Story: Boahene Asamoah
THE Director-General of the West African Institute for Financial and Economic Management (WAIFEM), Dr Chris Itsede, has called on member states of the West African Monetary Zone (WAMZ) to enter into monetary co-operation under a framework of currency convertibility and macroeconomics policy harmonisation.
That, he said, “if actualised, will pave the way for the realisation of the ultimate goal of a single currency and centralised monetary authority”.
Speaking at the opening workshop on Practical Aspects of Economic and Financial Analysis for journalists in Lagos, Nigeria, Dr Itsede stated that the rising trend of globalisation strongly underscored the urgent need for WAMZ member states to enter into a monetary co-operation.
The workshop was to upgrade the knowledge and skills of editors, journalists and other media practitioners from West Africa on economic and financial policy formulation, analysis, performance, monitoring and reporting.
He observed that the issue of national currencies for intra-regional trade finance in West Africa had generated debate on the issue for some time and called on policy makers to hasten the process of currency convertibility.
He mentioned some of the benefits in formalising the use of WAMZ currencies in intra-regional trade transactions as the opportunity to trade in a bigger markets, reduction in transaction costs and the elimination of exchange rate risks among participating countries.
The director-general, however, stated that while the informal sector was actively involved in the free convertibility of regional currencies, the bulk of intra-regional trade was still based on cash transactions.
“This form of trade has little prospects of meeting the objective of a single economic space in the sub-region,” he stated.
On the single monetary zone, he said, “while the WAMZ project is on course to materialise in December 2009, intra-WAMZ trade can be promoted, through the use of local currencies in intra-regional transactions.”
Dr Itsede stated the latest progress report that indicated noticeable improvement in macroeconomic convergence in the region, adding that two countries, Nigeria and The Gambia, met all the four primary convergence criteria, while Ghana, Guinea and Sierra Leone met two, one and three of the primary criteria respectively.
The director-general of WAIFEM said “the press plays a critical role of informing and educating the public about economic and financial policy choices and transmitting feedback to policymakers on the impact and effects of their policies in order for a corrective action to be taken”. Dr Itsede stated.
Twenty-nine middle, senior and executive level officials involved in editing, reporting and producing macroeconomic and financial news from the public and private sectors of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone attended the one-week workshop.
Monday, August 27, 2007
Another US programme to boost agric
Story: Boahene Asamoah Lucy & Adoma Yeboah
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
ADB, Stanbic merger must benefit farmers- J.H. Mensah
J.H. Mensah (fin)
Story: Boahene Asamoah
THE Chairman of the National Development Planning Commission, Mr J.H. Mensah has said that any arrangement or instrument that would ensure that farmers benefited under the proposed merger between Agricultural Development Bank (ADB) and the Stanbic Bank, should be pursued.
He said the argument of the proposed merger should be that of “an instrument providing for the welfare of farmers”, adding “that ADB is not an instrument for the staff and management’s welfare”.
He cautioned the country to take a lesson from the defunct Ghana Airways, where, he said, was the airline was used as a welfare for management and staff in which the country was saddled with a huge loss of $670 million.
Stanbic Bank, a subsidiary of Standard Bank of South Africa, one of the biggest banks in Africa, has launched a bid to take-over the shares of Bank of Ghana, which has 49 per cent shares in the bank.
However, unionised staff and some civil society groups have also launched its opposition to the bid for the merger with Standard Bank, citing fears of the bank’s losing its support for the agricultural sector and also loss of jobs.
Mr Mensah who made this known at the opening of a two-day Bank of Ghana Golden Jubilee Anniversary Symposium in Accra yesterday said “the argument is not about the intended beneficiaries in the proposed take-over” adding the “argument should be the instrument for providing for the welfare of farmers” and further urged the Bank of Ghana to go ahead with any arrangement that would ensure the welfare of farmers in the country.
The symposium which forms part of the 50 years celebration of the Bank of Ghana is on the theme “50 years of Central Banking and the Millennium Development Goals”.
On the performance of the central bank in the country over the past 50 years, Mr Mensah said the Bank of Ghana had played a crucial role in the various turning points in the country’s history and said the challenge now was how to fashion out a programme to ensure the achievement of the MDGs by 2015.
“This economy has to move more faster than it should and begin to leap”, he stated adding that BoG has a play a critical role in facilitating the envisaged growth and development.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu stated that the achievement of the Millennium Development Goals (MDGs) by 2015 called for an accelerated growth and the adoption of pro-poor policies.
He said the country over the past six years had achieved the remarkable stability needed for economic growth and development.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the process of accelerated growth posed a great challenge to all, especially in developing countries such as Ghana.
That, he said stemmed from rising expectations as a result of significant structural reforms and dis-inflation among other policies.
He said the Bank of Ghana had chosen inflation targeting as the core of its monetary policies and was committed to it.
Dr Acquah said the symposium would discuss issues of monetary policy, financial markets, mutual funds, global competitiveness and accelerating growth strategies and business environment.
Story: Boahene Asamoah
THE Chairman of the National Development Planning Commission, Mr J.H. Mensah has said that any arrangement or instrument that would ensure that farmers benefited under the proposed merger between Agricultural Development Bank (ADB) and the Stanbic Bank, should be pursued.
He said the argument of the proposed merger should be that of “an instrument providing for the welfare of farmers”, adding “that ADB is not an instrument for the staff and management’s welfare”.
He cautioned the country to take a lesson from the defunct Ghana Airways, where, he said, was the airline was used as a welfare for management and staff in which the country was saddled with a huge loss of $670 million.
Stanbic Bank, a subsidiary of Standard Bank of South Africa, one of the biggest banks in Africa, has launched a bid to take-over the shares of Bank of Ghana, which has 49 per cent shares in the bank.
However, unionised staff and some civil society groups have also launched its opposition to the bid for the merger with Standard Bank, citing fears of the bank’s losing its support for the agricultural sector and also loss of jobs.
Mr Mensah who made this known at the opening of a two-day Bank of Ghana Golden Jubilee Anniversary Symposium in Accra yesterday said “the argument is not about the intended beneficiaries in the proposed take-over” adding the “argument should be the instrument for providing for the welfare of farmers” and further urged the Bank of Ghana to go ahead with any arrangement that would ensure the welfare of farmers in the country.
The symposium which forms part of the 50 years celebration of the Bank of Ghana is on the theme “50 years of Central Banking and the Millennium Development Goals”.
On the performance of the central bank in the country over the past 50 years, Mr Mensah said the Bank of Ghana had played a crucial role in the various turning points in the country’s history and said the challenge now was how to fashion out a programme to ensure the achievement of the MDGs by 2015.
“This economy has to move more faster than it should and begin to leap”, he stated adding that BoG has a play a critical role in facilitating the envisaged growth and development.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu stated that the achievement of the Millennium Development Goals (MDGs) by 2015 called for an accelerated growth and the adoption of pro-poor policies.
He said the country over the past six years had achieved the remarkable stability needed for economic growth and development.
The Governor of the Bank of Ghana, Dr Paul Acquah, said the process of accelerated growth posed a great challenge to all, especially in developing countries such as Ghana.
That, he said stemmed from rising expectations as a result of significant structural reforms and dis-inflation among other policies.
He said the Bank of Ghana had chosen inflation targeting as the core of its monetary policies and was committed to it.
Dr Acquah said the symposium would discuss issues of monetary policy, financial markets, mutual funds, global competitiveness and accelerating growth strategies and business environment.
PPI inches up
Proofread by era
Story: Boahene Asamoah
THE Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers or the production of goods and services for the month of June inched up b y 1.39 per cent.
This was as a result of the upward increase in the manufacturing index which climbed up by 2.54 per cent.
For the month of May, the all industry index stood at 3.20 per cent.
Announcing the index, the acting Government Statistician, Prof Nicholas N.N. Nsowah-Nuamah, said the utility index did not show any change, whiles the mining index dropped by 4.9 per cent.
He said the mining index continued to fall after decreasing by 3.24 per cent in May this year, adding that “the fall in the June index is accounted for by the decrease for mining of non-ferrous metal ores except uranium and thorium ores of 4.40 per cent, following a similar decline of 3.40 per cent”.
Prof Nsowah-Nuamah said the index for quarrying of stone, sand and clay remained basically the same at 0.03 per cent since the previous quarrying month of May did not change.
The acting Government Statistician explained that the manufacture of plastic products, basic chemicals, wood, cork straw and plating materials, grain mill product, starches and prepared animal feeds spearheaded the rise in the manufacturing index.
He said the manufacturing of motor vehicles, trailers and semi-trailer and manufacture of other food products showed high declines in their index.
Prof Nsowah-Nuamah said the utilities which comprised of production and distribution of electricity and water did not change, after it jumped 17.73 per cent in May 2007.
The PPI measures price change from the perspective of the purchaser and contrasts with other measures such as the Consumer Price Index (CPI).
Prices of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for almost every industry from mining, manufacturing, and the utilities sector of the Ghanaian economy.
Story: Boahene Asamoah
THE Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers or the production of goods and services for the month of June inched up b y 1.39 per cent.
This was as a result of the upward increase in the manufacturing index which climbed up by 2.54 per cent.
For the month of May, the all industry index stood at 3.20 per cent.
Announcing the index, the acting Government Statistician, Prof Nicholas N.N. Nsowah-Nuamah, said the utility index did not show any change, whiles the mining index dropped by 4.9 per cent.
He said the mining index continued to fall after decreasing by 3.24 per cent in May this year, adding that “the fall in the June index is accounted for by the decrease for mining of non-ferrous metal ores except uranium and thorium ores of 4.40 per cent, following a similar decline of 3.40 per cent”.
Prof Nsowah-Nuamah said the index for quarrying of stone, sand and clay remained basically the same at 0.03 per cent since the previous quarrying month of May did not change.
The acting Government Statistician explained that the manufacture of plastic products, basic chemicals, wood, cork straw and plating materials, grain mill product, starches and prepared animal feeds spearheaded the rise in the manufacturing index.
