GRi Business, Economics & Finance 09 – 04 - 2003

Ghana earns $3 million from the export of basket and hats

Criteria for membership into Ghana Club 100 reviewed

Financial security will accelerate investment

Ghanaian skills around the globe to be utilised

Aluworks expands casting line

Traders urged to expose tax evaders

Inter-bank exchange rates

One Dial to inject $275 million in telecom sector

 

 

Ghana earns $3 million from the export of basket and hats

 

Sekondi (Western Region) 09 April 2003- Ghana earned three million dollars from baskets and hats exported by the Bolgatanga Craft Centre last year.

 

Salifu Mahami, Upper East Regional Minister, announced this at the joint-day of the Upper East and Volta Regions at NAFAC 2002 in Sekondi on Monday. He said the Upper East Region is among the country's best craft producing areas and has captured large markets in basketry, leather works and blacksmithing.

 

Mahami said more support is required to improve the region's craft production to earn more foreign exchange for the country and sustain the economy of the region. He said Ghana Export Promotion Council (GEPC) in collaboration with the Japanese International Development Cooperation (JIDA) is offering exhibitions and training programmes for people in craft industry to impart new techniques and skills to enhance efficiency and productivity.

 

Mahami said the GEPC has initiated a straw plantation project at Bongo in the Upper East to produce raw materials for the industry. Mahami said the GEPC is undertaking a similar project at Navrongo also in the same region to help weavers to obtain straw all year round.

 

He said the Upper East Regional Coordinating Council (RCC), district assemblies in the region and other stakeholders intend to institute regional awards programmes to sustain interest and attract talents to develop arts and culture.

 

Kofi Dzamesi, Deputy Volta Regional Minister, said the region has huge deposits of salt along its coastal belt. He said salt is considered to be white gold for the region and its production could generate considerable capital for further investment in allied industries such as soap making and chlorine.

 

Dzamesi said some miners have acquired land for salt production through the Minerals Commission under the President's Special Initiative (PSI) for salt. He said mineral deposits in the region, which include diamond, iron ore and oil are yet to be exploited.

 

Dzamesi said there are also large clay deposits, which have the potential for the development of an integrated bricks and tile industry. Cultural groups from the two regions showcased the potentials of their areas at the function.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Criteria for membership into Ghana Club 100 reviewed

 

Accra (Greater Accra) 09 April 2003- The Ghana Investment Promotion Centre (GIPC) has reviewed the criteria for selecting members of the Ghana Club 100, citing implementation problems. Ghana Club (GC) 100 is a prestigious group of top performing companies in the country.

 

Kwesi Abeasi, Chief Executive, GIPC, told a press briefing on Tuesday that the new criteria would require all entrants to be limited liability companies with government shareholdings of below 50 per cent. In addition, companies must have posted positive cumulative net profit in the recent three years.

 

Abeasi further explained that the new criteria would require that the rank of a firm be based on profitability, turnover, growth rate in turnover and net assets rather than the previous requirement that dwelt on turnover only, which favoured mostly large companies.

 

He said companies would be ranked on each of the four indicators that would be given equal weight. "The final rank in the GC 100, would be the weighted average rank obtained after weighing all the four factors and it is hoped that this will give full recognition for successful enterprise building, and make it possible for small but well managed firms to be members of the prestigious club," he said.

 

Abeasi said the decision to change the qualifying standard was due to problems and challenges encountered over the past years of instituting the programme. He mentioned the prominence of some loss making companies as well as the overwhelming preponderance of government owned organisations in the top of the rankings as some of the major challenges.

 

Abeasi said the new measures would address the problems and ensure that the club becomes more relevant and responsive to the needs of the private sector. Advisory boards to approve rules of eligibility, models for arriving at ranking, approve special excellence awards and criteria for their determination as well as advise on ways of making benefits available to the GC 100 members would also be set up, he said.

 

"This is to ensure that the private sector has real ownership of the GC 100 programme and also make the programme most reliable, authoritative and most consistent annual publication on the corporate sector in Ghana," he said. He said an initial registration fee of 500,000 cedis has been dropped and companies could now register free of charge.

 

Abeasi urged all eligible companies to submit their documentation, which must include copies of the company's audited accounts for 1999-2001, the company's profile, Profile of the Chief Executive Officer (CEO), a statement by the CEO about the company's vision and developments for the past years.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Financial security will accelerate investment

 

Accra (Greater Accra) 09 April 2003- A Member of the Council of State on Tuesday called for a stable and uniform legal environment in West Africa to provide investors and financial institutions with the security needed to accelerate investment in the Sub-Region.

