Tuesday, May 11, 2010

Newmont’s ALP creates 15,000 jobs

Newmont Gold Ghana Limited says its Ahafo Linkages Programme (ALP), designed to maximise procurement from local Ahafo businesses, has created more than 15,000 direct and indirect jobs.

The programme, estimated to cost US$3million, is a partnership concept between Newmont Ghana and the International Finance Company (IFC) aimed at building the capacity of local businesses to help ensure the development of a diversified economy outside the Mine.

It offers broad training in records-keeping, business management, market diversification, finance facilitation and technical as well as productive assistance to local small and medium-sized supplier in its Ahafo host communities.

Between 2007 and 2009, 99 suppliers from its local Ahafo host communities were awarded contracts to the tune of US$14.5 million, whilst the programme contracted business worth US$272 million in 2008 with Ghanaian businesses. The businesses under the initiative also accessed US$6.8 million from other clients apart from Newmont Ghana in 2009.

A total of 341 Ghanaian businesses were also awarded contracts worth over US$144.3 million, accounting for over 60 percent of Newmont Ghana’s total purchases in 2009.

Mr. George Brakoh, Manager, Local Supplier & Contractor Development, Newmont Ghana, explaining during a media interaction said: “We are proud to continuously partner with interested organisations to develop business opportunities with local business people for the wellbeing of our host communities in Ghana and all our other operations the world-over.”

Newmont Ghana appreciates all its partners in the Ahafo Linkages Programme, including, Ahafo Local Business Association (ALBA), Technoserve International, CDC Consult Limited and FIT Ghana for their efforts in the drive to provide the needed local content to help attain sustainable development.

Meanwhile, the business initiative has won the most awards at the recent 2010 Chartered Institute of Purchasing & Supply UK (CIPS) Procurement Awards for the African continent, held on April 19 in South Africa.

ALP was the leading award recipient with three awards: the Best Community Procurement Award, the Best Supplier Diversity Project Award while Newmont Ghana’s Manager, Local Supplier & Contractor Development, George Brakoh, was named the Best Procurement Professional of the Year (Male Category) at the 2010 CIPS UK Annual Procurement Awards.

“We are encouraged that our efforts at creating income and employment opportunities for local businesses in and around the Ahafo area, substantially improving the environment for local business development and long-term survival have been recognised at an international level,” the company’s Regional Vice President, Environment & Social Responsibility, Nick Cotts, said.

The awards covered eight categories and were open to a range of businesses including smaller entrepreneurial businesses and large, thriving organisations.

The Best Procurement Community Award was given based on the role Newmont Ghana’s supply chain management function had played in safeguarding and enhancing the company's reputation and brand values while undertaking a role in using procurement for social and economic enhancement.

The Best Supplier Diversity Project was awarded based on the company demonstrating that it had addressed the use of local suppliers, in particular local small and medium-sized enterprises (SME's), and had also engaged them in supplier development programmes.

The judges also looked at how the Newmont Ghana had increased employment, profitability and revenue generation of its local suppliers, while at the same time not over-exposing them to unnecessary commercial risks. George Brakoh, Newmont Ghana’s Manager, Local Supplier & Contractor Development, won the Best Procurement Male Professional of the Year award.

He was adjudged to have made the most effective contribution to his organisation in terms on innovation, leadership, knowledge-sharing and demonstrating that he is a good team-player.

The judges also determined that his initiatives had impacted considerably upon the bottom-line of Newmont Ghana and its customers by promoting good procurement.

Wednesday, May 5, 2010

Ghana to complete digital television in 2013

Ghana is to complete migration from analogue service to digital television by 2013, ahead of the International Telecommunication Union’s 2015 deadline.

Government has so far invested 2.3million euros in the first phase of the project, which is operational in Accra and Kumasi, to serve some part of southern and the northern sectors of the country. The pilot project has been running faultlessly and continuously for 12 months.

Director-General, Ghana Broadcasting Corporation, William Ampem-Darko, made this disclosure in Accra at the launch of the first phase of the migration - which is in collaboration with Next Generation Broadcasting (SMART TV) and will provide 10 channels on GTV’s platform.

The digital TV service, enabled by a Set Top Box (STB), offers a sharper, brighter picture with reduced “ghosting” and interference; the audio signal is much clearer, so users can enjoy improved sound quality.

Meanwhile, most of the television sets currently in peoples’ homes cannot receive digital pictures and viewers will have to purchase STB devices to be able to receive digital signals. And this will come at extra cost to the viewer.

