high value product mixes and the drive behind exports also contributed significantly towards this strong HPC performance.
The Oral Division, which includes pepsodent and close up, grew by a 45 per cent drive, while personal wash category also grew up by 18 per cent buoyed by Geisha, lux and lifebuoy.
On the foods division, Mr Cofie stated that the company faced strong competition and cost pressures in this division, stating that high cost increase in crude palm oil and supply constraints resulted in significant pressures on margins and our ability to supply the market.
“In spite of this challenge we recorded good growth in spreads of 47.6 per cent, while cooking oil also grew by 5.4 per cent in line with the company’s strategy”, he stated.
On the outlook of the company he said “we will seek to improve on our shareholder value by consolidating our growth, improving the portfolio and containing costs, thereby improving margins”.
Shareholders stop CAL Bank proposal — To raise capital base to GH¢200 million
Story: Boahene Asamoah
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
THREE major shareholders of CAL Bank have blocked a resolution by the bank to raise an additional capital of GH¢200 million, on fears that their shares will be diluted.
The three shareholders, including Social Security and National Insurance Trust (SSNIT), who together hold 45.38 per cent equity stake in the bank, also blocked three other resolutions of the bank put forward by the directors at the third annual general meeting (AGM) of the bank in Accra yesterday.
SSNIT has 26.63 per cent shares, Mr Afare Donkor, an individual investor, has 11.05 per cent shares, while Mr Daniel Ofori, also an individual investor and owner of White Chapel, owns 7.7 per cent shares.
Representatives of Mr Donkor and Mr Ofori associated themselves with the views expressed by SSNIT.
A verbal exchange between SSNIT and the directors ensued when the Managing Director of the bank, Mr Frank Adu Jnr., sought to explain the need for the bank to source additional funds in respect of Bank of Ghana (BoG) proposals for banks to re-capitalise.
The new BoG minimum capital requirement would demand from commercial banks to increase their capital from the current GH¢7 million to between GH¢55 million and GH¢60 million starting from next year.
Mr Adu explained that he had consulted with SSNIT and the other two shareholders both on phone and at personal meetings on the need for the bank, an indigenous bank, to expand its capital base to underwrite bigger transactions and become more profitable.
He was responding to assertions by a representative of SSNIT, Mr Ken Alorzegah, who had questioned the rationale for a gigantic capitalisation of GH¢200 million when the BoG had requested only ¢60 million capitalisation over a period of four years.
Mr Alorzegah’s fears stemmed from the explanation given in the annual report that would allow the bank to look for a strategic investor to take up the shares of the bank and would have a controlling stake in it.
Mr Adu debunked that argument and stated that while it was possible to have a strategic partner, the directors were looking for a rights issue to raise the needed capital.
Mr Adu’s responses did not go down very well with the SSNIT officials and this prompted the lead counsel of SSNIT, Mr Ernest Thompson, to take over the microphone from his colleague and said that SSNIT would not take kindly to remarks by Mr Adu Jnr to the effect that SSNIT was consulted and that SSNIT rather should see reason in the need for the recapitalisation.
Mr Thompson challenged Mr Adu to mention when they contacted SSNIT on the issues and stated that among the other reasons why the directors of the bank were seeking to raise the GH¢200 million capital was to invest some of the money in the building of their new office complex and divest into a properties company, reasons which SSNIT objected to and urged Mr Adu Jnr “to tell shareholders the truth”.
In the ensuing confrontation, the chairman of the board stopped the “hostilities” and put a motion on the floor and shareholders voted against the decision to raise additional capital.
SSNIT had earlier also blocked a proposal for the shareholders to approve an increase in the remuneration of directors, which Mr Alorzegah said was about 78 per cent increase, as well as a proposal to amend regulation 10(a) of the company’s regulations, and called on shareholders to vote against that proposal, which the shareholders did.
Another resolution to create a pool of shares of up to three per cent issued shares for distribution to non-executive directors and executive of the bank over a period of three-years was also voted against.
Some of the minority shareholders were incensed about the outcome of SSNIT’s decision and seeming control of affairs of SSNIT at the AGM.
Mr Abaka Biney, a renowned shareholder, burst out his frustrations and questioned why SSNIT should thwart the efforts of the management to raise capital needed for the growth of the company and asked what SSNIT had been doing with workers money and walked out of the meeting.
Some investment analysts this reporter spoke to, on conditions on unanimity, said the decision by SSNIT was not in the best interest of the bank.
One investment analyst even alleged that SSNIT was seeking a grand design to merge CAL bank with two other banks, Merchant Bank and TTB, in which SSNIT holds substantial shares, for which reason SSNIT had taken that action.
Another analyst also blamed the directors of the bank for failing to explain the issues very well to convince shareholders.
The Board Chairman of the bank, Mr George Victor Okoh, earlier in his address said the bank together with its subsidiary achieved a 36 per cent net profit from GH¢4.7 million in 2006 to GH¢6.4 million in 2007.
He said the bank’s share price appreciated by 100 per cent from a price of GH¢0.22 at the end of 2006 to GH¢0.44 at the end of the year under review.
Mr Okoh said the board had recommended a 40 per cent increase in the dividend payoff amounting to GH¢0.0105 per share.
Ecobank to sustain expansion programm
Story: Boahene Asamoah
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
ECOBANK Ghana Limited, a subsidiary of the Pan-African Bank, Ecobank Transnational Incorporate (ETI), is to deepen its expansion programme and develop new products to meet the needs of its customers.
The Board Chairman of the bank, Mr Tei Mensa Mante, who made this known at the annual general meeting of the bank in Accra yesterday, attributed the decision to the increasing competition in the banking industry characterised by market and product expansion.
Giving the operational results of the bank for last year, Mr Mante said the bank continued to grow and showed great resilience in an increasingly competitive banking sector, with net interest income increasing by 22 per cent from GH¢31.7 million to GH¢38.6 million.
“This was on account of the significant increase in earning assets against the backdrop of declining margins on these assets.
The bank’s profit after tax was up by 18 per cent from Gh¢16.5 million in 2006 to GH¢19.4 million in 2007.
Mr Mante said “such a strong profitability performance for a rapidly expanding bank in a declining-margin competitive industry underscores our commitment to growing superior returns for our valued shareholders.”
He said the bank grew its assets portfolio by 54 per cent from GH¢432 million to GH¢665 million as a result of the bank’s expansion drive.
The bank saw its total deposits rise from GH¢335 million in 2006 to GH¢437 million in 2007.
The board declared a dividend of GH¢0.083 for the year amounting to GH¢13.38 million, as against the previous year’s figure of GH¢0.067, representing 90 per cent of profit after tax.
The company’s share price appreciated significantly on the Ghana Stock Exchange during the year under review, gaining 48 per cent in 2007 and 82 per cent since its initial price offer of GH¢1.10 per share.
The Managing Director of the Bank, Mr Samuel Ashitey Adjei, in his statement said the bank had made significant progress in line with its medium term strategic plan by opening 11 more branches and expanding its Automatic Teller Machines (ATMs) to 84.
Mr Adjei also mentioned the introduction of new products and services, such as the expansion of the Kiosk and Direct Sales Programme and the launching of the Ecobank Visa Gold Credit Card.
Shareholders gave the approval to increase the company’s capital to GH¢100 million.
GCB draws 3-year corporate plan - To consolidate and expand its operations
Story: Boahene Asamoah
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
THE Ghana Commercial Bank, the country’s biggest bank in terms of branch network has drawn up a new three-year corporate plan to consolidate as well as expand its operations in the financial services sector of the country.
The new corporate plan has two main objectives; to deliver quality service and to create value for shareholders.
Announcing the new direction of the bank at the annual general meeting (AGM) of the bank in Accra at the weekend, the board chairman of the bank, Mr K. G. Osei-Bonsu, said “the bank will strengthen its capacity to lead in the financing of major and financially rewarding businesses in key sectors of the economy such as cocoa, petroleum and natural gas”.
Again, he said the new direction would also focus on increasing business generation, through aggressive but cost effective advances, money transfer and financing of imports and export trade activities.
Giving the financial performance of the bank for the 2007 financial year, Mr Osei-Bonsu said the company saw improvements in its financials for the year due to the pragmatic strategies adopted by the management.
He said profit after tax dipped slightly from GH¢26.02 million in 2006 as against GH¢25.46 recorded last year.
He said gross loans and advances went up significantly during the period rising from GH¢376.2 million in 2006 to GH¢760.06 million in 2007 representing an increase of 102.2 per cent.
Interest income also went up by 9.5 per cent from GH¢102.4 million in 2006 to GH¢112.2 million last year.
The chairman said the board declared a dividend of GH¢0.055 per share amounting to GH¢14.575 million compared to the previous year’s figure of GH¢9.075 million representing a 57.24 per cent of profit after tax.
He said the bank will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders.
“In this direction, the bank will deepen its wide area network base, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery”, Mr Osei-Bonsu stated.
He mentioned the rights issues the bank undertook which were oversubscribed by 71.6 per cent and attributed that to the marked increase in capital gain of the bank’s shares on the stock exchange.
The Managing Director of the Bank, Mr Lawrence Adu-Mante, in his statement said “we are relentless in our efforts to develop products to meet the needs of the customer in line with the Bank’s focus of service delivery for customer satisfaction”.
