GRi Business, Economics & Finance 23 – 04 - 2003

Ghana would not be hostile to Malaysia

257,342 tonnes of non-traditional products exported

GIPC registered 138 projects last year

ECOWAS-EU Senior Ministers meet in Accra

Aluworks loss brings index down

 

 

Ghana would not be hostile to Malaysia

 

Accra (Greater Accra) 23 April 2003- President John Agyekum Kufuor on Tuesday said it had never been the government's intention to be hostile to Malaysia. He said government had appreciated the wisdom and competence of the Malaysian Prime Minister Dr Mohammad Mahathir to steer affairs of the country, adding "if there is any country Ghana could learn from then, it is Malaysia".

 

President Kufuor said this when Tun Daim Zainuddin, former Malaysian Finance Minister who is leading an eight-man Malaysian business delegation to Ghana paid a courtesy call on him at the Castle, Osu.

 

The delegation, which is on a three-day business tour of the country at the invitation of President Kufuor would hold talks with the Ministries involved in the water sector and roads and highways. President Kufuor said "your visit is an evidence of the determination by the government to re-engage with Malaysia on trustful and beneficial relations in order that any idea of the government being anti-Malyasia is dispensed with".

 

He said in its endeavour to ensure more business relations with Malaysia, government would not be hostile to Malaysia and the visit should mark a new level in the relations between both countries.

 

President Kufuor urged the delegation to be worthy ambassadors of Ghana and promote more fruitful relations between both countries, because with the business group in Ghana, the two sides should resume negotiations of mutual benefit. Zainuddin said discussions held between the delegation and their Ghanaian counterparts so far had been fruitful and would bear good results.

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257,342 tonnes of non-traditional products exported

 

Tema (Greater Accra) 23 April 2003 - A total of 257,342 tonnes of non-traditional products were exported through the port of Tema in 2002 as against 242,866 tonnes in 2001, representing an increase of six percent, Mrs Mercy Coleman, Traffic Manager of the Ghana Ports and Harbours Authority (GPHA) has said.

 

She told the Ghana News Agency (GNA) at the weekend that fresh pineapples constituted 12 percent of the commodities among ten products that are frequently exported. The rest of the ten items are lumber/plywood/veneer 11.8 per cent, cocoa products, 10 per cent, sheanuts, nine percent, canned tuna, 8.6 percent and scraps 5.5 percent.

 

The rest are fresh yams, five percent, mouldings and furniture/components, 3.6 percent, aluminium products, and cashew nuts three per cent each. The latest shipment brings to 1,829,272 tonnes of non-traditional products so far exported through the port since 1992.

 

The main exporting countries are Holland, Spain, Germany and France, all in Europe and some countries in West Africa and the Far East. The Traffic Manager said everything had been put in place to ensure that no product goes bad at the sheds.

 

The GNA learnt that the products do not keep long at the shed because the exporters are normally informed of the arrival of the conveying vessels and so they bring in the products on time. However, in the event of shipment delays, air-conditioners have been installed to preserve them.

 

Variety of items such as charcoal, banana and wheat bran exported through the port also increased by 15 per cent from 67 varieties in 2001 to 79 in 2002. Non-Traditional Exports in tonnage from 1992 to 2001: 2001 - 242,866, 2000 - 250,268, 1999 - 218,556, 1998 - 212,633, 1997 - 195,789, 1996 - 170,850, 1995 - 75,718, 1994 - 59,962, 1993 - 74,238, and 1992 - 71,050.

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GIPC registered 138 projects last year

 

Accra (Greater Accra) 23 April 2003- The Ghana Investment Promotion Centre (GIPC) said on Tuesday that it registered 138 projects worth 65.13 million dollars last year. This, however, represents a decline from 2001 when 171 projects estimated at 97.30 million dollars were registered.

 

In its review of last year's performance the GIPC said the decline was due to the general slump in investments worldwide. In a breakdown of its quarterly performances, GIPC said 26 projects, estimated at 11.73 million dollars were registered in the first quarter, 28 valued at 9.21 million dollars in the second, 47 projects estimated at 14.59 million dollars in the third and 38 projects estimated at 29.60 million dollars in the fourth quarter.

 

It said the total amount of 65.13 million dollars was made up of 58.93 million dollars from foreign sources and 6.21 million dollars in local investments. GIPC said the initial foreign capital transfers recorded in the period totalled 12.94 million dollars.

 

The manufacturing sector was the largest beneficiary, registering 42 projects involving 16.24 million dollars, followed by the services sector with 37 projects at the cost of 7.91 million dollars while tourism had 17 investment projects valued at 3.71 million dollars in both foreign and local funding.

 

Projected employment generated during the period involved 5,522 Ghanaians and 466 non-Ghanaians, the GIPC said. Greater Accra alone accounted for 116 projects.

