Essabra's stories

Eying another MCA

2012-02-16T07:26:00.000-08:00

Ghana is looking to qualify for the next phase of the Millennium Challenge account, regarding which discussions are already on-going.

Mr. Alan J. Patricof, Governor of the Millennium Challenge Corporation (MCC) council, told B&FT that the country has been re-selected and is now fully engaged in the process toward a new compact that will power and accelerate the economy’s development process.

“Discussions are on-going between the MCC and the Ghanaian counterparts which has a lot of involvement in the phase II of the project, and there is a general positive feeling to include Ghana for the second time due to the successful execution of the first phase,” Mr. Patricof disclosed.

Mr. Patricof explained that discussions are now at the preliminary stage, which will involve the public and the private sectors effectively communicating with the MCC to determine what they would like to be included in the second phase of the agreement.

He expressed delight for the successful implementation and execution of the first compact of US$547million which was exhausted on several infrastructure projects including 247 school blocks around the country, two ferries to facilitate transportation on the Volta Lake; and for many in here in Accra, the magnificent 14-kilometre N1 Highway that was handed over to the government on Wednesday.

With the signing of the Compact, MCC agreed to make available to Ghana a grant of half-a-billion dollars to enable the nation implement the programme and achieve the agreed objectives within the Compact term of five years.

The Compact entered into force on 15th February 2007 and ended on 16th February 2012 with the goal of reducing poverty through economic growth in the country, led by agricultural transformation.

The process toward execution of the compact programme envisaged the integrated and simultaneous development of three key activities: Agriculture Projects, Transportation Projects, and Rural Development Projects, with the objective of ensuring attainment of the Compact’s goals.

The two-fold objective of the programme is to increase the production and productivity of high-value cash and food staple crops, and also to enhance the competitiveness of country’s high-value cash and food crops in both the local and international markets.

Under its transportation project, the objective is to reduce transportation costs affecting agricultural commerce at the sub-regional and regional levels in the country in support of the agriculture project. Two transportation models, road and maritime, are targetted.

Besides the 357km of Feeder Roads which have been rehabilitated, MCC funds have also been applied to the upgrade of the N.1 Highway, construction of Trunk Roads and provision of Ferries, under the broader Transportation Project.

Residents in rural areas, who are predominantly farmers, have spotty and frequently poor access to basic community services such as potable water, community sanitation, schools at all levels and domestic electricity. This has a serious effect on productivity and has limited the country’s ability to realise the full potential of its agricultural resources.

For this reason, the rural services development project has been designed to address existing gaps and to strengthen the rural institutions that provide complementary services to communities in beneficiary Districts in a coordinated fashion.

MCC funds totalling US$77.72million have been used to support the following Project activities: Procurement Capacity Building, Community Services, and Financial Services.

Mr. Eson-Benjamin, Chief Executive Officer of the Millennium Development Authority, said: “As we draw down the curtain on the 5-year Programme, I would like to report that we have applied the entire US$547million and kept the programme whole and integrated despite two major re-scoping exercises in 2008 and 2009, necessitated by input-cost increases.

“We have certainly gained the respect and trust of the donor, the United States of America, represented by the Millennium Challenge Corporation.

“We see all these as the dividend Ghana has gained from its commitment to implementing successfully a programme that demands results and leads to uplifting the lives of our less privileged relations, mainly the farmers, who have taken up the responsibility for feeding the nation but who, by and large, live in darkness with no access to clean water and sanitation facilities, no roads, schools, clinics, and organised markets for their crops.

“They are underserved by banks and rely primarily on only one rain-fed cropping season to support their livelihood. We call these potential business persons peasants, but they are the people whose collective successes and contributions will add to our GDP and maximise our country’s value as a middle-income economy. These smallholder farmers and their communities were the focus of the 5-year MCA Programme.”

19 courier companies blacklisted

2012-02-16T07:25:00.000-08:00

The Postal and Courier Service Regulatory Commission has revoked the licences of 19 courier companies operating in the country.

The affected companies, either failed to utilize their licence, defaulted in payment of license renewal fees or were placed under liquidation.

By the revocation, the affected companies cannot undertake or engage in courier operation in any part of the country.

Samuel Kojo Intsiaba, Executive Secretary of the Commission said: “The decision follows the failure of the affected companies to comply with the conditions of licence in accordance with Section 21 of the Postal and Courier Service Regulatory Commission Act,2003( Act 649).

“The Commission reiterates its resolve to ensure strict adherence to Act 649 while protecting consumers against poor quality of service.
“The Commission is therefore remaining all courier operators to take necessary steps to regulate their operations or risk sanctions.”

The affected companies are DPS Company Limited, Eda Express Services Limited, Beacon Logistics Limited, Speedlink Cargo Services Limited, and Bridge Direct Company Limited.

The rest are ;World Express International Limited, BKB Courier (Ghana) Limited, 1st Choice Express, A-Men Express Limited, Euni-manuel Company Limited, Box Express Limited, US Ghana Express Limited, Black Star Courier Services, Inter-Global Limited and MS Ex Limited.

The others includes; Tramsco Shipping Limited, Liqure International Limited, Cross Ocean Agencies Limited and TNT Express Worldwide.

Gov’t assures IT sector

2012-02-16T07:24:00.000-08:00

Information Technology Association of Ghana (ITAG) has been outdoored with the assurance of providing the enabling policies to enhance business growth and for the transformation of the country’s social, economic and political development.

“Information Communication Technology (ICT) was an important tool that would enable professionals from all sectors of the economy to improve on their productivity for national development.

“Improving business communication is a critical mass for the transformation of the country’s
Social, economic and political development of every country. This positions the practitioners and professionals to contribute towards the growth of human capital in creating a knowledge industry and economy.

“The industry is driven by private sector and that government will help provide the enabling policies to grow the sector,” Mr. Haruna Iddrisu, Minister of Communications, said this at a ceremony to officially outdoor the Association in Accra.

Speaking under the theme: ‘Building a Network of IT Professionals for Accelerated National Development,’ said “government's commitment to provide an enabling environment for professionals in the IT industry to operate.”

He urged the IT professionals to contribute to the debate on the biometric voters register to improve electoral processes in the country.

Dr. Nii Narku Quaynor, the Interim President of ITAG explained that the successful outdooring of the Association for practitioners and professionals of IT would enable the engagement of human capital in creating a true knowledge industry and economy.

Mr. William Tevie, Secretary of ITAG, said the government’s programme of ICT for accelerated growth and commitment to developing IT resulted in the setting up of the National Information Technology Agency.

He said the agency was tasked to ensure that ICT was used to enhance growth in all aspects for the economy.

Mr. Tevie said the Association also aimed at providing a forum to share ideas and best practice, seeking common interests and standards and providing a better understanding of the environment in which practitioners operated.

MASLOC to distribute 600 taxi cars

2012-02-13T07:01:00.000-08:00

Microfinance and Small Loans Centre (MASLOC) will, this year distribute over 600 vehicles on hire-purchase basis to taxi-drivers and other commercial drivers under its Vehicle Hire Purchase Scheme, its Chief Executive Officer Bertha Ansah-Djan told B&FT.

The scheme is targetted at empowering individual drivers, especially the youth who belong to taxi and drivers’ unions, to own their vehicles after paying the loan facility within a four-year period. It is also to support the productive unemployed professional drivers who want to own their taxis.

Already, MASLOC has provided 500 vehicles to drivers who have started paying by installments to be completed within four years.

Mrs. Ansah-Djan disclosed that the Centre has partnered with the National Drivers’ Academy to organise training programmes that will help drivers be courteous and decent to clients including,especially, foreigners.

“Beneficiary drivers will receive training on the importance of car maintenance, proper dressing and grooming, and best passenger relations.

“Taxi-drivers are the first port of call to tourists, and there is need for drivers to be properly groomed to bring out the best in them and improve on their performance.”

Mrs. Ansah-Djan said the training will also help the drivers to cultivate the habit of returning passengers’ valuables left in their vehicles to bring respect and dignity to the country in the eyes of foreigners.

The Centre will also institute tracking systems that report all drivers who misconduct themselves, she said.

“The repayment of the facility will be flexible to ensure that the beneficiary drivers will be financially responsible for car maintenance and routine mechanical servicing; they are to partronise only approved service centres authorised by MASLOC,” Mrs. Ansah-Djan explained.

Government this year has earmarked GH¢35million for MASLOC’s operations to enable it disburse loans to small businesses in supporting the value chain processes under its small-scale credit schemes.

As of July 2011, GH¢15.2million had been disbursed to 31,793 customers as loans -- and with close monitoring, the Centre successfully recovered 95 percent of the loans disbursed as at June 2011.

Anglogold stays the course ...despite tax-changes

2012-02-13T06:59:00.000-08:00

Anglogold Ashanti Limited, Africa’s biggest gold producer and third in the world, says it will not scale-back planned investments at its Obuasi mine despite the wave of industry tax-changes that kick-off this year.

The company says it expects to invest at least US$150million for a second year in the Obuasi operation, its biggest in the country, which in recent years has suffered from higher costs and a decline in output.

Meanwhile, Gold Fields, the world’s fourth-largest gold producer, has said that planned investments of US$1 billion at two of its mines in Ghana were in danger of being cancelled over changes to taxes.

Profit taxes in the industry have been hiked to 35 percent in addition to a windfall tax of 10 percent, in a move the government says will partially equalise the benefits of mining between the country and companies.

Gold prices have reached new records in recent years, but the country has not benefitted enough from the windfall, Finance Minister, Dr. Kwabena Duffuor, said when he outlined the measures in November 2011.

“We’re committed to Ghana in the long-term so we’ll continue to invest, but we’ll continue to engage government,” Kwame Addo-Kufuor, Anglogold’s Vice President (Ghana) in charge of corporate affairs, told the Business & Financial Times.

He said the miner has been “explaining its circumstances” to the government as the tax-changes kick in, and is looking forward to “engage more” with the state to arrive at a sustainable position.

“As you spend more capital, you will require more relief in the tax-paying schedule.”
High prices for the metal, which have more than quintupled on spot markets in the last decade, have bolstered the revenues and profits of miners; but the industry insists its costs have been rising in step as mines reach depletion and more attention is focused on the safety of operations.

“With the increased revenues have come increased costs: labour wants more, the utilities want more, higher fuel prices till recently, and all manner of input costs are going up. Again, as you mine deeper, the cost of doing so increases -- especially given that you have to mine safely and meet your environmental commitments. So it’s not as rosy as it appears to be for the industry,” Addo-Kufuor said.

The government has also taken action towards an extensive review of the industry. Last month, Dr. Duffuor unveiled a seven-member committee tasked with “reviewing” and “renegotiating” stability agreements, as well as “redesigning” other mining contracts “in the best interests of the countr”.

“What we are looking for is a win-win situation in which mining companies and the people benefit equally. The importance of the government’s strategy is to develop an economy that works for everyone,” he said.

Anglogold is among those miners that have signed a stability agreement with the government, and a review could possibly throw up legal hurdles, especially if consensus cannot be generated.

“These agreements were through due process, and I believe there is value in them for the state and the company,” Addo-Kufuor remarked.

He said Anglogold is yet to be contacted over the review of its stability agreement, and would not want to “pre-empt” any future event.

“The way forward on this is more engagement. I’m sure there are areas in which there will be room for understanding and in which we can explain ourselves better.”

Source: B&FT

‘Youth empowerment is crucial for dev’t’

2012-02-13T06:56:00.000-08:00

Mr. Seth Oteng, Executive Director of Youth Bridge Foundation, a youth-focused NGO, has said empowerment and greater participation of the youth in governance are crucial for successful economic development in Africa.

“Refusing to carefully analyse and properly establish and direct such roles of the youth in the building blocks of any society and country can be an expensive path to travel on.

“Having consistently engaged with youth groups from all over the country and from 35 countries in Africa and the Diaspora through the Foundation’s African Youth and Governance Conference Initiative, we have come to the critical realisation that the role played by the youth in building and maintaining peace cannot be overemphasised,” he said.

Mr. Oteng said this when the Foundation in collaboration with the Centre for Democratic Development (CDD) – Ghana, organised a national stakeholder's dialogue on Election 2012 concerns to launch 'Youth Facing Elections: Crossroad-GH2012' project, in Accra.

He was speaking under the theme ‘Dialogue and Mutual Understanding: A wheel for Peaceful Election 2012’and aimed at creating a dialogue with stakeholders and eliciting commitment to address issues of transparency and a free, fair and peaceful Election 2012.

The Foundation is a youth non-governmental organisation that advocates responsible participation of the youth in social, economic and democratic processes for peaceful conduct of elections for a sustainable development.

Mr. Oteng said as part of the project the Foundation in partnership with the Electoral Commission and other youth organisations will undertake youth-friendly approaches to deepen voter education among the electorate.

He said there will be advocacy for youth inclusiveness at every stage in the election process, a campaign for youth non-violent participation in Election 2012, and policy dialogue in election year as a barometer for post-election engagements.

Dr. Anthony Cudjoe, Chief Executive Officer, Emerging Leaders Africa, urged the youth not to allow politicians to use them as instruments for electoral violence, and called on them to be worthy ambassadors of peace for Election 2012.

Mr. Elvis Aryeh, Member of the National Media Commission, urged the media to shine at all times in the provision of fair coverage for all.

WB pushes local procurement for mining

2012-02-13T06:53:00.000-08:00

Governments need to enact and implement appropriate policies and regulations to encourage mining companies to procure more equipment, supplies and services from local companies while providing a supportive enabling environment for enterprise development and investment, the latest World Bank mining study has proposed.

“Governments can require mining companies to develop and submit local procurement plans, review concessions on targetted import tariffs and duties, promote linkages and investment along the mining supply chain and allocate revenues from mining to support local supplier development,” the study said.

The study, under the theme ‘Increasing Local Procurement by the Mining Industry in West Africa’ and focused on Ghana, Guinea and Senegal, recommended that West African governments work with mining companies, suppliers, and civil society to strengthen definitions and indicators for measuring local procurement.

It again suggested that regional organisations can help develop a harmonised list of products across the region that may be exempted from customs duties, promoting linkages and investment along the mining supply chain, developing a regional list of suppliers, and continuing to facilitate regional trade.

“Mining companies need to ensure that local companies have full, fair and reasonable access to opportunities. They should share information on their procurement needs, helping to identify and assess the viability of suitable products and services for local supply, and broadening access to tenders and requests for quotation.

The World Bank revealed that raising the share of local procurement by mining companies will spread the benefits of mining more evenly across a countries’ economy, creating jobs and stimulating the sustainable development of local enterprises.

“Increasing local procurement by the Mining Industry in West Africa would spread the benefits of mining more evenly across a country’s economy, creating jobs and stimulating the sustainable development of local enterprises.”

The report revealed that few mining companies in West Africa have established policies to support local procurement, although some efforts had already been launched to seek a more consistent, formal approach.

“There are important potential opportunities for expanding local supply in areas such as camp management, civil works, construction and transport, as well as drilling, mining, and equipment maintenance.”

The WB said local procurement by mining companies could bring significant benefits to a wide range of stakeholders in resource-rich countries, due to the large scale of current and potential mining activity in West African countries.

The World Bank's Vice President for Africa, Obiageli K. Ezekwesili, said: “A key message of this study is that mining companies need to be transparent about informing local communities on procurement opportunities, so that these communities can benefit economically from mining operations.
“Buying local goods and services would serve as a catalyst for private sector development and lead to sustainable growth.
“Mining companies should not only extract wealth, they must inject opportunity, mining served as an economic engine for West Africa, supplying about nine percent of the world’s bauxite, and eight percent of its gold.

She said: “This contribution is expected to grow, with large gold, iron-ore, and bauxite projects in advanced planning stages, along with unexploited uranium, copper and diamond deposits across the region.

“Even if those levels of mining activity involved significant procurement spending, both in capital investment and operational costs, there has so far been only limited participation in mining supply chains by companies based in West Africa.

“This situation endures despite existing capacity and the potential to expand the capacity of local small and medium enterprises.”

Local mining sector

An estimated 34% of annual mineral exports, currently enjoyed by foreign firms and expatriates providing mining services in the country, could revert to locals if they take steps to make themselves able to provide these services.

Estimates according to the Minerals Commission show that these services procured by the mining firms in 2008 alone came to US$680million, and they continue to go to foreigners because the locals have not positioned themselves to take advantage of these opportunities in the mining sector.

Local content and capability issues are national issues, and so they call for a collaborative approach between public and private partnership.

The best way to keep the mining industry as an integral part of the country’s economy is to put in place deliberate and sustained local content and capability development policies, backed by legislation and enforcement mechanisms, and not just resorting to appeals or pleas to mining exploration and production companies.

The non-existence of capacity currently in the country should not be an excuse. There must be conscious and systematic development of local capability.

Golden Star to reopen plant, sees output to rise.

2012-02-03T10:57:00.001-08:00

Golden Star Resources said it will restart its oxide plant at the Bogoso/Prestea gold mine and the miner expects the output from the mill to push up its 2012 production.

The plant, which stopped operating in 2008 due to lack of oxide ore, is expected to generate up to 70,000 ounces of gold this year, Golden Star said in a statement.
Last September, the company said it has resumed mining at its Pampe gold deposit in Ghana.

The company now expects 2012 output between 350,000 and 370,000 ounces of gold, up from 301,000 ounces last year. For the first quarter, it expects to produce 79,000 ounces of gold.

The full impact of the mill will not be reflected in production till the second quarter, Golden Star said.

Golden Star to reopen plant, sees output to rise.

2012-02-03T10:57:00.000-08:00

Fast-track CSR guidelines for mines

2012-02-03T10:50:00.000-08:00

Chiefs and opinion leaders of mining communities have called for speedy implementation of laws to define parameters and guidelines for carrying out corporate social responsibility (CSR) activities in the mining industry.

At a workshop on ‘Guidelines for Implementing Corporate Social Responsibility (CSR) Programmes in Mining Communities’, Agyeahoho Yaw Gyebi II, Omanhene of Sefwi Wiawso, speaking on behalf of the chiefs argued that the development of the national framework on corporate social responsibility for mining companies has been long overdue.

He said political leaders and stakeholders need to help make the necessary inputs toward full adoption of the guidelines to encourage effective support for improving the socio-economic lives of mining communities.

He noted that a CSR module has been used at the Ahafo Mine of Newmont Ghana Gold Limited and it appears to be working successfully, adding that this needs to be replicated in other communities.

“CSR strategies and practices can enable the mining industry to increase its impact on poverty-alleviation and development in the country in a cost-effective and practical manner,” he said.

In recent years, concerns about the sustainability and social responsibility of businesses have become an increasingly high-profile issue in many countries and industries, including Ghana, and more so in the mining industry.

For mining, one outcome of the CSR agenda is the increasing need for individual companies to justify their existence and document their performance through the disclosure of social and environmental information.

The minerals and mining sector regulator, Minerals Commission, is currently spearheading the development of a national framework to define parameters and guidelines for carrying out corporate social responsibility programmes in the industry.

The guidelines are currently at the draft stage and are drawn on policies, codes and principles issued by the industry, government, intergovernmental and non-governmental organisations.

The new rules are expected to serve mining companies, the government, local communities, stakeholders, and other groups with interest in or who are affected by mining activities.

Mr. Ben Aryee, Chief Executive Officer of the Minerals Commission, said: “It is important to address the integration of all aspects of economic, social and environmental benefits and impacts during and beyond all phases of life of a mining operation.

“This is to guarantee that benefits can be sustained to ensure the rehabilitation of disturbed lands, and for the continuous improvement of environmental, social and economic conditions.”

He explained that the guidelines were designed to serve as benchmarks for development and assessment for CSR programmes and activities by mining companies.

They are also intended to complement applicable binding national and international regulations on CSR and provide principles and guidelines for mining companies where these are absent, or could be improved upon within the context of the country’s development agenda.

Mr. Jerry Ahadjie, Principal Policy Planning Officer, Minerals Commission, making a presentation on the guidelines explained that they cover corporate governance and ethics, human rights, employment and labour standards, health and safety, and environmental stewardship.

Others include risk-assessment and management, material and supply-chain management, community and social development, stakeholder engagement, and compliance.

Mr. Ahadjie said: “The guidelines commit mining companies operating in the country to work against all forms of corruption -- including extortion and bribery -- and pledge themselves to ethical, transparent and accountable business.

“They entreat mining companies to respect internationally acceptable human rights conventions within their sphere of influence and make sure they are not complicit in human rights abuses, while dialoguing and signing agreements with community members on crop compensation rates before farms are taken-over.

“The guidelines commit companies to respect rights to free assembly and collective bargaining by unions, and provide time-off for union officials as well as seek continual improvement of health and safety of their communities.”

Mr. Richard Afeku, Sectoral Policy Planning Manager of the Commission, indicated that under the guidelines companies are expected to implement risk-management strategies based on valid data, and conduct a thorough social assessment during all the stages of mine development to predict impact and understand local needs and desires.

“Mining companies are required to implement effective and transparent engagement, communication and independently-verified reporting arrangements with stakeholders -- as well as consider CSR and sustainability reports as a useful communication tool to highlight responsible business practice,” Mr. Afeku said.

Huawei to dominate in smart-phones

2012-02-03T10:47:00.000-08:00

Huawei, the Chinese telecoms giant, is to launch its first own-branded manufactured Smart-phones, aimed at making its handsets accessible to all in the global phone market.

“By 2013, Huawei Device aims to be one of the world's top handset manufacturers, and we are well-placed to achieve that goal.

“We are going to get to a point where we're a credible player in the market. We want to make an impact in the market,” Mark Mitchinson, an official of the company, said.

Mr. Mitchinson indicated that the company currently has 25 staff working on the launch in the United Kingdom (UK) and will increase the number to approximately 60.

He disclosed that the device currently makes up a small part of Huawei's business, which in the UK has a total headcount of 500, and that it plans to double that figure by 2015 as well as recruiting 1,500 sub-contractors.

"It is a necessary change for Huawei. We are one of the dominant players in infrastructure. How much more infrastructure can we build? We believe there is enough space in a very competitive space like the UK," Mr. Mitchinson said.

Huawei is targetting the so-called feature-phones market, which it estimates make up about 60 percent of UK mobile sales. Feature phones are low-end, limited handsets that are cheaper than smartphones.

"We have established ourselves in the infrastructure and technology space. There is no reason why we can't expand that," Mr. Mitchinson said.

“The company also makes phones for other UK phone companies including Vodafone and Everything Everywhere, which owns T-Mobile and Orange. The Huawei Blaze, which will run the Android operating system and cost less than £100, will be the first of a series of phones and devices from Huawei, including tablets and media pads. A high-end smartphone is expected next year.

"There is an opportunity to bring smartphones to a wider audience.” Mr. Mitchinson said.

He said: “Smart-phones for all is a key message. Huawei will open up the door for that. The next explosion is the data-explosion. It's about the right proposition.

The UK could be the blueprint of how we roll this business out into the rest of Europe. China and the UK are the two key markets for the launch of devices."

Huawei was established in China by RenZhengfei in 1988 and serves 45 of the top global mobile network operators, covering a third of the world's population.

It first moved into devices in 2003, making handsets for other companies. It will ship 12 million smartphones this year, with sales hitting US$6bn (£3.7bn).

Better late than never

2012-02-03T10:45:00.000-08:00

Dr. Toni Aubynn, Chief Executive Officer of the Ghana Chamber of Mines, says the country has not derived maximum benefits from mining because of its inability to devise a comprehensive vision on local content for the sector.

“We need to develop a national vision on local content in the mining industry if we want to derive the full benefits from mining.

“This comprehensive national vision will spell out and promote local participation in the mining sector. You cannot blame the current government or the past government [for not developing one]. Maybe as a nation we have failed,” he told the Business & Financial Times in an interview.

He advocated a strengthening of local participation in the extractive sector, especially in the different ends of the supply chain since it is an avenue that can boost the economic advancement of the country. But he maintained any such effort should be situated within a policy framework and vision.

“The best way to keep the mining industry as an integral part of the country’s economy is to put in place deliberate and sustained local content and capability-development policies, backed by legislation and enforcement mechanisms -- and not just resorting to appeals or pleas to mining exploration and production companies.”

He disclosed that as a major step towards incorporating local content in mining, the Chamber of Mines, Minerals Commission and the International Finance Corporation (IFC) of the World Bank have entered into a Memorandum of Understanding (MoU), where 29 key areas have been identified to deepen local participation.

He said the MOU is intended to support the growth of local businesses working in the mining industry.

Extractive industry watchers have observed that the sector is fully taken over by foreigners, though locals have equal capabilities in many areas of the industry.

Many reckon that if the necessary support had been provided, Ghanaians who would have ventured into the sector and raised capital from within to manage their own operations.

An estimated 34 percent of the value of annual mineral exports, currently enjoyed by foreign firms and expatriates providing mining services in the country, could revert to locals if they were able to provide these services.

Estimates by the Minerals Commission show that these services procured by the mining firms in 2008 alone came to US$680 million, and they continue to go to foreigners because the locals have not positioned themselves to take advantage of these opportunities in the sector.

In a recent interview, Lands, Forestry and Natural Resources Minister Mike Hammah said new regulations have been finalised to boost participation of local contractors in the mining sector.

These regulations, which constitute subsidiary legislations for the industry, are targetted at giving effect to the new policy on local content introduced by the government to enhance the development of Ghanaian enterprises. It seeks essentially to confine the provision of specific products and services in the mining sector to local contractors.

“Apart from creating jobs and economic opportunities for locals, this is an effort to enhance the outcome of mining operations on indigenous populations -- a vexed issue that has been a source of strife between mining companies and inhabitants of mining communities,” Hammah said.

Africa needs a new culture of excellence

2012-02-03T10:43:00.000-08:00

Speakers at the Springboard 2012 Roadshow have observed that attaining excellence among Africans requires a generation with a new culture and mindset that promotes excellence.

Speaking at the National Convocation under the theme ‘Promoting Excellence through Innovation & Technology’, the keynote speaker Dr. Mensa Otabil observed that the picture of Africa today is characterised by illiteracy, widespread poverty, disease, outmoded technology and war.

This, he said, is a complex problem that cannot be solved easily. “We must think, choose and act on our own. The future belongs to people who can think on their own with the competition in mind.

“To build a culture of excellence, we must originate new ways of possibilities and create a preferred future for ourselves. If we’re going to develop as a continent, we have to shift our focus from targetting political opponents to targetting development. If Africa wants to grow, we must surpass excellence; we must be a generation of thinkers,” said Dr. Mensa Otabil, who is also Chancellor of the Central University College.

The National Convocation of the Springboard Road Show, which took place at La-Accra over the weekend, was a massive assembly of successful chief executive officers, corporate executives and students in both secondary and tertiary institutions. It was meant to equip participants with requisite tools to develop themselves and commit to continental transformation by promoting a culture of personal excellence, career-enhancement, planning, investment and entrepreneurship.

The Springboard Road Show is a personal-development conference put together by the Springboard Road Show Foundation, a non-profit civil society organisation, in conjunction with Legacy and Legacy and a host of corporate partners.

Albert Ocran, Executive Director of the Springboard Road Show Foundation, dared participants to dream big and think globally in everything they do. He challenged the youth in the country to be informed, principled and excellent in their work. This will help build a better society and a stronger continent, and raise Africa’s own success stories.

He explained that the current knowledge economy rewards relevant information and problem- solving applications, and that ignorance has no place. “Feed your mind with information and find solutions to problems,” he stressed.

For his part, Daniel Asiedu, Managing Director of Zenith Bank Ghana, observed that Africa is currently coming under the spotlight of the international community.

“This calls for aggressive and sustainable development strategies to equip the youth, who are indeed the future of the continent, with tools and practical knowledge on technological advancement and innovation grounded on a culture of excellence. If there was a time when we needed an informed and capable youth in the nation, it is now.”

Outlining advantages of Africa’s youth, he said: “Africa is blessed with natural resources; some are yet to be discovered and the continent is an emerging market with a lot of untapped areas. “We live in the age of the youth, who are hungry for success and can be the driving force behind economic prosperity on the continent.”

Mr. Kwaku Sintim-Misa also said: “In Ghana, mediocrity prevails over excellence. We glorify things that are below average. You must make a conscious effort to shun mediocrity.”

He explained that one of the steps to achieving excellence is not to be afraid of failure. “Don’t be afraid of failure; it’s an opportunity to learn. The first time l did a show in Ghana, l sold 13 tickets, but that did not discourage me.”

The Springboard Road Show will now be held in the nine other regional capitals -- starting from the Fountain Gate Chapel in Bolgatanga on Saturday February 4; Radach Memorial Hall, Tamale, Tuesday February 7; and University of Development Studies (UDS) Auditorium, Wa, on Saturday February 11.

The road show will then continue at Sunyani Polytechnic Auditorium on Wednesday February 15; Calvary Charismatic Centre (CCC) Kumasi on Saturday February 18; New ICGC Church Complex, Koforidua, on Wednesday February 22; UCC Campus, Cape Coast on Saturday February 25; Takoradi Polytechnic Auditorium on Wednesday February 29; and Ho Polytechnic Auditorium for the grand finale on Saturday March 3.

Bui to discharge initial power in last qtr

2012-01-23T03:52:00.000-08:00

The Bui Power Authority is hopeful of generating its first power in the last quarter of 2012, barring any adverse or unforeseen circumstances, its Chief Executive Officer, Jabesh Amissah-Arthur, has disclosed.

He told B&FT in an interview that the Bui Hydroelectrical Project (BHP) is scheduled to be fully completed in mid-2013. The Bui power project is a 400-megawatt hydroelectric facility that has been under construction since 2007.

The project is a collaboration between the government and Sino Hydro, a Chinese construction company. It will be the third major dam in the country after the Akosombo and Kpong hydroelectric dams.

Amissah-Arthur, speaking at a training programme for the company’s technicians at Akuse, explained that the major electro-mechanical components for the project have started arriving in the country.

He indicated that the first of such components which are the turbine runner and set-up transformer for the first unit of the Bui Project arrived at Tema Harbour last December.

“The turbine-runner is a key part of any hydroelectric plant because it extracts or converts the force of the water into mechanical power, which is then in turn converted into electrical energy afterwards.

“The set-up transformer is the component that will increase the voltage of the power generated to the higher level that is required to feed the power produced into the National Interconnected Transmission System.

“Other major components and equipment for the other two units of the project are expected to follow in the coming months,” he said.

He indicated that the equipment to be installed will be operated by a team of Ghanaian engineers and technicians.

“However, in order to operate them effectively and be able to maintain them properly, the Bui Power Authority has engaged the services of the VRA Training School in Akuse for the training of personnel.

“The programme is very important since it should equip the technicians with all the necessary information and skills for the proper operation and maintenance of the equipment.

“It is a huge investment and we want to ensure that the people who will operate the equipment at the Bui plant are very capable,” he added.

Glo commences ‘Reserve Your Number’ campaign

2012-01-23T03:50:00.000-08:00

Glo Mobile Ghana Limited has commenced its ‘Reserve Your Number’ campaign aimed at providing the general public with a special interactive Glo SMS-based facility to enable customers reserve their preferred numbers on the Glo Mobile Network’s 023-3 number series.

The campaign will enable up to one million users in the country to reserve their preferred numbers on the Glo Mobile Network which marks the commencement of its activities marking the launch of the network.

George Andah, Chief Operating Officer of Glo Mobile Ghana addressing the media in Accra said: “The Reserve Your Number Campaign’ marks the first of a series of launch activities earmarked for the entry of the highly anticipated Glo Network onto the Ghana Market, adding that other exciting activities have been lined up which will culminate in a mega corporate and mass cerebration.

“In the increasingly dynamic world of business, we at Glo believe that the customer is the king. That is why we have decided to commence our launch activities with the ‘Reserve Your Number Campaign as a mark of honour to our customers and also in response to the feedback we have received from the public regarding people’s desire to acquire certain special numbers on a first request first served basis.”

He explained that the reservations will be limited to only million requests and shall be conducted on a first-request-first serve basis.

“In accordance with National Communications Authority guidelines on Number Registration, no single individual subscriber shall be permitted to reserve more than five Go Mobile numbers and the numbers will be activated upon the commencement commercial operation.”

He explained that the last three years the company had been methodically putting together everything needed to deliver world class service to customers.

“Our state-of- the art infrastructure includes over 1,600 base transceiver stations,four switches with capacity for up to 10 million lines with congestion free service, 18 Base switching centre, 800 3G Node Bs, an ultra-modern Call Centre and 25 Glo World outlets.

“The Glo Network is powered by the latest telecommunications technology in mobile data broadband and is complemented by the high-capacity Glo 1 submarine fibre-optic cable,” Mr. Andah said.

“Glo operations are backed up by a 2,900 kilometre-long network of terrestrial fibre optic ring which we successfully built across the country.

“With such a formidable technological foundation, we wish to assure customers about the quality and reliability of our network. We also believe that activating our integrated telecommunication system will generate a chain of direct and indirect employment and business opportunities throughout the country,” he remarked.

SMEs get boost

2012-01-23T03:48:00.000-08:00

An initiative targetted at bringing thousands of small and medium-scale enterprises (SMEs) online over the next year has been launched in Accra.

Christened ‘Africa, Get Your Business Online’ and powered by Google.com, it is to ensure that businesses across the county will have the opportunity to create their own websites and develop online presences for free.

This project was first launched as a pilot in 2010 by Google, showcasing a selection of businesses within Nigeria and was aimed at small and medium-size businesses, giving local companies the resources and skills to grow their companies online.

“The initiative is expected to transform the Ghanaian SME landscape and contribute to the country’s fast-paced economic growth by making it quick, easy and free for businesses to register online, at a time when more and more Ghanaians are accessing the internet,” said Estelle Akofio-Sowah, Google Ghana Country Manager, at the launch in Accra.