He said the bank had also signed an agreement with MasterCard International and acquired a principal status certification in order to roll out MasterCard branded products throughout the country.
Mr Adu-Mante said the bank has been able to hook up all its 136 branches on a wide-area network and would continue to use information technology to leverage its products and services to deliver quality services to its customers.
Monday, March 17, 2008
lecturer warns of national disaster
Story: Boahene Asamoah
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
A lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Charles Quansah, has warned of imminent national food disaster if the country fails to adopt sustainable land management practices to avert land degradation.
He said the current small-hold farming practices which led to land degradation and also the clearing of land for farming practices could pose a threat to national food security, economic development and sustainable livelihood in the near future.
Speaking in an interview shortly after the opening of a two-day workshop to finalise and adopt agricultural sustainable land management strategy in Accra on Wednesday, Prof. Quansah stated that as a result of these farming practices most arable lands had been degraded as a result of erosion and also the inability of the farmers to replenish nutrients lost as a result of land clearing.
Prof. Quansah stated that there were a number of policies in that direction but stressed that what needed to be done was to operationalise them to ensure proper land management.
Stakeholders in land management throughout the country are deliberating on a draft sustainable land management strategy and country strategic investment framework for sustainable land management.
The two-day workshop would afford them the opportunity to make inputs into the strategy which would help address land degradation in the country.
A Deputy Minister of Food and Agriculture in charge of Crops, Mr Clement Eledi, said statistics available indicated that about 70 per cent of the country’s land was under serious threat of desertification, which is precipitated by soil erosion.
Again, he said another study conducted by the Institute of Statistical, Social and Economic Research had revealed that unsustainable agricultural land management practices cost the country about two per cent of Gross Domestic Product (GDP).
“Land degradation is seriously mitigating against the government’s effort at poverty reduction because it is the poorest of the population who bear the disproportionate share of the cost of land degradation,” the minister stated.
The Executive Director of the Environmental Protection Agency (EPA), Mr Jonathan Allotey, called for a collaborative effort of all stakeholders to ensure a good policy on sustainable land management.
Eight sign service charters
Story: Boahene Asamoah
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
EIGHT government ministries, departments and agencies (MDAs) have signed service charters that would bond them to improve public service and become more public-focused and efficient.
They are the Ministry of Finance and Economic Planning, the Ministry of Tourism and Diasporan Relations, Food and Drugs Board, Ghana Tourist Board, Ghana Standards Board, Department of Urban Roads, Ghana Highway Authority and the Public Services Commission.
It brings to 22 the number of public service organisations that have signed the new service charters.
President Kufuor in October last year launched the service charters for the public service to ensure excellence in public service.
The concept seeks to improve public service systems by defined standards and in a timely manner.
At the launch and signing ceremony in Accra on Thursday, the Chief Adviser to the President, Mrs Chinery-Hesse, said “this novel and ingenious initiative of President Kufuor is aimed at arresting the widespread irritation, frustration and desperation encountered by the public when they come into contact with public agencies”.
She said the intention was also to level the playing field in terms of the standards of service all Ghanaians would receive such that all would feel equally served promptly and satisfactorily, without any hint of favouritism.
She emphasised the need for the public signing of the service charters since the pact was intended to be with the public who access the services of the organisations and must therefore know what to expect.
She appealed to the general public to take advantage of the complaints machinery so that we could keep public institutions on their toes.
The Minister of Public Sector Reforms, Mr Samuel Owusu-Agyei, said the charter was now a key performance target for any public institution.
“This is because through the charter, the stakeholders and the public are able to know and understand the services that are offered by the public sector agencies,” he stated.
The minister said currently his ministry was undertaking reforms aimed at improving public service and mentioned training the leadership of the civil service, professionalising the human resource function, reforming pay and pay administration, improving conditions of work and transforming the government institutions, among others.
Mr Owusu-Agyei said his ministry was planning monitoring and evaluation visits to those agencies that had already launched their charters to assess the impact of their services since the signing of the new charters.
The Minister of Finance and Economic Planning, Mr Kwadwo-Baah-Wiredu, called on clients of his ministry to help it achieve its targets in the charter by adhering strictly to the procedures outlined in the charter.
He pledged his ministry’s support in ensuring that the charter worked in all its agencies.
The Chairman of the Public Services Commission, Prof Samuel Nunoo Woode, said it was important that public service was made public-centred, efficient and accountable.
He said the charters would put pressure on all public service agencies to deliver on their promises and be responsible to the public.
Inflation goes up again
Story: Boahene Asamoah
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
THE Consumer Price Index (CPI) which measures the average changes in prices of goods and services in the country for the month of February edged up from 0. 4 percentage points to 13. 21 per cent.
This is the third consecutive time that inflation has been on the rise since November last year.
The January inflation rate was 12.81 per cent.
Announcing the figures at the monthly press conference in Accra yesterday, the Head of Economic Statistics Division of the Ghana Statistical Service, Mr Magnus Ebo Duncan, said the high prices of some basic foodstuffs such as fish, bread and cereals were responsible for the surge in inflation rate.
He said these products contributed 0.89 points and 0.55 points respectively, adding that some other contributors are vegetables, potatoes and other tuber vegetable groups accounted for 0.38 points and meat group accounted for 0.35 points.
Mr Duncan said the non-food component of the index contributed 0.85 percentage points to the index with furnishing, household equipment and routine maintenance group contributing 0.43 points. Other contributors were clothing and footwear which accounted for 0.34 points to that sector.
Inflation has been on the rise since November, 2007 where it stood at 11.40. It went up in December last year to 12.75 per cent and was up again in January this year to 12.81 per cent.
Mr Duncan said the monthly rate of inflation as compared with the previous month was 1.59 per cent.
The monthly rate shows how much the general price levels have changed in two consecutive months.
Thursday, March 13, 2008
Audit Service to network offices
Story: Boahene Asamoah
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
11/03/08
THE Audit Service is to network all its regional and district offices to ensure efficiency in service delivery and enable the service to clear the backlog of unaudited government accounts in the country.
In an interview in Accra yesterday shortly after the opening of a 10-day orientation programme for recruits into the Audit Service, a Deputy Auditor-General in charge of Finance and Administration, Mr Richard Quartey, said with the assistance of the European Union, efforts to network its regional offices were almost complete.
He said the vision of the service was to go beyond the regional capitals to also network all the districts in the country to ensure efficient audit service in the country.
Mr Quartey said the exercise would go a long way to address some of the constraints in the Audit Service and would impact positively on the operations of the service.
At the opening ceremony, he called on the recruits to exhibit a high sense of integrity, accountability and professionalism to ensure quality service.
Mr Quartey further urged them to “desist from indulging in acts that would put the service into disrepute.”
He said the Audit Service was an independent body committed to ensuring proper accountability of all government spending, adding that it was only when members of staff exhibited a high sense of professional competencies that public accountability could be secured.
Some 140 out of 520 applicants, who are products of the country’s polytechnics and universities, have been recruited by the Ghana Audit Service, and it is believed that this is the single largest employment opportunity ever offered by the service.
Mr Quartey said the orientation would offer the new employees the opportunity to upgrade themselves with the legal and operation mandate of the service as envisaged under the Constitution.
He called on them to also pursue their own professional development to equip them with the necessary professional tools to make them efficient.
Mr Quartey said the current recruitment formed part of the service’s programme to employ more hands to ensure that it was able to carry out its mandate efficiently.
Wednesday, March 05, 2008
Minister meets US trade delegation
Story: Boahene Asamoah & Naa
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Lartiokor Lartey
THE Government is exploring a free trade agreement with the United States government to push trade relations between the two governments to a higher platform.
Speaking at the opening ceremony of a US Trade Mission to Ghana in Accra yesterday, the Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSI), Mr Joe Baidoe-Ansah, underscored a free trade agreement that would serve as a platform to take trade relations to a higher level within the context of the country’s contractual obligations.
The minister acknowledged the fact that trade was a major engine of growth, for poverty reduction and for wealth creation.
A 12-member business delegation, led by the US Assistant Secretary of Commerce and Director General of the US Commercial Service, Mr Israel Hernandez, is in the country to explore business opportunities in Ghana and two other African countries.
The visit follows the recent visit of the US President to Ghana and is seen as a sign of good prospects for the two countries.
The delegation is seeking agents, distributors and partners in areas such as energy, infrastructure, consumer goods and services.
Mr Baidoe-Ansah said economic co-operation between the two countries had been based on the Trade and Investment Framework Agreement (TIFA) and the African Growth and Opportunities Act (AGOA).
“Within these arrangements, there has been a significant expansion in the Ghana-US economic relationship,” he stated.
Mr Baidoe-Ansah stated that the government’s growth agenda focused on two major strategies, namely an export-led growth and a comprehensive domestic market-oriented industrialisation programme.
The minister outlined the macroeconomic and political stability of the country, drawing American investors to the opportunities that exist in the country, such as proximity of the country to US and EU markets and being a gateway to the sub-regional market, and urged them to take advantage of these opportunities.
The United States Ambassador to Ghana, Ms Pamela Bridgewater, recounted the ties between the two countries which date back to the independence period.
She said “these ties have grown even stronger as Ghana increasingly becomes a key commercial and financial gateway to West Africa for US and other foreign companies”.
Ms Bridgewater stated that “a vibrant Ghanaian economy and well-functioning internal and external trade markets can lift Ghana to new heights”.