 

Touching on achievements at the end of the centre's five-year Corporate Plan implemented between 1995 and 2000, GIPC said 1,084 FDI projects were undertaken with following breadowns; the service sector recorded 314, manufacturing got 300, tourism had 129, building and construction got 92, and agriculture received 87.

 

These projects were made up of 763 joint Foreign-Ghanaian ones and 321 were wholly foreign owned and were initially estimated to cost 1,209.64 billion dollars and US$398.88 million respectively.

 

The second medium-term Plan 2000-2004 incorporated in the last year of the first plan was designed to transform the Centre's promotional strategy from a general approach to a specifically targeted one directed at firms and sectors pre-determined in an FDI Demand Study.

 

"Results of this programme has been modest partly due to insufficiency funding and the prevailing down-turn in the world investment trend since the events of September 11. These issues notwithstanding the Centre recorded 165, 171 and 138 projects in 2000, 2001 and 2002 respectively making a total of 474 projects valued at an initial cost of US$ 294.49 million.

 

"These investments are estimated to generate employment for some 61,025 Ghanaians and 3,693 non-Ghanaians in the first plan period and 20,719 Ghanaians and 1,515 non-Ghanaians in the second plan period.

 

Total foreign capital transfers in respect of the minimum required by the law amounted to US$202.0 million. According to GIPC, Britain remained the biggest source of foreign investments flow into the country, registering 146 projects. It is closely followed by India with 131 projects, China 128 projects, USA 107 projects, Lebanon 102 projects and Germany 90 projects.

 

Others are Korea 58 projects, Italy 55 projects, Netherlands 51 projects, Switzerland 48 projects, Canada 30 projects and France 29 projects. Nigeria tops the list of developing countries with investment in the country with 39 projects, South Africa 26 and Malaysia 12.

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ECOWAS-EU Senior Ministers meet in Accra

 

Accra (Greater Accra) 23 April 2003- A two-day meeting of Senior Ministers from West Africa and the European Union opened in Accra on Tuesday with a key aim of forging a common front under the Cotonou Agreement.

 

It would review the Economic Partnership Agreement negotiations and seek ways of instituting a critical evaluation of West African integration programme. Opening the Meeting, Dr Konadu Apraku, Out-going Minister of Trade and Industry noted that the process calls for increased level of cohesion among ECOWAS states to enable them to go into negotiations with the EU trade united under an ACP and ECOWAS guidelines and mandate.

 

"It is essential that we keep faith with the two-tier approach as adopted by ACP and ECOWAS authorities and ensure that any progress towards the second tier negotiations does not dislocate the rhythm of the overall ACP structure.

 

"Any conceptions in that direction should be subjected to open and transparent consensus building among our countries." The meeting is behind closed doors and precedes the main EU-ACP Trade and Finance Ministers' Meeting in Accra on Thursday.

 

Dr Apraku expressed the group's dissatisfaction with current state of negotiations, indicating that the apparent divergent points have given room for unease. He mentioned the continued lack of clarity, and significant progress on the first tier negotiations, saying it is a point of concern to the Ghana delegation.

 

"The critical issues are market access, financing the cost of adjustment, rules of origin, standards and framework for services trade and agriculture." He said adjustment to funding requirements was of serious concern.

 

Dr Apraku said apart from these concerns, studies by Ghana showed that only 25 per cent of her industries could survive without supporting import tariffs while significant import revenue would be lost to government. "To win negotiations ... we need to effectively address the critical issues of production, supply and distribution in our countries." This, he said, confirms that development finance is thus crucial and informs the ACP's basic demand that development should be at the heart of EPA negotiations.

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Aluworks loss brings index down

 

Accra (Greater Accra) 23 April 2003- The Ghana Stock Exchange All-Share Index, the key measure of the Accra Bourse, dipped by 5.15 points in trading after the Easter break on Tuesday when Aluworks (ALW) lost 300 cedis to send it tumbling down.

 

The Index, which had shown consistent sterling performances since the beginning of the year, dropped to close at 1,717.43 points from last week's Wednesday's 1,722.58 points in a dull market. A mere 28,200 shares changed hands in a dull market that saw shares in only six equities traded compared to 213,800 shares at the previous closing session. ALW lost 300 cedis to close at 4,000 cedis. Market capitalisation was down at 7,684.38 billion cedis from 7,696.88 billion cedis on Wednesday.

 

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

ABL                   426

AGC                  28,500

ALW                 4,000             -300

BAT                   1,300

CFAO               72

CPC                  630

EIC                    5,005

FML                  2,201

GBL                   531

GCB                  5,400

GGL                  1,218

HFC                  1,230

MGL                  258

MLC                  312

MOGL               19,761

PAF                  750

PBC                   390

PZ                      2,040

SCB                   32,001

SPPC                 390

SSB                   6,621

SWL                  285

TBL                   5,010

UNIL                 6,300

CMLT               460

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