He said the manufacturing of motor vehicles, trailers and semi-trailer and manufacture of other food products showed high declines in their index.
Prof Nsowah-Nuamah said the utilities which comprised of production and distribution of electricity and water did not change, after it jumped 17.73 per cent in May 2007.
The PPI measures price change from the perspective of the purchaser and contrasts with other measures such as the Consumer Price Index (CPI).
Prices of approximately 950 items are collected from 209 establishments each month.
The PPI indices are available for almost every industry from mining, manufacturing, and the utilities sector of the Ghanaian economy.
Free Zones Board offers incentives to investors
Free Zones (fin)
Story: Boahene Asamoah
The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.
Story: Boahene Asamoah
The Ghana Free Zones Board (GFZB), has positioned itself to provide the needed infrastructure and efficient services to investors within the enclave.
The board offers both monetary and non-monetary incentives which have gone a long way to achieve some level of success for the country.
The monetary incentives offered include: 100 per cent exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones; 100 per cent exemption from payment of income tax on profits for 10 years and shall not exceed eight per cent.
The board again offers total exemption from payment of withholding taxes from dividends arising out of free zone investments and also offers relief from double taxation for foreign investors and employees (currently double taxation agreement ratified with France and The Netherlands).
In the case of non-monetary incentives ; the board exempts investors from import licensing requirements; ensures minimal customs formalities; a 100 per cent ownership of shares by any investor - foreign or national in a free zone enterprise is allowed.
Again, there are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
Free Zone investors are also permitted to operate foreign currency accounts with banks in Ghana and at least 70 per cent of annual production of goods and services of Free Zone Enterprises must be exported.
Consequently up to 30 per cent of annual production of goods and services of a free zone enterprise are authorized for sale in the local market
Another important non-monetary incentive is that Free Zone investments are also guaranteed against nationalisation and expropriation.
The Free Zone Act (Act 504) and its implementing regulations also provide relief from various bureaucratic restrictions and other statutory requirements such as expedited investment approval not exceeding 28 working days; unimpeded issuance of expatriate work and residence permits; accelerated on-site customs inspection; and, assurance of wage levels for employees that would not be below the recommended minimum wage prevailing in Ghana at any given time. Other workers' rights and conditions of service have been aligned to the relevant ILO conventions, which have been ratified in the various Industrial Relations legislation of Ghana.
The implementing regulations (LI 1618) of the Act also make it possible for free zone developers and operators to lease land on long-term basis from the Free Zones Board, or propose properties they already own for the creation, development and operation of free zones.
Monday, July 30, 2007
laise with appropriate ministries-event organisers told
(fin)
Story: Boahene Asamoah
THE Chief Director at the Ministry of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiative (PSI), Mr Seth Evans Addo, has called on international events organisers to liaise with the appropriate government agencies in the planning of events to ensure their success.
He said lack of co-ordination had characterised many such events, leading to their failure to achieve the aims.
Mr Addo made this known at the launch of the first All African Business Summit in Accra on Thursday.
The summit, which comes of on September 6 to 8 this year in Accra, will attract business executives and firms from 20 African countries as well as foreign investors around the world.
Mr Addo said “it is advisable to liaise with the relevant public agencies to ensure that both planning and execution of such events are done without any hitches” and called for a mechanism to track the effectiveness of such summits so as to ensure that their objectives were achieved.
Speaking at the ceremony, a Deputy Minister of Trade, Industry, PSD and PSI, Mr Kwadwo Affram Aseidu, said the holding of the summit in the country was historical, and that this was the first time a business summit was being organised by the private sector in Africa.
He said the government would lend its support to the private sector to enable it to brace itself for the challenges of globalisation.
“The growing interest that our development partners are showing in the region, particularly the United States, the European Union, Japan, China and India presents us with a challenge”
The Chief Executive Officer and President of Kingsworld Limited, Mr Gordon Adjei, said the aim of the summit was to foster intra-African trade and present the continent as an venue for doing business.
He stated that the summit would tackle three major topics, namely; strategies for promoting successful intra-African trade, pulling down trade barriers and showcasing investment attractions in Africa.
Mr Adjei said over 20 countries had confirmed their participation in the event, and expressed the hope that many more countries would soon be attracted to the summit.
He emphasised the need for trade among African countries to ensure the development of the African continent.
Story: Boahene Asamoah
THE Chief Director at the Ministry of Trade, Industry, Private Sector Development (PSD) and President’s Special Initiative (PSI), Mr Seth Evans Addo, has called on international events organisers to liaise with the appropriate government agencies in the planning of events to ensure their success.
He said lack of co-ordination had characterised many such events, leading to their failure to achieve the aims.
Mr Addo made this known at the launch of the first All African Business Summit in Accra on Thursday.
The summit, which comes of on September 6 to 8 this year in Accra, will attract business executives and firms from 20 African countries as well as foreign investors around the world.
Mr Addo said “it is advisable to liaise with the relevant public agencies to ensure that both planning and execution of such events are done without any hitches” and called for a mechanism to track the effectiveness of such summits so as to ensure that their objectives were achieved.
Speaking at the ceremony, a Deputy Minister of Trade, Industry, PSD and PSI, Mr Kwadwo Affram Aseidu, said the holding of the summit in the country was historical, and that this was the first time a business summit was being organised by the private sector in Africa.
He said the government would lend its support to the private sector to enable it to brace itself for the challenges of globalisation.
“The growing interest that our development partners are showing in the region, particularly the United States, the European Union, Japan, China and India presents us with a challenge”
The Chief Executive Officer and President of Kingsworld Limited, Mr Gordon Adjei, said the aim of the summit was to foster intra-African trade and present the continent as an venue for doing business.
He stated that the summit would tackle three major topics, namely; strategies for promoting successful intra-African trade, pulling down trade barriers and showcasing investment attractions in Africa.
Mr Adjei said over 20 countries had confirmed their participation in the event, and expressed the hope that many more countries would soon be attracted to the summit.
He emphasised the need for trade among African countries to ensure the development of the African continent.
Another US programme to boost agric
Story: Boahene Asamoah Lucy & Adoma Yeboah
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE United States (US) Secretary of State, Dr Condolezza Rice, has announced an exchange programme between the US and Africa to boost the agricultural sector of African economies.
The programme will sponsor 10 candidates from six eligible African countries to study agriculture in 10 prestigious universities in the US under the African Growth, Competitive and Diversification Act.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice stated that under the African Growth, Competitive and Diversification Act it would ensure that Africa’s agricultural products became competitive on the global market, through the acquisition of skills and knowledge in modern agriculture from American universities.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, Dr Rice said the new initiative was aimed at further deepening the partnership between the United States and Africa.
She said “the partnership between US and Africa will continue to change and be adapted to benefit trade with Africa” adding that both continents shared a common history.
Dr Rice stated that the US government had over the past years undertaken many initiatives aimed at reducing poverty and enhancing trade with Africa, and mentioned AGOA, the Malaria and HIV/AIDS initiatives by the US government.
She said the challenges facing most African countries was that of economic freedom, and expressed the hope that the partnership between the US and Africa would yield the results in the area of economic freedom.
The Secretary of State said Africa was a continent of hope and opportunity in spite of some trouble spots on the continent.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa.
The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries, which are mainly reforming countries, to help reduce barriers to trade, increase exports, create jobs and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
New US initiative for Africa— To boost capital markets
Story: Boahene Asamoah
THE President of the United States of America (USA), Mr George W. Bush Jnr., has announced a new initiative to support the development of capital markets in Africa.
The African Financial Sector Initiative is a policy to provide technical assistance and help mobilise billions of dollars from US private funds for investments in capital markets across Africa.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, President Bush stated that the initiative would help African countries to access private equity through mutual funds to help boost investments on the continent.
“The United States of America is committed to helping Africa,” he said, adding that initiatives such as AGOA and the Millennium Challenge Accounts (MCA) were aimed at promoting trade and investments in Africa.
President Bush said "the success of AGOA is proving that open trade and international investment are the surest and fastest ways for Africa to make progress" and expressed how proud he was last year to sign into law an extension of benefits of the AGOA legislation, which he called a "vital programme".
“This is a hopeful moment in the history of Africa; the governments of many African nations are being transformed. AGOA is getting results and political reforms in Africa have inspired confidence among American investors,” the US President said.
President Bush noted that last year U.S. exports to sub-Saharan Africa increased 25 by per cent and America's imports from AGOA eligible countries rose by 88 per cent.
"I am confident that your efforts will lead to greater interest and investment in AGOA nations," he told the gathering.
He said discussions at the AGOA forum were vital to further expand and diversify trade so that economic growth could be sustained.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa. The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries.
AGOA rewards reforming countries with preferences that have been proven to help reduce barriers to trade, increase exports, create jobs, and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
THE President of the United States of America (USA), Mr George W. Bush Jnr., has announced a new initiative to support the development of capital markets in Africa.
The African Financial Sector Initiative is a policy to provide technical assistance and help mobilise billions of dollars from US private funds for investments in capital markets across Africa.
Addressing delegates at the 6th Africa Growth and Opportunities Act (AGOA) Forum in Accra via a recorded televised message, President Bush stated that the initiative would help African countries to access private equity through mutual funds to help boost investments on the continent.
“The United States of America is committed to helping Africa,” he said, adding that initiatives such as AGOA and the Millennium Challenge Accounts (MCA) were aimed at promoting trade and investments in Africa.
President Bush said "the success of AGOA is proving that open trade and international investment are the surest and fastest ways for Africa to make progress" and expressed how proud he was last year to sign into law an extension of benefits of the AGOA legislation, which he called a "vital programme".
“This is a hopeful moment in the history of Africa; the governments of many African nations are being transformed. AGOA is getting results and political reforms in Africa have inspired confidence among American investors,” the US President said.
President Bush noted that last year U.S. exports to sub-Saharan Africa increased 25 by per cent and America's imports from AGOA eligible countries rose by 88 per cent.
