GRi Business, Economics & Finance

African Dev. Bank approves $20 million

Government to strengthen economic institutions

Big Stanchart leap gives Index shot

ACCA strikes deal with Barclays

Trade Union submits Bill on Incomes

Tourism rakes in 519.5 million dollars

 

 

African Dev. Bank approves $20 million

 

Accra (Greater Accra) 03 April 2003- The African Development Bank (ADB) has approved a credit of 20 million dollars to the Lome-based Ecobank Transnational Incorporated (ETI).

 

A statement from ADB received in Accra on Wednesday said the line of credit aims to provide ETI with funds to be on-lent to its 12 subsidiaries in the West and Central African sub-regions to grant loans to their corporate clients. Also to benefit would be bankable SMEs with export income streams and export potentials in the manufacturing, agro-business, mining, energy, transport, telecommunications, leasing, tourism and services sectors.

 

The proceeds of the line of credit will be used to provide medium-to-long term project finance and to fund capital equipment for new production capacities and expansion/modernization of existing facilities, the statement said.

 

ETI is a regional private financial institution with 12 subsidiaries and 58 branches in the West & and Central African regions. The statement said the line of credit would contribute to the development of the private sector through the financing of projects that are mostly export oriented and will contribute towards raising the rate of GDP growth, reducing the rate of unemployment and increasing exports.

 

The loan will also facilitate the expansion of the production facilities of recently privatised public companies and in so doing, encourage further transfer of public-sector enterprises to the private sector with a view to increase further the contribution of the private sector to GDP.

 

"The ADB's loan will also contribute to poverty reduction in West and Central African regions as nearly 20 per cent of the facility will be specifically used to finance SMEs whose projects are expected to create about 8,500 jobs in both rural and urban areas."

 

The statement said the line of credit will help strengthen ETI's capability to raise capital from the international capital markets at competitive rates and encourage the orderly and efficient development of the capital market, regional financial integration, and private sector.

 

The project is in line with the ADB's efforts to support the activities of the New Partnership for Africa's Development (NEPAD), for which the Heads of State Implementation Committee entrusted the Bank with the mandate of serving as the lead agency in the area of banking and financial standards.

 

"By granting this line of credit to ETI, the ADB is playing a catalytic role in providing financial institutions in the sub-regions, with access to hard currency loans at affordable costs."

GRi.../

 

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Government to strengthen economic institutions

 

Accra (Greater Accra) 03 April 2003- President John Agyekum Kufuor on Wednesday said government would institute the appropriate framework to ensure that all sectors of the economy perform efficiently and to their optimum.

 

He said it was in line with such determination that the National Petroleum Tender Board (NPTB) was reconstituted. President Kufuor was administering the oaths of office and secrecy to eight out of the 10-member Board at the Castle, Osu.

 

He said there was a very strong negative perception among the public of how petroleum pricing was made, most of them suspecting that there was much politicisation.

 

President Kufuor said the public felt there was undue political influence in fixing the prices and suspected that the government was over-taxing the citizenry in manipulating the prices, adding, "this does not augur well for the nation".

 

He said the government was therefore, falling on the Board to endeavour to disabuse the minds of the public of this misconception of government in fixing petroleum prices in the country.

 

Referring to the huge debts at the Tema Oil Refinery (TOR), President Kufuor said the debt build up threatened the general debt situation of the country and the financial sector, especially the Ghana Commercial Bank (GCB).

 

He said government's decision to rationalize the situation led to the hard and difficult decision to increase the prices of petroleum products that the people had to bear. President Kufuor said as part of the rationalization process, government decided that the processes attached to petroleum pricing should be left to an independent body to give further confidence to the Ghanaian public and show government's commitment to transparency and involvement of the people in governance.

 

He asked the Board to perform its duty with total transparency, due diligence and ensure their decisions was balanced to meet the demands of the consuming public and the economic cost recovery requirements of the petroleum industry in the country.

 

Professor Ivan Addae-Mensah, former Vice-Chancellor of the University of Ghana, Legon and Chairman of the Board said petroleum permeates every facet of nation building and its issues had far national and international repercussions.

 

He said petroleum would continue to dominate all the facets of the country's economy unless an alternative was found. Professor Addae-Mensah said Ghana went through a difficult situation before it had to come to terms with the petroleum industry, therefore, the Board had to study a complex issue to arrive at a decision fair to all the stakeholders.

 

He said the Board would ensure fairness, firmness, and transparency and be accountable to the people, adding, "we should be fearless and bold to make pleasant and unpleasant decisions".

 

The Chairman said members would not have any parochial interest of the society or sectional interest of those in the industry. He said there was the need for the Board to avoid allowing political consideration to dominate their deliberations but the best interest of the nation should be their watchword.

 

Other members of the Board who swore the oaths were, Mrs Gifty Affenyi-Dadzie, Chief Executive Officer of the First African Financial Services, Kwame Gyasi, a lecturer at the University of Ghana, Legon, Ken Ohene-Agyapong, MP for Assin North, Mrs Angelina Baiden-Amissah, MP for Shama, Mike Afedzi Gizo, MP for Shai-Osudoku.