Mr. Ampem-Darko explained that the development will be seen as the moment when the industry, government and other stakeholders showcase their commitment in moving forward digital migration in the country.

He explained that the benefits of digital TV are numerous and far-reaching: better quality TV, more choices and better consumer service.

“Because digital signals take up much less bandwidth than analogue signals, we can broadcast up to 10 television channels in the same bandwidth - giving the potential of many more channels to choose from.

“Ghana will rely on digital transmission as the basis for delivery of e-Government, education, health-care and other socially valuable Information Communication Technology (ICT) services and eventually contribute to connecting the world,” he indicated.

Currently, no African country has completed the migration process - although seven African countries including Kenya, Sudan, Tanzania, Uganda, Rwanda, Mauritania and South Africa have published their plans and established committees to manage the migration process.

All around the world, the migration to digital broadcast transmission technology has begun.

Countries already advanced in their migration programmes are France, United States, United Kingdom and New Zealand, whilst in countries like Sweden, Finland and Mauritius, the analogue switch-off has already been completed.

A 24-man National Migration Technical Committee has been established to ensure that Ghana achieves the target.

The Committee has been mandated to make policy recommendations to situate the transition from analogue to digital broadcasting networks within the broader context of strengthening and developing Ghana's Information Infrastructure, and to determine how the transition of existing broadcasting services to digital broadcasting transmission networks and the introduction of new services will facilitate national government priorities, among others.

Ghana has since 2006 been signatory to the Geneva 2006 (GE06) Agreement established during the Regional Radiocommunications Conference (RRC-06) held in Geneva which established the Digital Terrestrial Broadcasting Plan.

The RRC-06 set 17 June 2015 as the deadline for the cessation of international protection for analogue broadcasting transmissions.

SEC approves licence of Computershare

The Securities and Exchange Commission (SEC) has approved the licence of Computershare Pan Africa Ghana Limited to enable it conduct shareholder registry business in the country.

Computershare becomes Ghana’s fourth shareholder registrar, offering companies currently listed on the Ghana Stock Exchange (GSE), unlisted companies trading over-the-counter, and companies considering listing on the Exchange a greater degree of choice in registry services.

Kojo Adomakoh, Country Director of Computershare Pan Africa Ghana Limited, at a ceremony in Accra to mark their entry into the Ghanaian capital market, said: “Computershare is delighted to finally be operational in the country as part of its broader pan-African strategy. We believe in the future growth of Ghana, and look forward to participating in the development of its markets over time.

“Computershare is no stranger to Ghana having been engaged by SEC last year on a World Bank project to support the establishment of an over-the-counter market for unlisted securities in the country. We have been privileged to have been able to enter the market through such a transaction,” he revealed.

Mr. Adomakoh explained that the company will introduce two value-added solutions for companies listed on the GSE and their shareholders, with the first solution being Issuer Online and the Investor Centre as the second - both aimed at adding value to the operations on the capital markets.


Stan Lorge, CEO of Computershare South Africa, said that the award of a registry licence in Ghana was a key development in Computershare’s strategy on the continent.

The Computershare Group expected African capital markets to show growth well above those of mature northern hemisphere markets, and West Africa was expected to play a leading role in this growth.

“Over the last 12 years, Computershare has made more than 70 company acquisitions which have enabled it to become a single-source solution provider to the 30,000 corporate clients and 100 million shareholders it looks after worldwide,” he remarked.

Computershare Pan Africa Ghana Limited is part of Computershare Pan Africa Holdings, which is engaged in the roll-out of global registry company Computershare’s services across Africa.

Tuesday, May 4, 2010

US$887m needed to upgrade domestic airports

All domestic airports are to be upgraded to international airports in the short-term to meet the growing demand in the wake of the oil discovery and anticipated tourism development. The project is estimated to cost US$887million.

“Some of these airports will be rehabilitated and others upgraded to international standards, especially for air traffic as we anticipate a buoyant economy in the wake of our oil find and a boost in tourism development,” Mrs. Doreen Owusu-Fianko, managing director of the Ghana Airports Company Limited, made these known in Accra at a stakeholder conference which brought together boards of airline representatives, senior executives, agents and customers of airlines in the country.

Mrs. Owusu-Fianko disclosed that completion of the Kotoka International Airport (KIA) phase-three rehabilitation project estimated at US$51 million is on course.