"I am confident that your efforts will lead to greater interest and investment in AGOA nations," he told the gathering.
He said discussions at the AGOA forum were vital to further expand and diversify trade so that economic growth could be sustained.
The Africa Growth and Opportunities Act (AGOA) of 2000 is the cornerstone of the US trade and investment policy with sub-Saharan Africa. The US Congress amended the Act last year to improve and expand preferential access to beneficiary countries.
AGOA rewards reforming countries with preferences that have been proven to help reduce barriers to trade, increase exports, create jobs, and expand business opportunities for African and U.S. entrepreneurs.
Thirty-eight of the 48 sub-Saharan African countries are eligible for AGOA, with post-war Liberia being added to the list in January this year.
EPA must be flexible-Says Minister of Trade, Industy
Story: Boahene Asamoah and Lucy Adoma Yeboah
THE outgoing Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, has said that the Economic Partnership Agreements (EPAs) between African, Caribbean and Pacific (ACP) countries and the European Union (EU) should be flexible and take on board sensitive sectors of the economy of West African countries.
“The negotiations on the EPAs should be flexible, taking into consideration sensitive areas, such as fiscal policies and market access, of member countries of ECOWAS,” he said.
Mr Kyerematen said this at the ministerial session on the EPAs negotiations between West Africa and the EU Ministerial Monitoring Committee meeting in Accra yesterday.
The outgoing minister said there must also be a flexible transition period and stated that given the time frame and the need to finalise key policies, it was unlikely that agreements could be implemented in January 2008, even if they were signed in December this year.
Mr Kyerematen called for interim measures to be considered in the event that all the negotiations were met before the December 2007 deadline and acknowledged that issues such as market access and the impact of the EPAs on customs were some of the challenges facing the agreements.
He said a major challenge was the lack of capacity of West African states to supply requirements of their products and urged the EU to implement all capacity-building commitments undertaken under the Cotonou Agreement.
The minister said there was the need to build the export competitiveness of products from the sub-region, since that was “indispensable” to the EPAs and to ensure the competitiveness of African products.
The President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, said the EPAs “should not only be trade agreements but also have development dimensions”.
He said “the sum of €334 million pledged by our development partners to underpin the EPAs in the region is far below our expectations and clearly inadequate to kick-start the development of the West African economy, build our productive capacity and mitigate budgetary losses”.
The EPAs are a trade document expected to be signed by the EU and ACP countries, which include countries in the West African sub-region.
The EPAs, which are expected to be signed by December this year, have attracted criticism from civil society groups whose main concerns are access to European markets and the uncompetitiveness of products from the sub-region.
Meanwhile African countries have been charged to take advantage of the AGOA since the dispensation will not be forever.
Mr Kyerematen, gave the advice at the First Experts’ Meeting of the African Ministerial Consultative Group on AGOA in Accra yesterday.
“Let us remember that AGOA will not remain open to Africa for ever. So let us take advantage of it to transform our economies and build up our competitiveness for the present and the future,” he stressed.
Addressing participants from AGOA eligible sub-Saharan African countries, he said it was unfortunate for African countries to waste the opportunity to export any of the 6,400 products duty free and quota-free to the largest consumer market in the world, worth trillions of dollars.
The Experts’ Meeting of the African Ministerial Consultative Group is part of the 6th AGOA Forum taking place in Accra between July 16 and 19, 2007, on the theme: “Trade Grows, Africa Prospers: Optimising the Benefits Under AGOA”.
The theme for the Accra forum is to reflect on how to encourage countries to diversify their exports by taking advantage of the broad range of products eligible for preferential treatment under the act.
Mr Kyerematen said in spite of the obvious benefits to be gained by African countries from that landmark initiative, the progress made in several countries was regrettably slow, and therefore the impact on most economies insignificant.
He explained that the problem was partly due to the lack of capacity to organise production on a competitive basis to take advantage of the huge market potential in the United States.
“Many countries are yet to identify the comparative or competitive advantage that they have within the diversified product range under AGOA,” he observed.
He also blamed the shortfall on the lack of strategic focus on the kind of policy, legal, institutional and support framework that would assist the private sector to produce items which would be accepted at the international market.
Mr Kyerematen reiterated that there was the need for African countries to strive to produce a variety of products on a mass scale for export in order to create jobs, earn foreign exchange, thereby increasing the level of income, particularly for the disadvantaged and the vulnerable.
“Most of our countries have depended almost exclusively on one or two major export commodities as our economic backbone for the past five to 10 decades,” he said, adding that such countries also failed to add value to their products to enable them earn higher.
This year’s forum, unlike previous ones, has been structured as an integrated event with joint or concurrent participation by the United States and African government officials as well as private sector and civil society representatives.
An exhibition has been mounted alongside the forum at the Accra International Conference Centre (AICC) to enable some selected exhibitors to showcase their locally made products under AGOA.
Items on display are mainly garments, beverages, beads, ornaments, herbal medicines and leather wares.
THE outgoing Minister of Trade, Industry, Private Sector Development and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, has said that the Economic Partnership Agreements (EPAs) between African, Caribbean and Pacific (ACP) countries and the European Union (EU) should be flexible and take on board sensitive sectors of the economy of West African countries.
“The negotiations on the EPAs should be flexible, taking into consideration sensitive areas, such as fiscal policies and market access, of member countries of ECOWAS,” he said.
Mr Kyerematen said this at the ministerial session on the EPAs negotiations between West Africa and the EU Ministerial Monitoring Committee meeting in Accra yesterday.
The outgoing minister said there must also be a flexible transition period and stated that given the time frame and the need to finalise key policies, it was unlikely that agreements could be implemented in January 2008, even if they were signed in December this year.
Mr Kyerematen called for interim measures to be considered in the event that all the negotiations were met before the December 2007 deadline and acknowledged that issues such as market access and the impact of the EPAs on customs were some of the challenges facing the agreements.
He said a major challenge was the lack of capacity of West African states to supply requirements of their products and urged the EU to implement all capacity-building commitments undertaken under the Cotonou Agreement.
The minister said there was the need to build the export competitiveness of products from the sub-region, since that was “indispensable” to the EPAs and to ensure the competitiveness of African products.
The President of the ECOWAS Commission, Dr Mohammed Ibn Chambas, said the EPAs “should not only be trade agreements but also have development dimensions”.
He said “the sum of €334 million pledged by our development partners to underpin the EPAs in the region is far below our expectations and clearly inadequate to kick-start the development of the West African economy, build our productive capacity and mitigate budgetary losses”.
The EPAs are a trade document expected to be signed by the EU and ACP countries, which include countries in the West African sub-region.
The EPAs, which are expected to be signed by December this year, have attracted criticism from civil society groups whose main concerns are access to European markets and the uncompetitiveness of products from the sub-region.
Meanwhile African countries have been charged to take advantage of the AGOA since the dispensation will not be forever.
Mr Kyerematen, gave the advice at the First Experts’ Meeting of the African Ministerial Consultative Group on AGOA in Accra yesterday.
“Let us remember that AGOA will not remain open to Africa for ever. So let us take advantage of it to transform our economies and build up our competitiveness for the present and the future,” he stressed.
Addressing participants from AGOA eligible sub-Saharan African countries, he said it was unfortunate for African countries to waste the opportunity to export any of the 6,400 products duty free and quota-free to the largest consumer market in the world, worth trillions of dollars.
The Experts’ Meeting of the African Ministerial Consultative Group is part of the 6th AGOA Forum taking place in Accra between July 16 and 19, 2007, on the theme: “Trade Grows, Africa Prospers: Optimising the Benefits Under AGOA”.
The theme for the Accra forum is to reflect on how to encourage countries to diversify their exports by taking advantage of the broad range of products eligible for preferential treatment under the act.
Mr Kyerematen said in spite of the obvious benefits to be gained by African countries from that landmark initiative, the progress made in several countries was regrettably slow, and therefore the impact on most economies insignificant.
He explained that the problem was partly due to the lack of capacity to organise production on a competitive basis to take advantage of the huge market potential in the United States.
“Many countries are yet to identify the comparative or competitive advantage that they have within the diversified product range under AGOA,” he observed.
He also blamed the shortfall on the lack of strategic focus on the kind of policy, legal, institutional and support framework that would assist the private sector to produce items which would be accepted at the international market.
Mr Kyerematen reiterated that there was the need for African countries to strive to produce a variety of products on a mass scale for export in order to create jobs, earn foreign exchange, thereby increasing the level of income, particularly for the disadvantaged and the vulnerable.
“Most of our countries have depended almost exclusively on one or two major export commodities as our economic backbone for the past five to 10 decades,” he said, adding that such countries also failed to add value to their products to enable them earn higher.
This year’s forum, unlike previous ones, has been structured as an integrated event with joint or concurrent participation by the United States and African government officials as well as private sector and civil society representatives.
An exhibition has been mounted alongside the forum at the Accra International Conference Centre (AICC) to enable some selected exhibitors to showcase their locally made products under AGOA.
Items on display are mainly garments, beverages, beads, ornaments, herbal medicines and leather wares.
ECOWAS not ready for EPA-WAMI Boss
Story: Boahene Asamoah
THE Director-General of the West African Monetary Institute (WAMZ), Dr Joseph O. Nnanna, has said that member states of ECOWAS are not ready to sign the Economic Partnership Agreements (EPAs).
That was because the promises made by the European Union (EU) to African, Caribbean and Pacific (ACP) countries had not been fulfilled, he explained.
In an interview after the opening of the Ministerial Session of the Ministerial Monitoring Committee on the EPA Negotiations in Accra yesterday, Dr Nnanna said “issues of revenue loss, access to European markets and many critical constraints have not been fully addressed”.
He said the infrastructure of the sub-region had also not been fully developed and integrated to take advantage of the EPAs.
Dr Nnanna stated that the means to the economic development of the sub-region lay in intra-African trade which had not been fully exploited.