“You often hear an entrepreneur or business owner lamenting how hard it is to build an online presence due to the cost involved, unreliability of suppliers, or simply, their own lack of knowledge about the steps needed to build that online presence.”

She explained that ‘Africa, Get Your Business Online’ addresses these challenges by helping SMEs to take that first bold step towards being online: creating a website, listing themselves on Google maps and setting up a Google+ page.

Ms. Akofio-Sowah added that: “It is easy and free and the potential impact for a business is truly exciting. Together with our partners, we plan to help thousands of Ghanaian SMEs get online.”

Deputy Minister of Communications, Ernest Attuquaye Armah, in a speech read on his behalf said: “In line with goals to build a viable digital economy and sustainable information society in the country, the government supports projects and initiatives that help small and medium businesses in the country to join the digital revolution.

“Google’s ‘Africa, Get, Your Business Online’ initiative presents a significant opportunity for businesses to reach more customers and grow.

“Government remains committed to facilitating e-governance in the country and has been systematically putting in place the necessary platform for launching our nation into the growing world of information and communication technology.

This is evidenced by the robust deployment of ICT infrastructure by the National Information Technology Agency, an agency to facilitate government’s commitment to ensuring that the country is not left behind in the information and technology age.

“On the enhancement of the use of ICT in the country, the government on its part remains committed to facilitating policy developments aimed at promoting ICT education and developmental programmes that will ensure that the youth and graduates are equipped with the necessary information technology to be competitive on the jobs market,” he said.

Mr. Armah encouraged all businesses without an online presence to take advantage of the initiative.

Review of customs law begins

2012-01-23T03:44:00.000-08:00

The Ghana Revenue Authority (GRA) says the re-crafting of the country’s customs law will commence at the end of this month to harmonise and organize the administrative procedures and processes for effective revenue mobilization, the Authority’s Commissioner-General, Mr. George Blankson has disclosed.

The Customs Division of the GRA accounts for more than approximately 50 percent of total revenue collections agencies. Customs collected GH ¢ 3,604.82 million representing an excess of GH¢536.30 million against its last year’s revenue collection target.

Although the Customs collection is about 52 percent of total tax revenue from Import Duty, Import VAT, Export Duty, Petroleum Taxes, Import Excise and other taxes, it has relied on The VAT Service to collect Excise Duty on its behalf, except the Excise Duty on Petroleum products.

The Customs is expected to ensure the protection of revenue by preventing smuggling, but this is one area where it perceived by the public and the business community as weak.

As a frontline institution at the country’s frontiers, Customs also plays a key role in maintaining the territorial integrity of the country as part of the nation’s security network. In addition to these functions, Customs performs agency duties on behalf of other state institutions by enforcing laws relating to import and export restrictions and prohibitions.

Mr. Blankson speaking at a media interaction in Accra said: “The GRA's focus on the tax reforms has been on the review of the tax legislations for purposes of simplifying them and streamlining processes.”

“In this direction, a draft consolidated Administration Act, which brings together the administration provisions in the Act under which direct tax, VAT and indirect taxes and customs duties are administered, has been produced.”

He disclosed that a draft four year strategic modernization plan ending 2014 has been produced, and is expected to be the blueprint for the modernization of GRA.

“The management of GRA is devising strategies to increase revenue mobilisation to meet this year’s target and that it would focus attention on streamlining the operation of the customs bonded warehouses, Value Added Tax refunds, issuance of permits to boost revenue collection.”

“In spite of the challenges, the reform process is on course. GRA management is committed to ensuring that the objectives set for the modernization process are realized.

“Management will continue to maintain a careful balance between revenue mobilization and the reform agenda in the year 2012, to ensure that the revenue target is achieved and even exceeded to provide sufficient funds for national development,” he said.

The Authority anticipates to collect over GH¢11.16 billion for the 2012 fiscal year, after reforms helped boost collections in 2011.

This projection represents 28.3 percent over 2011 revenue collection of GH¢7.53 billion. The Authority as at December 2011 had collected GH¢8.71 billion, an amount that exceeded its target by 15.4 percent.

The revenue mobilisation performance for 2011 exceeded that of 2010 by 46.6 per cent, the GRA said.

Government in the 2012 budget statement predicts an increase in tax revenue from 16.5 percent of Gross Domestic Product in 2011 to 17.3 percent in this fiscal year.

2012 Springboard Road Show

2012-01-13T08:14:00.000-08:00

The 2012 Springboard Road Show has been launched with the target of rallying over one million youth within the next five years to rebuild Africa’s persistent socio-economic challenges, Albert Ocran, Executive Director of the Springboard Road Show Foundation, has disclosed.

“The impact of the 2012 Springboard Road Show is expected to be significantly multiplied. This is an unprecedented initiative with the potential to contribute to the transformation of the youth by promoting a culture of entrepreneurship and excellence that is essential for our national developmental effort,” Mr. Ocran said.

The Springboard Road Show is a personal-development conference aimed at equipping participants in areas like planning, investments, entrepreneurship, career-enhancement and relationships.

It is organised by the Springboard Road Show Foundation, a non-profit civil society organisation run by Legacy and Legacy, a human-capital development firm.
At a media briefing in Accra to officially launch the 2012 road show on the theme,

“Promoting Excellence through Innovation and Technology”, Mr. Ocran said: “With over 50,000 alumni, it is the foremost point of convergence and preparation for the country’s emerging crop of entrepreneurs and corporate leaders.

“The 2012 road show will cover the nation, Gambia and the United Kingdom with a rare interaction with 30 high-profile speakers and business leaders.”

He announced that this year’s event, which will visit the 10 regional capitals, will commence with a national convocation at the Trade Fair Centre, La-Accra, on Saturday January 28. It will then proceed to Fountain Gate Chapel, Bolgatanga, on Saturday February 4; Radach Memorial Hall, Tamale, Tuesday February 7; and University of Development Studies (UDS) Auditorium, Wa, on Saturday February 11.

The road show will then continue at Sunyani Polytechnic Auditorium on Wednesday February 15;, Calvary Charismatic Centre (CCC) Kumasi on Saturday February 18; New ICGC Church Complex, Koforidua, on Wednesday February 22; UCC Campus, Cape Coast on Saturday February 25; Takoradi Polytechnic Auditorium on Wednesday February 29; and Ho Polytechnic Auditorium for the grand finale on Saturday March 3.

Mr. Ocran projected to reach between 15,000 and 20,000 participants in the main-country events, and will also visit 15 Senior High Schools to provide career-guidance and mentoring sessions for the students.

“We have consistently kept a database of attendees for the purpose of communicating with them and following up on their progress and some of their success stories. Over the years, we have built up a list of 50,000 alumni that we regularly keep in touch with through email, text and the media.”

He said: “If every young person in the country could be challenged to be informed, principled and excellent in their work, we will be on our way to building a better society and a stronger continent and raise our own success stories by engaging and challenging the youth with the right values and connecting them to role models who have been outstanding in their fields of work.

“I have no doubt in my mind that a child who grows up hearing stories and programmes on possibility, achievement, discipline and diligence in our various media will eventually end up living out these values and making a positive contribution to the development of our country and continent.”

He called on corporate organisations and the media to continue to support the use of the airwaves for educational and motivational interventions.

Daniel Asiedu, Managing Director and Chief Executive Officer, Zenith Bank Ghana Limited, observed that Africa is currently coming under the spotlight of the international community.

“This calls for aggressive and sustainable development strategies to equip the youth, who are indeed the future of the continent, with tools and practical knowledge on technological advancement and innovation grounded on a culture of excellence. If there is a time when we need an informed and capable youth in the nation, it is now.

“We at Zenith Bank believe in the future of our nation, and therefore are particularly interested in the capacity-building of the youth.

“We will continue to invest in personal development by supporting activities that improve self-knowledge and identity, develop talents and potential, build human capital, enhance quality of life and contribute to the realisation of dreams and aspirations,” Mr. Asiedu stressed.

How to make mining become a blessing

2012-01-04T21:32:00.001-08:00

The Chamber of Mines anticipates a mixed outlook for the country’s mining industry next year, expecting gold to sustain its good performance in the global market, while bauxite and manganese exports could fall as a result of a decline in demand, Daniel Owiredu, President of the Chamber has predicted.

“The coming year looks promising for the mining industry. Additional production from new mines-Adamus Resources and the prospects from the Owere Mines is expected to bring an increased production beyond the marginal output arising out of existing mine projects.

“The expected higher volumes of mineral production and the strengthening of gold price are expected to result in increased mineral revenue, with a corresponding increase in mineral royalties and corporate tax payment to government,” Owiredu said.

According to the Chamber, The total investment inflow into the mining sector in 2010 was US$ 770 million up from the US$ 762 million which was recorded in 2009.

Cumulatively, the investment inflow into the sector from 2000 to 2010 stood at approximately US $ 6.2 billion. The total mineral revenue rose significantly from US$2.93 billion in 2009 to US$3.73 billion in 2010, representing an increase of 27 percent mainly on the account of healthy price of gold, although the other minerals also recorded increases in prices during the period.

The mining sub sector grew remarkably by 11.2 percent compared to the 6.8 percent it recorded in 2009. By this growth performance, the industry came second behind the electricity sub-sector which grew by 16.7 percent in 2010.

In 2010, mining companies retained about 68 percent of the US$3.7 billion mineral revenue to the country through the Bank of Ghana (BoG) and the private commercial banks.

An average of 20 percent was repatriated to the country through BoG and the remaining 48 percent through private banks. This ensured that the country receives considerable foreign exchange from the mining sector to support the nation’s foreign currency transactions.

Though the mining industry has been successful in attracting foreign capital, it has also been subjected to criticism from the government, environmentalists and human rights activists. Foreign players have been known to exploit legal loopholes and abuse both human rights, as well as the environment. Among other critical issues to be considered by policy makers and governments includes:

Critical issues for consideration in 2012

Support local business

An estimated 34 % of annual mineral exports, currently enjoyed by foreign firms and expatriates providing mining services in the country could revert to locals if they take steps to make themselves able to provide these services.

Estimates according to the Minerals Commission show that these services procured by the mining firms in 2008 alone came to US$680 million, and they continue to go to foreigners because the locals have not positioned themselves to take advantage of these opportunities in the mining sector.

Local content and capability issues are national issues and so they call for collaborative approach between public and private partnership.

The best way to keep the mining industry as an integral part of the country’s economy is to put in place deliberate and sustained local content and capability development policies, backed by legislation and enforcement mechanisms, and not just resorting to appeals or pleas to mining exploration and production companies.

The non-existence of capacity currently in the country should not be an excuse.

There must be conscious and systematic development of local capability. Ghanaians can participate in exploration and production in a more significant way, if we make it a policy to encourage them to do so. Yes, it is capital intensive but it is not rocket science.

Government should, as a matter of urgency, set up a local content and capability development committee with specific time frame to do broad consultation with industry, academia and the public sector to identify the areas in the entire extractive sector value chain that local participation will lead to the Ghanaian economy deriving maximum benefits.

Thankfully, Cabinet has approved the policy framework for the local content and participation in the petroleum activities, which is aims at ensuring that Ghanaians obtain maximum benefits from the oil discovery, said, Mr. Emmanuel Armah-Kofi Buah, Deputy Minister for Energy.

The policy initiative should not only be directed towards the Oil and Gas industry alone but to other areas of the economy such as the mining industry.

Repatriation of profits and unequal distribution of revenue

While the country has investment laws which encourage foreign investors, very liberal policies regarding repatriation of profits and expatriate wages, make it difficult to reverse the status quo of unequal distribution of the revenue between foreign firms, domestic entrepreneurs and the overwhelming majority of the citizens.

Additionally, many traditional chiefs do not use royalties received from minerals for the development of their communities, hence denying the people basic infrastructure such as hospitals, clean water, schools among other social amenities.

There is also the need for policies to boost country’s stock of human and social capital to ensure the best possible education and training to promote research and innovation that are crucial ingredients in improving productivity.

Mr. Benjamin Aryee, Chief Executive Officer of the Minerals Commission said: “It is up to governments to ensure that the nation’s mineral resources are exploited in a responsible and economically attractive manner. We owe this to all citizens in our efforts to lift standard of living and improve the educational and health needs of the people.”

It is important that further regulation be developed based on practical goals to ensure that local communities benefit from mining projects. This should incorporate strict environmental and reclamation compliance in line with world’s best practices.

Inadequate Compensation and human rights

Ghana is still many leagues behind South Africa when it comes to regulations to protect the rights of communities in the vicinity of mining operations.

Stakeholders in the sector claim that regulations pertaining to compensation need to be updated, as the price levels for valuing crops, livestock and landed property have not been reviewed for a number of years. They also point out that in other African countries, such as Tanzania, the State pays the compensation and not the miner.

An official at the country’s sector Ministry, Lands, Mines and Forestry, disclosed that approximately 30 percent of the country’s land is under concession to mining companies, and every year more farmland is converted for this use.

Injustice against the mining communities and lack of proper compensation is an everyday affair that usually passes unnoticed.

The Commission on Human Rights and Administrative Justice (CHRAJ) also claims that Ghana’s mining laws are designed to attract foreign investors and not to protect the rights of communities. Particular problems include the pollution of water sources, the deprivation of land and the loss of livelihoods.

Dealing with illegal small-scale mining head-on

There have been evidence of the growing involvement of some foreigners, especially the Chinese and Indians in the illicit mining by either providing support to the illegal miners or directly engaging in the activity.

The practice of illegal mining, popularly called galamsey, is a dangerous venture. Hundreds of diggers are killed each year. Because the practice is illegal, corruption flourish and is deeply rooted in areas known for illegal mining.

There is revenue leakage in terms of tax payment and proper accounts of the quantum of mineral receivables among others.

This deprives government of valuable revenue in the form of taxes and royalties. The unregulated activities of galamsey operators also have a damaging effect on the environment.

The Ghana Police Service recently arrested 25 illegal Chinese diggers said to be engaged in galamsey activities around the village of Wasa-a mining community in the Western region.

Environmental activists say Chinese entrepreneurs are illegally controlling small-scale operations behind the scenes; typically through a local intermediary.

This unfolding development has prompted the Vice President John Dramani Mahama to call for a holistic approach towards the fight against the illegal small scale mining (galamsey) to protect the environment and increase government revenue.

“Let us all stop the blame game as to who was encouraging or not encouraging galamsey operations on our lands and forge ahead to fight the canker,” he said.

Government would provide the necessary support to eliminate the practice in all the mining areas while calling on all those interested in the small scale mining to acquire licenses to operate and stop the current practice that was degrading the environment and denying government the necessary revenue for development.

Dr. Toni Aubynn, the Chief Executive Officer of the Ghana Chamber of Mines proposed to government to strengthen its resolve in tackling the nuisance of illegal miners.

“Illegal mining should no longer be considered “as business as usual” and that while he supported the participation of Ghanaians in the mining value chain, the illegality around a large number of their operations and the negative impact on the environment was totally unacceptable.

Mining tax-hike

The announcement of new mining and mineral taxes expected to be implemented next year has been received with mixed reactions with sector operators describing them as too high, and having the potential to impede future investments in the sector.

“The country’s new tax moves have brought forth warnings and cautions about the impact these measures could have, such as making the nation unattractive for future mining efforts and scaring off investors.”

Dr. Toni Aubynn, CEO Ghana Chamber of Mines, told B&FT: “Uncertainties must be looked at carefully. The new reforms could deter the mining companies from making further investments in the sector.”

Government in its 2012 budget statement announced that the corporate tax rate for miners is being increased from the current 25% to 35%, while a windfall profit tax of 10% will also be imposed.

The proposals announced by the Minister of Finance and Economic Planning, Dr Kwabena Duffuor, in the 2012 budget include -- in addition to the hikes in corporate and windfall taxes -- the reduction in capital allowance tax from 80% to 20% for a period of five years for all mining companies, as in the case in the oil and gas sector.

But indeed the reactions have so far been mixed -- with mining firms fretting over the impact the measures would have on their earnings and investments even as groups such as the Ghana Mineworkers’ Union celebrate the changes.

Seth Terkper, Deputy Finance Minister, explained: “The changes in the taxes are part of a rationalisation plan. Later on, other natural resource sectors will be brought on board. So, it’s not about targetting mining companies; and they are not meant to be anti-investment.”

“It is the government’s intention to review its involvement and interest in the mining sector, and it has been engaging with miners on the changes it intends to bring about.”

And, Civil society organisations are commending government for the bold move, in particular for measures to rationalise fiscal operations in the natural resource sector. Others, especially the mining community hard hit by the proposals, are unhappy and are calling on government to take a second look at them.

Outlook for 2012 and beyond

Industry chieftains, in calculating its forecasts have taken account of the vast untapped potential of the extractive sector, and expect the value of the mining industry to increase from US$0.64billion in 2009 to US$1.68billion in 2014.

The long-term outlook for the country’s mining sector is bright, but requires the acceleration of both political, economic and industry reforms to ensure that the mining communities and the indigenes derive the full benefit from the earnings generated by the mining and the extractive sector.

The country in particular has the right blend of prospectively, strength of leadership, political stability, professional talents and an attractive social and cultural environment for mineral investments.

The mining sector should be viewed as an economic “bonus” with which to accelerate structural change rather than as the backbone of the country’s economy, this should therefore inform stakeholders to undertake clear-cut mining codes and competitive tax regimes to attract capital injection in the mining sector.

ADB to be listed on GSE in 2012

2012-01-04T21:28:00.000-08:00

Agricultural Development Bank (ADB), is to be listed on the Ghana Stock Exchange (GSE) before the middle of next year to raise additional reserve to deepen the banks operations, Alhaji Ibrahim Adams, Board Chairman of ADB, has revealed.

“ADB going public next year will also enable the bank to finance capital intensive businesses in all sectors of Ghanaian economy including the oil and gas sector.

Alhaji Adams speaking at the Bank’s end of year party held in Accra disclosed that the bank is in discussion with government and currently awaiting approval to be listed on the GSE to raise capital for further expansion projects.

"We are now waiting for a go ahead from the government to do so". "We are not selling the bank, but rather offering part of its shares to Ghanaians.”

“The bank is committed to building a strong customer-oriented bank run by knowledgeable and well-motivated staff, and which provides profitable financial intermediation and related services for a sustained and diversified agricultural and rural development.”

ADB, a leading universal bank, which provides full range of banking products and services in retail, commercial, corporate and investment banking, was set up in 1965 by Act 286, it is wholly publicly-owned with government owing 52% of the shareholding, while the remaining 48% is being held by the Financial Investment Trust on behalf of the Bank of Ghana.

Mr. Stephen Kpordzih, the Managing Director of the Bank assured customers of improved services next year aimed at making banking more exciting and relevant.

He said the bank had performed creditably during the year and fulfilled its promise of improving its service delivery and that the effort has been acknowledged through several awards the bank won

“The enhanced performance of ADB has been acknowledged in several awards including CIMG Bank of the Year, Africa Investor Agribusiness Investment Award, and an International Award for Business Excellence, which is a new Millennium Award for Banking Services,” he said.

He said the bank opened 11 new branches as part of its expansion project; refurbished old branches; introduced a new range of products and new channels of transaction, and computerised its systems of banking, adding that these had helped to improve its uptime in credit delivery.

Mr Kpordzih also indicated that the bank now had a VISA platform which was in operation but expected to be formally launched next year to make the bank’s services easily accessible to its customers.

He assured customers of the bank’s efforts to enhance its service delivery in all areas of its operation in the coming year despite challenges the bank is currently facing.

The bank continues to remain the number one financier in the agricultural sector. This is evidenced in the bank's yearly performances. In 2010, ADB lending to the agricultural sector climbed to GH Â¢174.2 million, as against GH Â¢105.3 million in 2009, representing an increase of 64.5%.

This development resulted into an increase in the share of agriculture of the total credit portfolio from 24.1% to 28.9%, depicting a purposeful channeling of credit to the agricultural portfolio of the bank.

To further consolidate its position as the premier financial institution in agricultural lending, ADB's total loan approvals for agric purposes made the first half of 2011, increased by nearly 70% as compared with the same period last year.

Africa urged to keep eye on the ball

2011-12-16T08:07:00.000-08:00

Africa has been warned to brace itself for a possible economic shock due to the current economic crisis that has hit European countries, Dr. Austin Nweze of the School of Media and Communication at the Pan-African University, Lagos-Nigeria, has predicted.

“If the European Union (EU), Germany and United Kingdom (UK) don’t have the political will to turn things around, the euro will crash and it will affect many other markets -- which will eventually lead to a major catastrophe that will affect businesses globally, including Africa,” he said.

Presently, nations such as Greece, Italy, Spain and Portugal are contending with financial and economic crises, and this has in recent times called for an urgent meeting of the heads of EU governments to find possible ways of solving them.

“What is happening in Europe will definitely affect Africa. In terms of trade, Africa’s economy will contract. No country in the world today is isolated.

“If the world economy collapses, it will affect your business and trade,” Dr. Nweze told B&FT in Accra on the sidelines of a five-day annual course for African reporters, organised by GT Bank Plc.

It was aimed at facilitating development of the African media industry in areas of qualitative reporting and relevant knowledge-acquisition. It brought together senior journalists from Ghana, Nigeria, Liberia, The Gambia and Sierra Leone.

Dr. Nweze, who spoke on a wide range of issues, said: “Global leaders are looking for economic solutions to end this recession which is unparalleled in the history of the world.”

He therefore proposed that African leaders invest massively in education that will focus on research, engineering, science and technology; this will aid innovation to help them compete favorably in the global market.

“In this global knowledge-based economy, it’s all about innovation; and this cannot happen without research.

“Africa needs to improve on the educational system to come up with technically-based human capital to enable us become original manufacturers of equipment. Until we become original equipment-manufacturers without depending on other nations, Africa will never grow.”

He again suggested massive investment in the infrastructure sector, which will promote easy movement of goods from the rural to the urban centres, and reduce rural-urban migration.

GT Bank’s annual course for African reporters, which began in 2006, was conceived as a tool to facilitate the development of the African media industry in areas of qualitative reporting and relevant knowledge-acquisition. It is part of the bank’s corporate responsibility.

The bank’s hallmark over the last two decades has been its passion and penchant for promoting professionalism, integrity and the quest for knowledge and expertise among its numerous stakeholders.

Being the first bank to undertake the initiative, the programme has continued to generate media support, goodwill and visibility of its brand within and across Africa.

According to the bank, the reporters’ course was designed to enhance professional skills of reporters in brands and marketing, business, and capital market and financial sectors as well as increase their knowledge of the financial industry.

Meanwhile, participating journalists have commended the bank for the initiative -- saying that such could only be done by a socially-responsible organisation. They however encouraged other corporate organisations on the continent to emulate the bank.

Guaranty Trust Bank was incorporated in 1990 and has over 180 branches in Nigeria, with subsidiaries in The Gambia, Ghana, Sierra Leone, United Kingdom and Liberia.

The bank also owns non-banking subsidiaries such as G Thomes Limited, Guaranty Trust Assurance Limited, GTB Registrars Limited and GTB Asset Management Limited.

In Ghana, GT Bank was licenced in 2006 and currently operates 23 branch outlets across the country with 15 Automated Teller Machines.

DELL deepens Ghana’s operation

2011-12-16T08:03:00.000-08:00

Dell, A leading Technology Company says it will focus more resources in emerging markets particularly Ghana where there is growth prospects.

“We are focusing more resources in emerging markets, particularly in West African countries like Ghana and Nigeria where we seem to be getting much growth, “Mr. Clune said.

“In the West African sub-region, Nigeria and Ghana are key markets that the company is focusing on to drive its key markets,” Mr. Pearce Clune, Marketing Director Europe Middle East and Africa Product Strategy Dell Consumer and Small Business said in Accra.

“In West Africa, the focus was on Ghana and Nigeria and there was the need to have the right partners in their quest to maintain the presence in the region saying there were a lot of growth opportunities in Ghana.

“Dell will continue to give the best to its customers especially with the developing nature of technology and that it is the desire of Dell to build stakeholder values and strong sales growth in the country.”

Mr. Clune was speaking made this known in Accra at a meeting with the company’s clients in targeted at introducing new equipment that the company had outdoored.

He disclosed that Dell has eneterd into a partnership deal with Mitsumi Computer Ghana for the distribution of its computer hardware, software and accessories in the Ghanaian market.

According to him, the choice of Mitsumi was a as a result of a growing partnership between the two entities adding that it was also for along-term strategy.

He noted that with the new partnership there will be a lot more avenues, together with its other partners in Ghana to look at all queries regarding their products in Ghana.

“The company will continue to invest in human resources and also look forward to employing a number of Ghanaians into its system.

“Dell was focusing on maintaining its technological edge in product development to be able to meet the needs of customers both at the lower and higher ends of the market. This, he said, was important to develop shareholder value,” he remarked.

Mr Chintan Vyas, Managing Director, Mitsumi computer, said the partnership with Dell had delivered solid financial results over the last 20 months.

“We have seen solid response for the company’s product in the last few months and looking forward to a great performance in the next year.
“The prospects are even looking better and Mitsumi was expecting significant growth in the future,” he said.

Mr. Alwin Thankachan, Regional Sales Manager, East, West and Central Africa, said Dell was developing strategic partnership with like-minded distributors across the region.

He said Dell has been the leading brand in the Ghanaian market for the last four years.

Mr. Chidi Duru, Sales Manager, West Africa Dell Consumer and Small Business, said the region held a huge potential for the future development of the company.

“Dell’s consumer products have been accepted world-wide which forms the basis of ensuring that the brand presence is everywhere including Europe ,Middle East & Africa –EMEA; for which Ghana has been described at fast growing IT-market in West Africa,” he remarked.

Mining tax-hike tango

2011-12-16T07:59:00.001-08:00

Uncomfortable with new mining and mineral taxes expected to be implemented next year, sector operators have described them as too high and having the potential to impede future investments in the sector.

Dr. Toni Aubynn, CEO Ghana Chamber of Mines, told B&FT: “Uncertainties must be looked at carefully. The new reforms could deter the mining companies from making further investments in the sector.

“The country’s new tax moves have brought forth warnings and cautions about the impact these measures could have, such as making the nation unattractive for future mining efforts and scaring off investors.”

Government in its 2012 budget statement announced that the corporate tax rate for miners is being increased from the current 25% to 35%, while a windfall profit tax of 10% will also be imposed.

But indeed the reactions have so far been mixed -- with mining firms fretting over the impact the measures would have on their earnings and investments even as groups such as the Ghana Mineworkers’ Union celebrate the changes.

Seth Terkper, Deputy Finance Minister, in a recent engagement with representatives of mining firms, said: “The changes in the taxes are part of a rationalisation plan.

Later on, other natural resource sectors will be brought on board. So, it’s not about targetting mining companies; and they are not meant to be anti-investment.

“It is the government’s intention to review its involvement and interest in the mining sector, and it has been engaging with miners on the changes it intends to bring about.”

Civil society organisations are commending government for the bold move, in particular for measures to rationalise fiscal operations in the natural resource sector. Others, especially the mining community hard hit by the proposals, are unhappy and are calling on government to take a second look at them.

The Ghana Aid Effectiveness Forum, an umbrella-body that brings together national networks on aid and development issues, commended government for the move -- arguing that although Ghana is a resource-rich country, the benefits from exploiting natural resources have been minimal and many communities where the resources are found are mired in abject poverty.

The proposals announced by the Minister of Finance and Economic Planning, Dr Kwabena Duffuor, in the 2012 budget include -- in addition to the hikes in corporate and windfall taxes -- the reduction in capital allowance tax from 80% to 20% for a period of five years for all mining companies, as in the case in the oil and gas sector.

Other mineral-rich African states that have recently raised mining taxes or royalties include the region's top copper producer Zambia, and Zimbabwe which has the second-largest known platinum reserves in the world.

Notably, though, Zambia has announced it will not re-introduce the 25 percent windfall tax it abolished in 2009 as such a measure could harm mining operations and negatively effect the economy.

“It would be unwise for the government to introduce a windfall tax when metal prices are unstable and are usually trending downwards,” said Zambian Finance Minister Alexander Chikwanda.

Several analysts have said the wave of resource nationalism, which coincides with sky-high commodity prices, is one of the biggest political risks to the mining sector.

Gold Fields Chief Executive, Nick Holland, is quoted by the Reuters news agency as saying planned projects that could bring $1billion in investment to Ghana were at risk because of looming tax changes outlined in the nation's budget.

“The company is concerned about Ghana’s move to increase corporate taxes on the mining sector to 35 from 25 percent. It is a source of deep concern to us. “It isn’t sustainable for Gold Fields to be paying higher royalties than other gold producers in the country.”

Holland's comments at a presentation to investors in Johannesburg, South Africa, last week Monday were the strongest to date by a mining company on the issue. Gold Fields is the world's fourth-largest gold producer and regards West Africa as key to its global growth strategy.

The Ghanaian government is however insistent that the issue with mining is about fair and transparent sharing of the benefits and windfall gains from the exploitation of the country’s precious and irreplaceable natural resources. It is also aimed at attracting additional financial benefits from the mining and minerals sector.

In a sign that more actions will be taken, the government has set up a National Re-Negotiation Team to critically review the fiscal regimes and mining agreements with the view to ensuring that the country “benefits adequately and fairly from the gains in the mining sector”.

During the recent global financial crisis, prices of gold, cocoa and oil reached their highest levels ever on the international market. Yet the country did not benefit much in terms of government revenues from the price hikes, particularly from gold.

The International Monetary Fund (IMF), believed to be an instigator of these new tax-reform measures, has stated that Ghana has not benefitted enough from rising gold prices.

The IMF in a statement encouraged government to continue its efforts to strengthen tax administration. It also supported adoption of additional tax policy measures, particularly in the area of natural resources where taxation is low in comparison with peer countries.

Higher prices, more money….. or not

But Ghana’s private sector umbrella-body, the Private Enterprises Foundation, does not think the issue is necessarily so.

PEF President, Asare Akuffo, opined that the mining corporate tax hike is in order since government and the country should benefit more from the mining sector.
He however cautioned government to reconsider the proposed windfall tax on the mining companies.

“Companies thrive on profit; the reality in business however is that there are periods of losses and the savings made in good times are what keeps the companies in operation,” Mr. Akuffo said, adding that the windfall tax may be a disincentive for future investments in Ghana’s mining sector.

The Chamber of Mines has warned that the new tax measures need to be implemented ‘scientifically’ because high gold prices do not necessarily mean mining companies are making more money.

According to the Chamber, some gold miners are currently producing at US$1,200/oz.
At that rate, their gold mining costs appear to be far above the average for the continent. The average per ounce production cost in “other Africa”, which excludes South Africa, in Q1 2011 was US$647 -- resulting in a record cost/price differential of US$740/oz, according to a gold mine cost report.

Government will still demand more

Ernst & Young annually analyses business risks and reported that for 2011-2012 the number-one risk for miners is resource nationalisation (number four in 2010), which involves countries attempting to get more money from their minerals.

The report says resource nationalisation takes many forms, including increased royalties, taxes and mandatory participation whereby governments mandate the involvement of certain stakeholders.

The mining and metals sector rebounded quickly from the global financial crisis, making it an early target to restore Treasury conditions, the report said.

2011 has marked a period when more governments are aiming at that target. A growing amount of legislation has been implemented and is being considered that attempts to extract more profits from the minerals that miners are extracting. This is a trend that Ernst & Young predicts is only likely to increase.

Mining sector operators have proposed an intensive dialogue with government for possible and future negations regarding mining tax reforms.

“It appears it was difficult for government to dialogue with us, the mining operators, concerning the introduction of the new mining tax. We are ready to dialogue with government to ensure that the country maximises revenue from mining rather than deterring investors,” said some mining operators.

Mining revenues already substantial

Total mineral revenue rose significantly from US$2.93billion in 2009 to US$3.73billion in 2010, representing an increase of 27 percent mainly on the account of the healthy price of gold, although other minerals recorded increases in prices during the period.

In 2010, mining companies returned about 68 percent of the US$3.7billion mineral revenue to the country through the Bank of Ghana (BoG) and the private commercial banks.

An average of 20 percent was repatriated to the country through BoG and the remaining 48 percent through private banks. This ensured that the country received considerable foreign exchange from the mining sector to support the nation’s foreign currency transactions.

Last year, the industry spent US$ 865million representing about 27 percent of its total funds to procure inputs locally, including diesel and power.

In addition, the mining sub-sector contributed about GH¢520million to the Ghana Revenue Authority (GRA), representing 21 percent of total GRA collections in 2010.
The sector also paid GH¢242million in corporate tax to the GRA, representing 24 percent of the total company tax collected last year.

Nokia warns of fake phones

2011-12-16T07:57:00.000-08:00

Nokia’s General Manager-sales- in charge of Ghana and Senegal, Mr. Ludovic Falcou, has warned that the prevalence of counterfeit mobile phones in the country is capable of negatively impacting the Ghanaian economy.

Mr. Falcou was making a presentation at a media interaction in Accra. “Importers of fake mobile devices typically avoid payment of taxes and levies thus creating huge income losses for the government,” he said.

He noted that the trend is also capable of discouraging foreign direct investment as international companies are likely to direct their investment elsewhere.

He further warned that high penetration of fake devices impacts negatively on the operator networks. This, he said, “lowers the profits of the networks and the attendant tax income.”

The Nokia boss however said that recent trend in the market shows that Ghanaians are beginning to embrace genuine products. The trend, he said has been helped by the recent launch of the Nokia dual-SIM in the Ghanaian market.

Mr. Falcou said the lure of cheap prices amounts to being penny-wise pound-foolish, as the so-called cheap devices have a shorter lifespan.