 

The Member, Nana Prah Agyenisam IV said the diverse and complex sets of investment and business laws and procedures scattered in many provisions, bye-laws, legislative instruments, conventions and treaties needed urgent attention.

 

Nana Prah said this at the opening of a Conference on Harmonization of Investment Laws in West Africa under the auspices of the Commercial Law Development Section of the US Department of Commerce.

 

Participants at the Conference are to examine a Uniform Investment Law for West Africa and make recommendations for the consideration of their governments. Nana Prah noted that the absence of uniformity in investment laws in West Africa had been, and continued to be, a crucial obstacle to investment and the development and financing of major projects.

 

He said investment capital was scarce adding, "investors do not like uncertainty and will put their money in countries where there is a stable and transparent regulatory framework". Nana Prah said investors, like voters, were informed and discerning and had no motivation to be altruistic.

 

"They will not bring their scarce funds into a region which they perceive to have defects in vital areas such as the legal and regulatory framework." He said regional harmonization of laws and procedures relating to investment would enable local and foreign businesses to approach the Sub-Region as a single market, thereby enhancing the trade and investment potential and opportunities which should be unearthed.

 

He urged participants to come out with a modern, harmonized, flexible and reliable investment framework adaptable to each country's economy. Nana Prah said since the publication was expected to serve as notification of excluded activities, it should be published at least quarterly. The law should also specify a minimum notice before putting exclusions into effect.

 

He said the law should enhance the credibility and effectiveness of the centre and make it clearer to potential investors how long processes were supposed to take and also serve as a challenge to the centre in the performance of its administrative functions.

 

Nana Prah said the question of an investor being given the right "to choose qualified persons from any country" must be addressed since he could choose not to hire any locals. "You must consider the need to create employment for competent locals."

 

Mrs Linda A. Wells, Chief Counsel for Commercial Law Development, US Department of Commerce, told the GNA that it was important to have a common legal system in the Sub-Region to make investors feel comfortable doing business in the Sub-Region.

 

"By this, when an investor comes to Ghana and wishes to expand into Togo, Senegal or Mali, he would have to deal with the same legal regimes instead of the present system of Anglophone and Francophone laws that they must grapple with." She expressed the hope that participants would develop consensus and African governments would embrace the draft law and approve of it.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Ghanaian skills around the globe to be utilised

 

Accra (Greater Accra) 09 April 2003- Vice President Aliu Mahama on Tuesday launched the Ghana Skills Bank (GSB) with the assurance that the government would harness the intellectual capacity of Ghanaians around the world to ensure rapid socio-economic development and the reduction of poverty.

 

He said: "Ghana's vision to attain a middle income status by 2015 calls for an all hands on deck approach towards development... We see Ghanaians shining in many places in the world. It is time we opened our arms to them and welcomed them into our fold."

 

The GSB Network, initiated by the Ghana Embassy in Washington, is Internet-based interactive database that documents the skills, expertise and achievements of Ghanaian professionals and successful entrepreneurs from around the world.

 

The Network, which provides a forum for the exchange of ideas on approaches to tackle the development challenges of the country, also links Ghanaian professionals in all industries and disciplines with organisations in search of qualified personnel.

 

The features of the database, found at www.ghanaskillsbank.org, include professional chat rooms and information exchange, message boards, job search forums and job listings. Vice President Mahama challenged Ghanaian professionals to sign up to make their rich expertise and entrepreneurial skills available to all spheres of national development to push the agenda of achieving growth and prosperity.

 

Making reference to the brain drain, he said the network was a laudable avenue of utilising Ghanaian talents, while efforts were made to halt the trend and encourage Ghanaians to return home to build their country.

 

"It should be possible for the managers of the GSB, in collaboration with various professional bodies, such as the Ghana Medical and Dental Board or even the Ministry of Education to arrange for Ghanaian medical and dental professionals or teachers, for example, to come home during vacations and sabbaticals to provide services in their areas of expertise to their fellow countrymen," he noted.

 

He urged Ghanaians outside the country to use the network to seek information on the divestiture programme for investment and buying of shares on the Ghana Stock Exchange. Vice President Mahama said the government would improve the educational system to give quality education and develop the nation's human resource base as the experience of India, China and elsewhere had proved a positive relationship between intellectual capacity and national development.