“Intra-African trade is one sure way of developing the sub-region and it will help boost investments and trade among African countries,” he said.
He cited the example of Asia where intra-Asian trade accounted for about 60 per cent of trade, while in the EU it was about 55 per cent.
He expressed regret that within the sub-region of ECOWAS, trade accounted for only 12 per cent of all trade and described it as too low for any economic development.
The director-general said efforts must be intensified to diversify trade and distribute it among ECOWAS members.
The EPAs are a set of trade agreements expected to be signed by December this year to form the legal basis of trade between the EU and ACP countries, which include countries in West Africa.
Civil society groups have largely criticised the EPAs for what they call “a lack of human face”, saying the agreements will compromise the competitiveness of African countries to export to the EU, the largest trading partner of ACP countries.
THE Director-General of the West African Monetary Institute (WAMZ), Dr Joseph O. Nnanna, has said that member states of ECOWAS are not ready to sign the Economic Partnership Agreements (EPAs).
That was because the promises made by the European Union (EU) to African, Caribbean and Pacific (ACP) countries had not been fulfilled, he explained.
In an interview after the opening of the Ministerial Session of the Ministerial Monitoring Committee on the EPA Negotiations in Accra yesterday, Dr Nnanna said “issues of revenue loss, access to European markets and many critical constraints have not been fully addressed”.
He said the infrastructure of the sub-region had also not been fully developed and integrated to take advantage of the EPAs.
Dr Nnanna stated that the means to the economic development of the sub-region lay in intra-African trade which had not been fully exploited.
“Intra-African trade is one sure way of developing the sub-region and it will help boost investments and trade among African countries,” he said.
He cited the example of Asia where intra-Asian trade accounted for about 60 per cent of trade, while in the EU it was about 55 per cent.
He expressed regret that within the sub-region of ECOWAS, trade accounted for only 12 per cent of all trade and described it as too low for any economic development.
The director-general said efforts must be intensified to diversify trade and distribute it among ECOWAS members.
The EPAs are a set of trade agreements expected to be signed by December this year to form the legal basis of trade between the EU and ACP countries, which include countries in West Africa.
Civil society groups have largely criticised the EPAs for what they call “a lack of human face”, saying the agreements will compromise the competitiveness of African countries to export to the EU, the largest trading partner of ACP countries.
AGOA eligible countries to reap benefits-— Through product diversification, capacity building
Story:Boahene Asamoah & Lucy Adoma Yeboah
ELIGIBLE countries under the African Growth and Opportunity Act (AGOA) have resolved to diversify their products and strengthen capacity building programmes to ensure that they benefited fully from the initiative.
They have also called on the private sector of the United States to invest in eligible countries and that access to finance by small- and medium-scale enterprises (SMEs) should be enhanced to ensure their participation in the initiative.
This was contained in a report delivered by Ghana’s Ambassador to the United States, Mr A.Y. Adusie, at the ongoing AGOA conference in Accra yesterday.
The report, which outlined a 22-point strategic framework for accelerating the implementation lines under the AGOA came from the Experts Meeting of the African Ministerial Consultative Group held on Monday.
The report, among other things, recommend that member countries should endeavour to formulate national trade policies that would take full advantage of the initiative, Mr Adusie said.
The group, he said, also recommended the strengthening of regional integration and the need to create the necessary infrastructure to ensure competitiveness of products from the sub-region.
The ambassador said it was also agreed that the United States (US) complimented efforts at ensuring skills training and provide technological assistance to enhance the products of AGOA eligible countries.
Making presentations on the regional deliberations, Mr Adusie observed that the regional groupings which were made up of western, central, southern, eastern and northern African countries faced similar challenges which affected their desire to take full advantage of AGOA.
He named some of the issues as low supply to meet the large demand of the US market, the stringent product requirements, high transportation cost, funding and the ability to obtain visas.
He said eligible countries also had acknowledged the need to develop exportable quantities of products to which they would add value.
“In the horticultural sector, there is the need to develop a niche market and also to diversify products,” Mr Adusie stated, and called for strong partnership among cotton producing countries.
The ambassador said that in southern Africa, the issues were how to diversify products, develop and harmonise standards, create awareness as well as develop cross border infrastructure.
In his welcoming address, the out-going Minister of Trade, Industries, Private Sector and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, said AGOA had not conferred any automatic benefits on any country but looked out for those that produced quality products and could supply in time.
He said there was, therefore, the need for individual countries to institute appropriate national strategies to enable producers to come out with the best for the US market.
Mr Kyerematen observed that Africa was yet to fully benefit from the world market since the continent attracted only two per cent of the world market.
He, therefore, advised African countries to take the AGOA initiative seriously since the opportunity for them to export 6,400 products duty- and quota-free to the United States (US) was enough to push them higher on the international market.
Mr Kyerematen took the opportunity to welcome Liberia and Mauritania who recently became AGOA eligible countries.
ELIGIBLE countries under the African Growth and Opportunity Act (AGOA) have resolved to diversify their products and strengthen capacity building programmes to ensure that they benefited fully from the initiative.
They have also called on the private sector of the United States to invest in eligible countries and that access to finance by small- and medium-scale enterprises (SMEs) should be enhanced to ensure their participation in the initiative.
This was contained in a report delivered by Ghana’s Ambassador to the United States, Mr A.Y. Adusie, at the ongoing AGOA conference in Accra yesterday.
The report, which outlined a 22-point strategic framework for accelerating the implementation lines under the AGOA came from the Experts Meeting of the African Ministerial Consultative Group held on Monday.
The report, among other things, recommend that member countries should endeavour to formulate national trade policies that would take full advantage of the initiative, Mr Adusie said.
The group, he said, also recommended the strengthening of regional integration and the need to create the necessary infrastructure to ensure competitiveness of products from the sub-region.
The ambassador said it was also agreed that the United States (US) complimented efforts at ensuring skills training and provide technological assistance to enhance the products of AGOA eligible countries.
Making presentations on the regional deliberations, Mr Adusie observed that the regional groupings which were made up of western, central, southern, eastern and northern African countries faced similar challenges which affected their desire to take full advantage of AGOA.
He named some of the issues as low supply to meet the large demand of the US market, the stringent product requirements, high transportation cost, funding and the ability to obtain visas.
He said eligible countries also had acknowledged the need to develop exportable quantities of products to which they would add value.
“In the horticultural sector, there is the need to develop a niche market and also to diversify products,” Mr Adusie stated, and called for strong partnership among cotton producing countries.
The ambassador said that in southern Africa, the issues were how to diversify products, develop and harmonise standards, create awareness as well as develop cross border infrastructure.
In his welcoming address, the out-going Minister of Trade, Industries, Private Sector and President’s Special Initiatives (PSIs), Mr Alan Kyerematen, said AGOA had not conferred any automatic benefits on any country but looked out for those that produced quality products and could supply in time.
He said there was, therefore, the need for individual countries to institute appropriate national strategies to enable producers to come out with the best for the US market.
Mr Kyerematen observed that Africa was yet to fully benefit from the world market since the continent attracted only two per cent of the world market.
He, therefore, advised African countries to take the AGOA initiative seriously since the opportunity for them to export 6,400 products duty- and quota-free to the United States (US) was enough to push them higher on the international market.
Mr Kyerematen took the opportunity to welcome Liberia and Mauritania who recently became AGOA eligible countries.
EPACK expands access points
Story: Boahene Asamoah
DATABANK, the manager of the mutual fund, EPACK, has created a special account for Ghanaians living abroad to enable them to make medium and long-term investments to meet their financial commitments.
The Databank Homecoming Account will help Ghanaians living outside the country to meet their financial needs in the areas of real estate, retirement income, education of their wards and children and provide seed capital for start-ups.
The Executive Chairman of Databank, Mr Ken Ofori-Atta, said at the eighth annual general meeting of the EPACK in Accra on Tuesday that the product was the company’s innovation “to expand access points”.
He stated that since March this year, the company had entered into a distribution alliance with Zenith Bank Ghana Limited, to ensure that shareholders made payments into their EPACK accounts as well as withdrew cheques at all the branches of the bank.
“We are also investigating the possibility of collaborating with some information communication technology companies in the country to introduce a system which would enable investors to top up their EPACK accounts through the use of their mobile phones and special investment scratch cards,” Mr Ofori-Atta stated.
Giving details of the fund’s performance for last year, the executive chairman said the fund’s share price appreciated by 32 per cent to GH¢ 0.5708 (¢5,708) from the GH¢0.4341 (¢4,341) it recorded in 2005.
He said the fund’s market capitalisation rose by 40 per cent from GH¢10.56 million (¢105.6 billion) in 2005 to GH¢38.2 million (¢382 billion) compared to a 19 per cent appreciation in the market capitalisation of the Ghana Stock Exchange.
Mr Ofori-Atta stated that during the year under review, 9,559 new shareholders joined the fund, compared to 2,541 investors who closed their accounts.
On the outlook for this year, the chairman said “even though the stability of the economy has suffered some momentary shocks as a result of the current energy crisis and volatility in the global petroleum market, we expect the Ghanaian economy to continue to be resilient”.
He added that investors’ interest in the local market had been growing steadily and mentioned the oversubscription of the five-year Government of Ghana Bond last year as a testimony to growing investor confidence.
In a related development, the company announced a 14.47 per cent annualised yield in the Databank Money Market Fund (Mfund) as compared to the average savings rate of five per cent for the 2006 financial year.
Mr Ofori-Atta stated that given the average inflation rate of 10.24 per cent in 2006, the fund gave shareholders a real return of over four per cent during the period under review.
He said the fund’s value increased from GH¢7.28 million (¢72.8 billion) in December 2005 to GH¢11.76 billion (¢117.6 billion) at the end of last year.
He said the main challenge facing the fund was how to find new investment avenues which would not only provide yields higher than the inflation rate, but also offer better returns than those on comparable financial instruments of duration within 12 months.