He also stressed the need for users of Nokia phones to take full advantage of the numerous applications available on Nokia store, including Music, videos, games and navigation.

The Ovi store is only available on genuine Nokia Devices. Beyond this, all genuine Nokia devices purchased in Ghana are covered by a one-year warranty.

The Nokia warranty starts from the date of purchase and it guarantees the user of repair at no cost and even replacement in the event of malfunction.

He said Nokia is also able to reduce the cost of Internet access on their phones through strategic partnership with operators.

Nokia is the world’s number-one manufacturer of mobile devices by market share.

Beyond its leadership status as a manufacturer of devices, Nokia is fast-becoming a leading solutions provider in the converging Internet and communications industries, providing Internet services that enable users to experience media, messaging, maps and games.

IFC to approve US$300m for infrastructure

2011-12-16T07:54:00.000-08:00

The International Finance Corporations (IFC), a member of the World Bank Group, aims to approve approximately US$300 million for the development of the country’s infrastructure sector, beginning 2012.

Its investment commitments in the country amounted to $191.8 million in five new projects during 2011 financial year. It also provided $150million worth of trade finance guarantee commitments to Ecobank, GTBank, Merchant Bank, and The Trust Bank.

“As part of its goals through 2012, the IFC says it aims to “balance the urgent needs in developing countries with its capacity to address them in a way which maximises development impact and ensures a sustainable business model for the Corporation,” Mary-Jean Moyo, IFC’s Country Manager for Sub- Saharan Africa Development told selected journalist in Accra.

She added: “IFC’s strategy in Ghana focuses on supporting the development of infrastructure, including oil, gas, and mining, telecommunications.
“IFC also aims to deepen the financial sector, promote smaller businesses and encourage agribusiness and other key sectors of the economy.”

Moyo disclosed that the Corporation has greatly expanded its investment and advisory services portfolios in the country, investing $1.5 billion in 63 projects, with $1.1billion from its own account and US$380 million in syndicates and guarantees.

“IFC establishes partnerships with donors, governments, and the private sector to design and deliver advisory services solutions in Ghana that improves the investment climate, mobilise private sector investment and enhance the competitiveness of private enterprises.”

IFC’s primary goal is greater development impact, and, together with additionality for its investment and advisory activities which becomes even more critical in a resource-constrained environment.

IFC will therefore further strengthen its development impact measurement and analysis as a tool for decision-making, and will also concentrate on reaching more SMEs, which are a key part of the private sector in most emerging markets and important for job growth in many countries.”

Investments in Africa

In the region, the IFC’ s recipient countries include: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Cote d’ Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, Sao Tome and Principe, South Africa, Tanzania, Togo, Uganda, and Zambia.

Through another record year, IFC is demonstrating the enormous private investment potential in Africa and the continent’s readiness to attract more.

In support of increased development impact in the world’ s poorest countries, the IFC dedicated nearly US$400 million in financing in Africa to projects that strengthen micro-, small and medium enterprises.

A key component of the IFC’ s SME support initiatives are its IFC SME Solutions Centers. These centers promote access to finance for SMEs in the region, with support including business information, broadband access, office space and database management. Over 450 businesses in Madagascar and Kenya have benefited from these incubation services in recent years.

In the past year, the IFC provided significant support for trade finance to domestic and international banks. More than $68 million went toward lessening the effects of climate change on the continent.

The IFC managed 168 regional Advisory Services projects in Africa, supporting increased access to finance, sustainable business practices, and improved investment climates. Seventy percent of the $248 million in Advisory Services projects under management were dedicated to the region's poorest countries, also known as IDA countries.

PHC Motors launches Range Rover ‘Evoque’

2011-12-16T07:52:00.000-08:00

PHC Motors Limited has launched its latest luxurious Range Rover Evoque vehicles onto the Ghanaian automobile market.

The Range Rover Evoque, the first to be launched in Sub-Saharan Africa, joins the family of Range Rover Vogue edition, Sports, Discovery, Freelander and the rugged Defender.

It has been manufactured with a blend of dynamic and sporty features that has the ability to withstand all weather conditions including African terrain. The exterior design of Evoque was shaped from Egyptian eyeliner and castles.

Mr. Peter Jones, British High Commissioner to Ghana described the unveiling of the Range Rover Evoque as not only an addition to the Range Rover brands but also a promotion of British excellence.

“PHC Motors is one of the first to launch the Evoque in Sub-Saharan Africa. This is a testament to the high volume of Land Rover Discoveries and Range Rovers sold in the country.

“The Evoque is a vehicle with an altogether different spirit. The most exciting vehicle of this generation with clever technology that’s innovative, relevant and always intuitive to use,” he said.

Mr. Paul Kwabena Pepera, Managing Director of PHC Motors Limited said: “The Evoque is a new kind that has core brand values of luxury, performance and all terrain capabilities that comes with two body distinct styles.

“The first one has three compact doors with sleek striking designs to suit specific lifestyle needs and the other with five doors version.

“It is a quantum leap in the evolution of the Range Rover design. The vehicle provides an engaging blend of dynamic and sporty handling with impressive refinement. The Range Rover Evoque masters all surfaces and all weathers, using legendary Land Rover all –terrain technologies.

“It is smaller, lighter, and the most efficient ever with a true compact form and a new class of Sport Utility Van (SUV), he said.

Mr. Pepera disclosed that PHC would be offering credit packages to enable their numerous customers pay by installment.

He revealed that customers would be given 2.5 per cent discounts until December 9, this year and asked to make good use of that opportunity.

DVLA must check vehicles without emergency doors

2011-12-16T07:49:00.000-08:00

Israel Djokoto, Chief Executive Officer, AMI Consult, and an auto expert has proposed a policy that will prevent individuals and firms from importing commercial vehicles that have no emergency doors at the rear into the country.

“Driver’s and Vehicle and Licensing Authority (DVLA) must also desist from registering commercial vehicles that have no emergency door at the rear.

“If all long routes vehicles are to have emergency door, it will help passengers to escape in accident situations.”

Mr. Djokoto who also has over 10-years working experience as a transport expert making a presentation in a media interaction in Accra, insisted regulators in the transport industry should monitor the condition of commercial vehicles while passengers demand better services by patronizing only vehicles which would enable free movement and safety in case of mishaps.

Mr. Djokoto said DVLA and other stakeholders in the transport sector need to embrace his suggestion in the right spirit since safety of passengers is always paramount to the nation.

“It may take time but there should not be any compromise,” he said.
He explained that all commercial vehicles must have at least one emergency exit door, which should be kept closed in normal condition and passengers should be trained on how to operate it.

However, since many cars lack this facility, anytime they are involved in accidents, their doors are often locked, complicating the escape for the passengers. The only way passengers can escape is to break the glass windows of the cars.

He observed that most of the death cases recorded during motor accidents would have been minimized if the commercial vehicles plying the nation’s routes have emergency door in addition to the entry one.

“The time has come for us to create awareness about this. Every commercial vehicle should be made to have emergency exit. The driver and its attendants should be able to explain in some few minutes before the departure just like aircraft.

“Some few commercial vehicles have the emergency exits but they are unscientifically fixed and done for namesake.

“If the emergency exits are not scientifically designed and fixed, it will not operate efficiently,” he explained.

A tour to some of the automobile companies in Accra revealed that most of the commercial vehicles they import have no emergency door. The only commercial vehicle that passengers have easy access to an emergency door exit is the Ford Transit Bus sold by Mechanical Lloyd Co Ltd.

This passenger vehicle has been skillfully manufactured and designed with an all inclusive emergency exit door and a staircase on the rear to help passengers exit quickly and safely in unlikely event of accident.

GRA trains freight forwarders

2011-12-16T07:47:00.000-08:00

Ghana Revenue Authority (GRA) has held a training workshop for operators in the freight forwarding industry aimed at promoting efficiency and reduces errors in custom clearance and registration.

The training was as well to enhance their performances when duty calls while improving relationship with clients, as they develop respect and tolerance with each other.

The workshop, under the auspices of the Customs Division of the GRA brought together managers and executives of the industry to acquaint themselves with modern international customs clearance standards which have become crucial due to many complaints by importers about delays in clearing goods.

Mr. Gottfried Djannie, Principal Collector, Customs Division, GRA making a presentation in Accra on the custom classification said: “As stakeholders in the customs clearance process, you are partners to Customs, in the overall success of its operations.

“Your success is the success of customs and your failure is the failure of customs.”

He explained that classification as carried on by experts within the World Customs Organisation and the World Trade Organisation are made of member states across the world with a total number standing at 206 countries.

“The experts exercise periodic review of the classification process. Each member country determines the rate of taxes to be collected on its goods imported or exported.

“The combination of Harminised community index and the scheduled of tariff rate, provides a very important tool for customs clearance processes.”

Mr. Samuel Eduah, Principal Collector, Customs Division said to ensure that values quoted for imported and exported goods are reasonable, authentic and acceptable, customs administration worldwide demand that all imports are covered by commercial invoices.

“We realized that most of the custom house agents lack the requisite training in business transactions and customs proceedings,” he said.

€22m facility for private sector

2011-12-16T07:46:00.000-08:00

The Italian government has approved additional financial facility of €22 million to support the private sector under the Ghana Private Sector Development Facility (GPSDF).

The main component of the project is a soft loan for entrepreneurs amounting to €20million, while the remaining €2 million would be used to manage the credit facility and implement additional activities such as capacity building courses, micro-projects and development of industrial clusters in various parts of the country.

This followed the successful implementation of the first phase which was signed between the two governments from 2004 to 2008 amounting to €11million.

The €11 grant was additional financial resources approved by the Italian Ministry of Foreign Affairs in 2008 to continue to support the efforts of the government in promoting the private sector development.

The programme which has been highly welcomed by both private companies and financial institutions has assisted 29 private companies and expects over 500 applications beginning 2012.

Dr. Joseph Annan, the Deputy Minister of Trade and Industry, signing on behalf of government in Accra said: “Government had a firm belief that the private sector holds the key to the economic growth and development of the country.

“Government was also convinced that the potential of Small and Medium Scale Enterprises (SMEs) to stimulate such growth was huge as currently contribute over 80% of the country’s Gross Domestic Product (GDP).”

He indicated that the realization of the full potential of this sector is hampered by significant challenges relating to the acquisition and application of appropriate technology, access to finance, logistics management, human resources capacity building, distribution and marketing.

Tullio Guma, the Italian Ambassador to Ghana, explained that the basis for Italy’s economic development had mainly consisted of a high number of SME’s which had, over the years, demonstrated their inherent efficiency and flexibility.

“Our expectations are therefore that the Ghana Private Sector Development Facility will replicate such a development model in Ghana, especially in view of the challenges of the international financial crisis and the liberalisation of the markets in the framework of the WTO agreements.

“The GSPDF was characterized by a strong element of ownership and partnership to bring about an increased responsibility of the Ghanaian institutions and that the Italian government has continuously supported the Ghanaian economy to the tune of 19.8 million euros from Italian grants,” he remarked.

US$185m to support rural enterprises

2011-12-16T07:40:00.000-08:00

The Rural Enterprise Programme (REP) has received US$185million to enhance the performance of micro-, small- and medium-scale enterprises in rural communities and improve livelihoods.

The programme, spearheaded by the Ministry of Trade and Industry, is funded by the African Development Bank and the International Fund for Agricultural Development (IFAD) with the basic aim of supporting small- and medium-scale enterprises, and getting more Ghanaians to acquire various marketable skills.

The programme, having gone through its initial pilot phase from 1995-2002 through to phase-two from 2002-2011 and to its current phase from 2012-2019, is expected to cover all the rural districts and work towards sustained development and growth of micro enterprises in the country.

As at September 2011, more than 106,000 project clients had been trained in community-based skills training, small business management and marketing -- compared with a target of 70,000.

In addition, over 23,000 new businesses had been established against a target of 21,000 in phase-two of the project.

Ms. Hannah Tetteh, Minister of Trade and Industry, inaugurating a 10-member steering committee to provide policy guidance and technical direction towards the implementation of the programme in Accra, said: “The programme was designed to create jobs, stimulate local economic development and improve the living conditions of people in the rural areas.

“Government is indeed satisfied that the implementation of phase-two of the programme, which has been successful in the establishment of small businesses, generating employment and creating income in 53 participating districts countrywide -- in addition to 13 districts which were carried over from the phase-one.

“The overall goal of the Rural Enterprises Programme is to improve the livelihoods and incomes of rural poor, micro and small entrepreneurs. The development objective is to increase the number of rural micro- and small-scale enterprises that generate profit, growth and employment opportunities.”

She added: “The medium- to long-term advantages of the programme include reinforcement of the national development agenda for job-creation and poverty-reduction in rural areas by drawing idle resources, particularly labour, into productive ventures and value activities.

“An increase in incomes of rural women would translate into greater family expenditures on education, health and good nutrition -- and would also contribute to enhance social standings within the communities.”

Ms Tetteh urged members of the steering committee to ensure effective management of the programme because the membership structure has been designed to reflect decentralisation and the mainstreaming of the promotion of micro- and small-scale enterprises at all levels within the district assembly system.

Mr. Nii Ansah-Adjaye, Chief Director, Ministry of Trade and Industry, and Chairman of the Steering Committee, said: “The effective development of the informal rural micro- and small- scale enterprises subsector is central to the successful implementation of policy in economic and social transformation of the rural environment, and improvement of the quality and dignity of life for our hardworking rural people.

“The group will be up to the task and help execute the programme’s objectives of providing policy and strategic direction in support of the Ministry of Trade and Industry,” he assured.

Tata Indica Vista unveiled

2011-12-16T07:38:00.000-08:00

PHC Motors Limited has officially launched the new generation hatchback-Tata Indica Vista vehicles onto the Ghanaian automobile market.

Tata Indica Vista the new variant of Indica from Tata Motors has evolved nicely since initial version of Indica to Xeta and now to Vista.

Its interiors designs have been focussed more on its all new look and the stylish features.

The new indica Vista has category defining attributes of space, style, comfort, safety and fuel efficiency. It’s a new way to look at style, comfort, performance and life itself. The spaciousness of the Vista cannot be described-it has to be experienced.

Packed in style European design, the car is fitted with internationally acclaimed 1.4 litre Safire gasoline engine delivering class leading performance every time you floor the accelerator accompanied with refined smooth driving and unmatched field efficiency.

The strength and masculinity of the Indica Vista is not restricted to just the looks. Strategically positioned crumple zones and rigid side intrusion beam ensures that any impact from the outside stays outside.

Along with this Indica Vista comes with driver airbag, anti-lock bracking system with electronic force distribution mechanism to ensure a more precise, effortless and smooth braking.

To complement the exterior and performance, the Vista has a combination of stylish two tone interiors characterized by clean surfaces with an emphasis on simplicity and utility. The break through central instrument cluster draws you into the Vista experience.

The quality, comfort and convenience the Indica vista provides are pretty commendable. The boot space at the back and leg space for the back seats is very good compared to other models in the B+ category cars.

There is a glove box that can hold even a laptop, under deck space to hold water bottles, cubby holes, wide door pockets and 60:40 foldable rear seats can give you the most comfortable journey that even a class above fails to offer.

The front bucket seats are comfy, swaparound at some place to offer support of every parts of your body. The driver seat is height adjustable.

Gyan Prakash, Area Manager of Tata Motors, the Tata Indica Vista “has been packaged in stylish design, fitted with internationally acclaimed 1.4L Safire petrol engine, new transmission and new improved suspension.

“This car comes fitted with air conditioning, power steering, central locking, driver airbag, height adjustable steering, interior space and comfort has always been our strength.”

Mr. Prakash explained “the strength and masculinity of the Indica Vista is not restricted to just the looks, but the strategically positioned crumple zones and rigid side intrusion beam ensures that any impact from outside stays outside.”

He said that the partnership between Tata and PHC Motors is strengthening and promised the company’s resolve to deepen the relationship.

Paul Kwabena Pepra, Managing Director of PHC Motors, said Tata has now become a household name and PHC Motors has played a significant role in ensuring that Tata products remain the preferred brand.

“PHC Motors has its presence all over the country, contributing to eight service centers; one of the largest networks in the country.”

He said: “The partnership between PHC Motors and Tata has come a long way. We have sold not less than 40,000 vehicles. We have been representing Tata in Ghana since 2002 and we have been at the heart of the motor industry in Ghana since 1968.”

Mr. Pepera said they took into consideration the feedback generated from customers before designing Tata Indica Vista, saying “this vehicle is specifically-designed based on the inputs of customers.

“The strength of the Tata franchise has been the close collaboration between PHC Motors and Tata, adding “we have Tata’s technicians’ right here in Ghana who are assisting customers with excellent service support.

“PHC Motors is committed to getting the right products at the right price onto the Ghanaian market,” Mr. Pepera said.

Simran Oberoi, National Sales Manager Tata Motors said: “Vista’s value proposition is far in terms of the new indica Vista has category defining attributes of space, style, comfort, safety and fuel efficiency is far superior as compared to the Japanese and South Korea model.

“It’s a new way to look at style, comfort, performance and life itself. The spaciousness of the Vista cannot be described-it has to be experienced. The power is better compared to the previous model and also to meet competition.”

Small scale mining to become self reliant

2011-12-16T07:35:00.000-08:00

Government aims to position the small-scale mining industry to become efficient, indigenous and self reliant, Mike Hammah, Minister of Lands and Natural Resources has said.

“Under the constitution, illegal mining is criminal and called on small-scale miners to legalize their operations to avoid prosecution.

“Despite problems associated with both legal and illegal mining, the activities of small-scale miners have contributed significantly to the economy of the country.

Available checks estimate that over one million people are involved directly in small scale mining and over a million people benefit directly or indirectly from this activity.

Last year gold production from the activities of small scale miners from both legal and illegal sources contributed approximately 800,000 metric tones, which is 28 per cent of total gold production in Ghana.

Mr. Hammah speaking at a workshop on the development of a framework to improve artisanal small scale mining activities in Accra said: “Government recognizes that small-scale mining operations undertaken by Ghanaians offer opportunities to support rural livelihoods develop entrepreneurship and provide a source of industrial raw materials.

“Government has implemented a range of measures relating to the regulation and promotion of small-scale mining with some positive results.

“These include: The establishment of district offices manned by Minerals Commission personnel to give technical assistance to small-scale miners, and the geological investigation and demarcation of areas suitable for small-scale mining, Provision of finance to small –scale miners to improve their operations.

“Government’s intension is to build upon these achievements to implement further initiatives to enhance the development of an efficient, modern and sustainable small-scale mining sector, involving both precious and industrial minerals.”

Mr. Hammah added: Small scale mining is increasingly becoming a very lucrative venture for many people; it still faces some significant challenges.

“The challenge of accessing viable demarcated areas for their activities has given room for illegal small-scale miners to encroach on concessions of large scale mining companies.”

Financial constraints have compelled the miners to “use unsustainable mining methods without regard to its effects on the environment.”

Benjamin Aryee, Chief Executive Officer, Minerals Commission, said: “There should be strict enforcement of the laws governing artisanal and small scale mining, Ghanaian concessionaries must be allowed to source foreign partners for expertise and finance, procedures for license acquisition should be simplified, some mining lands should be reserved for posterity and land reclamation must be enforced strictly.”

Small-scale mining is reserved for Ghanaian citizens

The minerals licensing system provides for the granting of mineral rights for small-scale mining operations reserved for Ghanaian citizens.

The Minister will exercise his authority, in consultation with the Minerals Commission, to designate further areas to be reserved for small-scale mining activity based on technical and financial viability of the areas for small-scale mining activities.

To manage land use conflicts in the context of small-scale mining, the Minerals Commission will develop standardized procedures, including adequate advance notice, and community representation in deliberations leading to the designation of areas.

Government will continue to ensure the use of appropriate, safe and affordable techniques in small-scale mining.

To encourage the use of appropriate, affordable and safe technology, government is giving support to the collation and dissemination of information about appropriate technologies, the provision of extension services and demonstration of improved technologies.

In seeking to promote the interests of small-scale mining, government will endeavour to provide advice and support to small-scale miners on forming representative associations.

Government will work with, and encourage, mining companies to collaborate and give support to small-scale miners where it can be established that this will be in the mutual interest of the parties.

To mitigate the negative impacts of small-scale mining, government will disseminate information to raise awareness of health, safety and environmental risks, and will periodically reverse and disseminate occupational health and safety guidelines for small-scale mining.

Nothing in this policy document should be constructed to equate small-scale mining with illegal mining. While encouraging small-scale mining in approved areas, the government will protect bona fide mineral rights holders from interference in their operations by unlicensed persons. Government will work in partnership with all stakeholders in this regard.

US$200m to revive Obuasi mine

2011-12-16T07:33:00.000-08:00

AngloGold Ashanti (AGA) is to spend approximately US$200 million as investment capital next year to revamp the Obuasi mine, which has more than 20 years life of mine with nine million ounces of gold reserves, Mr. Peter Anderton, Senior Vice President, AGA (Ghana) has revealed.

“Obuasi production marginally declines on lower grades and underground-equipment availability, costs remain in control. Obuasi remains the key outstanding issue from 2011.

“Once the leading gold mine in the country, it is a high cost producer and has never produced beyond 400,000 ounces, since the merger between the former AngloGold of South Africa and Ashanti Goldfields Company of Ghana.”

This was made known during the Company’s Stakeholder Town Hall meeting held in Accra. It was attended by its social and business partners, members of the diplomatic community, banks and financial institutions, chiefs and people in the host communities and government representatives.

Mr. Anderton revealed that a high level special taskforce ‘The Obuasi Taskforce’ has been formed for a twelve month period to fast track additional corporate funding and external resources to support define the long term turnaround strategy for the Obuasi underground operation, which has been struggling in the past years.

The objective is to accelerate the refurbishment and improve operational stability at Obuasi mine.

The taskforce was also looking to ensure that the work done today links to the long term strategy for Obuasi and that the outcomes of this work provided sustainable outcomes for AGA’s Ghanaian stakeholders.

The work of the taskforce has now largely been handed over to the AGA Ghana which has been expanded to ensure the delivery of ounces today but also to invest and create a world class operation at Obuasi.

AGA Obuasi will be supported from corporate funding as put in place by the Taskforce and additional expertise where required from AGA Corporate.

He said AngloGold Ashanti gold production was 4.52 million ounces last year of which about 11% came from the Obuasi and Iduapriem mines, though Obuasi was challenged by restricted ore passes and unplanned plant shut down for maintenance of tailing dam facility.

The Ghana mines produced just over 502,000 ounces, of which Obuasi churned out 317, 000 ounces and Iduapriem producing 185,000 ounces.

Ghana accounts for 33% of Continental Africa Gold production but only contributes 13% of the region’s cash flow.

Kwesi Enyan, Managing Director of Obuasi, explained that efforts been made to tackle the company’s social and environmental problems head-on.

He indicated that the project to resettle the Dokyiwa community was at advanced stage and efforts were also been made to tackle poor roads at Sansu and Anyinam villages this year, in partnership with the municipal assembly.

“The 116 housing units and all other infrastructural facilities completed at the New Dokyiwa site. Keys to new houses being given to landlords Relief package lined up for re-settlers.

Movement of people from old village to new site envisaged to be completed by end of this year.

“AGA is consistently demonstrating itself to be a responsible corporate citizen, in Ghana and around the world. AGA will engage to an even greater extent to ensure that all its stakeholders are fully aware of the real positive contributions to the communities and the country,” Enyan said.

Improve Africa health delivery-Veep

2011-11-18T10:46:00.000-08:00

Vice President, John Dramani Mahama has predicted that Africa will fail to meet most of the health Millennium Development Goals targets come 2015, due to weak health financing capacity and health conditions.

“Within the Africa region, we are still struggling with combination of poor health policies, unfair economic arrangements and unfavorable financing arrangements that result in the unequal distribution of health services and damaging experiences.

“Our desire to attain universal health coverage should be built around shared aspirations to develop health on a sustainable basis with a different sense of urgency and determination,” Vice. President Mahama told participants at the first Pan African Health Congress on Universal Coverage in a speech read on his behalf in Accra.

The three-day congress aimed at initiating dialogue among health experts, policy makers, private sector operators, insurance scheme practitioners and implementers and health service providers in Africa. It was as well meant to discuss best ways to initiate and sustain long term health insurance schemes across Africa.

It was hosted by Centre for Health & Social Services (CHeSS), and supported by the Rockefeller Foundation and World Health Organisation.

Mr. Mahama observed that the continent has been presented with a unique opportunity to give meaning to equity in health.

He added: “Though countries like Ghana were making progress in health insurance, there were still challenges of many people with chronic conditions and lives threatening degenerative diseases having to look else were to facilitate their access to care.

“The challenges notwithstanding, was the wish of every government to provide access and financial risk protection as a policy goal within the context of universal coverage. This was in recognition of how critical health care was to the economy and social cohesiveness for governments which profess social justice and equity.”

He indicated that government took the bold step to introduce a national health insurance scheme as a way of removing financial barriers to access; this has received mixed reports of commendations and criticisms.

“African health experts must develop a clear technical framework that pulls together all the existing resolution, declaration and commitment to help move the agenda of universal health coverage into an implementable action plan,” Mr. Mahama urged.

Dr. Anarfi Asamoah-Baah, Deputy Director-General of World Health Organisation (WHO), said: “Health insurance was a unique intervention to facilitate access to health services and not about diseases or the ministers of health.

“Health insurance requires new skills within the health sectors, which includes economists, financial investment experts, lawyers and strategic managers who can think through and develop the system effectively.

“The WHO is open to these ideas including the participation of academia to partner with government to achieve universal coverage.

“Africa has the expertise and that what was needed was to leverage it and partner with international development partners to achieve the goal of universal coverage.”

Dr. James Nyoro, Managing Director, Rockefeller Foundation, Africa Region Office said: “The Foundation considers Universal Health Coverage as critical to creating affordable, high quality health services that ensures better health outcomes and financial protection especially for the poor and vulnerable groups in Africa and around the world.

“As a philanthropic organization, the Foundation has been working with some countries in Africa and Asia to catalyze change in fostering health Systems research and agenda setting for universal health coverage including enhancing professional capacity to plan and manage high performing health systems.

“Harnessing the resources of the private sector to finance and deliver health systems and leveraging on new technology particularly leveraging interoperable system to enhance the delivery of health service are complimentary to achieving success to the Universal Health Coverage.

“This support is in line with our goal of ensuring that more people can tap into the benefits of globalization while strengthening resilience to communities and individuals.”

Dr. Nyoro observed that a great deal of work has already been done on health insurance on the continent but there is a need to draw available materials together, focus on the neglected issues and integrate insights on these areas into the overall health insurance policy framework.

Budget 2012:Infrastructure for job-creation

2011-11-16T07:23:00.000-08:00

The Finance and Economic Planning Minister, Dr. Kwabena Duffour, will talk about a wide range of initiatives in his budget statement to Parliament today, but the one with the real impact on families will be the massive infrastructural projects which will be undertaken next year.

Although the country’s infrastructure has improved over the years, the Minister in an interview with the B&FT said there is the urgent need to focus on upgrading its infrastructure indicators in tune with the rebased middle-income status.

Government has spent the past few years stabilising the economy, and the path is now set to build the requisite infrastructural and social projects to create jobs, Dr. Duffour said Ghanaians must benefit from the sacrifices they have made over all these years, he said.

Government is struggling to keep spending under control and avoid a repeat of 2008 when the then-ruling party boosted expenditure ahead of an election that it failed to win. The deficit soared to 24.2 percent of GDP at the time, sparking a slump in the cedi and pushing inflation to a five-year high, Standard & Poor’s said on Nov.

3. But the minister was quick to point out that government will be responsible enough not to throw the economy out of gear because of a looming election next year.

“I can tell you that we are continuing the fiscal consolidation, and that means the deficit will trend down next year. We in government are Ghanaians; why should we destroy the economy because of elections and come back to correct it? We will spend wisely and deliver the people’s aspirations,” he assured.

Dr. Duffour explained that embarking on the infrastructural drive is to correct the weak supply side that has characterised the economy all this while, making it possible for people to benefit from the sacrifices made in stabilising the economy.

The economy has made remarkable gains this year, with the budget deficit expected to reach a record 5.1 percent of Gross Domestic Product (GDP), the lowest in more than 5 years.

Statistics available indicate that the GDP growth rate will close the year at about 13.6 percent, with inflation at a single digit of 8.56 percent for October and international reserves settling at over US$5billion.

“Having achieved appreciable success on the macroeconomic front, the government wants to sustain infrastructure,” the minister said.

The GH¢3billion commercial loan from the China Development Bank is expected to feature prominently in the execution of next year’s budget to finance the Western Corridor roads project, railways and gas-processing facilities.

Parliament has already given the go-ahead for signing the loan agreement, but the International Monetary Fund (IMF) is expected to okay the deal in December.

The loan will be signed before the end of the year to enable disbursement to be done in January, 2012.

Besides the Chinese loan, government is expected to dig deep into its coffers to firm-up contracts for the Eastern Corridor roads and also fund social infrastructure: such as building new hospitals and clinics and refurbishing others, continuing with the policy to remove more schools under trees, and also irrigating the Accra Plains for farming purposes.

The 2012 budget will also announce the building of landing sites for fishing activities in the coastal belt with funds from the Chinese loan.

Duffuor mentioned, particularly, the massive injection of funds into resuscitation of the rail lines. The Ghana Railway Company is purely a national operation without any connections to rail services in other countries and is unable to carry the full volume of mining and passenger traffic, which has diverted a growing share of mineral traffic to the road network. This, he said, must be corrected.

Although rural road quality is remarkably good, the physical extension of the rural networks appears inadequate.

It is estimated that only 24 percent of Ghana’s rural population lives within two kilometres of an all-season road, which is below the 60 percent found in Africa’s middle-income countries.

GHOST NAMES

Another initiative is the cleaning-up of the government payroll. Early this year, government started cleaning the public-sector payroll, beginning with pensioners.

This has been reported to be very successful with a lot of savings.

“As we speak today, work on the pensioners’ payroll in the Eastern, Volta, Western, Greater Accra and Central Regions has been completed.”

The exercise, he said, will continue in 2012 and it is expected that a lot of savings will be made to finance the migration of public-sector workers onto the Single Spine Salary Structure, which according to officials is about 80 percent complete.

Government also intends to link up the Single Spine Salary Structure with productivity to ensure that government’s money does not go to waste.

REVENUE MOBILISATION

On the revenue side, the domestic revenue agencies markedly exceeded their targets. In the next budget, there will be more innovative ways of expanding the tax-net, while some of the tax measures introduced last year will be continued.

“There will be measures to widen the tax-net, and some of the measures currently on the ground will improve tax administration and make it more efficient.”

ECOWAS finalising common external tariff

2011-11-16T07:19:00.000-08:00

The Economic Community of West African States (ECOWAS) says it is finalising the common external tariff that will lead to the establishment of a customs union.

This is aimed at the realisation of financial and monetary integration of member-states.

“Progress has been achieved in this regard with the effective take-off of the ECOWAS Multilateral Surveillance Mechanism and the adoption of the roadmap for the introduction of an ECOWAS single currency -- the Eco -- by 2020.”

Vice President of the ECOWAS Commission, Jean De Dieu Somda, made this statement in Accra at the opening of a three-day joint retreat of Commission officials and ambassadors of member-states aimed at reviewing the status of the region’s monetary cooperation, with 2020 as the target year for the introduction of the ECO.

The meeting among other issues will also discuss the status of the ongoing negotiation of the Economic Partnership Agreement (EPA) between the region and the European Union, as well as impediments to smooth implementation of the ECOWAS flagship protocol on free movement of persons, goods and services.

Mr. Somda said: “The driving and underlying force of ECOWAS Vision 2020 and strategy is our collective determination to ensure that the community citizen owns the integration agenda.

“Achieving this goal requires our collective effort not only to make the ECOWAS brand, programmes and initiatives visible in the membe-states and beneficial to the citizens, but also -- and more importantly -- convince and empower the citizens to be owners.

“This aspiration can only be realised if the institutional arrangements underpinning this transformation are structured and empowered to act according to purpose.”

He explained that ECOWAS has been scaling-up its instruments and institutional arrangements to anticipate and confront challenges to peace and security in the region, particularly with regard to conflicts and political governance.

He mentioned that the Commission undertook measures towards updating the master-plan for production and transmission of electrical energy in the ECOWAS region; access to energy service for rural and peri-urban populations; and promotion of clean energy in addition to other activities relating to the coordination and monitoring of regional energy projects.

“The Commission has also facilitated the establishment of an ECOWAS centre for the promotion of renewable energy,” he said.

Minister for Foreign Affairs and Regional Integration, Muhammad Mumuni, explained that the purpose of the Commission is to deepen regional cooperation, forge an integrated market and transform the potentialities of human and material resources for the prosperity, well-being and security of community citizens.

He observed that despite the persisting shocks to the global financial system, the economies of West Africa continue to demonstrate remarkable resilience due to a combination of prudent macro-economic policies and strong demand for the region’s resources.

“The region in 2010 achieved an estimated growth rate of 6.2 percent. Continuing efforts by member-states aimed at scaling-up investment in the social sector, formulating economic policies within the framework of a regional development programme, and diversifying the export base of their economies will ensure sustainability and mitigate the impact of future shocks.

“Ghana, with a projected growth rate of 12 percent this year, epitomises this new dynamism and optimism, and has become a model in the region,” he remarked.

Tigo pledges to excite telecoms market

2011-11-16T06:32:00.000-08:00

Carlos Caceres, Chief Executive Officer of Millicom Ghana Limited, operators of Tigo network, has pledged to sustain the company’s investment in technology, data quality and network coverage to offer quality service.

This is to help the country close the gap in Africa’s telecommunication competitive market and to promote affordable pricing to telecom users.