 

Alan Kyerematen, Minister-Designate of Trade, Industry and Special Presidential Initiatives, stressed the need for the nation to prioritise the development of her human resource, saying the natural resources of a nation could not be transformed into prosperity without the requisite human skills and expertise.

 

He cited Singapore, Mauritius and Japan as countries with virtually no natural resources but had been able to achieve significant development because of their rich human capital. Kyerematen, however, expressed regret about the relatively low turnout at the ceremony, saying the network must be embraced with greater enthusiasm because Ghanaian intellectuals should bear in mind that foreign nationals would not develop their country for them.

 

"When we launched the GSB in Washington last June, more than 400 people attended the ceremony, but there are not as many people here." About 50 people attended the ceremony in Accra. Kyeremanten said: "We must realise that we ought to be part of the solution to our problems and not just be critics. We cannot rely on foreigners to build Ghana, the Jews developed Israel, the Koreans developed their country and others did the same."

 

He said the process was non-discriminatory and every professional or entrepreneur would be accepted as a subscriber. About 1,000 Ghanaians have so far subscribed to the network. Alfred Salia Fawundu, UNDP Resident Co-ordinator, said the UN had the mandate to mediate processes of development of nations hence the UNDP's joint sponsorship of the GSB.

 

He said social networking, using the Internet as a tool, was a brilliant means of tapping human resource for development. A nine-member Board of Trustees with  Kyerematen as Chairman would be in-charge of the GSB, with a four-member Co-ordinating Committee, led by Lawrence Prempeh responsible for the day-to-day management.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Aluworks expands casting line

 

Tema (Greater Accra) 09 April 2003- President John Agyekum Kufour on Tuesday said there was an urgent need to add significantly to the nation's energy stock to reverse the severe stress on the Akosombo Dam.

 

This, he said, required investment and assured Ghanaians of the government's preparedness to solve the problem to enable industries to operate to the fullest capacity. The President said this in a speech read for him by Dr. Paa Kwesi Nduom, Minister of Energy, at the commissioning of a 10- million-dollar casting production line for the Aluworks, an aluminium production company.

 

The commissioning brings to three the number of casting lines at the factory since it started operating in 1985. With an initial capacity of 10,000 metric tonnes it was expanded to 20,000 metric tonnes and is now producing 30,000 metric tonnes.

 

Aluworks produces for over 100 firms and individual customers both local and foreign and exports 40 percent of its output to ECOWAS countries as well as to Europe and the USA. President Kufour expressed the government's intention of becoming an active partner of the private sector in order to enjoy the benefits of the Golden Age of Business.

 

He said Ghana needed leading industries that could create value for the nation's economy and commended Aluworks for producing semi-finished and finished aluminium products. President Kufuor commended the export orientation drive of the company and urged it to continue with the exploration drive to the US market under the many opportunities offered by the African Growth Opportunities Act (AGOA) in order to contribute to the nation's non-traditional exports.

 

Dr Kofi Konadu Apraku, Minister, Regional Co-operation and NEPAD, called on Ghanaians to remain focused on the economy to ensure the rapid growth in the private sector. He said strenuous efforts made by the government to improve the economy was manifested in the revitalisation of distressed factories, the support for the small and medium scale entrepreneurs to operate on sound footing as well the inauguration of various chamber of commerce in the country.

 

''All these achievements could thrive in the atmosphere of peace and stability.'' William Inkumsah, Chairman of the Board of Aluworks, said appropriate strategies had been formulated to deal with the issue of electrical power supply facing the company's main supplier, VALCO, to ensure that the company utilised its expanded capacity fully. VALCO supplies Aluworks with 5,000 metric tonnes of ingots. Aluworks also imports 20 metric tonnes ingots from BHP Billiton of South Africa.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Traders urged to expose tax evaders

 

Accra (Greater Accra) 09 April 2003- Akwasi Osei-Adjei, Deputy Minister of Trade and Industry, on Tuesday, tasked traders to expose fellow traders who evade tax as a way of boosting government revenue base.

 

He said many traders smuggled into the country goods that should have attracted huge taxes and they then sell them at lower prices, thereby undermining the actual price level of goods.

 

"To be frank with you, government looses a lot of money as a result of this dubious practice of some business colleagues which I would urge you to expose for the benefit of this nation". Osei-Adjei said this when he met traders and queenmothers of the Makola Market in Accra.