“In addition, we will maximise our investments in high-yielding, but save commercial papers and certificates of deposits,” Mr Ofori-Atta said.
DATABANK, the manager of the mutual fund, EPACK, has created a special account for Ghanaians living abroad to enable them to make medium and long-term investments to meet their financial commitments.
The Databank Homecoming Account will help Ghanaians living outside the country to meet their financial needs in the areas of real estate, retirement income, education of their wards and children and provide seed capital for start-ups.
The Executive Chairman of Databank, Mr Ken Ofori-Atta, said at the eighth annual general meeting of the EPACK in Accra on Tuesday that the product was the company’s innovation “to expand access points”.
He stated that since March this year, the company had entered into a distribution alliance with Zenith Bank Ghana Limited, to ensure that shareholders made payments into their EPACK accounts as well as withdrew cheques at all the branches of the bank.
“We are also investigating the possibility of collaborating with some information communication technology companies in the country to introduce a system which would enable investors to top up their EPACK accounts through the use of their mobile phones and special investment scratch cards,” Mr Ofori-Atta stated.
Giving details of the fund’s performance for last year, the executive chairman said the fund’s share price appreciated by 32 per cent to GH¢ 0.5708 (¢5,708) from the GH¢0.4341 (¢4,341) it recorded in 2005.
He said the fund’s market capitalisation rose by 40 per cent from GH¢10.56 million (¢105.6 billion) in 2005 to GH¢38.2 million (¢382 billion) compared to a 19 per cent appreciation in the market capitalisation of the Ghana Stock Exchange.
Mr Ofori-Atta stated that during the year under review, 9,559 new shareholders joined the fund, compared to 2,541 investors who closed their accounts.
On the outlook for this year, the chairman said “even though the stability of the economy has suffered some momentary shocks as a result of the current energy crisis and volatility in the global petroleum market, we expect the Ghanaian economy to continue to be resilient”.
He added that investors’ interest in the local market had been growing steadily and mentioned the oversubscription of the five-year Government of Ghana Bond last year as a testimony to growing investor confidence.
In a related development, the company announced a 14.47 per cent annualised yield in the Databank Money Market Fund (Mfund) as compared to the average savings rate of five per cent for the 2006 financial year.
Mr Ofori-Atta stated that given the average inflation rate of 10.24 per cent in 2006, the fund gave shareholders a real return of over four per cent during the period under review.
He said the fund’s value increased from GH¢7.28 million (¢72.8 billion) in December 2005 to GH¢11.76 billion (¢117.6 billion) at the end of last year.
He said the main challenge facing the fund was how to find new investment avenues which would not only provide yields higher than the inflation rate, but also offer better returns than those on comparable financial instruments of duration within 12 months.
“In addition, we will maximise our investments in high-yielding, but save commercial papers and certificates of deposits,” Mr Ofori-Atta said.
NIB rolls out ATMs
Story: Boahene Asamoah & Rita Effah-Darteh
THE Managing Director of the National Investment Bank (NIB), Mr Daniel C. Gyimah, has said the bank will leverage on the advantages provided by information technology to transform it to be more competitive.
He said “the rapid pace of advancement in information and communication technology networking has offered a wide range of delivery channels in retail banking,” adding that “NIB will exploit these opportunities that arise from these developments and changes to remain competitive”.
Mr Gyimah made this known at the launch of the bank’s Automated Teller Machine (ATM) service dubbed Cashlink.
He said “successful financial institutions in the future would be those that were able to leverage most from the information and communications technology revolution”.
The managing director said consumers of the banking products and services were increasingly demanding more efficient banking services and becoming more knowledgeable in the power of technology.
That, he said called for innovation and creativity that would ensure that the banks took advantage of information technology to devise services and products that met the needs of its customers.
“The ability of financial institutions to deliver products and services in the most efficient and effective manner will be key to determining performance and relevance,” the managing director stated.
Mr Gyimah stated that the launch of the CashLink ATMs would pave the way for increased customer interaction with the bank.
He said the bank had commissioned five ATMs in Greater Accra, Western and Ashanti Regions, and stated that the bank would extend the ATM service across all its branches in the country.
“NIB is gradually building a reputation for innovation in products and services developed specifically for our financial needs,” the managing director stated.
The Head of ICT Department of the bank, Mr Eric Agyepong Boateng, said the bank’s ATMs provided high volumes of currency of up to GH¢25,000 (¢250 million), as against the highest of GH¢15,000 (¢150 million) by many ATMs, saying it would help to reduce cash management costs and shortages.
Mr Boateng said customers could also use the ATM to access many services, such as transfer cash from one account to another as well as purchase mobile phone credits.
Mr Boateng said the ATM had certain unique enhanced security features which included consumer awareness mirror that enabled customers by the ATM to see anybody coming from behind.
•Mr Elikem N. Kuenyehia, Managing Partner, Oxford & Beaumont Solicitors
THE Managing Director of the National Investment Bank (NIB), Mr Daniel C. Gyimah, has said the bank will leverage on the advantages provided by information technology to transform it to be more competitive.
He said “the rapid pace of advancement in information and communication technology networking has offered a wide range of delivery channels in retail banking,” adding that “NIB will exploit these opportunities that arise from these developments and changes to remain competitive”.
Mr Gyimah made this known at the launch of the bank’s Automated Teller Machine (ATM) service dubbed Cashlink.
He said “successful financial institutions in the future would be those that were able to leverage most from the information and communications technology revolution”.
The managing director said consumers of the banking products and services were increasingly demanding more efficient banking services and becoming more knowledgeable in the power of technology.
That, he said called for innovation and creativity that would ensure that the banks took advantage of information technology to devise services and products that met the needs of its customers.
“The ability of financial institutions to deliver products and services in the most efficient and effective manner will be key to determining performance and relevance,” the managing director stated.
Mr Gyimah stated that the launch of the CashLink ATMs would pave the way for increased customer interaction with the bank.
He said the bank had commissioned five ATMs in Greater Accra, Western and Ashanti Regions, and stated that the bank would extend the ATM service across all its branches in the country.
“NIB is gradually building a reputation for innovation in products and services developed specifically for our financial needs,” the managing director stated.
The Head of ICT Department of the bank, Mr Eric Agyepong Boateng, said the bank’s ATMs provided high volumes of currency of up to GH¢25,000 (¢250 million), as against the highest of GH¢15,000 (¢150 million) by many ATMs, saying it would help to reduce cash management costs and shortages.
Mr Boateng said customers could also use the ATM to access many services, such as transfer cash from one account to another as well as purchase mobile phone credits.
Mr Boateng said the ATM had certain unique enhanced security features which included consumer awareness mirror that enabled customers by the ATM to see anybody coming from behind.
•Mr Elikem N. Kuenyehia, Managing Partner, Oxford & Beaumont Solicitors
600 GIA passengers stranded at Gatwick
GIA (fin)
Story: Boahene Asamoah
ABOUT 600 passengers of the national carrier, Ghana International Airlines (GIA), are stranded at the Gatwick Airport in the United Kingdom since last Friday as result of engine failure that grounded the aircraft.
The airline, which flies one leased aircraft and operates six flights from Accra to the United Kingdom and vice versa, suffered a “bird-strike” which destroyed the engine.
Reacting to the developments in an interview, the acting Chief Executive Officer of the airline, Mr Mante Azu, denied reports that the aircraft was seized at the airport by the company that owned it.
He said the aircraft developed the “bird-strike” the day before and upon inspection, it was learnt that it could not fly as a result of engine failure.
Mr Azu stated that efforts had been made to acquire a new aircraft engine which was currently being installed and was hopeful that by today (Monday) the aircraft would be able to fly.
He explained that after the installation of the engine, there had to be test runs to make sure that the aircraft was in good shape to fly and that such test runs had to be done within a certain time.
“We have also secured a second aircraft to facilitate the flying of the backlog passengers at both Gatwick and Accra,” the acting CEO stated, adding that arrangements had also been made to ensure that some passengers joined other airlines.
Mr Azu added that there had been difficulty in securing an aircraft early enough because of the summer season, which was the season for most airlines.
He said a tentative schedule would be announced today, which would see the aircraft arriving in Accra by 2p.m. today and fly back to the UK by 3.30 p.m. the same day.
Story: Boahene Asamoah
ABOUT 600 passengers of the national carrier, Ghana International Airlines (GIA), are stranded at the Gatwick Airport in the United Kingdom since last Friday as result of engine failure that grounded the aircraft.
The airline, which flies one leased aircraft and operates six flights from Accra to the United Kingdom and vice versa, suffered a “bird-strike” which destroyed the engine.
Reacting to the developments in an interview, the acting Chief Executive Officer of the airline, Mr Mante Azu, denied reports that the aircraft was seized at the airport by the company that owned it.
He said the aircraft developed the “bird-strike” the day before and upon inspection, it was learnt that it could not fly as a result of engine failure.
Mr Azu stated that efforts had been made to acquire a new aircraft engine which was currently being installed and was hopeful that by today (Monday) the aircraft would be able to fly.
He explained that after the installation of the engine, there had to be test runs to make sure that the aircraft was in good shape to fly and that such test runs had to be done within a certain time.
“We have also secured a second aircraft to facilitate the flying of the backlog passengers at both Gatwick and Accra,” the acting CEO stated, adding that arrangements had also been made to ensure that some passengers joined other airlines.
Mr Azu added that there had been difficulty in securing an aircraft early enough because of the summer season, which was the season for most airlines.
He said a tentative schedule would be announced today, which would see the aircraft arriving in Accra by 2p.m. today and fly back to the UK by 3.30 p.m. the same day.
Wednesday, March 21, 2007
Outsource tax audit jobs- GNCCI
11/03/07
GNCCI (fin)
Story: Boahene Asamoah
THE GHANA National Chamber of Commerce and Industry, (GNCCI), the umbrella body of trade and industry in the country has proposed to the authorities to out-source tax audit jobs carried out by the Internal Revenue Commission (IRS) to ensure effective tax monitoring and collection.