“On the US side, this gathering signals commercial ties to an important trading partner and gives US firms the opportunity to seek strategic partners in a stable democratic environment,” Ms Bridgewater stated.
Mr Hendandez acknowledged the good macro-economic stability and the steady growth of the economy as some of the conditions that would attract foreign direct investments.
The delegation are from companies including the America Plastic Technology, Crestcom International, Edwards Angell Palmer International, Intertrade, Lockheed Martins, Praxis Med International, SS Medical International, SS Medical Instruments and Technology Solutions for Africa.
Arrow Networks begins to assemble modems
Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
Arrow Network Systems, a local information, communications and technology firm, has begun the extensive testing of locally assembled modems called BLINK for wireless data transmission in the country.
Blink is a WiFi Data Radio for point-to-point and point-to-multi-point wireless connectivity for internet access and wide area networks for companies with multiple branch offices.
In an interview, the Chief Executive Officer of Arrow Network Systems, Mr Kwaku Boadu, said “local assembly of Wireless Data Modems (WDM) is only the first step of our intentions for manufacture of ICT hardware in Ghana”.
He said it had taken the company six years to reach the first stage, due to constraints from resource training and market conditions in West Africa.
“It is important that we start assembling and possibly manufacture certain vital ICT hardware in Ghana to reduce the dependency on imports if we are to develop our knowledge industry and be the ICT hub in West Africa.”
The company, which is operating in the Free Zones enclave in Accra, is the local representative of Racom, a major wireless equipment manufacturer in the Czech Republic.
Mr Boadu explained that Blink, a WDM, was the equivalent of what computers needed as an alternative to cables to communicate with each other over long distances.
“Computers, therefore, need WDMs in order to provide internet connectivity, or inter-connect a bank or a company's multiple branches across the nation for remote data processing, such as on-line banking, ATMs, debit/credit cards, etc.,” he stated.
“Just like mobile phone handsets, every WDM we use in Ghana is imported,” Mr Boadu stated, and added that the company had undertaken to assemble the only known WdM in West Africa.
“Ghana is truly setting itself up as the hub of ICT in the sub-region through this and other ICT services and products,” the CEO stated.
The company has already introduced Blink in Sierra Leone as a World Bank project to interconnect government offices.
The company during the Ghana 2008 African Nations Cup tournament successfully installed BLINK modems used at all the stadia and press centres to upload matches to the Internet.
Several efforts are being made by public and private institutions in the country to make Ghana the ICT hub of West Africa.
The Ghana Free Zones Board has integrated ICT into its investment promotion.
— Story: Boahene Asamoah
Friday, February 29, 2008
Japanese grant to aid flood victims
Story: Boahene Asamoah
Japan has given Ghana a GH¢5.9 million grant facility to support food aid as a result of the recent floods in the country.
The grant was part of the Japanese government’s response to the government’s request for support as a result of the flood disaster that hit the country, especially northern Ghana, last year.
The multi-purpose grant would enable the government of Ghana to import foods such as rice and sell it on the local market. The proceeds from the sale of the rice would then be used to undertake other social development programmes in the country.
At a signing ceremony between the two countries, the Chief Director of the Ministry of Foreign Affairs, Mrs Ellen Serwaa Nee-Whang, said the grant had once again showed that Japan was a good friend of Ghana.
She said the grant would go into rice procurement to support the anticipated food shortages as a result of the floods.
She recounted Japanese assistance in food aid, dating back to 1973, to support the country and mentioned that since 2005, that policy had changed to include support for the Ministry of Food and Agriculture in the form of irrigation construction to support rice cultivation, as well as to encourage rice production in the country.
The Charge d’ Affairs of the Japanese Embassy, Mr Yutaka Nakamura, said the food aid was a multi-purpose one, adding that monies raised from the sale of the rice could be used to purchase the much needed grains such as maize to meet the needs of the people of the Northern Region.
He said agriculture was the main industrial activity in Northern Ghana, which should play a leading role towards a vibrant Africa.
Japan, Mr Nakamura said, had been assisting Ghana with agriculture through promotion of domestic rice as well as provision of agricultural machinery.
He used the opportunity to announce that the Japanese government would host the 4th Tokyo International Conference on African Development (TICAD IV) under the theme “Towards a Vibrant Africa: A Continent of Hope and Opportunity” this year as it chairs the G-8 Summit.
Japan has given Ghana a GH¢5.9 million grant facility to support food aid as a result of the recent floods in the country.
The grant was part of the Japanese government’s response to the government’s request for support as a result of the flood disaster that hit the country, especially northern Ghana, last year.
The multi-purpose grant would enable the government of Ghana to import foods such as rice and sell it on the local market. The proceeds from the sale of the rice would then be used to undertake other social development programmes in the country.
At a signing ceremony between the two countries, the Chief Director of the Ministry of Foreign Affairs, Mrs Ellen Serwaa Nee-Whang, said the grant had once again showed that Japan was a good friend of Ghana.
She said the grant would go into rice procurement to support the anticipated food shortages as a result of the floods.
She recounted Japanese assistance in food aid, dating back to 1973, to support the country and mentioned that since 2005, that policy had changed to include support for the Ministry of Food and Agriculture in the form of irrigation construction to support rice cultivation, as well as to encourage rice production in the country.
The Charge d’ Affairs of the Japanese Embassy, Mr Yutaka Nakamura, said the food aid was a multi-purpose one, adding that monies raised from the sale of the rice could be used to purchase the much needed grains such as maize to meet the needs of the people of the Northern Region.
He said agriculture was the main industrial activity in Northern Ghana, which should play a leading role towards a vibrant Africa.
Japan, Mr Nakamura said, had been assisting Ghana with agriculture through promotion of domestic rice as well as provision of agricultural machinery.
He used the opportunity to announce that the Japanese government would host the 4th Tokyo International Conference on African Development (TICAD IV) under the theme “Towards a Vibrant Africa: A Continent of Hope and Opportunity” this year as it chairs the G-8 Summit.
Wednesday, February 27, 2008
Aggudey's firm in trouble again
Story: Boahene Asamoah
Twenty vehicles belonging to Gocrest Security were yesterday impounded by officials of the Value Added Tax (VAT) and some police personnel, for the company’s persistent refusal to pay GH¢615,990.85 or (¢6.15 billion) owed to the state over the past four years.
In the dawn operation, the keys to the vehicles including four bullion Man Diesel Trucks, 15 bullion Toyota Hilux vehicles and one Nissan Urvan were taken away from Mr George Oposika Aggudey, the owner of the company at his Weija residence.
The exercise did not affect 25 other posh private cars which were parked in the mansion of the Mr Aggudey, a former Convention People’s Party (CPP) Presidential candidate.
The cars included an Escalade, three Lincoln saloon cars, two poshe sports cars, a Mercedes E Class, two convertible cars, a Jaguar, a Landcruiser, three BMW’s, and a Toyota Hilux among many others.
Mr Aggudey who was awoken from his sleep as early as 5:30 am by his security guard to attend to the VAT officials call, looked sober and tried unsuccessful to negotiate with the VAT officials who would not listen to any explanation.
According to Mr Henry Sam, the leader of the task force, Mr Aggudey had refused all friendly customer appeals to him to pay the outstanding amount.
He indicated the distress action was to ensure that defaulters do pay back taxes that was due to the state and explained that the exercise was undertaken at the early hours of the day because of the nature of business of the company.
He indicated that some cheques issued by the company sometime last year amounting to GH¢240,000 were dishonoured and that by the laws of the VAT, they would only receive cash payments or by bankers draft.
Mr Aggudey indicated that he had visited the VAT Commissioner this week and had made arrangements to make payments for which he had submitted cheques to pay the outstanding amount.
Mr Aggudey who looked visibly disturbed did not argue further and started making calls to unknown personalities.
He subsequently obliged and handed over the keys to the vehicles which were packed outside his house to the leader of the task force.
The drivers of the sized vehicles who had come early morning to start their daily work schedule were seen outside seated in front of Mr Aggudey’s mansion.
A team of five VAT officials and six police officers from the Striking Force and some journalists were detailed to undertake the exercise.
Twenty vehicles belonging to Gocrest Security were yesterday impounded by officials of the Value Added Tax (VAT) and some police personnel, for the company’s persistent refusal to pay GH¢615,990.85 or (¢6.15 billion) owed to the state over the past four years.
In the dawn operation, the keys to the vehicles including four bullion Man Diesel Trucks, 15 bullion Toyota Hilux vehicles and one Nissan Urvan were taken away from Mr George Oposika Aggudey, the owner of the company at his Weija residence.
The exercise did not affect 25 other posh private cars which were parked in the mansion of the Mr Aggudey, a former Convention People’s Party (CPP) Presidential candidate.
The cars included an Escalade, three Lincoln saloon cars, two poshe sports cars, a Mercedes E Class, two convertible cars, a Jaguar, a Landcruiser, three BMW’s, and a Toyota Hilux among many others.
Mr Aggudey who was awoken from his sleep as early as 5:30 am by his security guard to attend to the VAT officials call, looked sober and tried unsuccessful to negotiate with the VAT officials who would not listen to any explanation.
According to Mr Henry Sam, the leader of the task force, Mr Aggudey had refused all friendly customer appeals to him to pay the outstanding amount.