 

The meeting was to enable the Minister acquaint himself with the problems of the market operators and traders and how best government could assist solve some of their problems.

 

The Deputy Minister said taxes on goods were revenue that government uses for the construction of infrastructure such as roads, schools, hospitals and provision of water and electricity.

 

Reacting to a major concern of traders about high duty rate slapped on them by government, the Minister said Destination Inspection System has been put in place to inspect goods of its right standard and quality and charge the duty according to the value of the goods.

 

He explained that the World Trade Organisation regulations indicated that duty rate was fixed but the valuation was what usually went up, adding, "the actual tax rate is determined by multiplying the value of goods imported by the fixed rate".

 

Osei-Adjei urged importers to always produce genuine invoice, which represented the actual value of goods being imported for the appropriate tax to be charged.  At the Makola Number Two Market where large quantities of goods belonging to the Used Clothes Sellers Association were burnt in 12 August last year, the Minister said the Ministry was liaising with the National Disaster Management Organisation to find ways of assisting the traders with some capital.

 

Osei-Adjei urged the traders to embark on an insurance policy, which would cover the lives, theft, floods and any other disaster that might occur. Samuel Tetteh, Chairman of the Ashiedu Keteke Sub-Metro, appealed to traders to desist from street hawking, parking of vehicles on the link roads and throwing of garbage into gutters.

 

He said parking of vehicles on the link roads prevented fire tenders to access the market whenever there was a fire outbreak. Mrs Christiana Nanor, Vice Chairperson of the Makola Market Women Association, on behalf of its members appealed to the Accra Metropolitan Assembly to raise the market sheds higher for ventilation and to provide fans in them.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Inter-bank exchange rates

 

Accra (Greater Accra) 09 April 2003

 

Currency                      Buying             Selling

U.S. Dollar                   8,520.09cedis             8,707.73 cedis

Pound Sterling              13,212.10                    13,505.69

Swiss Franc                  6,158.34                      6,291.08

Canadian Dollar            5,813.14                      5,936.57

Danish Kroner             1,233.69                      1,260.48

Japanese Yen               71.11                           72.65

South African Rand      1,062.60                      1,081.81

Euro                             9,162.98                     9,361.40

CFA Franc                   13.97                           14.27

Naira                            67.62                           69.10

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

One Dial to inject $275 million in telecom sector

 

Accra (Greater Accra) 09 April 2003- One Dial Communications, one of the new companies that have applied to operate an alternative telecommunication network besides Ghana Telecom Company and Western Telesytems says it is ready to change the face of communications in Ghana.

 

Bing Aidoo, Chief Executive of the Company, told Journalists at a press conference in Accra that partners in the company have pooled 275 million dollars to develop a wireless telecommunications infrastructure base across the country, which would make telephone, voice, internet and other multimedia technologies available at a cheaper cost.

 

He mentioned collaborators in the One Dial deal as Star Communications, Lotus Capital Growth Fund, from the US, Global Wireless Satellite Networks Incorporated of Canada, China National Machinery and Equipment and Export Import Bank of China.

 

He welcomed government's commitment to the liberalisation of the telecom sector, saying that Ghana was well placed to become the hub of modern telecommunications technology in Sub-Saharan Africa.

 

Aidoo said the objective of One Dial is to bridge the telecommunication gap in the Sub-Region, which he noted was far behind the schedule set by the Economic Community of West African States (ECOWAS).

 

He said the advantage One Dial had was that it had everything on stand by: "We are only waiting for the approval for licence by government and the National Communications Authority (NCA)." He said One Dial could also provide support for the NCA to overcome some of its present difficulties.

 

"One Dial seeks to develop and operate TD-SCDMA technology, which is one of the three third generation mobile communication system while also adopting CDMA and GSM mobile communication systems."

 

One Dial said it intended to lay a solid network for Ghana, Nigeria, Mali and Zimbabwe. Others are Tanzania and Lesotho. The international base of the infrastructure he noted, would make the cost of telecommunications even cheaper as consumers would be on the same network no matter the country in which they might be; "something that would make calling and use of internet facility far cheaper than we have now."

 

He said the fixing of pole-to-pole infrastructure was obsolete and should not be encouraged. Bing said so far; "we have received favourable response from government and hope that we would get to the ground soon enough to make things easier for all consumers. "If we stick to the old way of doing things, using cables, which has proven to be expensive over the years, we would be drawn back several years."

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top