A report by the chamber on advocacy for tax reduction and widening of the tax net, which was funded by the Business Sector Advocacy Challenge Fund (BUSAC) said the out-sourcing of tax audits would deal with the inadequate capacity of the IRS.
The report said the audit capacity of the IRS was highly inadequate for any effective monitoring to be done to enhance collection of revenue.
The report observed that while there were some collaboration between existing audit firms and tax practitioners there was the need to enhance that programme by taking measures towards its implementation.
The chamber proposed that existing firms and tax practitioners awarded tax audit jobs be mandated to declare their interests or any conflict of interest by statutory declaration.
The report suggested that ex-staff of the IRS who were already in tax practice or accounting jobs could be recruited, given intensive training in tax auditing and be encouraged to apply for audit jobs.
The report which touched on wide-ranging reforms in the tax administration to enhance efficient tax delivery and widening of the tax net in the country also called for the harmonisation of the various audit units of the IRS, the National tax Audit Bureau and other Audit units of the revenue agencies including the Large tax unit.
It said the activities of revenue agencies were not properly co-ordinated in the area of tax audits which had reduced the efficiency of tax authorities through duplication of efforts and had increased the cost of doing business by tax payers.
The chamber proposed that the activities of all the revenue agencies be merged into one unit to be responsible for all aspects of audits under the various tax laws in the country.
Again, the chamber called for the integration of the IRS with other regulatory bodies such as the Registrar General’s Department and the Serious Fraud Office through the use of Information technology to help prevent fraud, revenue leakage and tocapture new companies in a bid to widen the tax net.
“The IT capabilities of the IRS should be enhanced and integrated with those of other regulatory bodies to facilitate the capturing of many more tax payers into the tax net and to prevent and combat fraud”, the chamber said.
On taxation of overtime work, the chamber observed that the legislative instrument 1811 which amended the taxation of overtime allowances makes taxation of the overtime allowances too generous.
That, the chamber said could encourage the shifting of income from normal employment income to overtime income, thus leading to revenue leakage.
The chamber proposed that the law on overtime allowance be amended to reduce applicable rates. It proposed that overtime allowance of ¢1,200,000 per month should attract tax element of 2.5 per cent. Overtime in excess of ¢1,200,000 per month but less than ¢4 million per month should also attract tax of 10 per cent.
Again, the report said overtime in excess of ¢4 million per month should be taxed at the person’s marginal rate. In effect, the concessionary rates on overtime allowance should be applicable to overtime paid of not more than 50 per cent of monthly income.
On measures to reduce cost of capital, the report expressed concern about capital lock up that businesses suffer in their bid to comply with provision of the tax law.
That, the workshop noted was as a result of tax overpayment and the slow and inefficient refund system.
“Thus businesses have to resort to borrowing and other sources of funding their activities”. This increases the cost of capital of businesses”, the report stated.
GNCCI (fin)
Story: Boahene Asamoah
THE GHANA National Chamber of Commerce and Industry, (GNCCI), the umbrella body of trade and industry in the country has proposed to the authorities to out-source tax audit jobs carried out by the Internal Revenue Commission (IRS) to ensure effective tax monitoring and collection.
A report by the chamber on advocacy for tax reduction and widening of the tax net, which was funded by the Business Sector Advocacy Challenge Fund (BUSAC) said the out-sourcing of tax audits would deal with the inadequate capacity of the IRS.
The report said the audit capacity of the IRS was highly inadequate for any effective monitoring to be done to enhance collection of revenue.
The report observed that while there were some collaboration between existing audit firms and tax practitioners there was the need to enhance that programme by taking measures towards its implementation.
The chamber proposed that existing firms and tax practitioners awarded tax audit jobs be mandated to declare their interests or any conflict of interest by statutory declaration.
The report suggested that ex-staff of the IRS who were already in tax practice or accounting jobs could be recruited, given intensive training in tax auditing and be encouraged to apply for audit jobs.
The report which touched on wide-ranging reforms in the tax administration to enhance efficient tax delivery and widening of the tax net in the country also called for the harmonisation of the various audit units of the IRS, the National tax Audit Bureau and other Audit units of the revenue agencies including the Large tax unit.
It said the activities of revenue agencies were not properly co-ordinated in the area of tax audits which had reduced the efficiency of tax authorities through duplication of efforts and had increased the cost of doing business by tax payers.
The chamber proposed that the activities of all the revenue agencies be merged into one unit to be responsible for all aspects of audits under the various tax laws in the country.
Again, the chamber called for the integration of the IRS with other regulatory bodies such as the Registrar General’s Department and the Serious Fraud Office through the use of Information technology to help prevent fraud, revenue leakage and tocapture new companies in a bid to widen the tax net.
“The IT capabilities of the IRS should be enhanced and integrated with those of other regulatory bodies to facilitate the capturing of many more tax payers into the tax net and to prevent and combat fraud”, the chamber said.
On taxation of overtime work, the chamber observed that the legislative instrument 1811 which amended the taxation of overtime allowances makes taxation of the overtime allowances too generous.
That, the chamber said could encourage the shifting of income from normal employment income to overtime income, thus leading to revenue leakage.
The chamber proposed that the law on overtime allowance be amended to reduce applicable rates. It proposed that overtime allowance of ¢1,200,000 per month should attract tax element of 2.5 per cent. Overtime in excess of ¢1,200,000 per month but less than ¢4 million per month should also attract tax of 10 per cent.
Again, the report said overtime in excess of ¢4 million per month should be taxed at the person’s marginal rate. In effect, the concessionary rates on overtime allowance should be applicable to overtime paid of not more than 50 per cent of monthly income.
On measures to reduce cost of capital, the report expressed concern about capital lock up that businesses suffer in their bid to comply with provision of the tax law.
That, the workshop noted was as a result of tax overpayment and the slow and inefficient refund system.
“Thus businesses have to resort to borrowing and other sources of funding their activities”. This increases the cost of capital of businesses”, the report stated.
Outsource tax audit jobs- GNCCI
11/03/07
GNCCI (fin)
Story: Boahene Asamoah
THE GHANA National Chamber of Commerce and Industry, (GNCCI), the umbrella body of trade and industry in the country has proposed to the authorities to out-source tax audit jobs carried out by the Internal Revenue Commission (IRS) to ensure effective tax monitoring and collection.
A report by the chamber on advocacy for tax reduction and widening of the tax net, which was funded by the Business Sector Advocacy Challenge Fund (BUSAC) said the out-sourcing of tax audits would deal with the inadequate capacity of the IRS.
The report said the audit capacity of the IRS was highly inadequate for any effective monitoring to be done to enhance collection of revenue.
The report observed that while there were some collaboration between existing audit firms and tax practitioners there was the need to enhance that programme by taking measures towards its implementation.
The chamber proposed that existing firms and tax practitioners awarded tax audit jobs be mandated to declare their interests or any conflict of interest by statutory declaration.
The report suggested that ex-staff of the IRS who were already in tax practice or accounting jobs could be recruited, given intensive training in tax auditing and be encouraged to apply for audit jobs.
The report which touched on wide-ranging reforms in the tax administration to enhance efficient tax delivery and widening of the tax net in the country also called for the harmonisation of the various audit units of the IRS, the National tax Audit Bureau and other Audit units of the revenue agencies including the Large tax unit.
It said the activities of revenue agencies were not properly co-ordinated in the area of tax audits which had reduced the efficiency of tax authorities through duplication of efforts and had increased the cost of doing business by tax payers.
The chamber proposed that the activities of all the revenue agencies be merged into one unit to be responsible for all aspects of audits under the various tax laws in the country.
Again, the chamber called for the integration of the IRS with other regulatory bodies such as the Registrar General’s Department and the Serious Fraud Office through the use of Information technology to help prevent fraud, revenue leakage and tocapture new companies in a bid to widen the tax net.
“The IT capabilities of the IRS should be enhanced and integrated with those of other regulatory bodies to facilitate the capturing of many more tax payers into the tax net and to prevent and combat fraud”, the chamber said.
On taxation of overtime work, the chamber observed that the legislative instrument 1811 which amended the taxation of overtime allowances makes taxation of the overtime allowances too generous.
That, the chamber said could encourage the shifting of income from normal employment income to overtime income, thus leading to revenue leakage.
The chamber proposed that the law on overtime allowance be amended to reduce applicable rates. It proposed that overtime allowance of ¢1,200,000 per month should attract tax element of 2.5 per cent. Overtime in excess of ¢1,200,000 per month but less than ¢4 million per month should also attract tax of 10 per cent.
Again, the report said overtime in excess of ¢4 million per month should be taxed at the person’s marginal rate. In effect, the concessionary rates on overtime allowance should be applicable to overtime paid of not more than 50 per cent of monthly income.
On measures to reduce cost of capital, the report expressed concern about capital lock up that businesses suffer in their bid to comply with provision of the tax law.
That, the workshop noted was as a result of tax overpayment and the slow and inefficient refund system.
“Thus businesses have to resort to borrowing and other sources of funding their activities”. This increases the cost of capital of businesses”, the report stated.
GNCCI (fin)
Story: Boahene Asamoah
THE GHANA National Chamber of Commerce and Industry, (GNCCI), the umbrella body of trade and industry in the country has proposed to the authorities to out-source tax audit jobs carried out by the Internal Revenue Commission (IRS) to ensure effective tax monitoring and collection.
A report by the chamber on advocacy for tax reduction and widening of the tax net, which was funded by the Business Sector Advocacy Challenge Fund (BUSAC) said the out-sourcing of tax audits would deal with the inadequate capacity of the IRS.
The report said the audit capacity of the IRS was highly inadequate for any effective monitoring to be done to enhance collection of revenue.
The report observed that while there were some collaboration between existing audit firms and tax practitioners there was the need to enhance that programme by taking measures towards its implementation.