He indicated the distress action was to ensure that defaulters do pay back taxes that was due to the state and explained that the exercise was undertaken at the early hours of the day because of the nature of business of the company.
He indicated that some cheques issued by the company sometime last year amounting to GH¢240,000 were dishonoured and that by the laws of the VAT, they would only receive cash payments or by bankers draft.
Mr Aggudey indicated that he had visited the VAT Commissioner this week and had made arrangements to make payments for which he had submitted cheques to pay the outstanding amount.
Mr Aggudey who looked visibly disturbed did not argue further and started making calls to unknown personalities.
He subsequently obliged and handed over the keys to the vehicles which were packed outside his house to the leader of the task force.
The drivers of the sized vehicles who had come early morning to start their daily work schedule were seen outside seated in front of Mr Aggudey’s mansion.
A team of five VAT officials and six police officers from the Striking Force and some journalists were detailed to undertake the exercise.
PPI dips slightly
Story: Boahene Asamoah
THE Producer Price Index (PPI), which measures the average change over time in the prices received by domestic producers for the production of goods and services for the month of January, stood at 28.65 per cent.
This represents a a slight decrease of 2.38 per per centage points from the December 2007 index.
Announcing the figures at the monthly press conference in Accra yesterday, the Chief Statistician and the Director of Trade and Industry Division of the Ghana Statistical Service, Mrs Araba Forson, indicated that the annual index for mining and quarrying, manufacturing and utilities were 51.46 per cent, 19.94 per cent and 54.16 per cent respectively.
“The annual mining and quarrying index for January 2008 compared to December 2007 edged up by 1.46 percentage points”, she stated.
Mrs Forson stated that the January index for mining of metal ores stood at 55.88 per cent edging up by 4.05 per cent over December 2007 annual index, while the index for mining and quarrying such as salt for January 2008 jumped by 27.02 per cent as compared to December 2007 figure.
Again, she indicated that the annual index for the manufacturing sector compared to the previous month decreased by 0.14 percentage points.
The monthly all industry index for January, 2008 fell marginally by 0.53 per cent after it had edged up by 3.51 per cent in the previous month.
The PPI measures price change from the perspective of the producer. This contrast with other measures such as the Consumer Price Index (CPI), which measures price change from the purchaser’s perspective.
Price of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for virtually every industry in the mining, manufacturing and utilities sectors of the economy.
According to the Ghana Statistical Service, there were plans to expand coverage to include telecommunications, construction, services and agriculture.
THE Producer Price Index (PPI), which measures the average change over time in the prices received by domestic producers for the production of goods and services for the month of January, stood at 28.65 per cent.
This represents a a slight decrease of 2.38 per per centage points from the December 2007 index.
Announcing the figures at the monthly press conference in Accra yesterday, the Chief Statistician and the Director of Trade and Industry Division of the Ghana Statistical Service, Mrs Araba Forson, indicated that the annual index for mining and quarrying, manufacturing and utilities were 51.46 per cent, 19.94 per cent and 54.16 per cent respectively.
“The annual mining and quarrying index for January 2008 compared to December 2007 edged up by 1.46 percentage points”, she stated.
Mrs Forson stated that the January index for mining of metal ores stood at 55.88 per cent edging up by 4.05 per cent over December 2007 annual index, while the index for mining and quarrying such as salt for January 2008 jumped by 27.02 per cent as compared to December 2007 figure.
Again, she indicated that the annual index for the manufacturing sector compared to the previous month decreased by 0.14 percentage points.
The monthly all industry index for January, 2008 fell marginally by 0.53 per cent after it had edged up by 3.51 per cent in the previous month.
The PPI measures price change from the perspective of the producer. This contrast with other measures such as the Consumer Price Index (CPI), which measures price change from the purchaser’s perspective.
Price of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for virtually every industry in the mining, manufacturing and utilities sectors of the economy.
According to the Ghana Statistical Service, there were plans to expand coverage to include telecommunications, construction, services and agriculture.
Enact Fiscal Responsibility Law— To limit government expenditures
Story: Boahene Asamoah
THE Bank of Ghana (BoG) has proposed the legislation of a Fiscal Responsibility Law (FRL) to underpin the governments’ commitment to fiscal discipline and debt sustainability.
The central bank suggested expenditure targets or ceilings be embedded in the proposed FRL to limit government expenditures and promote measures to scale-up revenue mobilisation.
According to a policy briefing paper sighted by the Daily Graphic, the bank urged the government to continue with the public sector reforms and expedite the operation of the Fair Wages Commission to anchor wage bills, which was a potential source of fiscal instability in the country.
“Ghana’s success with fiscal rules will ultimately depend on government’s commitment to the process of fiscal discipline and strong governance structures to ensure that fiscal processes are followed through.”
The central bank drew attention to the need to clearly state the objectives on prudent fiscal management as well as principles on transparency and accountability as part of the proposed law.
“Experiences also suggest that critical elements which account for the success of fiscal rules include clearly defined objectives and targets, political commitment, strong institutions and effective enforcement mechanisms,” the paper stated.
The BoG also called for the establishment of fiscal rules and procedures that are clear, flexible and transparent, adding that “these must however be accompanied by sanctions for effective enforcement and applicable escape clauses during periods of adverse shocks.”
The Bank of Ghana said macroeconomic stabilisation was a necessary condition for economic growth and poverty reduction.
It said since 2001, prudent fiscal policies along with sound monetary policies had constituted the core of Ghana’s economic policies aimed at stabilisation.
The brief highlighted that economic improvement has been significant and macroeconomic stability achieved, with growth rates in Gross Domestic Product (GDP) increasing from 3.7 per cent in 2000, to 6.2 per cent in 2006.
Headline inflation declined from 40.5 per cent in December 2000 to 10.5 per cent in December 2006 as core inflation (excluding energy and utilities) remained within single digits, the bank said.
Interest rates have trended downwards, in tandem with the disinflation process.
“In addition to sound monetary management, fiscal adjustment contributed significantly to macro stability. Progress was made in institutional arrangements and the regulatory environment to ensure better fiscal management.”
It named some of them as the Medium-Term Expenditure Framework (MTEF), and enactment of Financial Administration Act, the Internal Audit Agency Act and the Procurement Act.
Over the past six years, Ghana’s economy has been anchored to prudent fiscal and monetary policy frameworks. This has contributed significantly to macroeconomic stability with steady growth.
To further consolidate the macroeconomic stability and anchor inflationary expectations, the Bank of Ghana adopted an inflation targeting regime in May last year.
“Although fiscal policy has remained committed to the stabilisation process, recent trends point to the need for further consolidation to ensure long-term fiscal sustainability,” the brief stated.
“Evidence gathered from international experiences with fiscal rules suggests that fiscal rules are enabling instruments for a country to stay on a transparent, prudent and sustainable fiscal path,” the brief stated.
It however said those measures were not sufficient but needed to be supported by good institutions as well as prudent expenditure and financial management measures that limited government spending and improve revenue generation.
“The key lesson for Ghana is that fiscal rules work best when government is fully committed to the process of fiscal prudence and ensures that long-term development prospects are not sacrificed by short-term gains,” the brief stated.
THE Bank of Ghana (BoG) has proposed the legislation of a Fiscal Responsibility Law (FRL) to underpin the governments’ commitment to fiscal discipline and debt sustainability.
The central bank suggested expenditure targets or ceilings be embedded in the proposed FRL to limit government expenditures and promote measures to scale-up revenue mobilisation.
According to a policy briefing paper sighted by the Daily Graphic, the bank urged the government to continue with the public sector reforms and expedite the operation of the Fair Wages Commission to anchor wage bills, which was a potential source of fiscal instability in the country.
“Ghana’s success with fiscal rules will ultimately depend on government’s commitment to the process of fiscal discipline and strong governance structures to ensure that fiscal processes are followed through.”
The central bank drew attention to the need to clearly state the objectives on prudent fiscal management as well as principles on transparency and accountability as part of the proposed law.
“Experiences also suggest that critical elements which account for the success of fiscal rules include clearly defined objectives and targets, political commitment, strong institutions and effective enforcement mechanisms,” the paper stated.
The BoG also called for the establishment of fiscal rules and procedures that are clear, flexible and transparent, adding that “these must however be accompanied by sanctions for effective enforcement and applicable escape clauses during periods of adverse shocks.”
The Bank of Ghana said macroeconomic stabilisation was a necessary condition for economic growth and poverty reduction.
It said since 2001, prudent fiscal policies along with sound monetary policies had constituted the core of Ghana’s economic policies aimed at stabilisation.
The brief highlighted that economic improvement has been significant and macroeconomic stability achieved, with growth rates in Gross Domestic Product (GDP) increasing from 3.7 per cent in 2000, to 6.2 per cent in 2006.
Headline inflation declined from 40.5 per cent in December 2000 to 10.5 per cent in December 2006 as core inflation (excluding energy and utilities) remained within single digits, the bank said.
Interest rates have trended downwards, in tandem with the disinflation process.
“In addition to sound monetary management, fiscal adjustment contributed significantly to macro stability. Progress was made in institutional arrangements and the regulatory environment to ensure better fiscal management.”
It named some of them as the Medium-Term Expenditure Framework (MTEF), and enactment of Financial Administration Act, the Internal Audit Agency Act and the Procurement Act.
Over the past six years, Ghana’s economy has been anchored to prudent fiscal and monetary policy frameworks. This has contributed significantly to macroeconomic stability with steady growth.