“The Ghanaian market is highly competitive compared with other emerging markets like India and China. Tigo’s new strategies, going forward, will make the company a net winner,” Mr. Caceres told journalists in Accra at an event to officially announce new call rates for the network.

Tigo customers can now call Tigo to Togo for 3Gp per minute, and 8Gp per minute for calls from Tigo to other networks. The 8Gp per minute off-net calls is a default rate, but customers would need to register for free by dialling *555# to enjoy the 3Gp per minute on-net calls.

Tigo’s on-net calls used to be 7Gp per minute and off-net calls was 12Gp per minute, which were some of the lowest on the market.

“The many call tariff plans and promotions in the telecom market are very complex for the average phone user to understand, and they make it difficult for customers to know how much they are spending.

“The new rates replace all other promotional call rates on the Tigo network.

“The new rates are straightforward and they remain unchanged no matter the location or time of day, so customers do not have to get confused about different charges at different times of the day,” said Caceres.

He explained that for those who were on more than one network, the several tariff plans become even more confusing because it is difficult to monitor “how much you are paying during the day, how much you are paying at night, how much you are paying on weekends, and the different charges for different locations at any point in time.”

“We are prepared to welcome competition – but more importantly this move is more of a sign that we are listening to our consumers and that we want to move away from the days of complex tariff plans to a simple one like we have done.”

“We listen keenly to our customers, ensuring that we understand their ever-changing needs and bring out new, innovative products and services to meet those needs.”

Vodafone inducts 50 volunteers

2011-11-16T06:29:00.000-08:00

The Vodafone Ghana Foundation has inducted 50 volunteers for its World of Difference programme, aimed at positively impacting the lives of less-privileged communities and individuals by leveraging on individual and corporate philanthropy.

In its second year of running, the programme gives individuals who are passionate about social development a platform to work with a charity of their choice for two months and support them with their professional and intellectual skills and expertise.

The 50 finalists are professionals in their individual careers, are driven by a quest for social good, and will be stepping out of their comfort zones to embark on projects they truly believe in.

The Vodafone Ghana Foundation will give them monthly stipends ranging from GH¢1,000 to GH¢2,000.

Following its successful launch last year, the World of Difference programme attracted over 500 applicants whose forms were taken through a thorough interview session by a four-member panel.

The Head of External Affairs at Vodafone Ghana, Patrick Boateng, said: “We are very happy to be empowering these 50 volunteers from varied professional backgrounds to go all out and undertake life-changing projects they have always been passionate about.

“Empowerment is our brand-promise, and we are glad to be providing them with the adequate training and support they need for the implementation of these projects which will make meaningful impacts in the lives of their selected communities”.

He added: “The Vodafone Foundation believes in partnering with like-minded individuals and organisations to bring about social and economic change in our society. We are confident that when we join hands we are able to achieve more.

It is the little contribution from each one of us that makes a difference when we put it all together. That is why we are empowering these young professionals to undertake their dream projects.

The 50 volunteers were taken through the Vodafone Way training and induction to groom them on how to take up the projects they have set for themselves individually.

The Vodafone World of Difference is an annual community charity programme launched in 2009. It currently runs in 17 Vodafone operating countries. Applications are opened to Ghanaian residents who are 18 years and above.

Ghana's FDI up to US$3.25b

2011-11-16T06:26:00.001-08:00

The Ghana Investment Promotion Centre (GIPC) recorded an increase in the Foreign Direct Investment (FDI) valued at US$3.25billion: the corresponding value for the same period in 2010 was US$216.71million.

This figure represents an increase of 99.16 percent of the total estimated value during the third quarter of 2011, compared to the same period in 2010.

The total foreign equity was US$274.35million, while the initial equity transfer was US$27.97million during the period under review.

Mr. George Aboagye, Chief Executive Officer of GIPC, told the media in Accra that out of the 161 new investment projects registered, 105 representing 65.22 per cent were wholly-owned foreign enterprises valued at GH¢908.51million -- which was 18.63 percent of the total estimated value of projects registered.

The remaining 56 (34.78) percent were joint ventures between Ghanaians and their foreign partners valued at US$2.65billion and representing 81.37 percent of the total estimated value of projects registered.

For the corresponding quarter of 2010, 70 wholly-owned foreign enterprises were registered valued at US$253.86million and 27 joint ventures at US$.25million.

Meanwhile, during the second quarter of 2011, 71 wholly-owned foreign enterprises were registered and valued at GH¢339.09million, and 56 joint ventures valued at GH¢561.36million.

India, with 25 projects, topped the list of countries with the highest number of registered projects. With US$2.52billion as the estimated value of the investment, Korea topped the list of countries with the largest value of investment registered.

China, Nigeria, Britain, the Netherlands, Lebanon and the United State of America respectively topped the list of investing countries during the third quarter.

Seven out of the 10 regions directly benefitted from the registered projects during the quarter. The regions are Ashanti, Brong-Ahafo, Central, Eastern, Greater Accra, Northern and Western Regions. 85.09% of all the projects registered are located in Greater Accra.

From the number of new projects registered, it is expected that 23,998 jobs will be created. This is an increment of 402.38% over jobs created in the corresponding quarter of 2010.

93.23% (22,373) of the total jobs to be created in the third quarter will be for Ghanaians and the remaining 6.77% (1,625) for expatriates.

Mr. Aboagye said GIPC will continue to encourage both local and foreign investors and facilitate investment projects for the country's growth and development.

“The confidence gained in the Ghanaian economy is a result of the prudent economic measures being pursued by the government -- which have resulted in the economy being described as the fastest-growing in the world currently, and international recognition by various surveys on the economic potential of the Ghanaian economy – and continues to influence the flow of FDI.”

He explained that the delegation from the Democratic People’s Republic of Korea has been in the country to explore areas of economic collaboration in the energy, trade, food and Agriculture, water resources, and housing sectors.

The Centre launched a report dubbed “Ghana 2011” to expose the country’s economic activities and investment opportunities which included a detailed sector-by-sector guide for foreign investors.

The publication, Mr. Aboagye said, will provide an in-depth analysis of the country’s economy.

Look within to grow indigenous businesses - GCCI

2011-11-16T06:22:00.000-08:00

Government must put premium on the private sector to create social development and drive growth to reduce poverty, says the Ghana Chamber of Commerce and Industry (GCCI).

“Since government cannot provide the jobs directly but through the private sector, there should be a conscious effort in that direction.

“The way forward would be to ensure that appropriate macro-economic policies are implemented to create the much-needed enabling environment for businesses as well as entrepreneurs, the main stakeholders for the private sector to become the actual engine of growth,” Mr. Seth Adjei-Baah, President of GCCI, said in Accra at the launch of its 250th-year anniversary.

Mr. Adjei-Baah, who is also the Member of Parliament for Nkawkaw, speaking under the theme “Commerce and Industry in a Growing Economy”, said: “It is time for the nation to look within: government over the years has always created an environment to favour only foreigners. This, we think, is not the best – and we urge government to discard that idea to make the environment favorable for Ghanaian investors to explore as well.”

He indicated that the time has come for the country to undergo an industrial revolution, wherein all goods and services needed would be produced by indigenous companies.

“The mining industry is one example: Ghana cannot boast a single indigenous mining company, even though we have been engaging in mining for a long time.

“In the 60’s and 70’s Ghana had many vehicle-assembling plants; but, sadly, four decades down the line we cannot produce basic car accessories. We import almost everything, from toothpicks to airplanes,” Mr. Adjei-Baah remarked.

Hannah Tetteh, Minister of Trade and Industry, pledged government support to the private sector with the implementation of policies and strategies to enable businesses compete with their counterparts on the global market.

“Ghanaian industries could compete with their counterparts on the world market when they change their style of performance.”

She said the industries needed to focus on higher education and on how to promote Made-In Ghana goods in other countries, and advised local industries to partner their counterparts in other countries in the world to promote Made-In Ghana goods.

Mr. Emmanuel Doni-Kwame, Chief Executive Officer of GCCI, in recounting some achievements of the Chamber over the years pointed out establishment of the free exchange rate regime and review of trade facilitation at the ports.

The Chamber, in collaboration with other private sector development organizations, advocated the reduction of Corporate Tax from 55 percent in the 1970’s to ensure an enabling environment for businesses to operate effectively in the country.

Mr. Doni-Kwame said: “Ghana being acclaimed one of the fastest-growing economies in the world was a motivation for the growth of businesses in the country.

“A lot has changed since 1761 – we moved from an unsuccessful plantation economy to import substitution, to a controlled economy, then to a free liberalised economy and now an oil economy.

“The popularity of Ghana as one of the fastest-growing economies in the world gives us reason to reflect on our theme: Commerce and Industry in a Growing Economy.

“The chamber has been contributing its quota in policy formulation, especially making inputs to the national budget and monitoring its implementation.

“We have been able to research issues in greater depth, and this enabled us to make more meaningful and constructive representations in our role as social partners.”

He added: “We are celebrating 250 years of business advocacy, and we can already conclude that it has largely benefitted the country and our business community.

“The Chamber of Commerce is arguably one of the oldest institutions in the country, with its establishment dating back to the 1760’s at Fort Christiansburg in Accra by the Danes.

“250 years ago, the aim of fostering economic and cultural ties between Ghana and Denmark may have seemed ambitious, but today we can say that this aim has been reached successfully.”

‘We don’t need fanfare leaders’

2011-11-16T06:17:00.000-08:00

Brutally frank, insightful, and intensely fought debates, and a very entertaining and memorable gala night were some of the highlights when the curtain was finally drawn on the three-day Vodafone Africa Business Leaders Forum that lived up to its billing.

The forum, organised by the Business and Financial Times and BIA Conferences, brought together about 1,000 delegates from several African, European and the Caribbean countries and the USA.

During an intensely fought debate at the Vodafone African Business Leaders Forum, one distinguished professor stated that: “When they get into power, our leaders think that their role is to distribute wealth - they do not create anything new.”

Professor Kwaku Atuahene-Gima, Executive Director, CEIBS Africa -- who is currently based in China -- went on to give a scathing description of the way in which some African politicians operate today.

“We also have ‘fanfare’ leaders, they like to win awards…so they first distribute wealth to their inner circle and then win awards for it,” he added.

According to Atuahene-Gima, one of the most important things that leaders need to do is self-reflect and become conscious of their flaws. He highlighted this as a particular failing of leaders in new democracies, where democracy is often mistaken for development.

“Democracy does not cause development -- in Africa we focus on this first, without developing the foundations for growth,” said Atuahene-Gima. “We need leaders who can break the rules and first do what is beneficial for their country.

“If you look at the leadership which got us here today, we need a very different type of leadership moving forward,” added Alhassan Andani, MD, Stanbic Bank, Ghana.

“The next big leadership challenge is to think beyond the level of the state in order to break through poverty. Development only happens when people learn to govern themselves, and generate wealth that touches everybody.”

These comments were made during a discussion on ‘whether Africa has the right strength and flavour of leadership to deliver the continental dream’. The overwhelming sentiment from both speakers and audience was that there needs to be a dramatic shift in the focus of today’s leaders.

“Leaders in Africa have to think differently -- a lot of the things that they do today are not useful for tomorrow,” explained Atuahene-Gima. “This is unlike China, where they always have a long-term plan. In addition, we must be able to ensure that leaders have strategies that they can implement -- merely having a vision is useless.”

In a debate on how to tackle Africa’s developmental challenges, Alec Erwin, CEO, UBU Investment Holdings, South Africa, highlighted the need for African leaders to have a focused developmental strategy in order to attract investment.

“It is important to have clarity of purpose,” said Erwin. “We need to attract resources in order to develop infrastructure in Africa, and we will only be able to do this through establishing public private partnerships.”

He emphasised that only by stabilising the economy, legal system and capital markets can African countries gain the foreign investment that they require.

“It can’t be done by proceeding with ‘business as usual,’” he added. “It means changing the way we govern in Africa.”

Dr. IrajAbedian, Pan-African Capital Holdings South Africa, agreed: “If we don’t actively engage and take the appropriate action, we will miss out on investment opportunities in Africa. We need to graduate from being subjects to being citizens,” said Abedian. “A responsible citizen….an engaged citizen.”

According to Dr. Kofi Amoah, CEO, Progeny Ventures Incorporated, Ghana, “Some investors come to Africa, look and turn away. To build a new paradigm, we need to consider key blueprint issues on the continent,” he explained. “These include our political space; human rights; the psychological state of our people; and the global environment.”

Debating on finance, banking, and investment, Daniel Asiedu, the managing director of Zenith Bank, said only 10% of the bankable population of Africa have bank accounts according to the IMF. He suggested that banks should be collaborating and not competing.

He called on banks to develop a common platform to provide banking services to the general population.

Dr. Amoah went on to suggest that when measuring the efficiency or otherwise of the financial system of any country, this should be looked at holistically.

He reminded delegates that banks are only one part of the financial system which includes other financial institutions, the government and, most importantly, the general population.

He called on governments to remember that international investors want stability in a country’s political system.

Meanwhile, Brooks Mparutsa, CEO of Hollard Insurance, in South Africa, cautioned against over-regulation. He suggested that it’s about innovation: innovation in the delivery of financial services to the communities that need them.

Dr. Yaw Perbi -- Global CEO, The HuD Group, Canada, emphasised the importance of education and developing the African youth.

“When we talk of Africa, everyone refers to our natural resources -- forgetting our human capital,” says Perbi. “The existing educational system was built to create factory workers, and it is not going to work. Our greatest resource is our people, and if we do not develop the people it is not going to work.”

Perbi highlighted the fact that 41% of people in Africa are 15 years of age and below; labelling them ‘the generation that must be saved’.

Dr. Esi Ansah, Chief Executive Officer, Axis Human Capital, Ghana, agreed that the current educational system in Africa takes the wrong approach; saying, “It’s important to remember that schooling is not the same as education – we need to be training people who are versatile and critical thinkers.

“The goal of education is societal transformation,” she added. “As a nation, we need to have key things that we are looking for at every level.”

She spoke of the importance of having multiple stakeholders in education, establishing career centres, and building sustainable funding models that decrease the reliance on government.

Stella Appiah-Nkansah, Director of HR, Vodafone Ghana, proposed an additional solution to Africa’s education challenge: recruit and retain the highly qualified Africans who are working abroad.

“Many of our compatriots find themselves in the Western world, with a desire to return home,” she said. “Of crucial importance is the recruitment and retention of these talented individuals.”

Appiah-Nkansah listed various strategies which African companies can pursue in order to attract young professionals back to the continent. These include developing strong company brands, offering attractive and flexible remuneration packages, and targetting African-centred career fairs.
source:B&FT

GNCCI celebrates 250 years of private sector advocacy

2011-10-20T22:16:00.000-07:00

Exactly 250 years have turned since the establishment of a national chamber of commerce to spearhead the course of industries in the country’s private sector and towards the development of a vibrant economy. Ekow Essabra-Mensah writes.

The Ghana National Chamber of Commerce & Industry is without doubt, one of the leading business support service in the country, an independent organisation serving and promoting the commercial and industrial interest of small and large companies.

The chamber in its present form was established on the 8 th November 1961 under an Act of Parliament (Executive Instrument No. 196) following the amalgamation of the then four existing Chambers of Commerce.

These were the Accra and Eastern Province Chambers of Commerce, Kumasi Chamber of Commerce, Sekondi/Takoradi Chamber of Commerce that grouped expatriate firms and the Ghana Chamber of Commerce, which represented indigenous Ghanaian firms. The chamber serves the local business community with three core activities that are its founding principles.

The Chamber as part of its mandate is dedicated to helping entrepreneurial growth of companies and seek to promote the interest of companies and organisations engaged in investment, trade, commerce, agriculture, industry and manufacturing sectors.

The Chamber is also committed to playing a leadership role in the promotion of the healthy growth of the country’s economy, establishing a strong international linkage and projecting a good image for Ghana.

Mr. Emmanuel Doni- Kwame, acting Chief Executive Officer, of the Ghana Chamber of Commerce and industry in an interview with B&FT said: “The Chamber is in a unique position to act as a link between established businesses, the emerging sector, and government at the various levels.

“The Chamber is recognized locally and internationally as an impartial third party with a history of promoting the interest of businesses.”

The Chamber currently has a membership of over 2000 spanning across various sectors. Membership is offered to all registered business establishments in Ghana.

HISTORY OF THE GHANA CHAMBER OF COMMERCE

PRE- INDEPENDENCE

The Chamber Of Commerce is arguably one of the oldest institutions in Ghana with its establishment dating back to 8th November 1761 by the Danes.

In 1754, the Danish Gold coast became Danish Crown Colony and the Danish West Indian and Guinean Company was granted a royal charter to take over the administration of the gold coast.

In 1760, the West Indian-Guinean Chamber of Revenues was established. In 1776, the Danish West Indian and Guinean Company was dissolved. In 1781-1782, a West Indian trade company and Baltic-Guinean trade company were founded respectively.

Late in the 18th century, Ernest Schwmmelmann, Danish minister of finance(1784-1813), suggested that Denmark should introduce a plantation economy in its African colonies. In 1816, the West Indian-Guinean Chamber of revenues was merged with the college of commerce to form the General Customs Chamber and College of Commerce.

However neither the plantation economy nor trade in other goods flourished as hoped. The traditional trading partners, the coastal Fanti states were subjugated by the Ashantis by 1807.

The Danish trading posts were finally abandoned. In 1850, Denmark sold its property and claims on the Gold Coast to Great Britain. The Cape Coast Chamber was later formed out of the Customs Chamber and College of Commerce.

In 1894 a deputation from the Cape Coast Chamber of Commerce many of whose members held links to merchants in Great Britain put pressure on the governor to appoint a permanent resident. There was considerable feeling in the colony in support of this move.

The new Asantehene AgyemanPrempeh I declined this request as well as others, but pressure was building for his kingdom to be brought under British control to prevent the French from doing so.

Another travelling commissioner Hendrick Vroom was sent to Kumasi to ask the Asantes to accept a British officer as their friend and advisor.

Eventually the Asantes sought to bypass the authority of the British governor by sending an eight person deputation to London to plead for their state’s independence, but it was neither recognized nor received. They were simply told to deal directly with the Governor of the then Gold Coast. We are proud to say that three of our members and others were mandated by the Governor to draft the 1951 constitution.

POST INDEPENDENCE

The Ghana National Chamber of Commerce and industry will this year celebrate the 250th anniversary of the establishment of the first chamber of commerce in the then Gold Coast and 50 years of the enactment of the legal instrument merging all Chambers of commerce in independent Ghana into one Ghana National Chamber of Commerce.

Prior to 1961, there were four separate and independent Chambers of Commerce in Ghana, namely: The Accra and Eastern province Chamber of Commerce, The Kumasi Chamber of Commerce, The Sekondi/Takoradi Chamber of Commerce, The Ghana Chamber of Commerce.

The first three Chambers mentioned above were composed of expatriate firms and businesses based in the three main trading centers, while the fourth Chamber catered for the indigenous Ghanaian businesses.

The first president of Ghana, Osagyefo Dr. Kwame Nkrumah did not fancy the duplicated representation smacking of racial discrimination. He rightly ordered the Chambers to merge.

The Ghana National Chamber of Commerce was then established on 8th November, 1961 under an Act of parliament (Executive Instrument No. 196) following the amalgamation of the then existing Chambers of Commerce, which were Nationality based.

The Executive Instrument was amended by legislative Instrument No.611 of 1968 to streamline some of the internal structures of the Chamber. The Chamber was charged with the following functions: Promotion and protection of trade, commerce, industries and manufacturers in Ghana
The collection and circulation of statistics relating to trade, commerce, industry and manufacturers of Ghana.

The provision of facilities for the communication and interchange of views between members of the Chamber on one hand and departments of Government, public institution and other associations on the other hand, on matters directly affecting the interests of the Chamber or any member thereof.

The printing and publication of newspapers, periodicals, books and other documents for promoting the interest of the Chamber.

The establishment and maintenance of libraries and museums for the promotion of trade, commerce, industry and manufacturers of Ghana. The promotion and participation in trade fairs in Ghana and elsewhere. To develop linkages with Chambers of Commerce on other parts of the world.

The promotion of and co-operation with associations or Chamber and other organizations in Ghana discharging similar functions as the Chamber. The grant of donations to local or national charities.

The chamber has since been an independent, non-political organization dedicated to promoting and protecting the interests of businesses in Ghana.

COLLABORATION WITH GOVERNMENT

COMMODITY EXCHANGE

The country being predominately agricultural country lacks a self-coordinating market system for the trade of agricultural produce. Farmers lack access to a well function market where they can get competitive price for their produce.

As a consequence, farmers face the problem of unstable prices for their produce leading to glut in one region or district and shortages in other regions. Lack of access to agriculture raw materials also affect agro-proceessing and other sectors.

The Ghana National Chamber of Commerce & Industry in collaboration with the Ghana Agricultural Producers and Traders Organisation, the Ghana National Cargo Transporters Association and with the support of BUSAC will undertake an advocacy action on the inclusion of the private sector in the establishment of a Commodity Exchange.

Agricultural markets in Ghana had been characterized by high costs and high risks of transacting, forcing much of our agric producer into isolation. With only a few of output reaching the market, commodity buyers and sellers tended to trade only with those they knew, to avoid the risk of being cheated or default.

Trade is done on the basis of visual inspection because there was no assurance of product quality or quantity, this drive up market costs, leading to high consumer prices.

The goal of this action is to partner with other stakeholders to develop a Commodity Exchange to connect buyers and sellers of locally grown agricultural commodities in an efficient, reliable and transparent manner by making use of innovation and technology.

1. To develop an integrated commodity marketing policy that addresses all the processes namely, transport, grading, storage and information facilities for the producer as well as the consumer

2. To develop a well equipped institutional establishment which can provide all marketing services to all market actors;

3. To develop a private and public-partnership in the creation of the commodity market.
The Chamber will undertake a study tour of Ethiopia and develop a position paper. A sensitization workshop will be organized to allow beneficiaries of the action mainly members to contribute to the position paper presented.

A series of media activities will be carried out via TV, Radio and print media to inform and educate the public. Stakeholder workshops’ policy dialogue will be used to ensure a consensus is reached and objective of action achieved. Finally negotiation and follow up on target groups

This project will contribute towards strengthening the culture of doing business by creating a transparent, innovative and efficient marketing system for buyers and sellers especially small-scale farmers who are at the mercy of merchants in the nearest and only market they know, to negotiate better prices or reduce their market risk.

Customer Service Celebration

The Ghana National Chamber of Commerce and Industry, collaborated with organizers to promote customer service in the country.

The Chamber recognizes the role of the customer in business development and sustainability and that as a as a leading voice of the business community in the country endorsed celebrations, as it is in the best interest of the business community , encouraging all its members to partner or participate and ensure appropriate customer service .

Business Support services

The Chamber offers its Members a vast number of business support services that range from the local services such as start-up support, contracts and tender information, training, translation support, export market information and documentation.

James Town pupils receives educational materials

2011-10-20T22:08:00.000-07:00

Gateway 4 Youth, a non Governmental Organization (NGO) has presented educational materials to over 84 needy children aimed at supporting and encouraging school going children to take their education seriously.

The educational items including School bags, books and pens, pencils were presented to pupil’s residing in James town, a suburb of Accra.

Mr. Paulos Samuel, former country director of Plan Ghana International at a ceremony to officially present the items said: “This passion and spirit to help those affected youth succeed in life should be emulated and supported by those who are in the capacity to do so.

“I embarked on a nationwide tour during which I identified specific deprived localities that needed assistance, I interacted with opinion leaders and other relevant stakeholders all targeted at obtaining the true and real insight information on what was happening on the ground to enable me provide the needed items to support educational needs of the deprived children in the community”.

He explained that ultimate desire of Gateway 4 Youth is to ensure that children reach their full potentials and has its vision strategically set out to champion the total economic and social transformation change of the youth in Africa through the discovery of talent, skills, development and opportunities.

The organization’s primary focus is on the youth between 18- 35 with whom it works to identify it talent, identify opportunities and find ways of bringing the two together to enable them live a meaningful and purposeful life.

Mr.Paulos served Plan International for over a decade and has strong and loyal passion to help bring improvement and hope into the lives of the youth.

Chamber of Mines welcomes EPA ratings

2011-10-11T07:27:00.000-07:00

The Ghana Chamber of Mines has commended the Environmental Protection Agency (EPA) for its 2010 AKOBEN audit results aimed at bringing environmental improvement and reducing risk of mining operations to the public.

“The Ghana Chamber of Mines commends the EPA and looks forward to working effectively with it and other partners on improving the understanding and functioning of the AKOBEN system in order to improve the ratings of our members,” Dr. Toni Aubynn, Chief Executive Officer of the Ghana Chamber of Mines, told B&FT in Accra.

“The Chamber also takes the opportunity to congratulate mining companies who achieved appreciable improvement in this year’s AKOBEN audit, and hopes that the next ratings see a continuation in the performance improvements. We will continue to use the AKOBEN and other evaluation processes to continuously improve our environmental and social performance.

“The 2010 AKOBEN ratings saw an appreciable improvement over that of previous ratings. More member-companies made significant improvements on their performances in the last audit,” he said.

The report, ‘AKOBEN’, is an EPA initiative aimed at reducing the impact of industry on the environment and to bring about environmental improvements in business operations of all sizes.

It is also meant to encourage companies assess themselves so they can reduce environmental risks of their operations to the public.

The other indicators in the report are environmental best practice, community complaints and corporate social responsibility.

Under the initiative, compliance with environmental standards by mining and manufacturing concerns is assessed using a five-colour rating scheme measuring the environmental performance of 61 manufacturing and mining companies on the legal requirements in hazardous waste management, toxic releases and non-toxic releases, and monitoring and reporting.

The AKOBEN ratings are evaluated by analysing more than one hundred performance indicators which include quantitative data as well as qualitative and visual information.
Newmont Ghana Gold Limited joined Abosso Goldfields Limited and Ferro Fabrik Limited as the only three to be rated BLUE (Good) in the rankings.

Newmont’s rating is a huge improvement over last year’s, when it found itself in the RED zone. This was as a result of the over-flow of process-water at the company’s Ahafo Mine.

Other companies with improved performance included Ghana Manganese Company, Golden Star Resources-Wassa, and Chirano Gold Mines Limited.

Daniel Amlalo, Acting Executive Director of the EPA, threatened to revoke the operating licence or impose heavy financial fines on Ghana Bauxite Company-Awaso for “consistently’’ failing to adhere to best environmental performance practices.
Ghana Bauxite Company was for the second time rated ‘poor’ in the latest environmental performance rating and disclosure system.

Other mining companies including AngloGold Ashanti, Gold Fields Ghana Limited, Golden Star Resources-Bogoso, and Prestea Sankofa Gold Limited also scored ‘poor’ in the ratings.

“These companies did not include environmental reports in their annual reports. Nothing was known of their environmental policies. They again failed to report on how their operations affected the use of water and waste-management, their energy use and the effects of their operations on climate change. Companies do not regard the environment as a material business risk,”

Apart from AngloGold which scored RED in both its mines at Obuasi and Iduapriem, the Ghana Bauxite Company was also rated RED, ‘poor’.

In the manufacturing industry, Accra Brewery Limited and Akosombo Textiles were in the ORANGE (Satisfactory) zone, while Aluworks, Unilever Ghana Limited-Tema Factory and Accra Abattoir were rated RED.

The EPA also announced that it will increase from 50 to 100 the number of manufacturing companies that will be assessed in next year’s report, while the mining companies will increase from 11 to 19.

GNCCI lauds INCOTERMS

2011-10-11T07:13:00.000-07:00

The Ghana National Chamber of Commerce and Industry (GNCCI) has observed that the current global rules governing world trade have curbed misunderstanding and ensured fair trade practices.

The International Chamber of Commerce (ICC) instituted INCOTERMS to keep up with the rapid expansion of world trade and globalisation.

The new rules were announced in September 2010 and came into effect on January 1, 2011.

The current revision takes into account issues such as developments in cargo security and the need to replace paper documents with electronic ones.

The acting Chief Executive Officer of GNCCI, Mr. Emmanuel Doni-Kwame, speaking at a seminar in Accra to educate business executives, exporters and stakeholders said: “The global economy has given businesses broader access than ever before to markets all over the world.”

As the volume and complexity of global sales increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted.

Mr. Doni-Kwame noted that “the INCOTERMS rules, the ICC rules and the GNCCI rules on the use of domestic and International Trade terms, facilitate the conduct of global trade.”

He explained that the rules in sale contracts clearly define the parties’ respective obligations and reduces the risk of legal complications.

Since the creation of INCOTERMS rules by ICC in 1936, this globally-accepted contractual standard has been regularly updated to keep pace with development of international trade.

The INCOTERMS 2010 rules take account of the continual spread of customs-free zones, the increased use of electronic communications in business transactions, heightened concern about security in the movement of goods, and changes in transport practices.

The broad expertise of ICC’s Commission on commercial law and practice, whose membership is drawn from all parts of the world and all trade sectors including Ghana, insures that the rules respond to business needs everywhere.

The new rules feature two new rules which reflect advances in international trade over the last decade, and are an essential tool for trade.

Aid addiction

2011-10-06T07:19:00.000-07:00

From November 29 to December 1, 2011, approximately 2,000 donors and beggars will review global progress in improving the impact and effectiveness of aid, and make commitments that set a new agenda and indicators to underpin aid effectiveness for development, our Chief Correspondent, Ekow Essabra-Mensah looks at the key success factors leading to Busan, South Korea.

When the aid community meets at the High Level Forum (HLF) on Aid Effectiveness in Busan, Republic Korea, in November 2011, they will have two tasks to accomplish.

The first is to take stock of commitments to improve the quality of aid made at previous forums in Paris and Accra.

The second is to establish a new global compact that can drive further effectiveness improvement in the official aid sector while capturing the different circumstances under which aid is delivered.

The 2011 High Level Forum on Aid Effectiveness in Busan is expected to be different from the preceding forums in Rome (2003), Paris (2005) and Accra (2008).

It must directly contend with a particularly complex mixture of factors. First, budget difficulties in the traditional donor countries which provide major development support are likely to mark the end of an era of growing official aid budgets.

Surveys by the Development Assistance Committee of the Organisation for Economic Cooperation (OECD/DAC) suggest that aid growth will slow to just two percent a year from 2011 to 2013.

Consequently, there is a search to leverage aid with other resources and strategies for development. With tighter aid budgets, there is greater attention than ever before on improving the dysfunctional international aid architecture to make it more efficient, effective and accountable.

Furthermore, newly prominent actors in development — from official partners like China to international NGOs to private corporations — have become large in financial terms, changing the nature of the aid landscape. While this phenomenon has been unfolding for years, the degree to which it is treated seriously in Busan will determine the relevance of this High Level Forum.

Nevertheless, the process of setting up indicators, targets and monitoring instruments has proven its worth in supporting accountability, knowledge and learning. As targets for the Paris indicators were only specified up to 2010, a key success factor for Busan will be the development of a new set of targets and indicators to underpin ongoing dialogue on improving aid effectiveness.

Statistical background on aid

In 2010, net official development assistance (ODA) flows from members of the Development Assistance Committee (DAC) of the OECD reached US$128.7billion, representing an increase of +6.5% over 2009.

This is the highest real ODA level ever, surpassing even the volume provided in 2005 which was boosted by exceptional debt-relief. Net ODA as a share of gross national income (GNI) was 0.32%, equal to 2005 and higher than any other year since 1992.

Bilateral aid for core development programmes and projects (e.g. excluding debt-relief grants and humanitarian aid) rose by +5.9% over the 2009 figure. New lending (+13.2%) increased faster than grants (+6.8%).

Bilateral ODA to Africa was US$29.3billion, of which US$26.5 billion was for sub-Saharan Africa. These amounts represent an increase in real terms of +3.6% and +6.4% respectively over 2009. However, excluding debt-relief grants, bilateral ODA fell very slightly (-0.1%) for Africa but rose (+1.7%) for sub-Saharan Africa.

Donor performance

In 2010, the largest donors by volume were the United States, the United Kingdom, France, Germany and Japan. Denmark, Luxembourg, the Netherlands, Norway and Sweden continued to exceed the United Nations ODA target of 0.7% of GNP. The largest increases in real terms in ODA between 2009 and 2010 were recorded by Australia, Belgium, Canada, Japan, Korea, Portugal and the United Kingdom.

The United States continued to be the largest single donor with net ODA disbursements of US$30.2billion, representing an increase of +3.5% in real terms over 2009. This is the highest real level of ODA ever recorded by a single donor country, except for 2005 when the US gave exceptional debt relief to Iraq. US ODA as a percent of GNP remained unchanged at 0.21%.

Its bilateral ODA to the Least Developed Countries (LDCs) rose to a record US$9.4billion, representing an increase of +16.2% over 2009.

Much of this increase was accounted for by the US response to the 2010 Haitian earthquake (aid to Haiti rose +241% to US$1.1billion). Among non-LDCs, aid to Pakistan rose especially sharply (+126% to USD 1.4 billion), reflecting increased disbursements across many sectors.

ODA from the 15 EU countries that are members of the DAC rose by +6.7% in 2010 to reach US$70.2billion, representing 54% of total net ODA provided by DAC donors. It also represented 0.46% of DAC-EU GNI, up from 0.44% in 2009. This was well above the overall DAC average of 0.32%.

Available data shows that donors generally failed to deliver on aid promise. This is just one of the tasks that the Busan High Level Forum has to clear.

Owing to the needs of developing countries, which largely constitute aid-recipient countries, the group of rich countries - called the Organisation for Economic Cooperation and Development (OECD) countries - promised at the UN in 1970 to increase annual aid to 0.7 percent of their Gross National Product (GNP).