The chamber proposed that existing firms and tax practitioners awarded tax audit jobs be mandated to declare their interests or any conflict of interest by statutory declaration.
The report suggested that ex-staff of the IRS who were already in tax practice or accounting jobs could be recruited, given intensive training in tax auditing and be encouraged to apply for audit jobs.
The report which touched on wide-ranging reforms in the tax administration to enhance efficient tax delivery and widening of the tax net in the country also called for the harmonisation of the various audit units of the IRS, the National tax Audit Bureau and other Audit units of the revenue agencies including the Large tax unit.
It said the activities of revenue agencies were not properly co-ordinated in the area of tax audits which had reduced the efficiency of tax authorities through duplication of efforts and had increased the cost of doing business by tax payers.
The chamber proposed that the activities of all the revenue agencies be merged into one unit to be responsible for all aspects of audits under the various tax laws in the country.
Again, the chamber called for the integration of the IRS with other regulatory bodies such as the Registrar General’s Department and the Serious Fraud Office through the use of Information technology to help prevent fraud, revenue leakage and tocapture new companies in a bid to widen the tax net.
“The IT capabilities of the IRS should be enhanced and integrated with those of other regulatory bodies to facilitate the capturing of many more tax payers into the tax net and to prevent and combat fraud”, the chamber said.
On taxation of overtime work, the chamber observed that the legislative instrument 1811 which amended the taxation of overtime allowances makes taxation of the overtime allowances too generous.
That, the chamber said could encourage the shifting of income from normal employment income to overtime income, thus leading to revenue leakage.
The chamber proposed that the law on overtime allowance be amended to reduce applicable rates. It proposed that overtime allowance of ¢1,200,000 per month should attract tax element of 2.5 per cent. Overtime in excess of ¢1,200,000 per month but less than ¢4 million per month should also attract tax of 10 per cent.
Again, the report said overtime in excess of ¢4 million per month should be taxed at the person’s marginal rate. In effect, the concessionary rates on overtime allowance should be applicable to overtime paid of not more than 50 per cent of monthly income.
On measures to reduce cost of capital, the report expressed concern about capital lock up that businesses suffer in their bid to comply with provision of the tax law.
That, the workshop noted was as a result of tax overpayment and the slow and inefficient refund system.
“Thus businesses have to resort to borrowing and other sources of funding their activities”. This increases the cost of capital of businesses”, the report stated.
Legal action to stop container charges
Story: Boahene Asamoah
A Section of stakeholders in the shipping industry has resolved to take legal action as its last resort to compel ship owners and their agents to abolish what they described as illegal fees and charges at the country’s ports.
The stakeholders, including the Ghana Chamber of Mines, the Ghana National Chamber of Commerce and Industry (GNCCI), and the Ghana Shippers Council, took the decision at a workshop on abolishing illegal container fees at the country's ports organised by the Ghana Institute of Freight Forwarders (GIFF) as part of an advocacy programme funded by the Business Sector Advocacy Challenge (BUSAC) Fund, which is supported by the Danish International Development Agency (DANIDA), the UK Department for International Development (DFID), and the United States Agency for International Development (USAID).
Representatives of the various institutions were unanimous on the need to also educate their members on the effects of the illegal container fees charged by the ship owners and their agents.
The Ghana Institute of Freight Forwarders recently called on the government to regulate the activities of ship owners and their agents in the country to prevent them from charging illegal container fees, and to extend the free demurrage period from seven days to 14 days.
GIFF noted that the Ship Owners and Agents Association of Ghana (SOAAG) now charged between $100 and $150 as container fee.
It noted that although the Ministry of Roads Transport issued a directive in 2002 that the container administrative fee was suspended, ship owners had instead increased the fee.
The GIFF identified nine individual charges, which the ship owners had classified as container fee though it had no legal backing.
Speaking at the workshop, the Tema District Chairman of GIFF, Mr Willie Addae stated that over the past three years, a total of $188 million has been siphoned out of the country as a results of the illegal activities of the ship owners and their agents.
This he said were charges on only container fees, which was an average of $175 per container.
He said in 2003 a total of 305,000 containers were imported to the country amounting to $53.5 million, while in 2004, 354,700 containers were shipped into the country and fetched the ship owners a total of $62 million.
In 2005, a total of 416,400 containers were shipped into the country amounting to $72.8 million as a result of illegal charges of ship owners and their agents.
Mr Addae stated that what was worrying was that these charges were for services being rendered by the Ghana Ports and Harbours Authority and also the fact that the amount of money was rather going to individual foreign companies and not to the state.
The Freight and Legal Manager of the Ghana Shippers Council, Mr Emmanuel Arku, said the council was committed to the course of ensuring that the illegal charges of ship owners and agents were abolished.
He said the council had over the past years continued to advance the course of all its stakeholders in a bid to ensure that the shipping sector became more robust.
Mr Arku said a second option of putting pressure on the Ghana Maritime Authority (GMA) to come out with the Legislative Instrument (LI) that would regulate the shipping industry in the country was also available to them.
For his part, a representative of the GNCCI, Mr Emmanuel Doni Kwami, said there was the need to sensitise members of its association on the illegal charges.
He also suggested that members of GIFF must also make efforts at meeting the select committee of Ports and Harbours Authority of the Parliament to sensitise them as part of the advocacy programme.
The Vice President of the Greater Accra Chamber of Commerce and Industry, Mr Stephen Owusu, who is also an importer, said the many charges being levied on importers were killing many businesses in the country and suggested an educational programme by GIFF to sensitise members of the chamber on the illegal fees.
Inadequate infrastructure and equipment at Tema port in 1987 led to charges such as loading and unloading rates, high ship turn-around time, high freight and demurrage charges, delays in berthing of ships and very low ship productivity rates.
Mr Owusu stated that the shipping agents were granted $10 to offset the cost involved but noted that the equipment situation had been rectified and therefore the levies were no more necessary.
A Section of stakeholders in the shipping industry has resolved to take legal action as its last resort to compel ship owners and their agents to abolish what they described as illegal fees and charges at the country’s ports.
The stakeholders, including the Ghana Chamber of Mines, the Ghana National Chamber of Commerce and Industry (GNCCI), and the Ghana Shippers Council, took the decision at a workshop on abolishing illegal container fees at the country's ports organised by the Ghana Institute of Freight Forwarders (GIFF) as part of an advocacy programme funded by the Business Sector Advocacy Challenge (BUSAC) Fund, which is supported by the Danish International Development Agency (DANIDA), the UK Department for International Development (DFID), and the United States Agency for International Development (USAID).
Representatives of the various institutions were unanimous on the need to also educate their members on the effects of the illegal container fees charged by the ship owners and their agents.
The Ghana Institute of Freight Forwarders recently called on the government to regulate the activities of ship owners and their agents in the country to prevent them from charging illegal container fees, and to extend the free demurrage period from seven days to 14 days.
GIFF noted that the Ship Owners and Agents Association of Ghana (SOAAG) now charged between $100 and $150 as container fee.
It noted that although the Ministry of Roads Transport issued a directive in 2002 that the container administrative fee was suspended, ship owners had instead increased the fee.
The GIFF identified nine individual charges, which the ship owners had classified as container fee though it had no legal backing.
Speaking at the workshop, the Tema District Chairman of GIFF, Mr Willie Addae stated that over the past three years, a total of $188 million has been siphoned out of the country as a results of the illegal activities of the ship owners and their agents.
This he said were charges on only container fees, which was an average of $175 per container.
He said in 2003 a total of 305,000 containers were imported to the country amounting to $53.5 million, while in 2004, 354,700 containers were shipped into the country and fetched the ship owners a total of $62 million.
In 2005, a total of 416,400 containers were shipped into the country amounting to $72.8 million as a result of illegal charges of ship owners and their agents.
Mr Addae stated that what was worrying was that these charges were for services being rendered by the Ghana Ports and Harbours Authority and also the fact that the amount of money was rather going to individual foreign companies and not to the state.
The Freight and Legal Manager of the Ghana Shippers Council, Mr Emmanuel Arku, said the council was committed to the course of ensuring that the illegal charges of ship owners and agents were abolished.
He said the council had over the past years continued to advance the course of all its stakeholders in a bid to ensure that the shipping sector became more robust.
Mr Arku said a second option of putting pressure on the Ghana Maritime Authority (GMA) to come out with the Legislative Instrument (LI) that would regulate the shipping industry in the country was also available to them.
For his part, a representative of the GNCCI, Mr Emmanuel Doni Kwami, said there was the need to sensitise members of its association on the illegal charges.
He also suggested that members of GIFF must also make efforts at meeting the select committee of Ports and Harbours Authority of the Parliament to sensitise them as part of the advocacy programme.
The Vice President of the Greater Accra Chamber of Commerce and Industry, Mr Stephen Owusu, who is also an importer, said the many charges being levied on importers were killing many businesses in the country and suggested an educational programme by GIFF to sensitise members of the chamber on the illegal fees.
Inadequate infrastructure and equipment at Tema port in 1987 led to charges such as loading and unloading rates, high ship turn-around time, high freight and demurrage charges, delays in berthing of ships and very low ship productivity rates.
Mr Owusu stated that the shipping agents were granted $10 to offset the cost involved but noted that the equipment situation had been rectified and therefore the levies were no more necessary.
Ecobank Transnational to raise $300m- To Finance Pan-African expansion
Story: Boahene Asamoah, back from Bamako, Mali
read by ho
ECOBANK Transnational Incorporated (ETI) is to raise an amount of $300 million from the capital market to finance its Pan-African expansion programme.
The ETI is listed on three bourses in the sub-region, namely the Ghana Stock Exchange (GSE), the Nigerian Stock Market and the Abidjan-based BRVM.
The West and Central African bank with a strong financial muscle has set its eyes on firmly establishing its presence in Central, East and Southern African countries through acquisition and collaboration in a bid to become a truly Pan-African bank.