To further consolidate the macroeconomic stability and anchor inflationary expectations, the Bank of Ghana adopted an inflation targeting regime in May last year.
“Although fiscal policy has remained committed to the stabilisation process, recent trends point to the need for further consolidation to ensure long-term fiscal sustainability,” the brief stated.
“Evidence gathered from international experiences with fiscal rules suggests that fiscal rules are enabling instruments for a country to stay on a transparent, prudent and sustainable fiscal path,” the brief stated.
It however said those measures were not sufficient but needed to be supported by good institutions as well as prudent expenditure and financial management measures that limited government spending and improve revenue generation.
“The key lesson for Ghana is that fiscal rules work best when government is fully committed to the process of fiscal prudence and ensures that long-term development prospects are not sacrificed by short-term gains,” the brief stated.
Dont Stampede govt-Into Sharing resources from oil Find-says Oteng-Gyasi
Story: Boahene Asamoah
Individuals and communities should be careful not to stampede the government into sharing the resources which will accrue from the oil find, Mr Anthony Oteng-Gyasi, the President of the Association of Ghana Industries (AGI), has cautioned.
He said concerns being raised in the media in connection with the oil find were all on how to share the revenue that would accrue from the oil find and cautioned that “we must be very careful”.
Speaking at the launch of a media advocacy project on “Using the Media to Strengthen Business Advocacy” in Accra yesterday, Mr Oteng-Gyasi said, “Concerns about the oil find should be on the opportunities for business and employment generation” that would benefit the country and help in the development of the economy.
The 12-month business advocacy project is an initiative of the Ghana Journalists Association (GJA) and supported by the Business Sector Advocacy Challenge (BUSAC) Fund and comes at the heels of the first project in 2006. It is being facilitated by KAB Governance Consult.
Mr Oteng-Gyasi, who touched on many challenges facing the nation, urged the media to give the same prominence they gave to political stories to business and economic issues as the country strove to achieve a middle-income status.
“I am calling for a cultural change in our attitude to business and requesting you, as media professionals, to use your advocacy in bringing about this change by sustained, well structured, multi-media efforts on behalf of business,” the AGI President stated.
He said the media had spearheaded the call for political independence and democratic rule in the 50-year history of the country but expressed regret that the same could not be said of the economic independence of the country since gaining political freedom.
“It is the role of the media to bring this awareness to our people. The success of our media in making concepts of democratic governance and human rights appreciated by large portions of our society can and should be replicated in economic and business advocacy,” Mr Oteng-Gyasi said.
On poverty, he indicated that “a disturbing phenomenon is the constant reminder that we are a poor nation. This is worsened by what is often offered as a logical result of our poverty”.
He stated that the argument often implied that we must, therefore, be given goods and services at low prices or preferably for free.
“What we fail to add is the need for each person to try to better himself,” adding that “the role of a leader should be to ensure conditions that allow an individual who makes the effort to do well”.
The Minister of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiatives (PSIs), Mr Joe Baidoe-Ansah, said the ministry was implementing a strategy on micro, small and medium-scale enterprises (MSMEs) designed to promote SMEs as a response to the dominance of the sector and the need to support their growth.
“In addition, the ministry has a well functioning SME division which is pursuing programmes to streamline government’s support to SMEs,” the minister added.
Mr Baidoe-Ansah said the ministry had set a public-private dialogue unit within the ministry to collate the concerns of trade associations and practitioners and present the concerns for policy considerations by the government.
The Danish Ambassador to Ghana, Mr Flemming Bjork Pedersen, in his statement, said Denmark had allocated GH¢37 million to support a Business Sector Support Programme to pursue a pro-poor development strategy in line with the country’s poverty reduction strategy.
He said the programme had the objective of creating equitable growth in production and employment achieved through the development of a competitive and vibrant private sector.
The President of the GJA, Mr Ransford Tetteh, stated that the project would, among other things, make a conscious effort to develop the capacity of a core of journalists in business advocacy and create a multi-media platform to discuss the concerns of business.
“It will also sensitise the leadership of business groups and entrepreneurs to the importance of advocacy in business and promote dialogue between policy makers and business operatives with the view to addressing the concerns of business,” he stated.
Individuals and communities should be careful not to stampede the government into sharing the resources which will accrue from the oil find, Mr Anthony Oteng-Gyasi, the President of the Association of Ghana Industries (AGI), has cautioned.
He said concerns being raised in the media in connection with the oil find were all on how to share the revenue that would accrue from the oil find and cautioned that “we must be very careful”.
Speaking at the launch of a media advocacy project on “Using the Media to Strengthen Business Advocacy” in Accra yesterday, Mr Oteng-Gyasi said, “Concerns about the oil find should be on the opportunities for business and employment generation” that would benefit the country and help in the development of the economy.
The 12-month business advocacy project is an initiative of the Ghana Journalists Association (GJA) and supported by the Business Sector Advocacy Challenge (BUSAC) Fund and comes at the heels of the first project in 2006. It is being facilitated by KAB Governance Consult.
Mr Oteng-Gyasi, who touched on many challenges facing the nation, urged the media to give the same prominence they gave to political stories to business and economic issues as the country strove to achieve a middle-income status.
“I am calling for a cultural change in our attitude to business and requesting you, as media professionals, to use your advocacy in bringing about this change by sustained, well structured, multi-media efforts on behalf of business,” the AGI President stated.
He said the media had spearheaded the call for political independence and democratic rule in the 50-year history of the country but expressed regret that the same could not be said of the economic independence of the country since gaining political freedom.
“It is the role of the media to bring this awareness to our people. The success of our media in making concepts of democratic governance and human rights appreciated by large portions of our society can and should be replicated in economic and business advocacy,” Mr Oteng-Gyasi said.
On poverty, he indicated that “a disturbing phenomenon is the constant reminder that we are a poor nation. This is worsened by what is often offered as a logical result of our poverty”.
He stated that the argument often implied that we must, therefore, be given goods and services at low prices or preferably for free.
“What we fail to add is the need for each person to try to better himself,” adding that “the role of a leader should be to ensure conditions that allow an individual who makes the effort to do well”.
The Minister of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiatives (PSIs), Mr Joe Baidoe-Ansah, said the ministry was implementing a strategy on micro, small and medium-scale enterprises (MSMEs) designed to promote SMEs as a response to the dominance of the sector and the need to support their growth.
“In addition, the ministry has a well functioning SME division which is pursuing programmes to streamline government’s support to SMEs,” the minister added.
Mr Baidoe-Ansah said the ministry had set a public-private dialogue unit within the ministry to collate the concerns of trade associations and practitioners and present the concerns for policy considerations by the government.
The Danish Ambassador to Ghana, Mr Flemming Bjork Pedersen, in his statement, said Denmark had allocated GH¢37 million to support a Business Sector Support Programme to pursue a pro-poor development strategy in line with the country’s poverty reduction strategy.
He said the programme had the objective of creating equitable growth in production and employment achieved through the development of a competitive and vibrant private sector.
The President of the GJA, Mr Ransford Tetteh, stated that the project would, among other things, make a conscious effort to develop the capacity of a core of journalists in business advocacy and create a multi-media platform to discuss the concerns of business.
“It will also sensitise the leadership of business groups and entrepreneurs to the importance of advocacy in business and promote dialogue between policy makers and business operatives with the view to addressing the concerns of business,” he stated.
Wednesday, February 20, 2008
Baah Wiredu calls on Canada to avail its expertise on oil to Ghana
Story: Boahene Asamoah & Jasmine Afari-Mintah
THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, has called on the Canadian government to avail its expertise in the legal framework covering the oil industry to enable the country to lay a strong foundation for its oil find.
Speaking during a courtesy call on him by the new Canadian High Commissioner to Ghana, Mr Darren Schemmer in Accra on Tuesday, the minister said the country was learning from many other countries across the world to ensure that resources from the oil find was put to good use.
He acknowledged the strong legal framework that Canada had adopted over its oil industry and said the country could learn from it and adopt best practises.
The minister outlined a number of initiatives that the government had undertaken such as the new educational reforms that would ensure the compulsory enrolment of pupils from the early education to the first cycle education.
He also mentioned infrastructure development, such as roads, the Bui Dam and the reactivation of the rail lines across the country as some of the projects the government was undertaking.
Mr Baah-Wiredu, also mentioned the need for support in the health and information, communications technology.
The minister said there is the need for more investments in the mining sector and called for partnership between the two countries in that direction.
Mr Baah-Wiredu stressed the need to expand trading relations between the two countries to cover more areas such ICT software development.
He acknowledged the immense support the Canadian government had given to the country for its budgetary support.
He assured the High Commissioner that the government would ensure a free and fair elections during this year’s general elections and stressed the need for development partners not to hold back projected budgetary support in anticipation of any set backs in this year’s elections.
Mr Schemmer, for his part also acknowledged the long standing partnership between Ghana and Canada.
He said he was at the ministry to familiarise himself with the government’s projects as well as to meet the minister and introduce himself and assured the minister of Canada’s support for the country’s economic development.
He said Canada had supported Ghana through Canadian International Development Agency (CIDA) to achieve equitable and sustainable poverty reduction.
Canada’s support for Ghana are carried out through four main channels namely; country to country (bilateral), regional organisations, multilateral institutions and partnership between Canadian and Ghanaian profit and non profit entities.