 

The rest were, Dr. Humphrey O.K. Ata, Managing Director of Atlantic Computers and Electronics Limited and Isaac Okyeremah Banor. The members absent were Mr. Kwame Pianim, an Economic Consultant and Kwesi Adu-Amnkwaa, General Secretary of the Trades Union Congress (TUC).

 

The NPTB shall have primary responsibility for assessments of ex-refinery prices of all petroleum products at TOR or imported for distribution on the Ghana market to ensure their alignment with the national petroleum pricing formula.

 

It shall exercise general oversight and also seek to achieve maximum economics and financial benefit of all procurement of petroleum products for Ghana while providing for consumer satisfaction in availability of reliable product services throughout the country at all time.

 

Under the terms of reference, the NPTB shall ensure at all times sustenance of equity and balance in the import parity equivalent for all products produced in the oil refinery relative to direct imports of finished petroleum products.

 

It shall manage the implementation of the National Petroleum Pricing Formula to ensure optimal price-cost, re-alignment and effective cross-subsidisation of all critical products without creating uncompetitive or distortions in the pricing trends for the market.

 

The NPTB shall provide the mechanism for regular review of allowable ex-refinery prices and such other charges as may be applicable under the pricing formula for the petroleum distribution market.

 

The Board is to work with the Energy Commission to ensure that the Oil Marketing Companies (OMCs), which are directly responsible for distribution of the products to the consuming public, comply with the established pricing levels and display requirements at all times.

GRi.../

 

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Big Stanchart leap gives Index shot

 

Accra (Greater Accra) 03 April 2003- Standard Chartered Bank (SCB), the highest priced equity, on Wednesday rose by 2,000 cedis and gave the GSE All-Share Index, the main market index, a big shot in the arm despite a loss in the share price of Aluworks Limited (ALW).

 

The Index ended 20.09 points higher at 1,663.80 points from 1,643.71 on Monday. Change for the year edged up at 19.24 per cent. SCB, which had not made any move for several weeks, ended trading at 32,001 cedis. There were five other price changes - four up, one down.

 

ALW was the only loser, going down by 300 cedis at 4,000 cedis. SSB Bank was 344 cedis better at 6,400 cedis, Patterson Zochonis rose by nine cedis at 2,025 cedis, Ghana Commercial Bank was six cedis richer at 5,118 cedis and British American Tobacco gained four cedis at 1,106 cedis.

 

Total shares traded ended the day at 210,300 cedis, down from 2,127,500 shares on Monday when there was a bloc buying of SSB Bank shares. Market capitalisation ended higher at 7,542.87 billion cedis from 7,494.16 billion cedis.

 

The following are the last prices of listed equities in cedis:

ABL                            420

AGC                  28,500

ALW                  4,000                        -300

BAT                          1,106

=4

CFAO                   67

CPC                     630

EIC                     5,005

FML                   2,009

GBL                            520

GCB                   5,118                        +6

GGL                         1,218

HFC                         1,221

MGL                           257

MLC                           310

MOGL               19,751

PAF                            750

PBC                      390

PZ                       2,025                        +9

SCB                   32,001                       +2,000

SPPC                    390

SSB                    6,400                        +344

SWL                     285

TBL                    4,900

UNIL                  5,600

CMLT                      460

GRi.../

 

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ACCA strikes deal with Barclays

 

Tamale (Northern Region) 03 April 2003-The Association of Chartered Certified Accountants (ACCA) has entered into an arrangement with Barclays Bank to make it possible for students of accountancy to pay their remittance fees into ACCA's accounts with the bank's branches free of charge.

 

In the past, students had to pay up to 35 pounds sterling through foreign bank drafts for every transfer they make, irrespective of how much one was transferring. Mrs. Zuwera Ibrahimah Mohammed, the Administrator of ACCA- Ghana, said this at the inauguration of the Chartered Certified Accountants Students Society in Ghana (CCASSIG).

 

The London branch of the ACCA sponsored the Tamale branch, which is the fifth to be inaugurated in the country. Mrs Mohammed said the government's policy of zero-tolerance for corruption would not be achieved without qualified accountants and well-trained accounting technicians.

 

Mrs Mohammed appealed to organisations and employers to assist their staff to train to become professional accountants, saying, "it is a good investment to make and the pay back is quite good."

 

She said ACCA had about 400 qualified members and affiliates and close to 11,000 students but noted with concern that less than 0.5 per cent of the number are people of northern extraction.

 

Mrs. Mahama appealed to people of the three northern regions to take advantage of the services and facilities that ACCA would offer them through CCASSIG to train to become professional accountants.

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Trade Union submits Bill on Incomes

 

Sunyani (Brong Ahafo) 03 April 2003- Kwasi Adu-Amankwaah, Secretary General of the Trades Union Congress (TUC) on Tuesday said the Congress had submitted a Bill on Incomes to Parliament and expressed the hope that the House would discuss it after the Easter recess.