The 22 OECD countries, the major donor countries of the world, failed to meet this target. It was reaffirmed in the Monetary Consensus of 2002, but as of now only five of these countries - Luxemburg, Denmark, Sweden, Norway and the Netherlands - have fulfilled their commitment.

Throughout the 1990’s, OECD aid declined from a high of 0.33 of gross national product to reach 0.22 percent in 1997.

The years between 2001 and 2005 were periods of remarkable increase in total aid, but the increases were ruled out by critics because of their composition. In 2005, for instance, aid flows rose 31.4 percent to top the US$100billion mark for the first time. Contributing to the increase was a US$19billion debt-relief for Iraq and Nigeria, as well as US$2.2billion Tsunami aid.

A total of US$103.7billion was provided by the OECDs in aid to developing countries in 2007, which represents a drop from 0.31 percent of members’ combined gross national product in 2006 to 0.28 percent in 2007. In absolute terms, the figure equals a real decline of 8.4 percent from the 2006 level.

According to the Development Cooperation Directorate, however, the fall was expected because Oversees Development Assistance (ODA) had been exceptionally high in 2005 (US$107.1billion) and 2006 (US$104billion), due to large Paris Club debt operations for Iraq and Nigeria. Debt-relief grants diminished in 2007 to US$8.7billion as the Paris Club operations tapered off.

Excluding debt-relief grants, net ODA rose by 2.4 percent in 2007 while bilateral aid to sub-Saharan Africa, excluding debt-relief, increased by 10 percent in real terms. This represents an improvement on the recent rate of increase.

But it is clear that donors still face a real challenge to meet the Gleneagles G-8 summit projection to double aid to Africa, as pledged in 2010.

The largest donors in 2007, by volume, were the United States followed by Germany, France, the United Kingdom and Japan. These countries however failed to meet the United Nations target of 0.7 percent of GNP.

Ghana's position on Aid Effectiveness

Cabinet passes national aid policy

Ghana’s Cabinet is expected to fully pass the national aid policy document to harmonise and promote aid effectiveness, and to improve country ownership and leadership of aid management.

The framework, expected to receive final passage by the end this year, will become the nation’s short-term aid policy blueprint which will provide guidelines for attracting aid to support the developmental agenda from 2011 to 2015.

The national aid policy framework presently awaiting cabinet endorsement has 10 thematic areas including policies and strategies - focusing on country systems and coordination of aid management - and is targetted at ensuring accountability and transparency in aid inflows.

Mary-Anne Addo, Director, Ministry of Finance and Economic Planning, disclosed: “We need a value for the money framework to make sure ODA’s US$120billion is spent as effectively as possible.

“Aid effectiveness is about making aid make a difference; keep it simple, stick to the essentials – ownership.”

Ms. Addo, who is the Director, External Resource Mobilisation (Multilateral) Division at MoFEP, presenting a paper under the topic “The Aid Architecture Reform Agenda: The Journey from Monterey through Paris and Accra to Busan”, noted that development aid to partner countries does not fully achieve desired results due to how aid is delivered and managed.

She said several partner and donor countries, international and civil society organisations, meeting in Paris at the Second High-Level Forum (HLF-2) on Aid Effectiveness in 2005, committed themselves to reforming aid delivery and management to achieve greater effectiveness and results.

The stakeholders, she said, agreed on the Paris Declaration on Aid Effectiveness which included Partnership Commitments to strengthen ownership, alignment, harmonisation, managing for results, and mutual accountability.

“Since aid effectiveness is about value for money, benchmarks are needed for donor and partner countries -- which were not clearly spelt out at that time. The PD and the AAA were therefore a step forward in ensuring greater aid effectiveness and results since they provide those benchmarks.

“Partner countries, since the Paris Declaration,” she noted, “have developed better understanding of aid effectiveness; but the development agenda is still threatened by over-bureaucratisation.” She therefore called for political engagement and mutual trust on the part of both sides to achieve results.

Touching on fragmentation of donor assistance, Ms. Addo said the practice increases transaction cost and affects implementation of projects. According to the director, the practice would not be a problem if donors did not insist that partner countries adopt donor-country systems to deliver aid.

Mrs. Stella Williams, External Resource Mobilisation Division, said the sheer scale and complexity of the modern global aid and development agenda makes the drive for aid and development effectiveness one of the most important global public service initiatives currently being undertaken.

“This process has not delivered all the expected results or included the concerns of all stakeholders, which is essential for national cohesion and stability. There is, however, the will to improve national ownership of projects and accountability.”

Can Africa forego Aid?

Concerns have been raised by stakeholders, civil society organisations and policy analysts of the need for governments to develop pragmatic strategies to wean themselves from aid and concessionary loans and become self-dependent.

Dr. John Kwakye, a senior economist at the Institute of Economic Affairs, contends that foreign aid can be foregone with improvements in Africa’s tax effort and a dose of financial engineering.

“Some financial engineering is all that is needed to tap alternative resources,” he said at a roundtable on overcoming Africa’s aid addiction in Accra.

“The first vehicle is the budget itself. The budget offers scope for augmenting the resource envelope. This requires both revenue and expenditure measures. On the revenue side, there is room to broaden the tax-base... On the expenditure side, there is a need for prioritisation by curtailing non-essential spending to create space for priority spending.”

Across Africa, there is a large informal sector that hardly shows up on the tax-radar. Dr. Kwakye said this segment must be targetted, together with limited tax-exemptions and resolute enforcement of compliance.

The domestic capital market is another vehicle to raise financing and not have to depend on others’ largesse, he offered.

“Bonds could be issued by the government, municipalities and the private-sector. This can provide long-term funds for the budget and other development activities in the key sectors of the economy.

“In this regard, it will be necessary to develop appropriate institutional infrastructure and the legal framework,” he said.

Bar South Africa, regional capital markets are underdeveloped say analysts, and African governments have to grapple with the cost of funds. On the other hand, aid is received in the form of “very soft” loans (attracting interest as low as between 0 and 1 percent) and could serve as a cheaper financing option. But Dr. Kwakye points out that Africa’s dependence on foreign aid comes with costs.

Aid resources have not matched the region’s vast development needs, particularly relating to building physical and human capital, even as it has worsened indebtedness, he said; adding that associated conditions hardly serve the interests of African countries.

At the start of the last decade, a number of African countries drenched in substantial debts signed on to a debt-forgiveness initiative with Western donors in order to ease fiscal management.

Yet such countries have continued to receive additional resources from donors, and new commitments have been agreed to expand the scope of assistance.

Dr. Kwakye faulted aid for the bureaucracy and volatility in its delivery, which often “curtails or frustrates African development budgets.”

In Ghana a year ago, the World Bank’s erstwhile country-representative Ishac Diwan had cause to complain about the slow delivery of funds approved for disbursement by the bank.

The African Diaspora can provide a solution to Africa’s development-financing needs, the senior economist suggested.

He said remittances from this population can be tapped to provide capital to support domestic budgets. Another instrument could be Diaspora Bonds that pay returns to Diaspora investors, while raising capital for the continent.

African countries, rich in natural resources, could also securitise future foreign-exchange flows, he said, but resources must be used wisely and, to the extent possible, invested in productive – not consumption – activities.

There is a positive history to aid, evidenced by the Marshall Plan for the reconstruction of Europe after the Second World War, Dr. Kwakye admitted, but said “it is time Africa broke its aid addiction.”
Critical Aid issues

There is a troubling trend emerging in bilateral donor financing of development: it is falling, with what appears to be little coordination among donors.

Aid effectiveness principles call on donors to ensure their work is complementary - in part by reducing duplication through improved division of labor.

This push for donors to focus on their comparative advantages, together with the increased interest in achieving results, prioritising aid to poor countries and tighter fiscal environments, has led increasing numbers of bilateral donors to reduce the number of countries and sectors in which they work.

While this is not inherently worrisome, it becomes problematic if bilateral donors are not working together to identify focus countries and sectors to ensure that new gaps are not created. Without this coordination, aid effectiveness turns into the law of unintended consequences - and identifying comparative advantages becomes merely an isolated exercise of prioritising internal strengths.

With little more than a half-month left to prepare before a key international conference on aid effectiveness in Busan, Korea, the country’s policymakers and formulators must consider the answers to two key questions: what would success at this meeting look like? And what can be done in the preparation phase to maximise the chances of success?

The fourth High Level Forum on Aid Effectiveness will build on agreements from past years, but this time the discussions are taking place in a markedly different context.
In the face of heightened pressures on international aid, the meetings in Busan present an opportunity to finally take development cooperation seriously. The U.S. government in particular could play a critical and catalytic role.

Delivering on aid promises and timelines

The Accra High Level Forum targetted world leaders to agree to develop an effective and transparent international mechanism for improving aid allocation. Rich countries should find it important to meet the UN threshold of giving 0.7 percent of GNP as aid annually.

A basic condition for aid effectiveness is that it should be allocated to countries and to areas that need it most.

Present systems suggest that donors continue to allocate aid according to their own interests and objectives, and using allocations to impose policy conditions.

Aid is often disbursed according to donors’ own priorities and timetables, without sufficient effort to respect and conform to national planning, development priorities, or the national-budgeting time-frame of recipients.

This makes it very difficult for recipients to prepare effective budgets or to plan ahead. It also makes it difficult for watchdogs like the civil society organisations to monitor aid-flow and its effectiveness.

Donors should agree new targets to make multi-year aid predictable and guarantee aid commitments based on clear and transparent criteria - and should deliver those commitments on schedule in a transparent manner.

Over the past six years, the OECD has organised three High Level Forums on Aid Effectiveness. At these Forums, a growing group of key stakeholders – including the international donor community, developing countries and civil society organisations – met to agree on the most effective ways to manage the aid process.

The first Forum was held in Rome in 2003, followed by Paris in 2005 and Accra in 2008. They helped transform aid relationships between donors and partners into true vehicles for development cooperation.

The Rome High Level Forum on Harmonisation

In February 2003, major donors, multilateral organisations and aid-recipient countries gathered in Rome for the first High Level Forum on Harmonisation. They broke ground by agreeing on a common set of principles to improve the management and effectiveness of aid: the Rome Declaration.

This Declaration differs from the Paris Declaration in that it contains commitments solely on the donor side. It focuses on the harmonisation of donor procedures and practices so as to reduce transaction costs for partner countries.

The Paris High Level Forum on Aid Effectiveness

The Paris Declaration on Aid Effectiveness, endorsed on 2 March 2005, is an international agreement adhered to by over 100 Ministers, Heads of Agencies and other Senior Officials. By adhering, they commit their countries and organisations to put into practice a set of principles to improve aid effectiveness, enabling them to reach specific targets by 2010. This is the highest-level existing statement of international norms regarding aid-delivery, with 56 partnership commitments and 12 indicators of progress.

The Accra High Level Forum on Aid Effectiveness

The Accra Agenda for Action (AAA) was agreed in September 2008 at the Third High Level Forum on Aid Effectiveness. It contains a series of commitments to strengthen and accelerate implementation of the Paris Declaration. While it does not replace the Paris Declaration and does not contain any additional monitoring arrangements, it elaborates on and sharpens the Paris commitments in important ways.

Busan High Level Forum on Aid Effectiveness

Preparations are already underway for the next High Level Forum, to be held in Busan, South Korea. This will take stock of progress toward the targets set out in the Paris Declaration; a final round of monitoring together with a full evaluation of the impact of the Paris Declaration will be carried out. Based on these analyses and the discussions at the Forum, participants will decide on the way forward.

Based on 50 years of field experience and research, the five principles that resulted from these fora encourage local ownership, alignment of development programmes around a country’s development strategy, harmonisation of practices to reduce transaction costs, the avoidance of fragmented efforts, and the creation of result-frameworks.

Looking ahead, diverse sources of finance, knowledge and expertise play a key role in the future of development - and broad, dynamic partnerships will continue to give aid principles relevance which become catalysts in fast-tracking third-world nations’ developmental agendas.

Aid, Beyond 2011

The OECD has just completed the fourth comprehensive survey of donors’ future spending plans, which provides an indication of the collective forward programming of bilateral and multilateral donors through 2013.

Preliminary findings based on DAC members’ returns to the forward spending survey suggest slower aid growth ahead.

Global Country Programmable Aid (CPA) planned to grow at a real rate of 2% per year from 2011 to 2013, compared to 8% per year on average over the past three years. For DAC countries’ bilateral aid only, the projected increase is slightly lower at 1.3% per year.

The deceleration is likely to be more marked for low-income countries and for Africa, where CPA is projected to increase at about 1% per year in real terms, compared to a 13% annual growth rate in the past three years. Thus, additional aid to these countries is likely to be outpaced by population increases.

The DAC is developing illustrative aid scenarios for the next few years as a number of donors do have aid targets, notably the EU target of at least 0.7% of GNI for the 15 EU members of the DAC and 0.33% for other EU members in 2015, along with the commitment of the EU and its member-states to reach a collective target of 0.7% in 2015.

GNCCI lauds INCOTERMS

2011-10-06T07:16:00.000-07:00

The Ghana National Chamber of Commerce and Industry (GNCCI) has observed that the current global rules governing world trade has curbed misunderstanding and ensured fair trade practices.

The International Chamber of Commerce (ICC) instituted INCOTERMS to keep up with the rapid expansion of world trade and globalisation.
The new rules were announced in September 2010 and came into effect on January 1, 2011.

The current revision takes into account issues such as developments in cargo security and the need to replace paper documents with electronic ones.

The acting Chief Executive Officer of GNCCI, Mr. Emmanuel Doni-Kwame, speaking at a seminar in Accra to educate business executives, exporters and stakeholders said: “The global economy has given businesses broader access than ever before to markets all over the world.”

As the volume and complexity of global sales increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted.

Mr. Doni-Kwame noted that “the INCOTERMS rules, the ICC rules and the GNCCI rules on the use of domestic and International Trade terms, facilitate the conduct of global trade.”

He explained that the rules in sale contracts clearly define the parties’ respective obligations and reduces the risk of legal complications.

Since the creation of INCOTERMS rules by ICC in 1936, this globally-accepted contractual standard has been regularly updated to keep pace with development of international trade.

The INCOTERMS 2010 rules take account of the continual spread of customs- free zones, the increased use of electronic communications in business transactions, heightened concern about security in the movement of goods, and changes in transport practices.

The broad expertise of ICC’s Commission on commercial law and practice, whose membership is drawn from all parts of the world and all trade sectors including Ghana, insures that the rules respond to business needs everywhere.
The new rules feature two new rules that reflect advances in international trade over the last decade, and are an essential tool for trade.

Producer inflation continues rise

2011-10-03T03:20:00.000-07:00

Year-on-year inflation from the producers’ perspective for August was 17.24%, an increase of 3.30 percentage points relative to the July figure of 13.94 %, the Ghana Statistical Service (GSS) has announced.

The substantial surge was driven mainly by the changes in the mining and quarry sector, which is closely tied with gold-price developments on the world market.

The price of gold has gained US$309.50 since September 2010, an increase of 23.7%. This has driven metal prices in the producer basket as miners cash in on windfall earnings. In August 2011, prices gained as much as US$199.

“Mining and quarrying recorded the highest year-on-year rate of 46.93%, representing an increase of 12.75 percentage points over the rate for July 2011 (34.18%).

Manufacturing, which constitutes more than two-thirds of total industry, increased to 16.27 percent from a rate of 14.32 percent in July 2011, representing an increase of 1.95 percentage points, with utilities recording the lowest rate of 0.31%.

“Mining and quarrying also recorded the highest monthly change of 11.39%, followed by manufacturing (0.89%), and utilities (0.02),” said Dr. Grace Bediako, Government Statistician, at a media conference in Accra.

It is not clear what has been driving increases in prices of manufactures, but often rising costs push producers to raise the prices of their products.

A June survey by the Bank of Ghana revealed business optimism was down compared to two months before. The Bank said its business confidence index dropped to 104.1 in June from 106.6 in April.

Firms surveyed were less optimistic about the level and intensity of their capital expenditures. They also expected lower levels of sales, profits and employment opportunities.

Data from the bank also showed the growth of credit to enterprises remained weak compared with trends observed a year earlier, though it’s been witnessing a gradual pick-up.

Producer inflation analysis

During the 12-month period (August 2010 to August 2011), producer inflation recorded its highest rate in April 2011 (24.29%).

From August 2010 to December 2010, the rate ranged between 15.96 and 18.03 percent.
“Mining and quarrying costs, which account for 14 percent of the overall index, rose 47 percent from 34 percent the month before.

“Manufacturing costs, which make up 70 percent of the index, increased 16 percent in August compared with a revised 14 percent the month earlier, while utility costs were unchanged at 0.3 percent,” Bediako said.

During the month of August 2011, eight out of the sixteen major groups in the manufacturing sector recorded inflation rates higher than the manufacturing sector average of 16.27 percent.

Manufacture of machinery and equipment recorded the highest inflation rate of 48.44%, while the tanning and dressing of leather and manufacture of hand luggage recorded a negative rate of change of -4.85%.

Petroleum Prices

Inflation in the petroleum industry stabilised for the first two months of 2010, but dropped between March and June 2010.

The rate again stabilised and then declined in November 2010 after increasing slightly in October 2010. In January 2011, inflation in the petroleum industry rose sharply, but has remained stable since at just under 30%.

SSNIT to sell stake in First Atlantic.......Nigerian firm eyes

2011-10-03T03:17:00.000-07:00

The Social Security and National Insurance Trust (SSNIT) says it plans to offload its more than 50 percent stake in First Atlantic Merchant Bank Limited to a strategic investor.

“Currently, we’ve received a proposal from Kaderi Nominees Limited expressing their interest in acquiring the shares, but it is subject to Bank of Ghana (BoG) approval,” Evangeline Amegashie, Corporate Affairs Manager of SSNIT, told the Business and Financial Times by phone.

B&FT sources say Kaderi is a Nigerian-based company with holdings in a number of banks in Nigeria.

SSNIT’s move is seen as consistent with attempts by its board to limit the fund’s involvement in the financial sector, especially in the areas where it holds significant equity positions.

The International Monetary Fund complained in a recent financial stability assessment of Ghana about the dominance of SSNIT, which it said distorts the operations of the financial system.

“An unresolved issue is the role of SSNIT in the financial system. Being a majority shareholder in several banks and a large depositor of others conflicts with its role as a manager of pensions, and distorts the operations of the financial system,” the IMF said.

But the Bank of Ghana disagreed, arguing to the contrary that SSNIT functions as a “stabilising force.”

Being a pensions-manager, Governor Amissah-Arthur said, SSNIT adopts a medium- to long-term approach in its investments -- and is unlikely to be one to withdraw frequently from its deposits and investments -- and therefore brings stability to the financial system.

However, a worry for the Central Bank, he said, is that SSNIT does not seem to have an exit-strategy for its investments, and lacks the required expertise to manage the banks and institutions in which it holds majority shares.

As a result, the board of the Trust has been considering ways to limit its involvement in these entities.

Since its establishment, SSNIT has held a dominant position within the financial sector. Besides being the biggest provider of pensions, it has significant shareholding in 9 of the 27 commercial banks -- including majority shareholding in a number of them. It also holds a substantial amount of deposits in the banking system.

In the capital market, it holds positions in 23 of the 35 companies listed on the stock exchange, and accounts for over 81 percent of local funds under management.

Additionally, SSNIT is a primary dealer in government securities and holds significant equity in two insurance companies, including the biggest, SIC.

For the financial system as a whole, the fund controls about 12 percent of total assets. As at December 2010, it held assets valued at GH¢2.74billion (US$1.88billion), representing 6 percent of Gross Domestic Product (GDP).

Analysts say most of SSNIT’s financial-sector investments have been highly rewarding, and as it attempts to reconfigure its holdings it faces a delicate task of creating the right balance of investments that guarantees returns so it can continue to achieve its mandate as trustee of pensions.

In the past, the fund has often been criticised for venturing into failed investments, and for running a bloated and expensive bureaucracy. But it has also had much success in several ventures, and has been able, generally, to meet its obligations to pensioners.

In the government’s new pension law, the burden of pensions-management will be shared by SSNIT with private fund-managers, while workers could take advantage of a third tier under the new scheme to build up their own savings.

This new arrangement is intended to broaden risk-sharing, and improve benefits that accrue to pensioners.

Source: B&FT

Tullow, Kosmos discover more oil

2011-10-03T03:12:00.000-07:00

Tullow Oil plc and Kosmos Energy say that the Enyenra-3A appraisal well, in the Deepwater Tano licence, has successfully encountered oil in high-quality sandstone reservoirs.

Pressure data indicate that the Enyenra-3A well has confirmed an up-dip extension of the Enyenra oil field.

Located 6.5km north of the Owo-1 discovery well and 14km north of Enyenra-2A, the well was drilled to test the up-dip extent of the Enyenra oil field. Results of drilling, wireline logs, samples of reservoir fluids and pressure data show that Enyenra-3A has intersected 17 metres of 35o API net oil.

Pressure data confirm a continuous oil column of at least 365 metres and that the oil at Enyenra-3A is in static pressure communication with both the Owo-1 discovery well and the Enyenra-2A appraisal well.

The Deepwater Millennium drillship drilled Enyenra-3A to a total depth of 4,031 metres in water depths of 1,102 metres. On completion of drilling operations, prior to flow-testing the Enyenra field in late 2011, pressure gauges will be deployed in Enyenra-2A and Enyenra-3A to determine reservoir connectivity. The drillship will depart the Deepwater Tano block in late October, having recently been replaced by the Sedco Energy drillship.

The Sedco Energy will later drill the Enyenra-4A well to further appraise the downdip extent of the field. The well will be located 6.8km south of Enyenra-2A and over 20km downdip from the Enyenra-3A well and a result is expected at the end of the year. The Enyenra-5A well also is then likely to be drilled north of Enyenra-3A to test the ultimate updip extent of the field.

Tullow (49.95%) operates the Deepwater Tano licence and is partnered by Kosmos Energy (18%), Anadarko Petroleum (18%), Sabre Oil & Gas (4.05%) and the Ghana National Petroleum Corporation (GNPC) (10% carried interest).

China hits back

2011-10-03T03:06:00.000-07:00

It is entirely the duty of Ghanaian authorities to regulate trade and check the illegal activities of foreigners who do business in the country, Chinese officials have said in a response to complaints of malpractices by their nationals in the local trading sector.

Among the charges, Chinese traders and businesspeople have been accused of illegal mining activities, pirating local textile-designs, and venturing into the retail sector which by law is a preserve of indigenous entrepreneurs.

Chinese employers have also often been cited for their disregard for workers’ rights, with some reported incidents of inhuman treatment of local labour in their employ.

But in a response, the Commercial Counsellor of the Department of West Asian & African Affairs at the Chinese Ministry of Commerce, Xie Yajing, stated: “It is your government’s responsibility to regulate trade. We, on our part, encourage our businesses to respect and abide by local laws and regulations.”

A lot of these companies are not state-owned enterprises but personal, private businesses, she said. While state-owned firms and other registered contractors doing business overseas are regulated by authorities in Beijing, her ministry is not fully aware of the overseas ventures of many private businesspeople, she claimed.

Though an increasingly important trade partner, China’s exports into Ghana have not always been welcomed. Local industries fret about cheap and sub-standard Chinese imports which have taken over their markets, and are gradually pushing them to the wall.

Xie Yajing defended the quality of products manufactured in China, noting that different standards apply in different export markets, which could explain why, for instance, a product that is rejected by the EU market may be permitted to enter Ghana or some other African country.

Franklin Cudjoe, an analyst with policy think-tank IMANI Ghana, agreed with the sentiments of the authorities in Beijing during an interview with the Business & Financial Times.

“I absolutely agree with them. You don’t blame foreigners for a lack of focus or proper regulation.

“If you look carefully at the mining sector, the only reason why the activities of so-called illegal miners have become significant is simply because there is a failure of regulation; and to the extent that we haven’t seriously looked at the laws regarding mining by ordinary individuals, it opens up the space to other nationals as well.

“The other crucial point on the issue of piracy is that we have not invested sufficiently in strengthening our copyright system. If the investments matched the technology that is needed, you wouldn’t have customs officials going after traders selling pirated products that consumers want to buy anyway.

“It is important for the Ghanaian authorities to have technology and software that allows them to crosscheck electronically in order to detect pirated materials at their points of entry.

“Also, the local textile industry is now a very expensive industry due to the cost of production. About 90% of ingredients in textile manufacturing are imported; therefore the combination of import and local taxes makes it difficult for local producers to meet the demand or compete with imports.”

Ms. Yajing recognised the lopsided nature of trade between China and Ghana, but said it is largely the outcome of both countries’ economic structures. Exports from Ghana comprise mainly primary resources like cocoa and minerals, while trade in the other direction is made up substantially of high-end manufactures like electronic products, machinery and ICT systems.

China intends to further boost bilateral trade and its cooperation with African countries, she said. Accordingly, it plans to assist some African countries to establish logistics centres that will serve as focal locations for the distribution of Chinese-manufactured goods to different markets in Africa.

Joyce Aryee retires

2011-10-03T03:04:00.000-07:00

After ten years of distinguished service to the mining industry, the Chief Executive Officer of the Chamber of Mines, Dr. Joyce Rosalind Aryee, is retiring to pursue mining and other related interests.

Dr. Aryee joined the Chamber as its first woman Chief Executive Officer in 2001 in an extremely demanding position which she has occupied with great success and distinction over the past decade.

Dr. Aryee has been instrumental in establishing critically important relationships with members of Government, Traditional Authorities, Civil Society Organisations, Media and Parliamentarians at a time when the industry was facing a lot of criticism from stakeholders.

She has been a champion of excellence and transformation of the Chamber, which is the main minerals industry association in Ghana. She played a key role in developing the current vision, mission, core values and objectives of the Chamber.

The odds were unfairly stacked against her, but with determination and persistence she rose to the occasion, laid the foundations and then played a leading role in the construction of the collaborative relationships that the industry currently enjoys with stakeholders.

According to the President of the Chamber of Mines, Mr. Dan Owiredu, “There have been many other efforts that have all brought considerable advantages and benefits to the mining industry.

“The one which I think is essential for me to highlight on this occasion, however, is the exceptional and sensitive leadership role that Auntie Joyce has played in transforming the Chamber of Mines.”

Adding that “Joyce has always been a champion of transformation and excellence, and what she has done at the Chamber has been accomplished in a manner that has enhanced the capacity of all of the Chamber’s employees to efficiently discharge the responsibilities that are expected of them by industry stakeholders.”

The Chamber’s mission, which Dr. Aryee helped shape, is to represent the mining industry in Ghana using the resources and capabilities of its Members to deliver services that address members, government and community needs in order to enhance sustainable development.

Under the guidance of Dr. Aryee, the Chamber of Mines has become a respected, effective and unified voice for the mining industry in Ghana as well as internationally.

Joyce has been instrumental in the development of a socially and environmentally responsible mining industry and will be sorely missed by the staff and members of the Chamber.

A new Chief Executive Officer to take over from Dr. Aryee will be announced soon. The appointment will ensure that the Chamber’s continued quest to position mining as a catalyst for local and national development is achieved.

Shell unveils “New Super Extra Fuel”

2011-10-03T03:03:00.000-07:00

Shell Ghana Limited has added to its stock of products with the launch of the “New Shell Super Extra Fuel” onto the Ghanaian market, aimed at increasing fuel performance while giving Ghanaian motorists extra kilometers at no cost.

The new product comes with a fuel-economy formula specifically designed to prevent engine corrosion in vehicles, protect valuable engine parts, and keep the engine clean against mileage-robbing deposits.

Managing Director of Shell Ghana, Mr. Omar Benson, said Shell is “committed to delivering better fuels around the world, and Shell scientists have been working to develop fuels to address motorists’ need for improved fuel economy, and also help them achieve value for money.”

He added that research from Shell scientists has shown that customers today want fuels that will take them further without having to pay more. This, he intimated, has led to the new product which when used with its Shell fuel tips can help reduce customers’ visits to the pump.

The “New Shell Super Extra” with fuel-economy formula contains a triple-action cleaning component, which helps to prevent the build-up of mileage-robbing deposits and supports vehicles to perform efficiently.

The new product with its “Shell Super Extra” slogan implies that it will be sold by Shell at the same price as the regular petrol on the Ghanaian market, intended to benefit motorists absolutely at no extra cost.

Mr. Benson reiterated the commitment of Shell in remaining a market leader through innovative products and services that meet specific demands of customers. This, he added, has led to ongoing upgrades of Shell service stations across the country.

He however said the “New Shell Super Extra” product should be differentiated from the V-Power product, since the former is designed to serve customers desirous of enjoying fuel economy benefits while the latter is a high-octane and high performance fuel designed for customers who want to experience superior performance of their vehicles.

“These huge investments in upgrading the service stations amply demonstrate Shell’s long-term commitment to developing this business in Ghana, and to continue exceeding the expectations of our cherished customers,” he noted.

Acting Chief Executive Officer of the National Petroleum Authority, Mr. Alex Mould, lauded the contributions of Shell Ghana in partnering government to ensure continuity in fuel supply throughout 2009, at a time when Tema Oil Refinery faced a serious challenge in fuel refinery for national supply.

He also commended Shell for assisting the National Petroleum Authority with constant information based on research of what is happening around the world, especially in the petroleum sector.

ECOWAS market bails out NTEs

2011-10-03T03:01:00.000-07:00

Ghana’s burgeoning non-traditional exports (NTEs) are diversifying more towards the West African and Maghreb markets this year, to offset imminent shortfalls in earnings from its main crisis-hit European market.

“Since Europe, which accounts for approximately 50 percent of our NTEs, is reeling under financial crisis, we have paid greater attention to the ECOWAS market which is the second-biggest market for our exports,” the Ghana Export Promotion Authority (GEPA) Chief Executive Mr. Kwadwo Owusu Agyeman told B&FT.

The NTE sector suffered a -9.38 percent dip in earnings in 2009 during the global economic downturn, when total earnings registered for that year came to US$1.215billion as against the 2008 earnings of US$1.340billion.

Mr. Agyeman, addressing the 72nd Exporters Forum in Accra, disclosed that last year the NTEs picked up, hitting record earnings of US$1.629 billion -- which represented an increase of 34.1 percent in value over 2009 and 24.6 percent over the 2008 total earnings.

“Now we are faced with a similar situation,” Owusu Agyeman said, but added that the Ghanaian fruits which account for a significant proportion of the exports to the European market are also increasingly popular in the Maghreb region.

“We have, since 2009, been organising trade fairs and other promotional activities to give Ghanaian products a presence in these two prospective target-markets.

“Part of the reason for the decline in export growth in 2009 was a drop in Ghana’s competitiveness due to increased cost of production and low production volumes.

These challenges are being addressed concurrently, thus accounting for the impressive performance in 2010,” Agyeman said.

Ghana’s NTEs grew from about US$777.59million in 2005 to US$1.629billion in 2010, representing an average annual growth rate of about 17 percent.

NTE percentage contribution to total exports in the period has averaged 28 percent. Data from the Bank of Ghana shows that over the period total national merchandise exports of the country have also shown positive growth.

Total national merchandise exports grew from US$2.76billion in 2005 to US$ 5.822billion in 2010, depicting an annual average growth rate of 18 percent.

Agyeman was optimistic about the outlook for the 2011 export performance, despite the challenges presented by the European market.

He observed that the NTE sector in 2010 exceeded the GEPA set target of US$1.45billion for the year by 12.3 percent.

A review of the NTE sector revealed that the sector is currently driven by value-added products with a very strong supply base, such as in cocoa and timber products.

“The full benefits of these value-added products have not been fully exploited yet, as more and more of the raw forms are being exported,” Agyeman said - adding that it is the long-term objective of government that value is added to these raw materials.

He said, in the short-term, expansion of exports must be focused on value-added industrial projects without supply problems.

To achieve long-term objectives, Agyeman noted investments must be directed towards potential productive sectors which could then move the country into more value-added exports.

“It is expected that the Export Development and Investment Fund (EDIF) will expand its credit facilities to exporters and export facilitating institutions to help carry out their activities to meet the target level of US$1.8billion set for year 2011,” Agyeman said.

Bank of Africa starts operations

2011-10-03T02:58:00.000-07:00

Bank of Africa-Ghana (BOA) intends to penetrate the country’s economy with its innovative service and strategic initiatives meant to optimise growth and stability, Mr. Kobby Andah, Managing Director Bank of Africa (BOA)-Ghana has said.

“The bank brings to the country’s financial sector its internationally renowned commitment to the development of every society it reaches.

“We are here to improve upon the existing offerings of Amalbank and to be a pacesetter in banking, and to be an exemplary archetype for our competitors.
“Our 3.5 billion euro balance sheet is an indication of our solid financial muscle, and this gives us the financial means to take more bigger syndicates to help grow the economy,” Mr. Andah told B&FT in an interview after a media briefing held in Accra.

Mr. Andah, making a presentation in Accra under the theme “A new milestone, a better partnership”, said: “Our agenda for the coming years will simply be to constantly commit ourselves to our mission of offering innovative and convenient financial solutions to meet the needs of our customers. With the benefit of the Group’s experience and support, the drive into Retail and SME markets will continue with even more passion.”

He indicated that more emphasis will continue to be placed on strategically expanding its branch network -- to serve the Retail and SME markets and facilitate cross-border trade within the West African sub-region.

Mr. Stephen Ata, Chairman of BOA-Ghana indicated that “Having an international scope but an African base affords the bank the ability to deal across several sectors and demographics, and also anticipate and understand customer needs so as to provide innovative but practical solutions.”

The BOA-Ghana was officially launched last week after it entered into an agreement with Amalgamated bank and acquired the majority of its shareholdings.