Currently the Canadian government has supported Ghana with a 93 million Canadian dollar through the multi-donor budgetary support and a further 85 million Canadian dollars for the food and agricultural budgetary support programme.
Additionally, the Canadian government has made available an amount of 14.5 million Canadian dollars under the district wide assistance project and also a 12 million Canadian dollar for a community driven initiative for food security programme among many others.
THE Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, has called on the Canadian government to avail its expertise in the legal framework covering the oil industry to enable the country to lay a strong foundation for its oil find.
Speaking during a courtesy call on him by the new Canadian High Commissioner to Ghana, Mr Darren Schemmer in Accra on Tuesday, the minister said the country was learning from many other countries across the world to ensure that resources from the oil find was put to good use.
He acknowledged the strong legal framework that Canada had adopted over its oil industry and said the country could learn from it and adopt best practises.
The minister outlined a number of initiatives that the government had undertaken such as the new educational reforms that would ensure the compulsory enrolment of pupils from the early education to the first cycle education.
He also mentioned infrastructure development, such as roads, the Bui Dam and the reactivation of the rail lines across the country as some of the projects the government was undertaking.
Mr Baah-Wiredu, also mentioned the need for support in the health and information, communications technology.
The minister said there is the need for more investments in the mining sector and called for partnership between the two countries in that direction.
Mr Baah-Wiredu stressed the need to expand trading relations between the two countries to cover more areas such ICT software development.
He acknowledged the immense support the Canadian government had given to the country for its budgetary support.
He assured the High Commissioner that the government would ensure a free and fair elections during this year’s general elections and stressed the need for development partners not to hold back projected budgetary support in anticipation of any set backs in this year’s elections.
Mr Schemmer, for his part also acknowledged the long standing partnership between Ghana and Canada.
He said he was at the ministry to familiarise himself with the government’s projects as well as to meet the minister and introduce himself and assured the minister of Canada’s support for the country’s economic development.
He said Canada had supported Ghana through Canadian International Development Agency (CIDA) to achieve equitable and sustainable poverty reduction.
Canada’s support for Ghana are carried out through four main channels namely; country to country (bilateral), regional organisations, multilateral institutions and partnership between Canadian and Ghanaian profit and non profit entities.
Currently the Canadian government has supported Ghana with a 93 million Canadian dollar through the multi-donor budgetary support and a further 85 million Canadian dollars for the food and agricultural budgetary support programme.
Additionally, the Canadian government has made available an amount of 14.5 million Canadian dollars under the district wide assistance project and also a 12 million Canadian dollar for a community driven initiative for food security programme among many others.
Workshop on mining held in Accra
Story: Boahene Asamoah
THE Minister of Lands, Forestry and Mines, Mrs Esther Obeng Dapaah, has called on all stakeholders in the mining industry to collaborate their efforts to raise the living standards of people in the mining communities.
In a speech read on her behalf at a one-day workshop on enhancing the benefits of mining in Accra yesterday, the minister said “the donor community, mining firms, and civil society groups must work closely together to ensure that the benefits of mining are used to raise the living standards of the people”.
The workshop, which was organised by the Ghana Chamber of Mines in collaboration with the World Bank and the International Council on Mining and Metals (ICMM) and United Nations Centre for Trade and Development (UNCTAD, brought together stakeholders from all the mining firms, as well as policy makers, civil society groups and some local representatives.
Mrs Dapaah also called for the identification of new collaborators and actors to deepen the level of collaboration and also with the aim of reducing poverty.
He said the country was also playing a leadership role in the extractive industry to ensure transparency to ensure that all stakeholders knew the use of mining resources in the country.
Mrs Dapaah stated that the government was committed to ensuring the development of the mining sector, since it played a critical role in the economic development of the country.
The Managing Director of the Minerals Commission, Mr Ben Aryee, stated that mining had the potential to impact positively on the economic development of the country.
He, however, said that there should be ways to ensure the effective management of mineral resources that would trickle down to the ordinary people.
Presenting findings of research conducted in four countries on the challenge of Mineral Wealth: Using resource endowments to foster sustainable development, Ms Kathryn McPhail of the ICMM, called for new partnerships to ensure the socio-economic benefits of mining activities.
She said while it was not always the case that mining could promote economic development, evidence from the four countries suggested that mining could promote economic growth and development.
The four countries on which the research work was done were Ghana, Tanzania, Chile and Peru.
Ms MacPhail stated that in the case of Ghana, economic stability had led to a $5 billion investment in the mining industry over the past few years.
She said the research revealed that in Obuasi, the standard of living was better than most other districts in the country.
“Mining resurgence can promote economic growth and poverty reduction,” she stated.
She added that about 46 per cent of procurements in the mining industry were done locally, adding that “local procurement is fundamental to reduce poverty”.
Ms McPhail indicated that mining activities could make strong contributions by way of taxes and employment opportunities.
THE Minister of Lands, Forestry and Mines, Mrs Esther Obeng Dapaah, has called on all stakeholders in the mining industry to collaborate their efforts to raise the living standards of people in the mining communities.
In a speech read on her behalf at a one-day workshop on enhancing the benefits of mining in Accra yesterday, the minister said “the donor community, mining firms, and civil society groups must work closely together to ensure that the benefits of mining are used to raise the living standards of the people”.
The workshop, which was organised by the Ghana Chamber of Mines in collaboration with the World Bank and the International Council on Mining and Metals (ICMM) and United Nations Centre for Trade and Development (UNCTAD, brought together stakeholders from all the mining firms, as well as policy makers, civil society groups and some local representatives.
Mrs Dapaah also called for the identification of new collaborators and actors to deepen the level of collaboration and also with the aim of reducing poverty.
He said the country was also playing a leadership role in the extractive industry to ensure transparency to ensure that all stakeholders knew the use of mining resources in the country.
Mrs Dapaah stated that the government was committed to ensuring the development of the mining sector, since it played a critical role in the economic development of the country.
The Managing Director of the Minerals Commission, Mr Ben Aryee, stated that mining had the potential to impact positively on the economic development of the country.
He, however, said that there should be ways to ensure the effective management of mineral resources that would trickle down to the ordinary people.
Presenting findings of research conducted in four countries on the challenge of Mineral Wealth: Using resource endowments to foster sustainable development, Ms Kathryn McPhail of the ICMM, called for new partnerships to ensure the socio-economic benefits of mining activities.
She said while it was not always the case that mining could promote economic development, evidence from the four countries suggested that mining could promote economic growth and development.
The four countries on which the research work was done were Ghana, Tanzania, Chile and Peru.
Ms MacPhail stated that in the case of Ghana, economic stability had led to a $5 billion investment in the mining industry over the past few years.
She said the research revealed that in Obuasi, the standard of living was better than most other districts in the country.
“Mining resurgence can promote economic growth and poverty reduction,” she stated.
She added that about 46 per cent of procurements in the mining industry were done locally, adding that “local procurement is fundamental to reduce poverty”.
Ms McPhail indicated that mining activities could make strong contributions by way of taxes and employment opportunities.
Monday, February 18, 2008
Re-capitalisation of banks—Banker’s Association welcomes idea
Story: Boahene Asamoah
THE Executive Secretary of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, has welcomed the Bank of Ghana’s (BoG) proposal for bank’s to re-capitalise within a period of four years.
“We are not averse to the recapitalisation of banks,” he said, adding that “our concern was to ensure that banks grow in tandem with the economic growth of the Ghanaian economy”.
Speaking in an interview, Mr Mensah said the time period the Central Bank gave to the banks to re-capitalise would obviously offer them the opportunity to plan and strategise their operations.
The Bank of Ghana, in the latter part of last year, served notice to banks under a consultative proposal to raise their minimum capital requirement from the present GH¢7 million to GH¢60 million by the end of this year.
However, the BoG has come out with a statement that has set the new minimum capital requirement for obtaining a class one banking licence or a universal banking license at GH¢60 million with a caveat.
According to the Central Bank, the existing banks were required to attain a minimum capitalisation of GH¢ 60 million by December 31, 2009. However, Ghanaian-owned banks were given a longer time period to meet the new minimum capital requirement.
It also stated that under the directive, banks with local majority share ownership would have to attain a capitalisation of at least GH¢25 million by the end of 2010 and GH¢60 million by 2012.
According to the BoG, the capitalisation requirement constituted part of the bank’s strategy to deepen the financial sector and support Ghana’s drive for accelerated growth to achieve middle-income status.
Mr Mensah said banks had all along been conscious of the need to raise their capital in order to meet the challenges and position themselves in order to take advantage of opportunities that the economy would present.
He said the position of the banks had always been to ensure a phase approach that would fall in line with the country’s vision of attaining a middle-income status by 2015.
He said the new policy from the Central Bank would position banks, especially the local ones to make strategic choices that would help them to recapitalise.
Industry players say while there would be consolidation of banks in the country, local banks would have the opportunity to look for opportunities that existed to enable them meet the new capital requirement.
Some stock market analysts anticipate initial public offers from banks to raise capital through from the Ghana Stock Exchange, which has seen the oversubscription of equities listed on the bourse over the past two years.
According to some industry players, the previous consultative position of the BoG, where it would have created a three-tier banking sector in the country would not have been a healthy development.
Only six banks, including two local banks would have been able to raise the capital while 10 other local banks would not have been to meet the new capital requirements, making them susceptible to foreign interest.