The project, which is aimed at improving the quality of service in the very short-term at KIA, will cover all essential airside infrastructure and cargo facilitation equipment, reconstruction of the taxiway pavements, rehabilitation and construction of Apron pavements, installation of aeronautical ground-lighting systems and construction of new fire station, as well as rehabilitation of airside access roads.

Under the US$100 million KIA Phase 11 development project completed in 2005, the following expansion projects were undertaken: the runway capacity was significantly extended by over 400 metres, a dedicated cargo apron and additional passenger apron have been constructed and ultra-modern communication, navigation and surveillance equipment installed.

Mrs.Owusu-Fianko observed that the aviation industry in Ghana has enjoyed steady, if not phenomenal, growth in recent years and this has been made possible as a result of the stable political, social and economic climate that the country is enjoying. It is also as a result of the liberalisation of the regulatory framework in which the industry operates.

“Ghana has an open skies policy, and this liberalisation is in conformity with world trends and the Yamoussoukro Decision of 2000 - of which Ghana is not only a signatory but a firm advocate.”

The industry projected an estimated annual growth of five percent, with an aircraft movement expected to grow from 24,043 in 2009 to 29,224 in 2010.

Closely related to that is passenger growth, expected to increase by six percent from 1,430,143 in 2009 to 1,738,348 in 2014.

“At an estimated annual growth rate of six percent of Gross Domestic Product (GDP), the aviation industry in the country remains very significant in the national development equation, making it imperative for us all as stakeholders to strive hard to sustain the momentum.

“The number of scheduled airlines operating to and from Ghana has increased from 13 in the 1990s to 28 in recent years, while some of the airlines already operating into Ghana are requesting for increased frequencies.

“The industry has also made highly impressive strides to ensure conformity with international Civil Aviation Organisation standards and in pursuance of our vision of making Ghana the gateway to the West African sub-region.”

Mr. Mike Hammah, Minister of Transport, indicated that the country’s aviation industry stands out as one of the fastest-growing and most competitive in the West African sub-region.

Government has over the past years invested heavily in building a formidable civil aviation infrastructure, acquisition of equipment as well as training of personnel to meet world-class standards, he stated.

“In our efforts to infuse dynamism into the air travel industry, the Ministry, through the Civil Aviation Authority, is constantly reviewing our Bilateral Air Service Agreements with our trading partners to ensure that demands of the various players in the industry are taken care of.

“This has, in some cases, led to an increase in frequencies of some of the carriers here present and also created opportunity for others to commence operations into the country,” Mr. Hammah noted.

VRA in US$665m crude oil dilemma

The Volta River Authority (VRA) needs US$665 million to enable it generate power up to the end of the year.

The Director of Engineering of the Ghana Grid Company, (GRIDCo), Norbert Anku, said the VRA will therefore need the assistance of government to purchase the crude oil it requires if the Authority is to meet energy demands.

He explained that the money will be needed to procure 19 cargoes of crude oil to power the thermal plants that VRA operates.

He said the generation of the 3,945gigawatts thermal complementation would require approximately 19 cargoes of crude oil. With each cargo containing 405,000 barrels and the price of fuel estimated at US$87 per barrel including incidental charges, the total amount required per cargo is approximately US$35 million.

“Hence for the total 19 cargoes required for 2010 an amount of about US$665 million would be needed by VRA to meet their thermal generation target for 2010.”

Already VRA’s inability to purchase light crude oil to run the Tema Thermal Station One, about 30 megawatts of electric power had to be shed earlier this year.

Mr. Anku said the estimates made by GRIDCo indicate that about 10,305 gigawatts of power will be consumed this year, of which 6,360 gigawatts is to be produced from hydro and the remaining from thermal generators.

“Considering the current low levels of tariff and the precarious financial conditions of the utilities, some financial support from the government will be required to ensure energy security for 2010,” he said.

Mr. Anku said the Public Utilities and Regulatory Commission (PURC) could also help to save the government purse by ensuring that tariffs charged by the utilities are raised to their real economic levels to enable the companies generate enough revenue to run their operations.

Currently, the utility companies have laid a proposal before the PURC for a 150 percent increase in tariffs charged on consumers; a proposal consumers - especially the Association of Ghana Industries - have kicked against claiming the increment will kill domestic manufacturing industries.

“Whenever VRA is not able to secure the required financing to purchase the required quantity of fuel, or if for any reason the delivery of fuel is delayed, there will be supply deficit and some load will have to be shed,” he said.