The celebratory occasion, with the unveiling of the newly-rebranded logo and a recount of what the Ghanaian community should expect from the Pan-African bank, was also slated to introduce the Group to Ghanaians -- not as the typecast ‘new bank’, but as a reformed and evolved structure operating with international credibility and hoping to make a difference in the community.

The Bank of Africa Group is a privately-owned, multinational financial service provider that has consistently impacted numerous African nations, with Ghana being the 15th addition.

Their aim of explicitly defining community banking in every endeavour is one that – judging from record - will certainly be fulfilled in the country.

Their value of establishing personal ties with clients and enriching their lives through various community projects has impacted many Africans in the 15 countries within which it operates.

Economy expands by 34.0%

2011-09-26T02:39:00.000-07:00

The country’s economy grew by an annual 34.0 percent in the second quarter of this year compared to the same period a year ago, the latest adjusted real Gross Domestic Product (GDP) figures show.

The growth rate, which is the highest since 2007, is due largely to exports of oil, and significant improvements in mining and quarrying recording 302.8 percent.
The government has forecast oil revenues of one billion dollars this year after commercial oil production began last December.

This, it expects, will help boost economic growth to around 13 percent this year, from 7.7 percent in 2010.

Oil output is nearing a peak of 120,000 barrels a day, with millions already exported to refineries in Europe.

Addressing a news conference in Accra, Government Statistician, Dr. Grace Bediako said: “The mining and quarrying growth was led by a strong growth reflected in the production of gold, oil and quarrying.

“Manufacturing growth was led by a strong growth in the manufacturing of wood, petroleum, chemicals, motor vehicles and furniture; and the growth in crops was led by increases in the production of cocoa.”

She added that quarter-on-quarter seasonally adjusted, the financial and insurance activities sub-sector of the services sector recorded the highest growth of 47.1 percent within the industry.

Crops and cocoa inclined 58.2 percent from 27.5 in the first quarter to lead the agricultural sector with forestry and logging, and fishing behind.

From the industry sector, mining and quarrying was 18.7 percent, ahead of manufacturing and utilities.
“No doubt the mining and quarrying sector, which includes oil, contributed heavily to the increase; oil is having a heavy impact on the country's growth.”

The Government Statistician said, judging by historical trends, growth will likely be stronger in the ensuing quarters of the year due to the strong performance of oil production together with revenue from gold and cocoa exports.

Data on the external sector also reveal improving indicators, according to the Bank of Ghana. Total merchandise exports increased by US$2.9billion to US$7.5billion in 2011, representing a growth of 62.3 percent over the same period of 2010.

The strong export growth was driven by gold, cocoa beans and crude oil. The total export of crude oil from January to July was 12.6 million barrels valued at US$1.4billion, while exports of gold and cocoa beans were US$2.8billion and US$1.5billion respectively.

Last year, real GDP growth was 7.7 percent, a strong rebound from four percent growth in 2009. The services sector was the main driver, growing by 9.8 percent.

Maritime trade surges

2011-09-26T02:37:00.000-07:00

The country’s total maritime trade for the second quarter of this year recorded 4.36 million metric tonnes, a surge of 18 percent, according to Ghana Shippers Authority figures obtained by Business and Financial Times.

This was made up of 3.13 million metric tonnes of imports representing 72 percent, while exports amounted to 1.23 million metric tonnes representing 28 percent during the period.

A comparison of the figures to the previous quarter’s performance showed an increase of 18 percent in the total trade.

The port of Tema handled 79 percent of the total trade while the port of Takoradi handled the remaining 21 percent for the period.

According to the Authority, total transit cargo (import and export) for the period was 189,085 metric tonnes at the two seaports, representing a 4 percent increase.
On the import side, the Authority said the total liner trade amounted to over 1.26 million metric tonnes for the review period. This was 16 percent more than what was recorded for the same period in 2010.

The dry-bulk trade for the review period also recorded 33 percent more than the tonnage recorded for the same period of 2010, while the liquid bulk trade saw a 5 percent decrease from the 2010 period.

The Authority indicated that major import items in the liner trade included pharmaceuticals and medical supplies (153,469 metric tonnes), lubricating oil (136,844 metric tonnes), and processed food and beverages (91,544 metric tonnes).

Regarding dry-bulk trade, import items included alumina (1.26 million metric tonnes), fertiliser (204,423 metric tonnes), coke (162,937 metric tonnes), cement (37,655 metric tonnes), and clinker (11,743 metric tonnes).

The major liquid-bulk import items were petroleum products (27,399 metric tonnes) and other liquid-bulk (967,477 metric tonnes).

During the period, the majority of imports into Ghana came from the Far East range, amounting to 959,012 metric tonnes. This was 31 percent of total imports.
The Africa range contributed the next highest tonnage, amounting to 699,633 metric tonnes or 22 percent of total imports.

This was followed by the North Continent range with 528,429 metric tonnes, representing 17 percent of total imports.

The other ranges made up of the countries of South America, Australia, Jamaica, Lebanon and New Zealand came next with 400,654 metric tonnes, amounting to 13 percent of total imports.

The North America, Mediterranean Europe and United Kingdom ranges followed in that order with 9 percent, 7 percent and 1 percent respectively.

The Authority explained that export trade recorded an increase of 30 percent in the liner tonnage, from 519,014 metric tonnes in the 2010 period to 672,774 metric tonnes in 2011.

The dry-bulk export trade recorded an increase of 18 percent. The liquid-bulk export trade showed significant increase, moving from 7,600 metric tonnes in the 2010 period to 71,543 metric tonnes. This was an increase of over 800 percent above the 2010 tonnage.

On indications of the direction of maritime export trade for the review period, the Authority said over 38 percent of the export trade -- amounting to 470,361 metric tonnes -- was shipped to the Far East range.

The North Continent range received 421,425 metric tonnes representing 34 percent, followed by the other ranges with 140,994 metric tonnes or 11 percent.

The Mediterranean Europe, Africa and United Kingdom ranges registered seven percent, five percent and three percent respectively. The North America range had the least at two percent for the period.

The Authority indicated that major liner export items included cashew nuts which contributed nearly 32 percent or 213,127 metric tonnes, while cocoa beans recorded 157,813 metric tonnes representing 23 percent of the total liner export trade.

Cocoa products contributed seven percent, while metal scrap recorded six percent with timber logs and sawn timber each recording five percent.

In the dry-bulk export trade, major export items were manganese, 83 percent (412,025 metric tonnes); bauxite, 11 percent (55,976 metric tonnes); and sheanut, about 4 percent (19,213 metric tonnes).

The liquid-bulk items were mostly petroleum products amounting to 38,306 tonnes or about 54 percent, and other liquid-bulks at 46 percent.

The Shippers Authority told B&FT that a total of 189,085 metric tonnes was recorded for the transit trade (export and import). This was 60 percent more than was recorded in 2010 for the same period.

The transit export tonnage recorded for the period amounted to 33,815 tonnes, or 18 percent of the total transit trade, while transit import amounted to 155,270 tonnes.

Major countries whose transit trade passed through the seaports of Ghana include Burkina Faso which recorded the highest share of the total transit trade, amounting to 125,012 tonnes and representing 66 percent.

This was followed by Mali with 18,239 tonnes representing 10 percent, while Togo registered 12,104 tonnes or 6.40 percent, Niger with 11,704 tonnes or 6.19 percent, and Ivory Coast with 11, 474 tonnes or 6.07 percent.

This increase was a reflection of 14 percent and 31 percent increases in the import and export tonnages for the review period. Total transit tonnage also increased, by 60 percent during the period.

Chamber of Mines, UN promote sustainable development

2011-09-26T02:34:00.000-07:00

The Ghana Chamber of Mines, in collaboration with United Nations Global Compact, has commissioned a study aimed at promoting sustainable development in the mining communities.

It is also targetted at prompting mining companies to pursue the right linkages between various elements of any alternative livelihood project development and help reduce communities’ economic dependence on the mines, making them self-sustaining after mine closure.

The study, dubbed ‘Integrated Alternative Livelihoods Framework for Mining Communities’, surveyed current alternative livelihood practices among selected mining companies in the country.

The study covered six thematic areas, including: developing local economy based on the presence of mining companies; promoting rural private sector by supporting micro, small to medium enterprises; and regulatory reforms on mining policies that would formalise and strengthen the corporate social responsibility agenda.

The rest are education and advocacy of alternative livelihood programmes by mining companies; monitoring and evaluation of alternative livelihood programmes; and marketing of alternative livelihood projects, goods and services.

It also solicited views of key stakeholders involved in delivering sustainable alternative livelihood programmes, and proposed a common framework for developing alternative livelihood projects in mining communities based on best international practices.

Dr. Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines, speaking at a validation workshop on the study in Accra, said the initiative underscored the Chamber’s quest to promote sustainable development in mining communities.

Dr. Aryee said: “The Chamber and the UN Global Compact sponsored this research to take a wider approach from previous alternative livelihood activities, rather than just considering how existing alternative livelihood systems could be harmonised.

“Available social data showed that it would be prudent for mining companies to select their alternative livelihood programmes based on a common framework, while staying within their own corporate requirements to achieve optimal results.”

Dr. Aryee said further: “We recommend that all stakeholders involved in the delivery of alternative livelihood programmes initiate an all-inclusive effort to reverse the escalating trend toward poor planning, design, implementation and monitoring of alternative livelihood programmes in the mining communities.”

Mr. Sam William Quaye, Director of SWQ Consulting Limited - one of the two firms undertaking the study on behalf of the Chamber and the UN Global Compact - said the proposed alternative livelihood framework focuses on core objectives at the community level relating to non-mining economic activities, land access management, quality of life and diversification of income generation, taking into account the various situations pertaining to individual mining companies.

The validation workshop was attended by representatives of stakeholders in the mining sector, including the Minerals Commission, Environmental Protection Agency, Lands Commission, UN Global Compact, the Chamber, mining companies, mining communities, and civil society.

The Tiguan: Overcoming boundaries

2011-09-26T02:22:00.000-07:00

Think differently, take a new approach, and overcome boundaries. Something that is often only talked about can now easily be put into action with the VW Tiguan. Ekow Essabra-Mensah writes.

The off-road capability of the Tiguan vehicle makes it a pleasure to drive off the beaten track now and again.

The Tiguan takes you everywhere you get no further with conventions. The Tiguan has everything you need to really get going. You therefore experience sheer driving enjoyment and a high level of traction, directional stability and safety.

With the optional 4MOTION permanent all-wheel drive system you are well prepared for every situation-as engine power is distributed to all four wheels in line with conditions.

For example, a sporty 6-speed manual gearbox or an up-to-date 7-speed dual clutch gearbox DSG: both have been optimized specially for the Tiguan and deliver a sporty driving experience and maximum ride comfort.

With its power and smooth running the Tiguan is able to enthuse you from the very first moment. In short: whatever you are planning, you will find the Tiguan a refined and adventurous companion.

The Tiguan ‘’Track & Field’’ is ideal for those who see the town as terrain. The self-assured off-road design of this model makes it clear from afar that it has been built to master off-road stretches and deliver maximum driving enjoyment to its occupants.

Those who prefer a more sporty, elegant version will appreciate the on-road design of the Tiguan. The stylish front and accents the ‘’Trend & Fun’’ and ‘’Sport & Style’’ equipment lines.

In addition, attention is focused here on an up-to-date sporty design. Yet however different the equipment lines are-they have one thing in common: their distinctive, powerful design makes an impression that no-one will forgive in a hurry.

Georgina Mensah, Marketing Manager of the Universal Motors Limited, the official dealers of VW cars in the country in an interview with the B&FT about the VW

Tiguan’s unique selling features revealed: “The new Tiguan offers more powerful and more economical engine – especially with regards to the petrol engines. It also has a better range of gearboxes with the 6-speed manual and the 6-speed automatic.

She added: “The new Tiguan performs impressively on all counts from its considerably more efficient engine and its hi-tech equipment features, like the new infotainment system with touch screen operation, to the panoramic sunroof.

“The vehicle is available in three equipment lines and, with a considerably large range of equipment options. It offers a far better choice of special accessories.”

Safety & Comfort

The highest awards in crash test are not a luxury for the Tiguan-they are standard. The innovative safety concept offers you occupant protection at the highest technical level. This includes further developed systems like an innovative airbag system and clearly visible turn signals. You can therefore with a clear conscience concentrate on the essentials: pure driving enjoyment.

Innovative safety concept. A well thought out airbag system consisting of front, curtain and side airbags offers optimal occupant protection in the event of an accident. When the airbags are triggered, the doors are unlocked, the harzard warning lights and interior lighting switched on and the fuel pump deactivated.

Thanks to this airbag system, and extremely robust body structure and many other safety features, the Tiguan attains 5 star for occupant protection which makes it one of the safest vehicles in its segment.

Equipment lines

Sheer driving enjoyment, a power pack or an athlete-you decide which Tiguan suite you best. You have the choice of three equipment lines: “Trend & Fun”, “Track & Field” and “Sport & Style”.

Each one has out of the ordinary features to offer-chromium-plated radiator grille, the off-road driving programme, or easy to operate cruise control. You can therefore be sure in each and every situation that your new travelling companion is just your type.

The Tiguan “Trend & Fun” stands for everything that adds up to driving enjoyment. A glance at the standard chromium-plated radiator grille will set your pulse racing, and the high quality materials including stainless steel look decorative inserts will make you eager to take hold of the elegant 3-spoke steering wheel and drive off.

The Tiguan “Trend & Fun” offers not only a high level of comfort but also perfect ergonomics. The compartment in the roof, the illuminated glove compartment, and bottle holders integrated in the stowage pockets on the doors are all within easy reach. The heated door mirrors also have convenient adjustment.

Your entertainment during the journey is assured by the radio system, and the air conditioner keeps the temperature at a pleasant level. After all, the driver’s well-being is also a standard feature of the Tiguan “Trend & Fun’’.

The Tiguan ‘’ Track & Field’’ is a real bundle of energy. The off-road design of the front end, the drive unit underride guard, and 16 inch alloy wheels make for a very self-assured appearance-as do black roof rails and colour-keyed side rubbing strips.

The intelligent off-road driving programme, tyre monitoring display and compass in the multifunction display will make it easy for you to realize your desire for freedom.

Yet however wild the exterior impression may be, the interior is all the more comfortable with a height-adjustable armrest and luxe seat at the front with lumbar support.

Its practical side is demonstrated by additional stowage space and a front passenger seat that can be folded down completely. Enjoy finding out for yourself that the Tiguan “ Track & Field’’ offers not only genuine off-road qualities but a great deal more besides.

The Tiguan ‘’Sport & Style’’-the equipment line of the Tiguan does justice to its name. You will be impressed by the sporty exterior designer even before you get in. In addition to refined designed and high-grade materials, many technical features await you inside.

Cruise control can be operated with ease from the elegant sports seats and as of 30 kph keeps the speed at the desired level. The multifunction display supplies important information during the journey, example, current consumption, driving time and average speed.

The sporty overall concept will make your heart beat a little faster every inch of the way. Which only goes to shows that a vehicle as elegant as this can be exciting as well.

Exterior

First impressions are decisive. With the Tiguan you can decide whether you create a stir with the optional panoramic sliding roof, show everyone else on the motorway your eye-catching tail lights, or light up the darkest corners with the bi-xenon head-lights available as an option.

Whichever you decide on, one thing is certain-you will not only impress others with the Tiguan but above all yourself.

The Panoramic sliding roof is three times as large as a normal sliding roof and therefore creates a completely new feeling of space. The front part of the roof can be adjusted in a number of different positions for individual ventilation settings.

There is an ergonomic switch in the roof to operate both the roof and adjust the integral blind which provides perfect light and heat protection.

Interior

The interior of the Tiguan lives up to the promise of the exterior appearance. High-quality materials, up to the minute design and a high level of functionality make sure that every journey is memorable.

GRA reforms gain traction

2011-09-26T02:19:00.000-07:00

Reforms at the Ghana Revenue Authority (GRA) have gained traction with the introduction of a new computerized system for administering domestic tax, the Total Revenue Integrated Processing System (TRIP), which will be rolled out in some piloted offices.

The TRIPS is an integrated revenue information system which will provide a platform for the administration of all domestic taxes under the e-Gov project.

As part of the reforms of the revenue administration, the GRA will be linked with the Registrar-General’s Department (RGD) electronically under the e-Gov. project to ensure that the GRA has access to the database of the RGD to access the details of registered businesses for easy tracking for tax purposes.

In connection with this, new Taxpayer Identification Numbers will be issued to registered businesses and individuals.

Anne Anipa, Public Relations Manager of the GRA speaking in Accra under the topic:

‘Enhancing Voluntary Compliance Through Rights and Obligations of Taxpayers’ said: “GRA’s integration is seriously on-course with the merger of the various revenue divisions.

“The key element of the reform process is the integration of the Domestic Tax Revenue Division (DTRD) offices, comprising the erstwhile Value Added Tax Service and the Internal Revenue Service (IRS), to enhance taxpayer convenience and also enable the staff to discharge their duties under the DTRD more effectively.

“This involves merging offices by co-locating staff of these erstwhile Revenue Agencies, movement of files of taxpayers, training of staff to perform on their schedules etc,” he said, adding that the Commission has identified nine offices within the Accra-Tema metropolis to serve as pilot sites for integration of DTRD offices.”

She said effective from the last quarter of 2011, the first pilot office on the Spintex road will be opened, while others at Adabraka, Tema, Agbogbloshie, among others will be opened towards the end of the year. The DTRD offices will also allow for the segmentation of taxpayers into large, medium and small.

Subsequently, other integrated offices will be rolled out in the Greater Accra region and countrywide.

She revealed that institutions with annual turnover of GH¢5 million and above as well as specialist industries, no matter the turnover, would be among the Large Taxpayers; with companies with turnover above GH¢90,000 but below GH¢5 million in the medium category, while the small taxpayers would include those with annual turnover of GH¢90,000 and below.

Meanwhile a staff team from the International Monetary Fund (IMF), led by Christina Daseking, commended the country’s tax reforms.

The team explained that the reforms which has impacted positively on the country’s fiscal performance during the first half of the year shows improvement in the tax revenue over the same period last year.

“A preliminary assessment of fiscal performance during the first half of the year shows strong improvements in tax revenues over the same period in 2010. It suggests that full-year fiscal targets are a chievable with continued control over expenditures.

The Authority recorded a 12.1 percent jump in half-year revenue for 2011 to GH¢3.9 billion, compared with GH¢3.5 billion for the same period last year.

The breakdown of the collection is as follows: Domestic Taxes (Direct Tax) recorded GH¢1.622.33 million, recording an excess of GH ¢150.17 million (10.2 percent). Indirect taxes recorded GH¢672.79 million, also showing an excess of ¢48.2million -- representing 7.7 percent.

Customs collection including petroleum also recorded GH¢ ¢1,633.93 million, an excess of GH¢ 224.56 -- representing 15.9 percent.

US$60m ‘One Airport Square’ project begins

2011-09-26T02:16:00.000-07:00

Actis, a leading private equity investor, and Laurus Development Partners have commenced a US$ 60 million ‘One Airport Square’ multi-storey project in Accra.

The project, expected to be completed in May 2013, will be designed to become the number one corporate address and the most environmentally friendly complex of its kind in the country.

The One Airport Square will house retail facilities, restaurants, bars and a landscaped plaza on the parking floor, office space above and parking in the basement.

The approximately 17, 000 sq metre area was designed by internationally - acclaimed Italian Architect Mario Cucinella , incorporating a very strong eco-friendly focus.

It will also bring along shops, services and jobs to the local community, boosting the supply chain both locally and nationally.

Hannah Tetteh, Minister for Trade and Industry, said the beautifully, designed, environmentally friendly building sets the standard for future developments in the country, and shows the world what the country can achieve.

“Government will support investors who can showcase the country internationally,” she said.

Mr. Alban Bagbin, Minister of Water Resources, Works and Housing, said the project has come at an opportune time when the nation is grappling with a number of challenges in the construction industry.

He said government is committed to contributing towards the attainment of a sustainable environment, adding construction of energy-efficient and environment- friendly buildings like the One Airport Square project are therefore highly commendable.

David Morley, Head of Real Estate at Actis said: “We are excited to break ground on a building which, when it is complete, could hold its own in Munich or Singapore. It will enable Ghanaians to work and relax in the heart of the city and follow in the footsteps of Accra Mall which Actis developed in 2006.”

The One Airport Square will be developed by a team of international and local experts in design, project- management, construction and leasing, said Carlo Matta, CEO at Laurus.

“One Airport Square is a great example of how mixing Ghanaian expertise and international best practices can achieve outstanding results. We hope this project will set a new standard in the Country's real estate industry,” Matta added.

60,000 computers for Ghanaian basic schools

2011-09-26T02:15:00.000-07:00

Government has officially launched the Basic School Computerisation Project, aimed at distributing over 60,000 computers to schools by the end of 2012.

The initiative is been implemented by the Ministry of Education in partnership with rlg Communications, forms part of the e-school policy that involves the use of ICT in teaching and learning at the basic education level.

Mrs. Betty Mould-Iddrisu, Minister of Education, launching the project in Accra under the theme: “ICT as a Tool for Development at the Basic Level Education,” said:

“Government is committed to providing ICT tool and equipment to facilitate learning in basic schools. In doing so, it is the determination of government to ensure that by the end of 2012 a good number of basic schools would have access to ICTs across the country.

“It is our hope that by end of 2013 Ghana will be competing with the likes of South Africa in terms of ICT in Education.”

She observed: “In this knowledge-based world, with a knowledge economy today we cannot afford to dey our children the opportunity to access the internet. Through ICT, Ghana can go a long way to compete with others countries.
“Indications are that services have exceeded training in the national economy- we need to maintain this in order to achieve the middle income bracket. Aggressive use of ICTs is a tool of development.”
She explained that to avoid the situation where the computers would remain on the shelves without being used, the Ministry and rlg communications had already started training teachers who would further teach the pupils about computer usage.

“There is an agreement with the management of rlg to provide after sales services to users of the products.”

Mrs Mould-Iddrisu expressed appreciation that the computers were assembled in Ghana by rlg for use by Ghanaians and particularly teachers and students, saying, “equipping teachers and children with the complexities of ICT were the surest ways to expose children to the larger world.

“ICTs excite and stimulate their minds and hopefully this will drive them to compete with young minds from elsewhere”.

Mrs Mould-Iddrisu revealed that the Ministry was collaborating with the Ministry of Energy to extend electricity to deprived schools that had no electricity supply to enable them have access and use their computers, under the project which would be extended to senior high and technical schools.

Mr. Roland Agambire, Chief Executive Officer of rlg Communications, said the company was happy for the opportunity to partner the Ministry to undertake such a laudable project to help pupils and teachers for effective teaching and learning.

He said: “I would be extremely excited to see you make good use of this gesture for your own personal development and subsequently the development of those you are training to become future leaders. rlg will always be available for any assistance in this regard”.

Mr. Agambire would offer discounted rates on their computers to all Ministers of State as well as offer credit and hire purchase scheme to teachers.

Gov’t considers agric financing options

2011-09-26T02:10:00.000-07:00

Government is collaborating with the banks to promote financing mechanisms and inventory financing such as the warehouse receipts system and commodity exchanges to expand investments in the agriculture sector, Minister of Food and Agriculture, Mr. Kwesi Ahwoi, has said.

Long-term financing, which is a priority if agribusiness must grow and become competitive, has been absent in an environment where government itself is looking for the same resources to tackle other priority areas, he said.

Plans have been disclosed to commence the establishment of a commodity exchange and to develop a regulated warehouse receipt system by 2012, to help assist farmers to gain easy access to ready markets - both locally and internationally.

The warehouse receipt system will enable producers and commercial entities to convert inventories of agricultural raw materials into a readily tradable item. Farmers can then access credit facilities by using their inventories as security.

Mr. Ahwoi made this disclosure in Accra at the Invest in Ghana Seminar, 2011, organised by the Ghana Investment Promotion Centre, under the topic, ‘Agriculture & Agribusiness: Utilising Synergies for Sustained Agricultural Development.’

He said the government is considering an agribusiness-led strategy, anchored on seven pillars, in order to modernise agriculture and make it more competitive and profitable.

The seven pillars, he enumerated, are enhancing agriculture productivity; upgrading and up-scaling value-chains; exploiting local, regional and international demand; strengthening technological effort and innovation capabilities; promoting effective and innovative financing; stimulating the private sector; and improving infrastructure and energy access.

He explained that an agribusiness-led strategy that focuses on these seven pillars will reveal the diverse actors that need to work together to achieve higher productivity, incomes and economic growth.

“An agribusiness-led strategy requires all actors in the food and agriculture supply chain to take the market as the main target of their businesses.

“The actors include equipment and machinery manufacturers, researchers for continuous development of improved technologies, producers, processors, traders, exporters, bankers, insurance brokers and policy makers who need to create the enabling policy environment for the businesses to flourish and experience sustainable growth.

“The Ministry is currently promoting the development of rice, soya, maize and chicken value- chains in addition to other works such as the Northern Rural Growth Programme, and the Marketing Project that are using the approach to increase productivity and market access.”

Mr. Ahwoi observed that the country’s new economic asset, oil, makes its more pressing for it to develop agriculture through agribuisness.

Doing this will prevent the likelihood of the country experiencing the Dutch disease, and also provide value-added foods and other products to meet the potential needs of high-income consumers.

“Local industry-players and financial institutions need to explore these opportunities and take advantage of them before external players take over the playing field.”

He urged players in the agriculture sector to redouble their efforts to ensure that they capture the emerging local, regional and international markets.

“We can do it if we all apply ourselves to the discipline of denying immediate gain and focusing on painstaking, gradual and consistent investments and improvements in the way we do business.

“We will need to intensify regulation and enforcement of rules, and will require effective market association in this direction,” Mr. Ahwoi stressed.

Mills: We’re ready for investors

2011-09-26T02:05:00.000-07:00

President John Evans Atta Mills says government is adopting measures to reform and improve the legal and regulatory framework for doing business in the country to attract and retain foreign direct investment, and contribute to economic development efforts.

The reforms, the President said, include strengthening of the financial sector, improving access to land, and streamlining the business registration and licensing systems.

“In line with the government’s interest in ensuring a conducive environment for investment, the Investment Code, which already offers attractive investment incentives, is being reviewed to make it even more inventor-friendly in order to enhance the business environment.

“Government is also reforming customs administration and taxation, as well as developing infrastructure and institutional reforms. We do appreciate the fact that this requires the adoption of measures that will enable us to be competitive as an investment destination.”

President Mills said this to the investor community, international business executives and government officials as well as entrepreneurs in a speech read on his behalf at this year’s GIPC Invest in Ghana seminar, which was aimed at providing an opportunity for useful exchanges between Ghanaian and foreign investors.

Already, initial reforms undertaken by the government are yielding the necessary results, he said.

According to the country’s lead investment promoters, the Ghana Investment Promotion Centre, investments into the economy continue to grow year after year, creating useful partnerships, skills transfer and creating jobs.

GIPC figures show the total number of projects registered for the first half of 2011 was 236, with a total estimated value of US$978.74 million (GH¢1.47 billion). 213 projects were registered for the corresponding half of 2010 with a total estimated value of US$850.84 million (GH¢1.19 billion).

The total initial capital transfers amounted to US$165.93 million (GH¢248.90 million) for the period under review, while transfers in the corresponding half-year of 2010 amounted to GH¢42.50 million (US$30.36 million).

Of the 236 registered projects, 137 were wholly-owned foreign enterprises and 99 were joint ventures between Ghanaians and foreign partners.

The joint-venture projects were valued at US$635.96 million (GH¢953.94 million), and the wholly-owned foreign enterprises were valued at US$342.77 million (GH¢514.16 million).

The FDI component of the estimated value of projects registered during the first half of the year amounted to US$904.04 million (GH¢1.36 billion), and the local currency component amounted to US$74.68 million (GH¢112.03 million).

For the corresponding period in 2010, the FDI component of the estimated value of projects registered amounted to US$760.68 million (GH¢1.06 billion), and the local currency component amounted to US$90.16 million (GH¢126.23 million.

A total of 14,412 jobs are expected to be created by the registered projects from the first half of 2011. 13,170 of the total jobs to be created will be for Ghanaians and the remaining 1,242 will be for expatriates.

The GIPC seminar was also meant to link Ghanaian enterprises with foreign partners who have the potential to provide the required collaboration for economic growth to enable the county prosper in the emerging global economy of the 21st century.

Speaking under the topic, ‘Partnerships for Sustainable Economic Growth: The Role of the Domestic Investor,’ the President said: “I am aware that investors easily shy away from countries whose legal systems are not protective of investments.

“The country has signed bilateral Investment Promotion and Protection Agreements and Double Taxation Agreements with quite a few countries to provide further security for investors.”

He explained that government has sought to further deepen the democratic culture, encourage the smooth development of new democratic institutions and adhere strictly to the rule of law.

“This is because of our avowed belief in good governance as a sine qua non for the creation of an enabling environment for business and for rapid and sustainable development.

Mr. George Aboagye, Chief Executive Officer of the GIPC said: “Government recognises the private sector as a very important partner for national development and has implemented policies that are directed at ensuring that the private sector grows.”

Some of these policies are aimed at strengthening the framework for doing business to ensure that it is able to contain the growth of the private sector.

He revealed that the GIPC Act 478, which is currently under review, will see the Ghanaian private sector being empowered to enable it to contribute effectively to national development.

“The Centre as part of its efforts to promote investments into the economy has been engaged in both international and domestic investment drives.

“The GIPC, whose mandate is to encourage, promote facilitate and coordinate investments in the Ghanaian economy, sees the role of the private sector as very crucial at this stage of national development.

“The Centre has sought to engage the private sector, through undertaking outreach programmes to sensitise them on the functions of the Centre and the assistance that the GIPC can offer local investors. These sensitisation programmes have also enabled us to dispel the notion that the GIPC caters for only foreign investors,” Mr. Aboagye said.

PBC tops them all as..... Auto Parts, ELAC impress

2011-09-19T06:52:00.000-07:00

The country’s largest-buyer of cocoa beans, Produce Buying Company (PBC), has been ranked number-one in Ghana, up from the 34th position last year in the Ghana Club 100 rankings.

PBC scored first with weighted average of 7.90 %, and fourth with its 2010 turnover figure of GH¢ 632,902,845, toppling Toyota Ghana on the country’s corporate excellence performance ranking.

Auto Plaza Limited, Enterprise Life Assurance Company Limited, Intercontinental Bank Ghana took the second, third and fourth position respectively.

Auto Plaza Limited was able to maintain the second position it enjoyed last year, while Toyota Ghana Company Limited which was first in the 2009 ranking dropped to 16th position.

The Club 100 rankings in its 11th edition showed interesting results, with the financial services sector showing a remarkable performance by dominating the top-20 ranked companies.

The Trust Bank Ghana Limited, Danadams Pharmaceuticals Industry Limited and GT Bank as well as Ecobank Ghana Limited, Gold Fields Ghana Limited and Zenith Bank occupied the fifth to 10th position respectively.

The Trust Bank Ghana Limited moved from the seventh position last year to fifth position in 2010. GT Bank, the new entrant placed at seventh position.

Wienco Ghana Limited, IPMC, and Scancom Limited maintained leadership in their respective sector rankings.

The top-three largest companies in the 2010 rankings – Gold Fields Ghana Limited, Scancom Limited and Total Petroleum Ghana Limited, were not among the top-five ranked companies.

The Ghana Club 100 is an annual award designed by the Ghana Investment Promotion Centre (GIPC) to identify and award the country’s best 100 companies with the objective of developing an open information culture within the Ghanaian corporate sector, and also provide incentives for improved corporate performance.

It is as well to develop uniform criteria for evaluating corporate performance which would establish an annual and current analysis of the country’s corporate sector.

The Ghana Club 100 ranking is tabulated with this year’s rankings calculated on the companies’ size (25%), profitability (35%), and growth (40%).

Government commitment

The Vice President, John Dramani Mahama, in a speech read on his behalf said: “Government will continue to put in place strategic measures which seek to remove bottlenecks to the sector’s growth and build the confidence of operators.

“These measures will include initiatives that are aimed the reducing the cost of doing business, attracting investors, and also equipping our youth with the critical skills and knowledge required in the various sectors of the economy.”

He assured the private sector community of government’s unwavering commitment to the adoption and implementation of sound economic and macroeconomic policies aimed at improving the Ghanaian economy and promoting an enabling environment for doing business in the country.

He added that the economy continues to experience robust economic expansion in 2010, with a real GDP growth rate of 7.7percent following a relatively low rate of 44 percent in 2009.

This achievement, he said, was made amidst the uncertainties in the global economy which was characterised by volatility in the commodity price, slow recovery in the United States, stagnation in Japan, and the continuing sovereign debt crisis in the euro-zone resulting in major bail-out measures implemented in some countries.

“All key economic indicators are signal to an increasing pace of economic activities in the economy in 2011 compared to the same period in 2010.

“The fact that Ghana continues to attract tremendous amount of FDI - with the local business community as the first and ultimate point of contact for foreign investors - is a sure of sign of the increasing faith being generated in the Ghanaian economy as a whole and our private sector in particular.

“The crucial role of the private sector in the development of a country will always be recognized, and as a result, the sector will continue to receive priority attention of government,” he said.

Mr. George Aboagye, Chief Executive Office, GIPC, said: “The Centre will continue to recognise the role of the private sector in the developmental agenda of the country, and will acknowledge the sector’s contributions and efforts in nation-building.

“As Ghana continues to position itself as Africa’s gateway to a safe and secure destination for investors across the globe, we will need to further encourage the private sector to endeavor to conform to best business practices that are internationally accepted,” he said.

Mr. Aboagye observed that with the aggressive investment promotion activities and improved economic conditions, foreign direct investment to the country rose significantly.