This situation would have made all the financial transactions in the country to be routed through foreign banks, a situation that would have dire consequences for the economy.
According to Mr Mensah, although the oil find presents an opportunity to banks, experience from other countries suggests that many banks do not actually patronise the oil business, because of the huge capital requirement and the risk associated with such ventures.
The Executive Secretary, however, indicated that with the new capital requirement, banks in the country would be able to finance some of the big projects such as the yearly cocoa syndication.
THE Executive Secretary of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, has welcomed the Bank of Ghana’s (BoG) proposal for bank’s to re-capitalise within a period of four years.
“We are not averse to the recapitalisation of banks,” he said, adding that “our concern was to ensure that banks grow in tandem with the economic growth of the Ghanaian economy”.
Speaking in an interview, Mr Mensah said the time period the Central Bank gave to the banks to re-capitalise would obviously offer them the opportunity to plan and strategise their operations.
The Bank of Ghana, in the latter part of last year, served notice to banks under a consultative proposal to raise their minimum capital requirement from the present GH¢7 million to GH¢60 million by the end of this year.
However, the BoG has come out with a statement that has set the new minimum capital requirement for obtaining a class one banking licence or a universal banking license at GH¢60 million with a caveat.
According to the Central Bank, the existing banks were required to attain a minimum capitalisation of GH¢ 60 million by December 31, 2009. However, Ghanaian-owned banks were given a longer time period to meet the new minimum capital requirement.
It also stated that under the directive, banks with local majority share ownership would have to attain a capitalisation of at least GH¢25 million by the end of 2010 and GH¢60 million by 2012.
According to the BoG, the capitalisation requirement constituted part of the bank’s strategy to deepen the financial sector and support Ghana’s drive for accelerated growth to achieve middle-income status.
Mr Mensah said banks had all along been conscious of the need to raise their capital in order to meet the challenges and position themselves in order to take advantage of opportunities that the economy would present.
He said the position of the banks had always been to ensure a phase approach that would fall in line with the country’s vision of attaining a middle-income status by 2015.
He said the new policy from the Central Bank would position banks, especially the local ones to make strategic choices that would help them to recapitalise.
Industry players say while there would be consolidation of banks in the country, local banks would have the opportunity to look for opportunities that existed to enable them meet the new capital requirement.
Some stock market analysts anticipate initial public offers from banks to raise capital through from the Ghana Stock Exchange, which has seen the oversubscription of equities listed on the bourse over the past two years.
According to some industry players, the previous consultative position of the BoG, where it would have created a three-tier banking sector in the country would not have been a healthy development.
Only six banks, including two local banks would have been able to raise the capital while 10 other local banks would not have been to meet the new capital requirements, making them susceptible to foreign interest.
This situation would have made all the financial transactions in the country to be routed through foreign banks, a situation that would have dire consequences for the economy.
According to Mr Mensah, although the oil find presents an opportunity to banks, experience from other countries suggests that many banks do not actually patronise the oil business, because of the huge capital requirement and the risk associated with such ventures.
The Executive Secretary, however, indicated that with the new capital requirement, banks in the country would be able to finance some of the big projects such as the yearly cocoa syndication.
Security for US President's Tour
President Bush arrives (fin) Read by E. agyeI
Story: Mary Mensah & Boahene Asamoah
THE Ghana Police Service, in collaboration with the American security agencies, has put in place stringent and comprehensive arrangements to ensure a peaceful and successful three-day visit by the US President, George Bush.
The arrangements will see the deployment of over 1,000 security men, comprising all specialised units within the Police Service and the Armed Forces, at vantage points, especially around the Kotoka International Airport and the hotel where the US President and his entourage would lodge.
Three American planes have already landed at the Kotoka International Airport, discharging men and equipment from the American service.
According to a police source, on Tuesday, February 19, the day of the American President’s arrival, no person or vehicle would be allowed around the airport area for an hour prior to his arrival.
The US presidential jet, the Air Force One, is expected to touch down, together with two other large planes, one carrying the presidential press corps and the other White House staff, at the Kotoka International Airport at exactly 7:30 p.m., with President George Bush and his wife on board.
The source said the road from the airport to the La Palm Royal Beach Hotel would also be closed to traffic and no vehicle would be allowed there till late in the night.
The following day, when President Bush is scheduled to meet President Kufuor, the road from Teshie to the Castle at Osu would be blocked.
Two US Naval ships have also landed in Ghana and are currently patrolling the coast.
According to the source, Ghana had been selected as the operational base for the three West African countries where President Bush would visit, namely, Liberia, Benin and Ghana, and added that all the operational structures had been put in place to co-ordinate affairs.
It said the selection of Ghana as a base for the three African countries showed the trust that the US government had in the security agencies in Ghana.
It noted that there would be some inconvenience on the road and appealed to residents of Accra and motorists to bear with the security agencies and respect the sirens when they heard them in order to make the visit a memorable one.
Announcing President Bush’s State Visit at a news conference in Accra earlier in the week, the Minister of Foreign Affairs, Mr Akwasi Osei-Adjei, had said it would offer the platform for bilateral trade discussions between Ghana and the United States, reports Boahene Asamoah.
Mr Osei-Adjei said the visit was a reciprocal gesture for a similar one extended to President Kufuor during the early part of his administration.
The minister said the visit would offer the two leaders the opportunity to discuss issues on free trade, economic opportunities and other initiatives such as the Africa Growth and Opportunities Act (AGOA) and the Millennium Challenge Account (MCA).
Mr Osei-Adjei stated that relations between the two countries were on a high pedestal and said issues of democratic governance, private sector development and economic co-operation would also form part of the discussions.
The minister stated that Ghana’s role in peacekeeping missions would also be discussed.
Ghana and the US have enjoyed considerable high-level bilateral co-operation over the years.
Ghana currently exports apparels and other products under the AGOA initiative signed into law by former President Clinton.
The country has also been a beneficiary of $547 million under the MCA aimed at supporting the agricultural sector and infrastructural development in the country.
Many Ghanaians have been successful in the US immigration lottery over the past years, making Ghana one of the highest application nations.
To further give a boost to Ghana-US relations, the US last year completed and commissioned a multi-million dollar office complex in Ghana.
As part of President Bush’s visit, a State Dinner will be held in his honour. He will also visit the US Embassy to meet with US volunteers in Ghana, go to the Ghana International School and hold high-level discussions at the seat of government, the Christianborg Castle, Osu.
President Bush has initiated several programmes in Africa, including the malaria initiative, the $40 billion HIV/AIDS programme for Africa, among many other initiatives.
The US President began his trip to Africa, which will take him to Benin, Tanzania, Rwanda, Ghana and Liberia, on February 15.
The trip will be an opportunity for him to review at firsthand, since his last visit in 2003, the significant progress in efforts to increase economic development and fight HIV/AIDS, malaria and other treatable diseases as a result of the US’s robust programmes in these areas.
President Bush will also meet with President Yayi of Benin, President Kikwete of Tanzania, President Kagame of Rwanda and President Johnson-Sirleaf of Liberia to discuss how the US can continue to partner African countries to support continued democratic reforms, respect for human rights, free trade, open investment regimes and economic opportunities across the continent.
Story: Mary Mensah & Boahene Asamoah
THE Ghana Police Service, in collaboration with the American security agencies, has put in place stringent and comprehensive arrangements to ensure a peaceful and successful three-day visit by the US President, George Bush.
The arrangements will see the deployment of over 1,000 security men, comprising all specialised units within the Police Service and the Armed Forces, at vantage points, especially around the Kotoka International Airport and the hotel where the US President and his entourage would lodge.
Three American planes have already landed at the Kotoka International Airport, discharging men and equipment from the American service.
According to a police source, on Tuesday, February 19, the day of the American President’s arrival, no person or vehicle would be allowed around the airport area for an hour prior to his arrival.
The US presidential jet, the Air Force One, is expected to touch down, together with two other large planes, one carrying the presidential press corps and the other White House staff, at the Kotoka International Airport at exactly 7:30 p.m., with President George Bush and his wife on board.
The source said the road from the airport to the La Palm Royal Beach Hotel would also be closed to traffic and no vehicle would be allowed there till late in the night.
The following day, when President Bush is scheduled to meet President Kufuor, the road from Teshie to the Castle at Osu would be blocked.
Two US Naval ships have also landed in Ghana and are currently patrolling the coast.
According to the source, Ghana had been selected as the operational base for the three West African countries where President Bush would visit, namely, Liberia, Benin and Ghana, and added that all the operational structures had been put in place to co-ordinate affairs.
It said the selection of Ghana as a base for the three African countries showed the trust that the US government had in the security agencies in Ghana.
It noted that there would be some inconvenience on the road and appealed to residents of Accra and motorists to bear with the security agencies and respect the sirens when they heard them in order to make the visit a memorable one.
Announcing President Bush’s State Visit at a news conference in Accra earlier in the week, the Minister of Foreign Affairs, Mr Akwasi Osei-Adjei, had said it would offer the platform for bilateral trade discussions between Ghana and the United States, reports Boahene Asamoah.
Mr Osei-Adjei said the visit was a reciprocal gesture for a similar one extended to President Kufuor during the early part of his administration.
The minister said the visit would offer the two leaders the opportunity to discuss issues on free trade, economic opportunities and other initiatives such as the Africa Growth and Opportunities Act (AGOA) and the Millennium Challenge Account (MCA).