 

He stated: "The country needs a well-tailored and agreeable minimum wage for its workers, not necessarily for the benefit of those still in the service but most importantly for those who might go on pension to also enjoy invalidity, old age and survival benefits".

 

Addressing the first-quarter meeting of the Sunyani District Council of Labour in Sunyani, Adu-Amankwaah said it was true that Government determined the minimum wage, "but it did so in consultation with the other stakeholders, especially Labour, which serves the interests of the majority of the working class".

 

He compared the 1992 and 1999 statistics on the income situation in the country and said whilst in 1992 the lowest paid workers had 1.2 per cent increase and the highest earning group enjoyed 36.5 percent, the income of the lowest paid workers reduced to 0.3 percent as at 1999, whilst that of the highly-paid workers jumped to 42 per cent.

 

He said the changing consumer price index and the rate of inflation called for the fixing of a wage increase as and when necessary. Explaining the TUC's last-minute acceptance of the Government's recent minimum wage rate as against the Congress's proposed 68 per cent, the Secretary-General said the intervention of President J.A. Kufuor, coupled with the proposed 2003 budgetary statement on expected expenditure of 13 trillion cedis as against eight trillion cedis for last year, "there was nothing else our team could do but to give in to avoid dislodging the national budgetary programme for the year".

 

Adu-Amankwaah noted that despite the fact that the government approved minimum wage of 9,200 cedis was below the TUC's demand, it was not all that bad "since under that figure 40 per cent of the country's labour force is expected to live within one US dollar as against the previous year".

 

He reminded workers that the fight for survival in the labour industry could not be achieved in a day and that even if that could be possible it had to be done collectively. The Secretary General endorsed the government's proposed national identification system, which he said, would not only serve the purpose of voting but also for the nation's marketing system.

 

"The credit system in the country is weak and such an identification system will go a long way to help trace a credit beneficiary even if she or he decides to abscond after taking a government loan".

 

Adu-Amankwaah also endorsed the Government's Education Trust Fund (GETFUND) but called for a more effective monitoring to ensure that such facilities were put to better use as expected under the programme.

 

He, however, disagreed with the proposed 2.5 per cent deduction from workers' social security pension fund towards the National Health Insurance Scheme, and called on the government to clarify the situation.

 

If the government really means to seek the welfare of workers health-wise, then such monies should be channelled through a private insurance company in the form of payment of a premium, he said.

 

He stated that if the 2.5 per cent was deducted from a contributor's social security scheme, then it would mean the person would not qualify for the full 17.5 per cent pension, but only 15 per cent.

 

The law that established the scheme in 1965 states that all being well with its operation, it should last till the year 2050, but if the government's proposed 2.5 per cent interference should be allowed to stay, then the original life-span of the scheme would be reduced to 2020 at the expense of contributors.

 

On the on-going US-led war against Iraq, the TUC Secretary-General described it as "unfortunate" and called on the United Nations General Assembly to redouble efforts and solve the situation to save the life of poor innocent civilians, mostly children.

 

In a four-point resolution, the meeting noted that the government had not as yet issued a White paper on the payment of the new minimum wage of 9,200 cedis announced in February. It, therefore, called on the government to do so as quickly as possible.

 

The workers also expressed their disapproval of the proposed 2.5 per cent deduction from their Social Security contributions towards the National Health Insurance Scheme and suggested that the government should look elsewhere for funds to establish the scheme.

GRi.../

 

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Tourism rakes in 519.5 million dollars

 

Accra (Accra Greater) 03 April 2003- Tourism raked in a total of 519.5 million dollars from 482,643 tourists, who arrived in the country last year. This gave 34.6 per cent rise compared to the 447.8 million dollars posted in 2001 from 438,883 arrivals.

 

The sector in 2000 made 386 million dollars from 399,000 visitors. Briefing the media in Accra, Mr Kwamena Bartels, Outgoing-Going Torism Minister, said the number could go up if the required tourist facilities such as sites and hotels were brought to acceptable standards and airfares brought down to realistic levels.

 

The Ghana Tourism Board (GTB) has encouraged the upgrading, rehabilitation and licensing of 164 new accommodation units, 29 new restaurants, 42 tour and travel operations and nine new car rental companies.

 

To further this aim, the Ministry, he said was pursuing a programme to increase budgetary allocation, establish a tourism development fund and to seek donor support. It is also to strengthen institutional linkages through inter-ministerial committees and entering into discussions with the Board of Airlines for reduction in airfares and encourage more investment in the hotel sector.

 

"The Ministry is also zoning attraction sites for investment, establish land banks for investment promotion, investment promotion tours enhancing human resource capacity through the tourism capacity development initiative, which we have secured a 4.9 million dollars assistance from the USAID."

 

He said the Ministry has proposed a Tourism Development Fund, as part of the 15-year Tourism Development Plan, which would be derived from a portion of visa fees, airport tax and bed tax from the hotels. He said: "all this would come on stream. But first have to go through the Ministry of Finance and Parliament for approval".

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