The total number of projects registered for the first half of 2011 was 236, with a total estimated value of US$978.74million (GH¢1.47billion). 213 projects were registered for the corresponding half of 2010 with a total estimated value of US$850.84million (GH¢1.19billion).

The total initial capital transfers amounted to US$165.93million (GH¢248.90million) for the period under review, while transfers in the corresponding half-year of 2010 amounted to GH¢42.50million (US$30.36million).

Of the 236 registered projects, 137 were wholly-owned foreign enterprises and 99 were joint ventures between Ghanaians and foreign partners.

Top-10 Ghana Club 100 Rankings
Ranking Company Name

1 Produce Buying Company (PBC)
2 Auto Plaza Limited
3 Enterprise Life Assurance and Company limited
4 The Intercontinental Bank Ghana Limited
5 The Trust Bank (TTB)
6 Danadams Pharmaceuticals Industry Limited
7 GT Bank
8 Ecobank Ghana Limited
9 Goldfield Ghana Limited
10 Zenith Bank

Cargill to reverse fortune of sugar production

2011-09-19T06:46:00.000-07:00

U.S. agribusiness giant Cargill Inc. says it is eager to expand its sugar operations in the country, hopefully by next year, to revive the sugar sector.

The firm intends to execute a US$100million sugar refinery plant with an initial capacity of 450,000 tonnes.

“We are excited to be making a contribution to Ghana's growing economy. We willincorporate some of the latest technology to ensure Ghanaian sugar-cane is processed to the highest standards.

“Ghana provides a sustainable conducive environment, and we want to operate here -- a very good market to be in for the long-term,” Jonathan Drake, President and Business and Unit Leader, Cargill Sugar, told Business and Financial Times in an interview in Accra.

Already, Cargill operates a 65,000 metric tonnes capacity cocoa processing plant in the eastern port of Tema, and has the potential to expand the capacity to 120,000 tonnes.

The facility - fully operational since 2008 - directly employs over 400 people (including permanent and contract staff) and indirectly employs many more, supporting Ghana’s economy.

“We aim to make Ghana a major sugar exporter and improve conditions in non-urban areas, especially where agriculture is prominent," said Drake.

Cargill trades raw sugar in bulk, white sugar in bags/containers, and ethanol from offices located in Geneva, Hong Kong, Minneapolis, Minnesota and Amsterdam.

The company originate sugar from the world’s leading sugar producing countries including Brazil, where it co-owns and operates a major sugar-export terminal.

Ghana is seen as one of the most political stable and business-friendly environments in Africa, but its sugar sector is virtually nonexistent -- although the Mills administration says it is determined to promote agro-processing in order to accelerate modernisation of agriculture and create over 300 projects by 2013.

The country’s two major sugar factories located at Asutsuare and Komenda collapsed after the overthrow of Ghana’s first President, Kwame Nkrumah, more than four decades ago.

Currently the 9th-largest importer of sugar in the world, the country spends about US$500million annually to import 300,000 metric tonnes of sugar.
Available data indicate that the country imported more than 450,000 metric tonnes through the port of Tema in 2010.

“We’ve had a number of discussions with Cargill, and we are facilitating all the necessary permits and other formalities for the establishment of the plant,” Kofi Sakyiama Antiri, Acting Director, Research and Investment Development at GIPC told B&FT.

“We have submitted their proposal to government, but there are number of issues that border on domestic interventions, which we believe government will work on.”
He noted that Cargill’s intention to set-up a sugar-refining plant in the country is a laudable move, adding that it will save the country a lot of foreign exchange in importing sugar and also create jobs.

Industry analysts say demand for sugar is rising at the rate of 2.3 percent annually, creating a huge local and regional market for potential investors.
Pharmaceutical and beverage industries are other potential markets for sugar and its by-products.

“We capable of meeting the demand in Ghana, and create opportunities for local cane farmers to sell their produce,” Drake said.

Drake noted that rural development provides Cargill with reliable partners to help its customers succeed.

For instance, he said, higher crop-yields and quality help ensure a dependable supply of inputs for our processing facilities.

“We’ve the right programmes and pricing mechanism that motivate the farmers to produce to meet our standard -- we will continue to invest in Ghana,” said Drake.

Postal and Courier operators meet

2011-09-19T06:45:00.000-07:00

The Postal and Courier Services Regulatory Commission (PCSRC) has held its 4th Annual Stakeholders forum in Accra under the theme “Empowering the Postal and Courier operators for efficient service delivery”.

The PCSRC is the regulator for the postal and courier sector in Ghana, and it is a statutory body created by Act of parliament – the Postal and Courier Services Regulatory Commission A ct, 2003 (Act 649).

The chairman of the Board of the Commissioners of the PCSRC, Osabarima Ansah Sasraku, stated that the objective of this forum is to generate and share ideas to improve services provided by the postal and courier industry.

“This forum is part of a consultative process by the commission to ensure all views are carried on board, question answered and solutions found to address the challenges faced by you the operators in both the postal and courier sector while making sure that the interest of the consumer is equally addressed,” he added.

He announced that as at 31st August this year the commission had registered seven new private courier firms, and this brings to seventy the number of registered postal/courier firms. This includes Ghana post which remains the designated National Postal Service Provider.

“The increase in number of registered operators is as a result of a vigorous exercise by the commission to ensure that illegal operators are weeded out,” he continued.

He therefore renewed the commission’s earlier warning of stiffer sanctions against any persons, individuals or institutions operating a courier business in any part of the country without licence.

“We will continue to engage the police to clamp down on all illegal operators. Such activities do not only constitute punishable offences under Act 649; they also deprive the state of substantial revenue,” he cautioned.

The commission will soon launch an aggressive public education and awareness programme to ensure the existence and functions of the commission are well-known by all Ghanaians, especially business people who desire to venture into the postal and courier arena.

Osabarima Ansah said that the post remains the only cost-effective and easily accessible means of communications, particularly, for people living in rural areas; and that is why this commission is working assiduously with government to ensure the country has a vibrant and efficient postal service.

Mr. Emmanuel J. K. Arthur, Public Relations &consumer Affairs Manager, PCSRC, said the commission plans to create three zonal offices in Kumasi, Takrodi and Tamale to assist prospective operators to secure forms and submit them to the head offices.

Mr. Arthur said PCSRC is in the process of developing a website for the commission and is doing so in collaboration with the National Information Technology Authority (NATA).

The PCSRC licences and regulates postal and courier operations, and protects licenced operators and consumers from the unfair conduct of unlicenced/inefficient operators with regard to quality of postal services.

Temenos upgrades bankers’ skills

2011-09-19T06:44:00.001-07:00

Temenos, a banking software development company, has organised a forum to upgrade the skills of bankers in the use of its software in their operations.

The forum, held in Accra, was under the theme “Achieving World-Class Banking Efficiency and Services Delivery”.

It was meant to bring together customers who are already using the software and share with them some of the new innovative products.

Over 150 participants from the banking industry attended the forum. Discussions at the forum focused on products such as T24 Upgrade features, mobile banking, treasure trader, inverter solution, ARC mobile and many more.

He indicated what T24 does is that it handles all financial systems of banks when is come to money transfer, electronic alert (e-alert), depositing, withdrawal as well as any other banking financial product.

He said that in order to improve upon their software effectively, Temenos spent about 20% of their annual revenue on research and development alone.

“For the past five years, we have been able to spent US$500million on research and development,” he added.

The company has offices in 65 countries of the world, with about 1,200 banks using the Temenos T24 product. In Ghana about 10 banks are currently using the product, including CAL Bank as well as some rural banks in the country.

Ralph Talbi, Temenos Client Relationship for West Africa, said Temenos products such as T24 enables the bank to run its bank statement effectively.

He explained that Temenos is a banking software specialist, with its award-winning T24 core banking platform at the heart of its solution portfolio. Their consistently high annual investment in research and development enables it to constantly invest in new technology, functionality and in meeting new regulatory requirements - allowing them to deliver products that are consistently ‘state of the art’.

He expressed concern that the company is committed to open standards and working in partnership with the industry leading hardware, database and middleware solution providers to ensure that its software is available on and optimised for a wider range of technology platforms than any other core banking vendor.

“We believe that the open architecture approach and leaving the choice of platform to their customers enables clients to achieve the lowest total cost of ownership and to leverage existing skills, investments or vendor relationships in order to achieve the highest possible return on investment,” he stated.

VW Amarok breaks new grounds

2011-09-12T14:50:00.000-07:00

The VW Amarok, a vehicle which unites cross-country mobility, flexibility and efficiency like no other pickup does on almost all terrains. Ekow Essabra-Mensah looks at its attributes.

When others reach their limits, the Amarok, a mid-size pickup truck built by Volkswagen Commercial Vehicles (VWCV) makes it way without compromise.

The Amarok range consists of single cab and double cab, combined with either rear-wheel drive or 4motion four-wheel drive, and is powered by Turbocharged Direct Injection (TDI) diesel engines.

The VW Amarok unites cross-country mobility, flexibility and efficiency like no other pickup leveraging on its optional 4 Motion all- wheel drive for traction on almost all terrains.

Thanks to the broadest loaded crosswise and its powerful 2.0litre TDI Biturbo engine, which set new standards in terms of fuel economy. And , last but not the least, its robust ladder frame chassis, which offers a high level of stability during even the toughest assignments.

The Amarok breaks new grounds on conventional roads as well: with its high-quality interior and driving characteristics that leave nothing to be desired, it also set a whole new standard in terms of comfort and dynamics.

Even the toughest challenges are easy assignment for the Amarok: It has been designed to consistently provide high resilience and functionality- from the broadest load area in its category to the comfortable seats in a sturdy anthracite spacer fabric. The Amarok offers that little bit extra at all times-particularly in terms of its passenger’s compartment space.

Look forward to generously laid out leg and head room, which remains unequalled in this category. And your tools and small objects have also been taken into consideration: lots of practical storage trays provide ample space to store everything in an orderly manner.
The pickup with certain extras

Georgina Mensah, Marketing Manager of the Universal Motors Limited in an interview with B&FT explained: “The Amarok has particularly dynamic appearance with its numerous optical highlights such as the colourkeyed front bumper and door handles. The rear bumper is kept in black for a distinctive look.

“Another classy and attractive touch is added by the 16 alloy wheels, which literally round off the design. Inside the passenger compartment, the seats are upholstered with the fabric.

“A centre armrest provides added comfort. Particularly practical: small items can be stored in drawers under the front seats. It has the driving comfort of saloon cars and can be used for both work and pleasure.”

Exterior and Wheels

The design of the Amarok is not only functional but extremely striking, too: you’ll recognise the typical Volkswagen face with its distinctive front headlights from afar. The flared wheelhouses, which are standard on the Amarok highline, underline its powerful character and the eye-catching rear lights perfectly round off the vehicle’s strong look.
There’s no question about it, this design clearly conveys pure determination.

The load area

The Amarok boast of its loading width of 1,222mm between the wheel housings, the Amarok can even transport task crosswise –unthinkable for most pickups. The entire load area is used in an optimum manner.

There are four lashing eyes to ensure that the load is secured correctly so that everything stays in place. And the sturdy tailboard can be used as a practical extension of the load area. It heavy duty leaf springs have been specially designed for off-road assignments and allow a payload of up to one tone.

The load platform illumination lights up the load platform so that users can even load the vehicle in the dark. Additionally, a third brake light is integrated in the load platform illumination.

The styling bar-actually depicts the characteristic traits of a pickup. The solid tubing has a diameter of 76 mm and is available in polished stainless steel or in black. The styling bar does not interfere with the load volume as it is mounted on the loading sill.

Interior

However tough a work assignment may be, nothing will shake you in the Amarok. The comfortable interior has equipment that you would only expect to find in a passenger vehicle. From the optional leather upholstery to the clearly laid out dashboard, the passenger compartment has been designed to make you feel comfortable. Particularly the generous amount of head and leg room provides you with plenty of space for enjoyment.

Safety and comfort

The Amarok smoothly copes with difficult terrain-thanks to numerous safety systems and comfort features.

Anti-lock Braking System (ABS).If a wheel is in danger of locking, the system immediately intervenes by reducing the brakes pressure in a controlled manner. This helps to keep the Amarok fully steerable when braking hard.

The Off-road ABS. In addition to the standard ABS, Off-road is available for the Amarok. It has been specifically developed for use on difficult terrain. As soon as the Off-road ABS function has been activated-by pressing a button- the braking interval is increased.

The wheels lock up in a controlled manner so that small wedges of material from the ground such as gravel or sand build up in front of each wheel. This can substantially reduce the stopping distance of the vehicle.

The Electronic Stabilisation Programme (ESP) helps prevent the vehicle from swerving. In order to respond to critical driving conditions, the system evaluates data provided by a network of sensors.

It can, for example recognise what direction the driver is steering in and what direction the vehicle is moving in- and it is also informed on the load situation. It can build up brake force to offer directional stability when needed. At the same time, ESP is syschronised with the ABS functions and also remains activated with shiftable 4MOTION all-wheel drive.

The Hill Start and Hill Descent Assist: This system, which is only available in conjunction with ESP, prevents the Amarok from rolling backwards on an uphill incline and increases braking pressure on downhill slopes.

The airbags: You have a choice of three different airbag equipment lines: It has an airbag for the driver to cushion the head and body. The passenger’s side can also be equipped with an airbag as an option. For even more protection, there is a package with combined head/thorax airbags in addition to the airbags for the driver and front passenger. These inflate is a heavy side-impact collision and lower the risk of injury to the ribcage.

Emergency stop signal: In the event of an emergency stop at 50 kph or above, the brake lights start flashing. If the vehicle comes to a standstill, the hazard warning lights are activated and will automatically switch off as soon as you reach a speed of 10kph when you resume driving.

Multimedia

The Amarok offers a variety of attractive sound experience: the radio systems provide great entertainment for the entire passenger compartment with up to six loudspeakers. And to ensure that your journey is not only comfortable but also safe, the multi-function display supplies you with important vehicle data.

The Radio Plus with an MP3 compatible CD drive and climatic air conditioning system to automatically regulate the temperature inside the vehicle are available as standard to ensure your well-being of course, you can also let in a refreshing breath of air by opening the electronic windows with the push of a button.

Now nothing will stand in the way of an exciting and yet relaxing drive. The Amarok is being sold for US$28,400 as the starting price.

The name Amarok which means Wolf in the Inuit language was developed and researched by branding agency Interbrand on request from Volkswagen. VW considers the Toyota Hilux, Nissan Navara and Mitsubishi Triton to be Amarok competitors.

US$3b required to improve Ghana's energy sector

2011-09-12T14:47:00.000-07:00

Alfred Ofosu Ahenkorah, Executive Secretary of the Energy Commission, says the country requires US$ 3 billion to improve the energy sector.

“The country is faced with a broad challenge of lack of regulations, institutional framework and incentives for investment. The sector is under-capitalised.

“The nation is faced with multi-faceted challenges to get the energy sector into proper shape for efficient delivery throughout the country.”

The country currently produces approximately 2000 megawatt of power and expects to generate 5000 megawatt by 2015.

Mr. Ahenkorah dropped this hint at a three-day capacity building exchange programme for Director-Generals of the West African Power Pool (WAPP) members, aimed at proposing strategic reforms and finding ways of making real progress in the various countries.

“Over the years, the distribution sector has not seen massive investment. The system has been saddled with over-aged and obsolete equipment, overloads, high losses, low voltages and evacuation constraints among others,” he said.

Kwaku Awotwi, Chief Executive Officer, Volta River Authority, indicated that Ghana has been at the forefront of WAPP, focusing on reforms.

Amadou Diallo, Secretary General, WAPP, explained that the drive towards obtaining a fully operational regional network is dependent on the successes of individual national systems, and as such this has being the objective of WAPP-- to push for excellent cooperation between member utilities to enable countries share and learn from challenges and success stories.

He indicated that power-sector reforms have offered viable options for response to challenges faced in the power industry, and these have invariably catalysed the growth of the sector.

He observed that Ghana and Nigeria have in the last years successfully carried out reforms in the power sectors, unbundling key major utilities into various units in order to derive the maximum benefits therein.

“As other sister utilities have embarked on the journey to reform their electricity sub-sectors, and others consider following these steps, this exchange programme offers us the chance to interact on the opportunities and challenges uphill,” Diallo remarked.

Meanwhile concerns have been raised that leaders need to end the routine electricity blackouts occurring in almost all West African countries.

In West Africa, the bulk of power plants and transmission facilities were built in the 1950s and 1960s. Little investment and maintenance has left the infrastructure creaking at the seams. Nigeria, a prime example, operates at one-third of its installed capacity due to aging equipment.

ECOWAS estimates that 5,600 kilometres (km) of electricity lines connecting segments of national grids will be put in place.

About US$11.8 billion will be needed for the necessary power lines and new generating plants. This infrastructure would provide the ECOWAS sub-region an installed capacity of 10,000 megawatts (mw).

Under the WAPP agreement, countries hope to develop energy production facilities and interconnect their respective electricity grids.

The major sources of electricity under the power pool would be hydroelectricity and gas to fuel thermal stations. Hydropower would be mainly generated on the Niger (Nigeria), Volta (Ghana), Bafing (Mali), and Bandama (Côte d'Ivoire) rivers.

Assistance from donor governments is critical. Some donors willing to finance ECOWAS's WAPP project include the Agence Française de Développement, World Bank, European Investment Bank, West African Development Bank and the Nordic Fund.

‘Abandon interim EPA’

2011-09-12T14:41:00.000-07:00

Signing of the Economic Partnership Agreement (EPA) will permanently lock the country’s economy deeper into a primary commodity-dependence trap and derail harmonisation of regional integration, civil society organisations have cautioned.

Ghana initialled a separate Interim EPA with the European Union (EU) four years ago, ostensibly to end uncertainty and protect a very small group of exporters who depend almost exclusively on the EU market -- as their products would have attracted additional tariffs upon expiration, in December 2007, of the preference regime for some Ghanaian and Africa, Caribbean and Pacific (ACP) exports.

The IEPA is explained as a temporary measure meant to alleviate specific issues of countries such as Cote d’Ivoire, Nigeria and Ghana, pending harmonisation and completion at the ECOWAS level.

“The interim EPA is onerous and indeed inimical to the country’s development and to the region, yet government is threatening to make it a permanent agreement.

“The IEPA, as an additional trade regime, will further fragment and eventually derail harmonisation of West Africa’s regional position and integration,” Mr. Gyekye Tanoh, Head of Economic Unit, Third World Network (TWN), said at a media forum in Accra.

The forum comes ahead of the Economic Community of West African States (ECOWAS) Ministerial Monitoring Committee (MMC) meeting on EPAs scheduled for Accra next month. The MMC is the highest EPA authority for ECOWAS and its member-states.

The IEPA grants the country export margins into the EU market including full duty-free access, with the country earning approximately €240 million annually from such exports.
Among export commodities eligible under the EPA agreement are pineapples, frozen foods and canned tuna.

According to Mr. Tanoh, the country’s continuous use of an IEPA is a threat to repositioning of the national economy and to regional integration in the ECOWAS bloc.

“The EPAs will not promote industrialisation and structural transformation of African economies, but will lock the economy deeper into a primary commodity-dependence trap.”

Mr. Tanoh proposed that government should explain how the EPAs will help rather than hinder its new industrial policy and the country’s industrialisation imperatives. It must also explain how its own IEPA will help the harmonisation of ECOWAS integration.

“We therefore urge government to reject the IEPAs and join the ECOWAS harmonisation and integration process as the country’s current approach has introduced confusion in these regional EPA processes.

“Ghana’s current stance further threatens to introduce multiple trade regimes in West Africa, a very dangerous step.

“Ghana’s position is also holding to ransom the country’s economy and the much larger Ghanaian exporting community that is less dependent on the European Union (EU) market.

“The IEPA remains a Trojan horse as it will make it easier for the overall EPA process to override as well as block progress towards West Africa’s regional efforts to develop coherent common tariff regimes that provide sufficient developmental space.”

He explained that the EU’s demands and pressure in areas that go beyond tariffs and World Trade Organisation (WTO) commitments – such as financial services, public procurement, investment, health, raw Materials and natural resources - pose even greater threats and are of more strategic importance to Africa’s economic transformation, industrialisation and overall development.

“Our contention is that the IEPA must be abandoned. It is a threat to the repositioning of the national economy and to regional integration in ECOWAS. We urge the government to do so at the MMC meeting it will host in September.

“We also call on the government to expeditiously clear up this damaging uncertainty whose most tangible manifestation is the treacherous existence of the country’s IEPA alongside the regional ECOWAS EPA position and process.”

Dr. David Pessey, Consultant, Ghana National Association of Poultry Farmers, pointed out that signing the IEPAs would add to the woes of the country and deepen unemployment.

He remarked that the rampant importation of chicken from Europe has led to the collapse of the local poultry industry, adding that the cost of imported poultry products is relatively cheaper because foreign farmers receive heavy subsidies from their governments and get loans at cheaper rates, thereby making it difficult for locals to compete.

Rose Mensah-Kutin, Executive Director, Abantu for Development, indicated that there are growing examples of how deeply problematic the EPAs are proving for developing countries and regions.

“The EU sought to extend free-trade rules into new areas such as health and intermediate inputs, which include access to strategic raw materials and natural resources. But it refuses to meet the requirement to provide additional funding for the high cost of adjusting to the EPA in our economies,” she argued.

EDITORIAL;EPA is not good for Ghana

2011-09-12T14:37:00.000-07:00

Civil Society Organisations (CSOs) in the country have cautioned government to reject entirely the Economic Partnership Agreement (EPA) pushed by the European Union (EU).

They argued that signing of the agreement will permanently lock the country’s economy deeper into a primary commodity dependence trap and derail harmonisation of regional integration.

Ghana initialled a separate Interim Economic Partnership Agreement (IEPA) with the EU four years ago, ostensibly to end uncertainty and protect a very small group of exporters who depend almost exclusively on the EU market as their products would have attracted additional tariffs upon expiration of the preference regime for some Ghanaian and African, Caribbean and Pacific (ACP) exports in December 2007.

The IEPA is explained as a temporary measure meant to alleviate specific issues of countries such as Cote d’Ivoire, Nigeria and Ghana, pending harmonisation and completion at the ECOWAS level.

Three of the CSOs, namely Abantu for Development, Ghana National Association of Poultry Farmers and Third World Network (TWN), emphasised that initialling the EPA as an additional trade regime will further fragment and eventually derail harmonisation of West Africa’s regional position and regional integration,

Mr. Gyekye Tanoh, Head of Economic Unit, Third World Network (TWN) said: “The interim EPA is onerous and indeed inimical to the country’s development and to the region, yet government is threatening to make it a permanent agreement.”

This Paper, at present, would like to caution government to be mindful of the fact that there are worrying signals regarding the development of the EPA in the international landscape.

Our position is informed by three basic issues that need to be considered in what decision we take.

Firstly, the EPA is essentially nothing more than the old Marshallian philosophy of divide and rule that the Europeans have used time and again to control the African continent, which they consider as their backyard and a source of supply of cheap raw materials.

Ghana’s economy, and for that matter the whole of the ECOWAS economies, has been one of a primary resource supplier to the European market. The EPA is basically a mechanism for propagating the status quo.

A decision to sign on to the EPA is therefore a decision to maintain the status quo; a decision against it is to kick against the status quo.

The second fact, closely linked to the first, is about the choice of diversifying and integrating economies of the sub-region so as to make them more competitive and stronger in an increasingly difficult global economy.

This fact is not lost on West Africa’s economic juggernaut, Nigeria, which curiously blocked the entry of some 77 Ghanaian non-traditional exports - which are most manufactures - to that country when Ghana signed the IEPA.

Ghana will now have to either pay the price of losing its European market for its primary commodities, or look to bear the cost of developing its more prospective markets in the sub-region and the continent as a whole for its value added products.

The pain of losing the European market, which in this Paper’s opinion is not entirely likely, is the short-term price to pay for the long-term gain of establishing a strong presence in the burgeoning sub-regional market for Ghanaian manufactured products.

The third point, and perhaps the most important, is that the global economy-dynamics have changed with new important capital and commodity markets emerging.

The BRICS countries are becoming important participants in Ghana’s economy, especially China which also has become an important source of financing for basic infrastructure development in the country.

If previously Ghana was entirely dependent upon its development partners for its development programmes, not so now. It is about time the country came into its own and made a strong statement about its readiness to take its destiny into its own hands.

Indeed, there are growing examples of how deeply problematic the EPAs are proving for developing countries and regions. The official position of the Conference of African Trade Ministers held in Kigali towards the end of last year highlighted several of these problems and threats.

The most recent ECOWAS-EU negotiation sessions in Brussels last June show how intractable these problems are. Yet the EU continues to push for more. In the June Brussels sessions, the EU tried to shoot down the Common External Tariff framework that ECOWAS is trying to develop and implement, with threats of WTO sanctions.

The EU further demanded more liberalisation of market access for its goods than the 70 percent ECOWAS is offering, which expert opinion considers as already too high and uncompetitive for West Africa. Ghana’s market opening to the EU in the IEPA is much higher, at 80.5 percent.

This is one of the reasons why ECOWAS rejected the Ghana IEPA as a template, and why the continued existence of the Ghana IEPA poses a huge problem for the country and the sub-region.

The EU also sought to extend free trade rules into new areas such as health and “intermediate inputs”, which includes access to strategic raw materials and natural resources. But at the same time, the EU refuses to meet the requirement to provide additional funding for the high costs on our economies of adjusting to the EPA.

Obviously, the desperation with which the EU is pushing the EPA lends credence to suspicions, especially from CSOs, that their intentions are more than supporting the economic development of the ACP countries. Now is the time to kick against the status quo. Period!

ECOBIZ to boost regional trade

2011-09-01T08:09:00.000-07:00

The Ghana National Chamber of Commerce and Industry (GNCCI) is leading the establishment of common trade platform that would increase trade flows among neighboring ECOWAS countries.

The platform, ECOWAS Business Directory (ECOBIZ) system is an online business information system meant to promote intra community trade and investment opportunities existing in ECOWAS member states.

The overall objective is to deepen and promote business opportunities among neighbouring countries, which is in response to the collective drive of achieving the borderless ECOWAS trade.

The platform as well involves networking to improve cross-border economic ties between member companies of the national chambers of Ghana, Togo, Burkina Faso and Cote d’Ivoire among others.

Mr. Jean De Dieu SOMDA, Vice President of ECOWAS, made this disclosure in Accra when he paid a courtesy call on the senior executives of the Ghana National Chamber of Commerce and Industry in Accra to monitor and evaluate the progress of the ECOBIZ activities in the country.

“The project examines the utilization of ECOBIZ, an electronic platform established by the ECOWAS Commission to promote trade among ECOWAS Member States in pursuance of the ECOWAS Trade Liberalization Scheme (ETLS).

“Interventions to enhance trans-border trade include the application of information and communications technology (ICT) in the conduct of business,” he stated.

Mr Emmanuel Doni-Kwame, acting Chief Executive, GNCCI explained The GNCCI is seriously working with counterpart chambers in the sub-region to influence policy decisions and enforcement in the removal of barriers that hinder the smooth transit of goods.

“The platform should identify the strengths, weakness, opportunities and threats of GNCCI and other related issues that impede GNCCI from achieving its objective of enhancing the performance of its member companies, to be committed to efforts to improve trade flows between Ghana and its neighboring countries within the framework of ECOWAS regional integration process,” he said.

Speaking in an interview with the B&FT, Mr. Doni-Kwami explained that ECOBIZ system is designed to contribute to the development of the external trade of ECOWAS member countries and which as a result give impetus to the ECOWAS trade liberalization scheme.

It particularly aims at the intensification of intra-community exchanges for economic operators namely producers, craftsmen, exporters, importers, agents and service providers in order to enable them establish business relations.

“Over 1053 products and services have been offered to other neighbouring countries whilst Ghana is demanding 219 products and service from businesses.”

He urged Ghanaian business operators to take advantage of the opportunities the platform offers to boost trade with neighboring countries.

To be able to access ECOBIZ, the user must have a computer connected to internet.

The address of the site: www.ecobiz.ecobiz.ecowas.int

The platform will provide information on: Trade events, periodic publication of the ECOBIZ Newsletter, business card of an enterprise which has already been registered, offers of products of registered enterprises, demands of products of registered enterprises and calls for tenders.

First quarter mineral revenue records US$1.2b

2011-09-01T08:00:00.000-07:00

Mineral revenue for the first quarter of 2011 was about US$ 1.2 billion, up by 47% compared to the same period of 2010 figure of US$ 809.9 million, the latest Ghana Chamber of Mines figures have revealed.

The industry performance was greatly driven by healthy outturn of gold and manganese product segments except bauxite and diamond.

However, the dip in purchases of diamond was compensated for by the prices of the mineral resulting in its positive revenue variance.

The sharp decline in shipments of bauxite could not be helped by the relatively higher realized price of the mineral.

“Whilst the global economic situation appeared favourable to Ghana’s mining industry, the country appeared not to have taken advantage of the situation optimally. The creeping rebound of the economies of some emerging and industrial nations have witnessed a revival in demand for industrial minerals.

“It is however gratifying that, most gold mining companies have continued with their expansion programmes, whilst new production is on stream. In this regard, the gold mining sub-sector is favourably disposed to the healthy conditions,” the Chamber of Mines said.

B&FT has gathered that the total investment inflow into the mining sector in 2010 was US$770 million, up from the US$762 million that was recorded in 2009.he investment came from producing, exploration and support service companies.

Cumulatively, the investment inflow into the sector from 2000 to 2010 stood at approximately US$6.2 billion.

“The year looks promising for the mining industry. Additional production from new mines -Adamus Resources and Owere Mines - as well as the prospects that Owere Mines will increase production beyond the marginal output increases arising out of existing mine expansion projects,” said Daniel Owiredu, President of the Chamber.

“The expected higher volumes of mineral production and strengthening of the gold price is expected to result in increased mineral revenue, with a corresponding increase in mineral royalties and corporate tax payment to government,” added Owiredu.

He explained that mining firms have to spend huge sums of money to secure their concessions due to the illegal mining menace in the country.

Regarding the review of mining contracts, Owiredu said: “Since mining agreements provide certainty to the investor, the Chamber is looking forward to its members concluding the discussions with government expeditiously - having due regard to the fact that commodity prices such as those relating to gold are cyclical.”

The total mineral revenue rose significantly from US$2.93billion in 2009 to US$3.73billion in 2010, representing an increase of 27 percent - mainly on the account of healthy price of gold, although the other minerals also recorded increases in prices during the period.

The mining sub-sector grew remarkably, by 11.2 percent compared to the 6.8 percent it recorded in 2009. By this growth performance, the industry came second behind the electricity sub-sector which grew by 16.7 percent in 2010.

In 2010, mining companies returned about 68 percent of the US$3.7billion mineral revenue to the country through the Bank of Ghana (BoG) and the private commercial banks.

An average of 20 percent was repatriated to the country through BoG and the remaining 48 percent through private banks. This ensured that the country receives considerable foreign exchange from the mining sector to support the nation’s foreign currency transactions.

Last year, the industry spent US$ 865million, representing about 27 percent of its total funds to procure inputs locally - including diesel and electrical power.

In addition, the mining sub-sector contributed about GH¢520 million to the Ghana Revenue Authority (GRA), representing 21 percent of total GRA collections in 2010.

RANGE ROVER EVOQUE: Great to look at, fun to drive on road

2011-08-26T07:08:00.000-07:00

Spectacular concept car looks, a fun driving experience, efficient engines and peerless off-road ability makes the sexy looking Range Rover - RANGE ROVER EVOQUE, a hit, writes Ekow Essabra-Mensah, from Liverpool, United Kingdom.

Indeed, the Land Rover Evoque has turned the groundbreaking Land Rover concept car into reality, faithfully capturing the spirit of its landmark cross-coupé design. The lightest and most fuel-efficient Range Rover ever, the Evoque demonstrates the marque's commitment to environmental sustainability, bringing capability to the premium SUV class.

The Range Rover Evoque is available in two distinctive versions: the stunning coupé model, which precisely mirrors the concept car design, and the stylish 5-Door, which adopts a slightly higher rear roofline for extra practicality and greater family appeal.

Both coupé and 5-Door Evoque models stay true to the core values of the Range Rover brand, providing premium levels of craftsmanship, luxury, performance and renowned Land Rover all-terrain capability, but in a more compact package.

“The Range Rover Evoque is ideally suited to urban driving, with its agile handling, compact size and green performance, and it’s fitting that our Pulse of the City campaign is focused on capturing the spirit of city life,” said John Edwards, Land Rover's Global Brand Director.
He made this statement during the global media test drive in Anglesey Island, Liverpool, United Kingdom.

Exciting Times

Speaking in an interview with B&FT, Range Rover ‘s Graham Miller said: “ These are exciting times for our business as we continue to widen our portfolio with this all-new addition to the Range Rover line-up. Not only will the Range Rover Evoque increase our worldwide market share, but it demonstrates our commitment to build sustainable, yet highly desirable products.

“True to the Range Rover brand, the Evoque aims to effortlessly deliver premium levels of craftsmanship, luxury and performance, but wrapped into a more compact package and is expected to be available from late 2011 at Land Rover dealers.

“The fact that the Evoque is Range Rover's cleanest and most efficient model ever means it is cheaper than its stablemates to own and run. Great ride and handling on and off-tarmac give it even more appeal.

“The Evoque puts the hugely desirable Range Rover brand within the reach of compact executive car buyers for the very first time,” he said.

Gerry McGovern, Land Rover Design Director said: “Customers like to make their own unique statement with a vehicle and we have provided individuals with lots of opportunity to personalise their new Range Rover Evoque, whilst maintaining the essence of the design.