Source: B&FT

Producer price inflation eases marginally

Producer Price Inflation (PPI) dropped marginally in March 2010, recording 19.58 percent - a 2.55 percentage point lower than the February 2010 figure of -0.11 percent.

This marginal drop indicates that factory prices did not change significantly during the month under review.

Mr. Magnus Ebo Duncan, Director of Economics and Industry Statistics Division at the Ghana Statistical Service (GSS), who announced the figures at a press briefing in Accra, explained that the decline was due to the fall in demand for wood products in the manufacturing sector. Manufacture of wood products recorded a negative inflation rate of 3.01 percent.

“There was appreciable inflation in the manufacture of coke and refined petroleum products recording a figure of 55.91 percent, while manufacture of wood and cork recorded negative inflation rates,” Mr. Duncan stated.

The manufacturing sub-sector with 69.75 percent share of all industry, recorded inflation of 23.53 percent. Three of 16 groups recorded inflation rates higher than the average figure for the manufacturing sector.

They were manufacture of beverages, manufacture of coke, publishing and refined petroleum products and nuclear fuel.

Quarrying stone, sand and clay - as well as other quarrying and mining - recorded negative inflation rates; indicating less construction activities.

Utilities - which include production, transmission and distribution of electricity and collection, purification and distribution of water - recorded 0.20 percent inflation, meaning there was virtually no change in the price. The low price change was due to the regulated pricing of its output.

This industry recorded negative inflation for 2009, but it has so far recorded a positive inflation rate for this year.

British Airways leverages on technological innovations

British Airways considers the last decade to have been one of the most eventful and revolutionary periods in the history of air travel as it looks back at technological innovations over the period.

From online check-in to onboard connectivity, British Airways has rolled-out products designed for ease and convenience of its passengers, which it believes have made it the “World’s favourite airline” over the years.

As British Airways looks forward to another decade of first-class customer service, said Paul Dhami, Country Manager, British Airways Ghana, “huge advances in technology in the past ten years have allowed us to offer customers a faster, more efficient and more comfortable travelling experience than ever before.

“Our challenge going forward is to harness these technological advances to refine and improve on this service; potential developments in the world of mobile applications are just one area we are very excited about.

“Managing our environmental impact is, of course, vitally important and the next few years will see British Airways launching more fuel-efficient aircraft, using more sustainable materials and exploring new operating methods - ensuring that our commitment to combatting climate change is at the forefront of everything we do.”

He said: “We currently have a small sales office at the airport, mainly to handle basic customer issues such as enquiries, ticket reissues and change of dates.”

Mr. Dhami however pointed out that the airline still has over 100 sales outlets in Ghana, considering the ba.com website as well as a network of travel agents across the country.

In February 28.28 percent of Ghanaian passengers checked in online and the service continues to gain popularity as Internet penetration increases around the country.

The website allows customers to book flights, manage their booking, and much more. In 2009, the website introduced a dynamic packaging facility, enabling customers to book hotels, car hire, local sightseeing tours, attractions and tickets to create the entire travel experience from one website.

Since 2008, the airline has extended its remote check-in facility to allow customers to check-in via mobile phones with wireless connectivity. The free facility is also available in 11 languages, without any need to download accompanying software.

In 2007, British Airways also launched a payment system in collaboration with Standard Chartered Bank, enabling customers to pay for their online bookings at any of the Bank’s branches. Over 24% of passengers buy their tickets through this means, causing the airline to reduce its sales offices in the country.

British Airways also launched its new online boarding pass in 2004, allowing passengers to print their own boarding passes from home. Today it is available on over 95% of British Airways routes, and more that 70% of BA passengers travelling from Heathrow check-in online or print their own boarding pass from ba.com.

From 2000, British Airways enabled its passengers to check-in their flights online on the website. This facility is now available on over 97% of British Airways’ routes and is used by over 25,000 customers daily, significantly reducing the time needed and stress encountered at the airport. Cited as the innovation of the decade in a recent survey by the Business and Travel Meetings Show, online check-in enables customers to arrive at the airport ready to travel - simply needing to drop luggage and proceed to security.

The airline’s website, which was launched in 1995, has evolved to become a one-stop shop for British Airways customers, giving them greater control over their travel plans.

The site currently has an average 2.5 million people visiting each week and is available in 11 major languages including French, German, Spanish, Hungarian and Chinese. Ba.com was voted, “Best Airline Website” at the 2008 Travolution Awards.