Mr Osei-Adjei stated that relations between the two countries were on a high pedestal and said issues of democratic governance, private sector development and economic co-operation would also form part of the discussions.
The minister stated that Ghana’s role in peacekeeping missions would also be discussed.
Ghana and the US have enjoyed considerable high-level bilateral co-operation over the years.
Ghana currently exports apparels and other products under the AGOA initiative signed into law by former President Clinton.
The country has also been a beneficiary of $547 million under the MCA aimed at supporting the agricultural sector and infrastructural development in the country.
Many Ghanaians have been successful in the US immigration lottery over the past years, making Ghana one of the highest application nations.
To further give a boost to Ghana-US relations, the US last year completed and commissioned a multi-million dollar office complex in Ghana.
As part of President Bush’s visit, a State Dinner will be held in his honour. He will also visit the US Embassy to meet with US volunteers in Ghana, go to the Ghana International School and hold high-level discussions at the seat of government, the Christianborg Castle, Osu.
President Bush has initiated several programmes in Africa, including the malaria initiative, the $40 billion HIV/AIDS programme for Africa, among many other initiatives.
The US President began his trip to Africa, which will take him to Benin, Tanzania, Rwanda, Ghana and Liberia, on February 15.
The trip will be an opportunity for him to review at firsthand, since his last visit in 2003, the significant progress in efforts to increase economic development and fight HIV/AIDS, malaria and other treatable diseases as a result of the US’s robust programmes in these areas.
President Bush will also meet with President Yayi of Benin, President Kikwete of Tanzania, President Kagame of Rwanda and President Johnson-Sirleaf of Liberia to discuss how the US can continue to partner African countries to support continued democratic reforms, respect for human rights, free trade, open investment regimes and economic opportunities across the continent.
Sustained economic growth will ensure more jobs
INDUSTRY leaders in the country have said it is refreshing to have heard President Kufuor acknowledge the need to move from macro-economic stability in the economy to growth at his last State of the Nation Address delivered on Thursday. Reports Boahene Asamoah.
According to them, while macro-economic stability was a necessary condition for economic growth, it was not sufficient.
Speaking in two separate interviews, the presidents of the Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry, Mr Wilson Atta Krofah, and the Association of Ghana Industries (AGI), Mr Tony Oteng-Gyasi, stressed the need for the necessary policies to be pursued to ensure growth in the economy.
According to Mr Oteng-Gyasi, “sustained economic growth is the surest way to go to ensure employment generation and economic development”.
He, however, said the process of ensuring economic take-off should not be left to the next government to pursue, saying that the present government ought to start the process of ensuring economic growth.
Mr Oteng-Gyasi mentioned the need to look at the micro level to address constraints that affected the different micro sectors of the economy, adding that such a policy would help to address the shortfalls in the various sectors and fashion out a strategy to address the constraints in each sector.
He also mentioned the need for a second look to be taken at the Labour Law, stressing that a “one-size” labour policy for all sectors was not appropriate.
The President of the AGI stated that the Labour Law, as it existed now, did not address the concerns of all the sectors of the economy, adding that “there should be specific labour laws for different sectors”.
On the interest charges by banks, Mr Oteng-Gyasi said the central bank had to play a more facilitating role by ensuring that banks reduced interest rates.
“These are the kind of policies that will help to anchor industrial take-off,” he stated.
For his part, Mr Krofah stated that while there had been some achievement in maintaining macro-economic stability, a lot still needed to be done.
He said the issue of mechanised agriculture needed to be given priority attention, since that would lead to industrialisation of the economy and propel economic growth and development.
He said there was the need for the government to pursue that agenda more vigorously to attract investments into the agricultural sector as part of its policy to modernise agriculture.
Mr Krofah noted that agricultural mechanisation had the potential to break the back of unemployment in the country and also accelerate the country’s pace of development.
On the oil find in the country, Mr Krofah said the government must ensure that the country benefited from the find, adding that “the country must be able to negotiate for about 30 per cent of the deal instead of the current 10 per cent being speculated”.
Again, he said Ghanaian entrepreneurs must be encouraged to take advantage of downstream businesses associated with the oil industry, stressing that “Ghanaian entrepreneurs must take centre stage in this business”.
The President of the GNCCI welcomed President’s Kufuor’s decision to set up a committee that would manage the resources from the oil find to yield greater benefits for all Ghanaians.
According to them, while macro-economic stability was a necessary condition for economic growth, it was not sufficient.
Speaking in two separate interviews, the presidents of the Ghana National Chamber of Commerce and Industry (GNCCI), the umbrella organisation of trade and industry, Mr Wilson Atta Krofah, and the Association of Ghana Industries (AGI), Mr Tony Oteng-Gyasi, stressed the need for the necessary policies to be pursued to ensure growth in the economy.
According to Mr Oteng-Gyasi, “sustained economic growth is the surest way to go to ensure employment generation and economic development”.
He, however, said the process of ensuring economic take-off should not be left to the next government to pursue, saying that the present government ought to start the process of ensuring economic growth.
Mr Oteng-Gyasi mentioned the need to look at the micro level to address constraints that affected the different micro sectors of the economy, adding that such a policy would help to address the shortfalls in the various sectors and fashion out a strategy to address the constraints in each sector.
He also mentioned the need for a second look to be taken at the Labour Law, stressing that a “one-size” labour policy for all sectors was not appropriate.
The President of the AGI stated that the Labour Law, as it existed now, did not address the concerns of all the sectors of the economy, adding that “there should be specific labour laws for different sectors”.
On the interest charges by banks, Mr Oteng-Gyasi said the central bank had to play a more facilitating role by ensuring that banks reduced interest rates.
“These are the kind of policies that will help to anchor industrial take-off,” he stated.
For his part, Mr Krofah stated that while there had been some achievement in maintaining macro-economic stability, a lot still needed to be done.
He said the issue of mechanised agriculture needed to be given priority attention, since that would lead to industrialisation of the economy and propel economic growth and development.
He said there was the need for the government to pursue that agenda more vigorously to attract investments into the agricultural sector as part of its policy to modernise agriculture.
Mr Krofah noted that agricultural mechanisation had the potential to break the back of unemployment in the country and also accelerate the country’s pace of development.
On the oil find in the country, Mr Krofah said the government must ensure that the country benefited from the find, adding that “the country must be able to negotiate for about 30 per cent of the deal instead of the current 10 per cent being speculated”.
Again, he said Ghanaian entrepreneurs must be encouraged to take advantage of downstream businesses associated with the oil industry, stressing that “Ghanaian entrepreneurs must take centre stage in this business”.
The President of the GNCCI welcomed President’s Kufuor’s decision to set up a committee that would manage the resources from the oil find to yield greater benefits for all Ghanaians.
Tuesday, February 12, 2008
We’l continue with sound policies — Dr Acquah
Story: Boahene Asamoah
THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.
THE Governor of the Bank of Ghana, Dr Paul Acquah, has said that the central bank will continue to pursue sound and dynamic policies that will shape the banking industry to position it for the challenges and opportunities that will come up.
He mentioned the proposed recapitalisation of banks in the country as one of such policies meant to broaden the scope of financial intermediation, inject fresh capital and ensure credit to the private sector.
Speaking yesterday in Accra at the inauguration of the Bank of Baroda, an Indian Bank with presence in 24 countries, Dr Acquah said over the past two years, six banks entered into the Ghanaian economy, bringing the total assets of banks to GH¢71 billion, representing an increase of 88 per cent and also representing 51.7 per cent of gross domestic product at the end of last year.
He said total branch net work of banks stood at 484 branches of banks currently, and added that there had been a considerable appreciation of credit to the private sector.
Dr Acquah stated that the central bank had introduced the electronic payment system known as the E-ZWICH, which was expected to deepen the banking system through the use of a smart card.
A Deputy Minister of Finance and Economic Planning, Prof. George Gyan Baffour, said the government would support and encourage the private sector and investors to take opportunities in the country, and stated that the investments by foreign banks into the economy was an indication that the economy was on the right path.
Prof. Baffour reiterated the government’s earlier call on banks to reduce the spread on interest rates, saying that the spread between interest rates and lending rates was too huge.
Prof. Baffour called on the management of Bank of Baroda to take the lead in reducing interest rates to support the activities of the private sector.
The Global Chairman of the Bank of Baroda, Dr Anil K. Khandelwal, said the bank had presence in 24 countries across all the five continents with 69 global offices.
He said the bank was one of the biggest banks in India, with 2,800 branches and with over 29 million customers.
Dr Khandelwal said the bank, since its establishment 100 years ago, had been consistent with delivering profits every single year, and had played an active part in the economic development of India.
He said the bank had also networked 90 per cent of all its global office and had over 500 Auto-Teller Machines (ATM) located at strategic areas.
The chairman said the establishment of its presence in the country was a further boost for Ghana-India relationship and assured the general public that the bank would grow to become a local bank.
He said the bank’s presence offered the country the opportunity to connect to its 24 global offices and also offer closer partnership between the two countries.
Dr Khandelwal assured the regulatory agencies that the bank would respect local regulatory policies and would as well comply with all the rules and regulations pertaining to the country’s financial sector.
Ghana is the first office of the Bank of Baroda in West Africa, but has already established its presence in the Southern Africa.
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