“The options on offer are spectacular and customers can use our 'designers choice' to guide their selection, with carefully co-ordinated colour and material combinations that have their own distinctive character.”

Three design themes

Uniquely in the compact SUV segment, the Range Rover Evoque allows customers to specify a lavishly appointed cabin, with soft, premium leather and beautifully tailored, twin-needle stitching providing a luxurious finish to almost every surface of the instrument panel, doors and seats. Rather than using a traditional trim hierarchy, the Range Rover Evoque gives customers the choice of three design themes: the cool and contemporary ‘Pure’, the luxurious ‘Prestige’, and the bold and sporting ‘Dynamic’.

Customers can further tailor these themes with different designer interiors, option packs, standalone and accessory items, providing even more freedom to specify the car of their choice.

Safety and Security

Both active and passive safety technologies on Range Rover Evoque are state-of-the-art. The high strength safety cell, airbags and advanced restraint systems provide an exceptional degree of safety for you and your passengers.

The powerful all-disc braking system is complemented by the latest generation of active electronic safety systems, while the advanced traction and stability technology is configured to maximise performance and safety in the widest range of driving conditions.

Suspension and Steering

Advanced technologies have been deployed to enhance suspension performance. The seamless combination of suspension and steering technology helps to deliver superior on-road ride and dynamic handling.

In addition, lightweight aluminium chassis components are used extensively on Range Rover Evoque, improving suspension performance by increasing stiffness and reducing unsprung weight, as well as contributing towards reduced weight and increased efficiency.

Driving and Transmission

The responsive six-speed automatic transmission – standard on petrol, optional on the SD4 diesel engine – features Drive Select, an advanced rotary gearshift, which rises up to ‘handshake’ the driver when the engine is switched on. For even greater driver involvement, paddle shift controls on the steering wheel allow you to change gear manually, when you choose to.

Interior Features

Intuitive technology to enhance your comfort and convenience includes advanced Voice Control and two multi-function high-definition colour displays.

The central 8 inch Touch-screen is the signature Range Rover control and display interface for communication and entertainment, while directly in front of the driver there’s a new 5 inch colour information display. Subtle, customer configurable, interior mood lighting creates a
signature Range Rover driving experience day and night.

Sold in 160 markets worldwide

The Range Rover Evoque will be manufactured at Land Rover's multi award-winning Halewood plant in Merseyside, UK. The car will go on sale in more than 160 countries worldwide from the late 2011 at Land Rover dealers .

After PAC exposures, Kan Dapaah suggests way forward

2011-08-24T11:34:00.000-07:00

Albert Kan-Dapaah, Chairman of the Public Accounts Committee, has urged strong commitment to the implementation of a national medium-term plan (MTP) that will guide the national budgeting process and be mainstreamed in all subsequent sectoral strategies.

“This development plan must form a blueprint of sound economic policies and national projects that can be implemented to ensure sustainable growth and development of the economy, and should list programmes and projects that will be undertaken during the plan period.

“The MTP introduces a development paradigm that locks in the macroeconomic stability recorded so far, and anchors the economy on a pedestal of sustainable economic growth, employment-creation and poverty-reduction.”

The current medium-term plan, the Ghana Shared Growth and Development Agenda (GSGDA) covers the period 2010-2013 and is aimed to ensure and sustain macro-economic stability; enhance private-sector competitiveness; modernise agriculture; develop infrastructure; and ensure transparent and accountable governance.

The GSGDA is the successor to the Growth and Poverty Reduction Strategy (GPRS II), which covered the period 2006-2009 and was linked to Ghana’s debt-forgiveness programme with external creditors.

According to Kan Dapaah, a national medium-term plan should cut across political-party governments, and be seen as the nation’s strategy for social and economic development.

A medium-term plan should respond to the mandate set out to support the restoration of economic stability and growth in the country, he said.

Speaking on a wide range of national issues during an interaction with members of the Institute of Financial and Economic Journalists (IFEJ), Mr. Kan-Dapaah, said: “There should be an annual budget that draws from the MTP developed by the National Development Planning Commission (NDPC) to guide public expenditure.”

Touching on the massive corruption revealed at the sittings of the Public Accounts Committee, he explained that the country lacks a management accounting system that could track expenditure on public-sector activities, and this has contributed greatly to the magnitude of corruption in the public sector.

“We need to have a way of stopping the magnitude of corruption in the public sector.”

Various studies into public financial management in Ghana have revealed grave weaknesses in the internal control systems of MDAs. Among the problems that have persistently come up include failure to follow laid-down procedures, poor record-keeping practices, and blatant fraud perpetrated by some public officials.

Mr. Kan-Dapaah called for a stronger collaboration between the Public Accounts Committee and IFEJ to help unearth the corrupt practices and hold public sector workers accountable.

“The main concern of the Ghanaian is accountability for the use of public funds. That is why rules, regulations and guidelines are given to institutions that benefit from the Consolidated Fund in the disbursement of monies,”

These violations and improprieties, he said, allow room for malfeasance and loss of revenue to the state.

Albert Kan Dapaah noted that it is important to follow up audit queries with the appropriate sanctions against culpable officials, especially in the extreme cases of fraud, forgery and other financial crimes.

Ray Ankrah, Managing Director, Ray Ankrah & Associates, a firm of Chartered Accountant & Tax consultants, urged government to develop guidelines to encourage Ghanaians outside the country to pay tax.

“Wherever Ghanaians are, they must be encouraged to pay tax and [made to understand] that their contribution to national development identifies them as Ghanaians.”

He called for a new financial reporting management system for the public sector to help monitor public expenditure and track government receipts.
This would help reduce the magnitude of corruption in government departments and agencies, he said.

The finance ministry is currently overseeing the implementation of the Ghana Integrated Financial Management and Information System (GIFMIS) project that aims to create systems to strengthen financial management in public-sector institutions.

Commodity exchange set for 2012

2011-08-10T07:19:00.000-07:00

A commodity exchange and development of a regulated warehouse receipt system will be ready by 2012, Chairman of National Committee on Commodity Exchange, Joe Tackie, has disclosed.

It will help assist farmers to gain easy access to ready markets - both locally and internationally.

“Ideally, by last quarter of 2012, the operation of the commodities exchange should take-off if we are able to complete the regulatory framework and implementation of the strategies within the timelines set,” he said.

“Government has set up a special body comprising officials from Ministry of Finance and Economic Planning, Food and Agriculture, Trade and Industry, Securities and Exchange Commission (SEC) as well as the Ghana Standards Board, Ghana Grains Council and Buffer Stock Company to set out the rules of engagement,” Mr. Tackie told B&FT in an interview.

The exchange is expected to begin trading in agricultural products and other raw materials like wheat, barley, sugar, maize, coffee, cotton, millet among products.

He explained that the committee is currently finalising the evaluation and appointment of a consultancy firm for the development of the legal and regulatory framework. This will ensure that all those in the value chain in agriculture sector are involved.

The exchange’s establishment will help to deal with challenges facing the supply of agricultural produce, which in turn will deal with food inflation. It will as well provide a potent tool for a farmer to manage price fluctuations, stabilise his/her income and gain access to relatively cheaper credit.

There have been three failed attempts to establish a commodities exchange, due to the unavailability of a regulatory framework.

Ghana will be the fifth country in Africa after South Africa, Nigeria, Kenya, and Ethiopia to operate a commodities exchange that aims to embark on an aggressive overhaul of its agricultural sector.

Private enterprise operators have welcomed government’s decision to speedily establish the commodities exchange.

“Since Ghana’s economy is basically agricultural, it would make a lot of sense to see to the establishment of an effective commodity exchange that not only eliminates the regular post-harvest losses through buying of produce for storage, but also put money in the pockets of farmers in the short-term to facilitate their downstream operations,” Dr. Osei Boeh-Ocansey, former Director General of the Private Enterprise Foundation (PEF) said.

Accra Brewery, Voltic present to NADMO

2011-08-10T07:16:00.000-07:00

Accra Brewery Limited and Voltic Ghana Limited, both subsidiaries of SABMiller plc, have donated food items and bottled water valued at GH¢11,000 to the National Disaster Management Organisation (NADMO).
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The items, which include 51 bags of rice, beans and maize, and 50 cases of Voltic Mineral Water, was meant to assist the recent floods victims in the Eastern and Volta Regions.

Ms. Adjoba Kyiamah, Corporate/legal Affairs Manager of Accra Brewery Limited, making the presentation said: “Both companies were moved by the plight of the victims, particularly the story of a man who drowned because he decided to brave the water and go and get food for his family.”

She added: “Accra Brewery has been a caring member of Ghanaian society since 1931, and as it celebrates 80 years of existence it will continue to give back to the nation that has and continues to keep it in business.”

The Deputy National Coordinator of NADMO, Mr. Sylvester Azantilow, receiving the donation expressed gratitude to the two companies for their initiative.

This is a commendable step towards helping disaster victims in the country, especially in the wake of recent floods in the Eastern and Volta Regions which unfortunately resulted in the loss of lives.

“It is our responsibility to support those who survived, taking into consideration the fact that a lot of them have lost farmlands and livestock -- and in effect their livelihood. We are appealing to civil society and corporate bodies to take up the challenge,” said Mr. Azantilow.

The recent floods in the Eastern and Volta Regions, saw a large number of people being displaced, with over 10,000 coming from the Eastern Region alone.

International investors rank Ghana fourth

2011-08-10T07:14:00.000-07:00

Ghana has been selected as the Fourth Best Investment Destination in 2011 in Africa by the international investor community, Ghana Investment Promotion (GIPC) CEO Mr. George Aboagye has disclosed.

The survey, released in late June 2011, was conducted by the Africa Business Panel that sampled 800 business professionals in all the 53 economies in Africa.

The Africa Business Panel is made up of persons who work in the private sector for companies registered in and operating out of Africa. They are the senior managers, entrepreneurs or professionals which form the backbone of the business community throughout Africa.

“International investors believe that Ghana’s economic and political climate persist in being stable -- citing Accra, the capital city, an attractive commercial centre to conduct business from with West Africa.

“The country’s oil discovery was also said be a factor to investment attraction. Ghana came behind South Africa, Nigeria and Kenya from first to third respectively, the survey said.

“Ghana has sold itself in terms of branding, with the footballers also doing a lot in promoting the image of the country. It is our belief that this is the effect of governmental measures being taken to grow the economy.” Mr. Aboagye disclosed this in Accra at a forum to announce the GIPC’s Second Quarter 2011 Investment Report which brought together investment experts, business executives.

“GIPC will continue to encourage both local and foreign investors and facilitate investment projects for development of the nation.

He indicated that GIPC will step-up its missions and campaigns, leveraging on the improved perception of the country as a safe investment destination and its democratic credentials.

“We undertake a lot of enquiries and promotions abroad to attract investors and Ghana has a solidified itself very well in terms of branding over the years.

Meanwhile, recent statistics such as the World Investment Report 2010 and the Doing Business 2011 Report as evidence of the progress made by governments to improve the legal structures as a complement to its investment promotion and protection efforts.

The World Investment Report 2010 ranked Ghana in the 8th to 15th country bracket for the highest FDI inflows in African countries in 2009 while the Doing Business 2011 Report, which compared business regulations in 183 economies, adjudged Ghana as the best place for doing business in West Africa and also 67th in the global log for countries with ease of doing business and 44th in the log of countries that protect investors.

Investment promoters have observed that the key investment-related legislation such as ACT 478, which set up the Ghana Investment Promotion Centre and sector specific legislation intended to impact positively on the Ghanaian business community such as the Alternative Dispute Resolution Act 2010, (ACT 798); foreign Exchange Act 2006, (ACT 723); and the Anti-Money Laundering Act 2008, (ACT 749) among others.

They stressed that as a measure of Ghana's commitment to creating a favourable investment climate for both nationals and foreign companies, the country has entered into 26 Bilateral Investment Treaties (BITs) and eight Double Taxation Treaties (DDTs) as at May 2010 with countries such as the United Kingdom, Netherlands, Canada, Botswana and Iran.

Ghana has embarked on a reform of its intellectual property laws with a view to incorporating the obligations assumed under international treaties, among others, within domestic legal rules.

The Ghana Investment Fund Act (2002), Patents Act (2003) and the Copyright Act (2005) are among other evidence attracting FDI into the country.

Ghana is a signatory to the Convention establishing the World Intellectual Property Organisation (WIPO), and as a member of the World Trade Organisation (WTO) has fulfilled all its obligations under the Trade Related 96 Aspect of Intellectual Property Agreement (TRIPs Agreement).

Newmont to change the face of farming in Ahafo

2011-08-10T07:12:00.000-07:00

Newmont Ahafo Project has initiated a programme under the Ahafo Agro-Business Growth Initiative (AAGI) to help small-scale farmers in the eight communities within their project area to produce for local and international markets.

Under the project, the company has organised over 3,000 small-scale farmers into 196 Farmer Based Organisations (FBOs) and improved their capacity to be able to produce agricultural products to meet international market standards.

This was disclosed by Mr. Agbeko Kwame Azumah, Communication Manager of the Newmont Ahafo Mines, when he met with members of the Journalists for Business Advocates (JBA) who were on tour of the mines.

He said the main aim of the project is to help small-scale farmers in the beneficiary communities to improve upon their earnings and standard of living through improved production to meet international standards, and connecting them to both local and international markets.

Mr. Azumah said as at 2010, farmers engaged under the project were able to export 78,000 kilogrammes of plantain, 86,000 kilogrammes of chili pepper, 105 kilogrammes of ginger, and 14,000 kilogrammes of soya beans to markets in Europe.

The communities which have benefitted from the project include Kenyasi number one and two, Hwidiem, Wanahinso, Gyedu, Ntotroso, Nkaseim and Nkrankrom.

He said Newmont is working on the project in collaboration with the Asutifi District Assembly, the Ministry of Food and Agriculture (MOFA), and the Export Development and Investment Fund (EDIF).

Mr. Azumah said as part of the project EDIF is providing the project with 160,000 US dollars for the acquisition of irrigation equipment, processing equipment, and the construction of a processing and storage centre.

He said so far Newmont has invested one million US dollars into the project, and engaged the services of African Connection Ghana Limited to implement the project on its behalf.

Mr. Azumah explained that some of the challenges facing the project are difficulty in the farmers quickly adapting to the new ways of farming to meet the demands of the international community, and abandoning some of the crops they were used to producing and replace them with non-traditional export crops.

Netherlands, China top FDI sources

2011-08-10T07:10:00.000-07:00

Netherlands topped the list of countries with the largest estimated value -- US$146.52 million --of Foreign Direct Investments (FDI) into Ghana, with China being the leading source of investment projects (36) registered during the first half of the year, latest reports released by the Ghana Investment Promotion Centre (GIPC) have revealed.

The performance was driven by significant inflows from the two countries in the second quarter of the year.

“With US$128.28 million as the estimated value of Foreign Direct Investments (FDI), Netherlands topped the list of countries with the largest value of investments registered during the second quarter of 2011.

“China, with 23 projects, also topped the list of countries with the highest number of registered projects,” Mr. George Aboagye, Chief Executive Officer of GIPC, disclosed in Accra at a forum to announce the country’s half-year investment trend.

He stated that the total number of projects registered for the first half of 2011 was 236, with a total estimated value of US$978.74 million (GH¢1.47 billion). 213 projects were registered for the corresponding half of 2010 with a total estimated value of US$850.84 million (GH¢1.19 billion).

The total initial capital transfers amounted to US$165.93 million (GH¢248.90 million) for the period under review, while transfers in the corresponding half-year of 2010 amounted to GH¢42.50 million (US$30.36 million).

Of the 236 registered projects, 137 were wholly-owned foreign enterprises and 99 were joint ventures between Ghanaians and foreign partners.

The joint-venture projects were valued at US$635.96 million (GH¢953.94 million), and the wholly-owned foreign enterprises were valued at US$342.77 million (GH¢514.16 million).

The FDI component of the estimated value of projects registered during the first half of the year amounted to US$904.04 million (GH¢1.36 billion), and the local currency component amounted to US$74.68 million (GH¢112.03 million).

For the corresponding period in 2010, the FDI component of the estimated value of projects registered amounted to US$760.68 million (GH¢1.06 billion), and the local currency component amounted to US$90.16 million (GH¢126.23 million).

A total of 14,412 jobs are expected to be created by registered projects from the first half of 2011. 13,170 of the total jobs to be created will be for Ghanaians and the remaining 1,242 will be for expatriates.

The 2nd quarter performance was generally better than the 1st. For the 2nd quarter of this year, 127 new projects were registered. The total initial capital transfers for the newly registered projects amounted to US$97.03 million (GH¢145.55 million). The total estimated value of this quarter’s newly registered projects was US$600.30 million (GH¢900.45 million).

The total foreign equity was US$296.68 million (GH¢445.02 million), and the initial equity transfer was US$97.03 million (GH¢145.55 million).

The FDI component of the estimated value of the projects registered during the period under review (1st April to 30th June 2011) was GH¢828.44 million (US$552.29 million), representing 92% of the total estimated value, and a local currency component of GH¢72.01 million (US$48.00 million), representing 8%.

This compares better to the FDI component of projects registered in the first quarter of 2011, which was valued at US$351.75 million (GH¢527.63 million), with a local currency component of US$26.68 million (GH¢40.02 million).

During the first quarter of 2011, 66 wholly-owned foreign enterprises and 43 joint ventures were registered and valued at US$116.71 million (GH¢175.07 million) and US$261.72 million (GH¢392.58 million) respectively.

Solid Express supports deprived Children

2011-08-10T07:08:00.000-07:00

Solid Express Ghana Limited, an imports and exports firm, has donated items valued at GH¢12,500 to the Osu Children’s Home in Accra.

The donation, which is one of the largest received by the Home since its establishment, included a deep-freezer, gas cooker, gallons of cooking oil, bags of rice and wheat, crates of canned drink, packs of sugar and milk, confectionaries, detergents, disinfectant, diapers, bags of sachet-water, school-bags and learning aids.

Youssef Chahine, Director of the company, presenting the items said the company considered it important to initiate the social responsibility project because companies have a sacred responsibility to take care of society.

He explained that the donation was targetted at helping the company provide support to orphanages and other institutions across the country, which is the firm’s way of contributing to improvement in the welfare of the underprivileged in society.

The company, he said, is mindful of the challenges involved in taking care of a large number of orphans and less-privileged children, and hopes the donation will assist management of the Home to address the children’s needs.

Mrs. Sharon Abbey, Director of the Osu Children’s Home, thanked the company for the gesture which she described as very timely because the Home was running out of stock.
She promised that the items will be put to good use and urged other corporate bodies to emulate the gesture.

Local miners ready for gold price peak

2011-08-10T07:03:00.000-07:00

On the back of current gold prices, Ghanaian miners are investing heavily to jack up production at their existing operations.

AngloGold Ashanti, the oldest company which operates two mines at Obuasi and Iduapriem in Tarkwa Nsuem area has already invested $800 million in the past seven years to modernise and expand its Obuasi operation, which is by far the biggest in terms of reserves and employment.

Peter Anderton, the newly appointed Senior Vice President responsible for Ghana operations, disclosed that the company will be spending more this year to improve infrastructure and development.

Production currently is at $317,000 but the mine has the capacity to do more in future, Peter Anderton told the Minister of Lands and Natural Resources at his recent courtesy call at his office.

AngloGold Ashanti is here to stay and it is looking at the long recovery of the operation of Obuasi, he said.

Newmont, which is currently the second largest gold producer in terms of ounces, is poised to hit the ground with a big bang in three years time as the number one gold producer, producing at 1.2 million ounces. It has started its underground operation at Ahafo and is constructing an over $850 million mine at Akyim.

The good news is that its current 4000 labour force could double, which in turn would mop up thousands of Ghanaians wandering as unemployed.

Edwin Allotey Acquaye, Tax Director, Newmont Ghana, told B&FT in an interview in Accra that the production outlook for the next six month, looks positive as the rise in global gold prices continues. “Its revenue implication for Newmont and the country is huge,” he said.

Goldfields, which operates and owns Demang and Tarkwa, is also looking at one million plus ounces of gold in the future from 930,000 ounces. It also employs thousands of Ghanaians, and currently prides itself as production and cost leader in Ghana.

It is expanding its operations at both mines to sustain and increase production to consolidate its prestigious position. This could also mean more direct and indirect jobs.

In their own small way Chirano Kinross Mine, Golden Star Resources, Adamus, Owere, Keegan Resources, just to mention a few second tier producers, are all gearing up to take advantage of the gold rally.

The government, which has 10% carried interest in these companies is also raking increased revenue in the form of corporate tax, royalties and dividends, with some companies paying between 3% minimum and 5% maximum dividends.

It recently made $209 million (net) from the sale of part of its interest in AngloGold Ashanti and could even make more now that share prices are on the upward swing, from its free carried interests in other mining companies to support the Better Ghana Agenda. As a major foreign exchange earner, Chamber of Mines sources say not less than 60% of what the mining companies earn are repatriated to the country.

A gold price rally also means increased spending on social and community development by the mining companies. The mining companies are already spending millions of dollars annually to support local economies, especially in the areas of access to modern medical care, agriculture, employment, feeder roads construction and others. This has improved lives in the communities.

The AngloGold Ashanti malaria programme, for instance, has literally saved thousands of lives as malaria cases were reported to have been reduced by 75% in the Obuasi municipality.

The company is also reported to be holding itself in readiness to launch a major programme with Global Fund in 40 districts. Goldfields sponsorship of Ghana Black Stars, Newmont’s agriculture improvement schemes and many others have all benefitted the country.

Gold price trends

Spot gold hit an all-time high last week, for the sixth time in two weeks, as worries grew whether the embattled United States could avert a debt default while its two key political parties were belligerently and uncompromisingly locked in stalemated talks to raise its debt ceiling.

Spot gold rose as high as $1, 625.24, before easing to $1, 624.19 last week. It was up in 16 of this last's 19 trading sessions so far. US gold also hit an all-time high at $1, 625.8.

However, spot gold dropped for the first time in three days after the House of Representatives passed the measure to raise the U.S. debt limit by at least $2.1 trillion and cut federal spending by $2.4 trillion or more.

“Increasing the debt ceiling is not going to make the debt go away, while the debt problems in Europe aren’t going to be resolved overnight, and we’re seeing all these getting reflected in the weaker economic numbers,” said Zhang Yingying, an analyst at Galaxy Futures Co., a brokerage that’s 16.7 percent owned by the Royal Bank of Scotland Group Plc.

Gold for December delivery in New York rose 0.3 percent to $1,626 an ounce, after futures reached a record $1,637.50 on July 29. Spot silver gained 1 percent to $39.6825 an ounce.

Dealers reported muted reaction on Asia's physical market to gold's rally, as buyers and sellers alike cautiously watch the outcome of the US debt talks.

30 companies go bust in 10 years

2011-08-10T07:01:00.000-07:00

Thirty large-scale companies were liquidated between the period 2000 and 2010, B&FT has learnt.

Among these companies were Black Star Line, Gateway Broadcast Services, Ghana Corporative Bank, Prestea Gold Resources, Bank for Housing and Construction, Plant Pool and Ghana Airways.

They underwent liquidation due to huge financial burdens, lack of proper corporate governance, and lack of appropriate succession plans among others.

Abdallah Ali-Nakyea, the Managing Consultant of WTS Nakyea & Adebiyi, a firm of Tax Attorneys & Solicitors in Accra, in an interview with B&FT said: “In order to facilitate a culture of corporate rescue in Ghana, specific rules for tax-free reorganisation have to be made in the tax laws.”

Concerns have been raised by business promoters and think-tanks on the need to ensure that gaps in the Ghanaian law on corporate insolvency are filled with appropriately responsive legislation as soon as possible.

Last year, the Registrar-General’s Department recorded a total of 25,000 business names, 227 partnerships and 93 external companies. 14,000 limited liability companies were also recorded with 335 subsidiary business names also registered.

Mr. Ali-Nakyea explained that the objective of rules for tax-free reorganidation would not be to grant a tax exemption to the companies or shareholders involved, but rather to “neutralise’, as it were, the tax consequences of the business reorganisation so that it involves neither a tax advantage nor a tax disadvantage.

“To ensure a win-win situation, therefore, conditions need to be set for a tax-free
reorganisation which should be continuity of business enterprise and continuity of shareholder interest.

“The degree of continuity is what needs to be agreed: for example, is the 25% in section 101 (1) (b) of Act 592 too high or adequate?”

He indicated that a corporate reorganisation often requires a formal capital contribution. There is therefore need to exempt reorganisations from stamp-duty on capital contribution.

“Corporate rescue comes in various forms including corporate restructuring or reorganisation, which refers to partially dismantling or otherwise rearranging a company to make it more profitable.

“As tax is one of the key costs to doing business, it is critical that the tax implications of any restructuring are known before it is undertaken. It is thus important that in designing tax-laws, attention must be given by drafters to provisions for corporate reorganisation.

“It is refreshing to note that there are provisions in the Internal Revenue Act, 2000 (Act 592) that support corporate rescue. At the same time, the Act contains provisions that are inimical to corporate rescue, and these are the provisions that need fine-tuning.

“Some of such rules are scattered in Internal Revenue Act, 2000 (Act 592), albeit not specifically made for purposes of corporate rescue; so can we have a part in the Act dealing exclusively with corporate rescue,” Mr. Ali-Nakyea stated.

Vodafone launches ‘More Money’ game

2011-08-10T06:51:00.001-07:00

Vodafone Ghana has launched a new SMS Money Game, which will allow subscribers to win various sums of money up to GH¢100,000.

The SMS game, targetted at all Vodafone pre-paid customers, is driven by customers sending text messages to a premium short code with the goal of being the one millionth texter to win grand prizes ranging from GH¢10,000 to GH¢100,000.

Customers also stand a chance of winning other prizes at various points: every 100th, 1,000th, 10,000th and 100,000th texter will win prizes in the form of airtime or cash. In all, Vodafone will give away GH¢1.75million in cash and airtime.

“With the launch of the ‘More Money’ game, Vodafone customers have the opportunity to win cash and airtime prizes as many times as possible. There are ten rounds in the whole game, and each round runs from the first text to the millionth text.

A new round will automatically start as soon as the text counter hits one million.

“To participate, Vodafone customers can text ‘more’ to short code 777 as many times as required to a prize-point and win a prize. Participating customers will receive an informational text detailing the text number position and the location of the next prize point,” Carmen Bruce-Annan, Head of Corporate Communications said at the official launch of the game in Accra.

She added: “The ultimate grand prize is arguably one of the biggest cash prizes ever offered in Ghana. This is a clear indication of our strong commitment and dedication to rewarding our customers who have undoubtedly played an integral role in our success story.

We are at the forefront of customer reward initiatives, having set the standard by offering an exclusive home at Trasacco Valley about two years ago.
“For this particular promotion, we will be rewarding thousands of customers with a total of GH¢1.75m in cash and airtime. I think this initiative speaks for itself.

“All winners of the ‘More Money’ game will receive confirmational text messages declaring them as winners.

Airtime prizes will be credited to the customer’s bonus account within 24 hours after the confirmation text has been received. Winners of cash prizes will also be contacted via a confirmation text detailing the cash prize and prize award date.

Regarding prizes for the various prize-points, every 100th texter will receive GH¢5 to use on network calls. Every 1,000th texter will receive GH¢10 credit to use for on-network calls, and every 10,000th texter will receive a GH¢500 cash prize.

Also, every 100,000th texter will receive a GH¢1,000 cash prize and the millionth texter in the first round will receive GH¢10, 000.

All prizes will remain fixed throughout the ten rounds except the prizes allocated to the millionth texter.

The millionth texter will receive GH¢10,000 in the first round; in the second round, the millionth texter will receive GH¢20,000.

The million texter prize will keep increasing by GH¢10,000 with each round until the tenth and final round when the winner receives a grand prize of GH¢100,000.

Dying businesses need protection

2011-08-01T07:24:00.000-07:00

The gap in Ghanaian law on corporate insolvency should be filled with appropriately responsive legislation as soon as possible, Professor S.K. Date-Bah, Justice of the Supreme Court, has proposed.

“The formulation and enactment of such legislation would be an important step in nurturing a culture of corporate restructuring in Ghana. Particularly in a developing economy such as Ghana, an effort should be made to prolong the life of enterprises that have successfully been established [to save them] from premature demise,” he said.

Prof. Date-Bah made this proposal in Accra at a forum organised by the Ghana Association of Restructuring and Insolvency Advisors (GARIA) in collaboration with PricewaterhouseCoppers (pwc) Ghana Limited.

Among other objectives, the forum was to highlight and propose solutions to those gaps and educate key stakeholders on the need to facilitate a rescue for dying businesses in the country.

Prof. Date-Bah observed: “Liquidations are part of the process of adjustment wrought by market forces. What I am saying, however, is that there is justification for a degree of state intervention through corporate insolvency legislation to delay the demise of a failing company -- where a restructuring has a chance of restoring it to good health.

“In building a culture conducive to corporate restructuring in Ghana, the stakeholders in the restructuring process will need to be won over.

“The cooperation of creditors will be particularly important. Creditors need to be persuaded that efficient corporate rehabilitation will often yield better results for creditors than the results from the winding up of the distressed company.”

He explained that when a company is distressed, it is unable to pay its debts as they fall due -- or it is close to this situation -- adding that the first response of the law should not be to enable forthwith its liquidation to pay for the debts of its creditors.

“That is too drastic a remedy which is not responsive to the inevitable ups and downs of business life. A legal system that provides principally for only liquidation can fairly be characterised as primitive, from the business point of view,” he said.

Speaking on financing arrangements in restructuring, Wyczynsky Ashiagbor, Director, PricewaterhouseCoppers, explained that a company’s turnaround requires a greater amount of finance than would be the case in financing for a going concern.

“The main reasons for the turnaround are as follows: the business' sales performance may be negatively affected during a restructuring process as management's attention is diverted, or trade suppliers are often only willing to supply goods and services on a cash basis.”

He again cited cost and willingness of lenders to provide new debt as the major challenge of post- restructuring financing.

“[In the] Ghana Airways/Ghana International Airline example, our laws do not provide for ‘superior’ status for paying back debt during distress/restructuring situations,” he explained.

GARIA is an association of practitioners and persons who have an interest in restructuring and insolvency. The association was formed to play a leadership role in corporate restructuring, business recovery and insolvency in the country.

Chrysler, Dodge Caliber showcased

2011-08-01T07:21:00.000-07:00

PHC Motors held its annual exhibition aimed at showcasing two brands of luxury cars to the general public.

The one month exhibition held at the Accra Shopping Mall, was to afford patrons and the PHC officials to interact and know at first hand, the problems and concerns of Chrysler and Dodge Caliber cars users and also to explained the efficiency and usefulness of its flagship products.

The event attracted patrons from corporate Ghana, including garages and individual users, also focused on educating users on a wide range of issues regarding vehicle sales, after sales activities, credit control, and the effects of the influx of counterfeit spare parts on the automobile market.

PHC Motors is the authorized dealers in Chrysler, Jeep, Dodge, Land Rover, BMG and Tata vehicles in the country’s automobile market.

Chrysler 300C

The all new luxurious 2.7 liter Chrysler 300C is classically designed as a master piece for successful elite and personalities to reinforce their prestige and comfort.

It has being designed with creative versatile interior style and has become a synonym for excellence.

The Chrysler 300C specifically manufactured stands out on any road with its wide stance and stand-tall architecture. It has also been manufactured with modern technology that enhances it to effect smooth take-off and response to acceleration with high performance.

PHC Motors says, the it is specifically made targeting the comfort of successful individuals in the society including the chief executive officers, senior public officials, successful entrepreneurs, and business owners depicting a symbol of prestigious life style, Norman Dunkerley, Divisional Manager-Luxury Brand ,PHC Motors Limited told B&FT in Accra.

Anthony Torsu, Deputy Sales Manger, outlining the vehicles unique safety systems said: “No one wants to test a vehicle’s impact resistance, but Chrysler 300c is ready, if it occurs, with Unibody safety cage construction with front crumple zones built into the stiff body cage to absorb impact energy.”

Dodge Caliber

Dodge Caliber has been manufactured with bold looks and exceptional fuel efficient with wheels that feature a five-hole pattern and a 114.3 mm bolt circle.

“Every corner of Caliber makes a statement. The fact that every single piece of fascia is body-coloured says something,” PHC Motors said.

The Caliber has a five-door hatchback body, but because of its bulkier appearance, can also be considered both a station wagon or a crossover.

The Caliber concept features styling elements derivative of larger Dodge vehicles, such as a crosshair grille, rough border angles and flared fenders.

The Dodge Caliber offers a continuously variable transmission (dubbed CVT2 by Dodge) and uses a four-cylinder 1.8-2.4 L GEMA gasoline engine, designed jointly by Chrysler, Mitsubishi, and Hyundai.

The car also features an optional electronically-controlled all-wheel drive system with variable torque at speeds of 25 to 65 mph (40 to 105 km/h) for optimal handling.
The Dodge Caliber is a compact car produced by the Dodge division of Chrysler. It replaced the Neon, and went on sale in the spring of 2006 as a 2007 model year vehicle.

After Chrysler began a strategic alliance with Fiat Motors in early 2010, the company announced that the Caliber will be replaced by a second generation starting 2012.

The next generation of the Caliber is planned to feature a nine-speed automatic transmission starting 2013.

Currently, it remains the smallest and the least expensive vehicle of the whole brand which sells well in the United States and Canada, despite poor quality/value ratio on foreign markets.

The Caliber is an important vehicle for Chrysler in its quest to expand globally. The Caliber was one of Dodge's first modern offerings in Europe. Dodge also introduced the Caliber as part of its launch lineup in Asian markets such as Japan and Singapore, as it established new distribution channels there.