Speaking at a press conference at the end of a two-day board meeting in Bamako, Mali, the Board Chairman of the group, Mr Mande Sidibe, said the bank was on course to become a Pan-African bank without losing its African identity.
The bank is represented in 15 West and Central African countries and hopes to open up two more subsidiaries in Soa Tome and Principe this year, as well as other branches in Kenya, Tanzania and Uganda in the coming months.
“Our objective is to make the bank the first Pan-African group on the continent of Africa,” adding that “our meeting here in Bamako attests to this strategy,” the board chairman said.
Mr Sidibe, a former Prime Minister of Mali, said the bank also had a mission to help deepen the financial sector of the economies of African countries through its knowledge acquired over the years in operations in West Africa.
He said the bank was conscious of its identity and assured the press that the bank would still remain an African bank which was driven mainly by African experts.
Shareholders of the group approved the decision to raise ¢300 million from the capital market at an Extraordinary General Meeting held in Lome, Togo in January.
In addition to the increase in capital the general meeting also approved a split of the company’s shares and amendment of its articles of association to better protect its shareholders in view of the triple listing of the group on the three stock exchanges in the sub-region.
The Group Chief Executive Officer, Mr Arnold Ekpe, said “the bank sees itself as an institution that has a part to play in the development of African economies” and added that the African continent is making significant gains”.
He said the planned sourcing of funds from the capital markets was also to give an opportunity to the bank’s shareholders to further invest in the group, while giving the shareholders good returns.
Mr Ekpe added that the funds would also be used to finance the retail end of the bank’s strategy to make banking more convenient and accessible to the unbank publics.
“Ecobank is investing significantly in the retail banking sector,” he said, stressing that it was the bank’s way of facilitating business growth and development.
Mr Ekpe said the group had also developed many products that addressed the needs of businesses and stated that the group would therefore continue to review its structures and strategies to be ahead of competition.
read by ho
ECOBANK Transnational Incorporated (ETI) is to raise an amount of $300 million from the capital market to finance its Pan-African expansion programme.
The ETI is listed on three bourses in the sub-region, namely the Ghana Stock Exchange (GSE), the Nigerian Stock Market and the Abidjan-based BRVM.
The West and Central African bank with a strong financial muscle has set its eyes on firmly establishing its presence in Central, East and Southern African countries through acquisition and collaboration in a bid to become a truly Pan-African bank.
Speaking at a press conference at the end of a two-day board meeting in Bamako, Mali, the Board Chairman of the group, Mr Mande Sidibe, said the bank was on course to become a Pan-African bank without losing its African identity.
The bank is represented in 15 West and Central African countries and hopes to open up two more subsidiaries in Soa Tome and Principe this year, as well as other branches in Kenya, Tanzania and Uganda in the coming months.
“Our objective is to make the bank the first Pan-African group on the continent of Africa,” adding that “our meeting here in Bamako attests to this strategy,” the board chairman said.
Mr Sidibe, a former Prime Minister of Mali, said the bank also had a mission to help deepen the financial sector of the economies of African countries through its knowledge acquired over the years in operations in West Africa.
He said the bank was conscious of its identity and assured the press that the bank would still remain an African bank which was driven mainly by African experts.
Shareholders of the group approved the decision to raise ¢300 million from the capital market at an Extraordinary General Meeting held in Lome, Togo in January.
In addition to the increase in capital the general meeting also approved a split of the company’s shares and amendment of its articles of association to better protect its shareholders in view of the triple listing of the group on the three stock exchanges in the sub-region.
The Group Chief Executive Officer, Mr Arnold Ekpe, said “the bank sees itself as an institution that has a part to play in the development of African economies” and added that the African continent is making significant gains”.
He said the planned sourcing of funds from the capital markets was also to give an opportunity to the bank’s shareholders to further invest in the group, while giving the shareholders good returns.
Mr Ekpe added that the funds would also be used to finance the retail end of the bank’s strategy to make banking more convenient and accessible to the unbank publics.
“Ecobank is investing significantly in the retail banking sector,” he said, stressing that it was the bank’s way of facilitating business growth and development.
Mr Ekpe said the group had also developed many products that addressed the needs of businesses and stated that the group would therefore continue to review its structures and strategies to be ahead of competition.
Monday, February 19, 2007
Standards boards to help SMEs
Story: Boahene Asamoah
THE Executive Director of the Ghana Standards Board (GSB), Mr Adu Darkwa, has called on small- and medium-scale enterprises (SMEs) to engage the board in ways that will ensure that it provides services to the sector at cheaper rates.
He said representatives of SMEs could put across suggestions that would make it possible for the board to present such proposals to the government to increase subventions to the board to cater for the SME sector because of the critical role that the sector played in the economy.
Speaking at a media dialogue on “Ghana Standards Board and the SME Development”, organised by the Ghana Journalists Association (GJA) and sponsored by the Business Advocacy and Challenge Fund (BUSAC), Mr Darkwa said “it would be irresponsible on our part not to charge for services rendered to SMEs”.
He said the board had undertaken a review of its core services and commercial services, its two main areas.
Mr Darkwa explained that under the new structure, the board would perform its statutory and core functions and also ensure that the board generated revenues through the operation of commercial services.
Again, he stated that the board received a one-off support and assistance from development partners, adding that the expectation of such partners was for the board to be able to generate revenue and be self reliant, stressing that this could only be done when the board commercialised some aspects of its operations.
He cited the law that established the GSB, NCR Decree 173 of 1973, which he said, established the functions of the board as a the regulatory body responsible for the quality assurance of the nation in four main areas namely, metrology, standards, testing and quality assurance.
The executive director debunked the assertion that there was functional lapses between the board and the Food and Drugs Board, saying the board worked through co-operation, co-ordination and collaboration with state agencies in their performance of the statutory functions.
Mr Darkwa expressed worry about what he termed a lot of “non-confirmed products” in the country and called on consumers to desist from patronising goods that did not have the right labels and met the standards in the country.
He called on the media to take the lead in educating the general public on the need to shun inferior imported products that did not have the right labels and or met the country’s standards.
“The media has a critical role to play in the quality infrastructure in the country”, adding that the general public must be educated on the important role of standards.
The Executive Director also called on SMEs to apply the right standards.
THE Executive Director of the Ghana Standards Board (GSB), Mr Adu Darkwa, has called on small- and medium-scale enterprises (SMEs) to engage the board in ways that will ensure that it provides services to the sector at cheaper rates.
He said representatives of SMEs could put across suggestions that would make it possible for the board to present such proposals to the government to increase subventions to the board to cater for the SME sector because of the critical role that the sector played in the economy.
Speaking at a media dialogue on “Ghana Standards Board and the SME Development”, organised by the Ghana Journalists Association (GJA) and sponsored by the Business Advocacy and Challenge Fund (BUSAC), Mr Darkwa said “it would be irresponsible on our part not to charge for services rendered to SMEs”.
He said the board had undertaken a review of its core services and commercial services, its two main areas.
Mr Darkwa explained that under the new structure, the board would perform its statutory and core functions and also ensure that the board generated revenues through the operation of commercial services.
Again, he stated that the board received a one-off support and assistance from development partners, adding that the expectation of such partners was for the board to be able to generate revenue and be self reliant, stressing that this could only be done when the board commercialised some aspects of its operations.
He cited the law that established the GSB, NCR Decree 173 of 1973, which he said, established the functions of the board as a the regulatory body responsible for the quality assurance of the nation in four main areas namely, metrology, standards, testing and quality assurance.
The executive director debunked the assertion that there was functional lapses between the board and the Food and Drugs Board, saying the board worked through co-operation, co-ordination and collaboration with state agencies in their performance of the statutory functions.
Mr Darkwa expressed worry about what he termed a lot of “non-confirmed products” in the country and called on consumers to desist from patronising goods that did not have the right labels and met the standards in the country.
He called on the media to take the lead in educating the general public on the need to shun inferior imported products that did not have the right labels and or met the country’s standards.
“The media has a critical role to play in the quality infrastructure in the country”, adding that the general public must be educated on the important role of standards.
The Executive Director also called on SMEs to apply the right standards.
Investor welcomes shareholders association
Boahene Asamoah
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
AN investor on the Ghana Stock Exchange, Mr Samuel Oduro Mintah, has welcomed the idea of the formation of a shareholders association, saying it would help deepen capital market development in the country.
Speaking in an interview, Mr Mintah, however, expressed the hope that such an association should not be hijacked by a few individuals for their personal interest.
The Ghana Stock Exchange has initiated steps to form a shareholders association in the country to help deepen the capital market development.
A five-member committee has been formed to look at possible ways of coming out with modalities for the formation of a formidable shareholders association in the country.
Mr Mintah, who has been an active trader on the stock market since its inception, said it was important that shareholders were encouraged to form an association that would be formidable and ensured that the right things were done.
He said in most cases, shareholders could not question some decisions of board members because they adequate knowledge and said if there was an association that was well informed, shareholders could assert their rights and responsibilities.
He said the formation of the association was also timely, coming at time that most listed equities were expected to hold their annual general meetings.
Additionally, he said with the expected bullish trading on the market, shareholders were expected to participate fully in the market and generate some excitement on the bourse.
On his expectations for the market this year, Mr Mintah said shareholders were looking for a good year after two years of bearish and slow trading.
He predicted that the market would achieve about 15 to 18 per cent growth in the year-to-date gain.
Mr Mintah said with the expected listings of companies such as GOIL, the State Insurance Company (SIC) and other companies on the market, new shareholders would be brought onto the market, adding that it would broaden the number of shareholders on the bourse.
He called for sustained public education on investments in the stock market to disabuse people’s minds of instant benefits in investing on the stock market, adding that “investing on the stock market is for long-term benefits”.
Shareholders at various annual general meetings over the past years have requested dividend pay-outs, a trend, analysts express as worrying.
Others have taken legal action at decisions of boards to either issue bonus shares or to strategically take over competitors.
Analysts, however, are of the opinion that if shareholders were properly educated on such matters, such issues would have been avoided.
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