GRi Business, Economics & Finance 24 – 03 - 2003

Government urged to involve all sections in trade

Government urged to reduce Excise Rate

Ghana Stock Exchange index re-bounces after dip

Ghana losing $300 million yearly through accidents

 

 

Government urged to involve all sections in trade

 

Accra (Greater Accra) 24 April 2003 - Civil society organizations on Wednesday called on government to involve all sections of the society in discussions on the multilateral trading system to enhance participation and acceptance.

 

According to them such a move would go a long way to ensure that the negotiated trade rules and arrangements serve as instruments for building productive capacity, enhanced employment and livelihoods and sustainable development.

 

The civil societies were the Trades Union Congress, Ghana National Association of Poultry Farmers, ISODEC, Action Aid-Ghana, Third World Network-Africa, Ghana Association of Industries.

 

They were briefing the press at the end of a two-day workshop on the multilateral trading system and its implications for development at the national and sub-regional levels. The workshop was to enable the various organizations to forge a common front in addressing the key issues of trade imbalances within the World Trade Organisation and also form an umbrella organization, the Ghana Trade Network, to be able to influence trade policies.

 

Presenting the position of the group, Kingsley Ofei Nkansah, Deputy General Secretary, Ghana Agricultural Workers Union (GAWU), said the WTO agreements contained various imbalances, which were to the advantage of the rich countries.

 

He said while the agreement on agriculture effectively allows rich countries to maintain their subsidies and tariff barriers on agricultural produce, developing countries had dismantled such barriers and subsidies on agriculture.

 

Nkansah said notwithstanding these inequities, industrialized countries were renewing their efforts to introduce new issues into the WTO that threaten to undermine the domestic productive capacity and national sovereignty.

 

These new issues include investment liberalization, competition policy and government procurement. Nkansah said the rich nations were seeking through these issues to create a legal framework that would guarantee protection for their foreign investors desirous to establish in developing countries for the sole purpose of maximizing the rate of returns on capital.

 

Touching on the ACP-EU trade negotiations under the new Economic Partnership for Africa, Nkansah said most African countries would be unable to take advantage of the free market of the EU because of weak productive capacities. "This is a major flaw in the negotiations in that free trade arrangements involving the dismantling of customs duties and tariff barriers will take away a substantial source of government revenue," he said.

 

Nkansah said it was important for African countries to remain united and not to allow themselves to be influenced by multilateral trading negotiations to break their ranks. "The unhealthy competition emanating from the rich industrialized countries in the course of negotiating various trade and investment rules can only undermine the integration process," he added.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Government urged to reduce Excise Rate

 

Takoradi (Western Region) 24 April 2003- Dr Kobina Richardson, Chairman of the Board of Directors of the British American Tobacco Ghana Limited, on Wednesday called on the government to reduce the country's excise duty to enable the company to compete fairly, remain viable, protect jobs and generate revenue for the government. He was speaking at the 50th annual general meeting of the company in Takoradi.

 

Dr Richardson said the wide disparity between Ghana's excise duty rate of 140 percent ex-factory price against 8 percent to 30 percent in neighbouring countries continued to be the "main driver" of smuggled cigarettes into the country with negative effects on the company and the economy.

 

He said the government rightly acknowledged in its 2003 budget statement that smuggling accounts for as much as 10 percent of the cigarette market in Ghana. Dr Richardson said this led to an estimated revenue loss of 25 billion cedis in unpaid taxes.

 

He said the company's sales volume declined by 9 point 7 percent on the previous year performance due to the difficult economic conditions in Ghana and partly to the unfair competition from low priced smuggled cigarette. Dr Richardson said the company's contribution to government revenue from Excise duty and VAT amounted to 174.8 billion cedis, representing a 15.9 percent increase in 2001.

 

Dr Richardson said operating profit increased from 27.6 percent to 44.8 billion cedis due largely to the company's pricing policy and effective management. James Idun-Ogde, outgoing Managing Director of the Company, said the factory upgrade programme started in 2002 involving installation of modern and faster equipment, is about 95 percent complete.

 

He said after the last equipment is installed by the middle of June, the quality of the company's products would improve. Idun-Ogde said the company intends to sustain its Youth Smoking Prevention Campaign, which was launched two years ago and expressed the hope that the government would pass a law banning cigarette sales to the under-aged.

 

He said the company's investment in national education development involving award of scholarships, provision of funds for university projects and the establishment of a research chair during 2002 totalled 420 million cedis.

 

Idun-Ogde said beneficiaries included Kwame Nkrumah University of Science and Technology, which received 150 million cedis for the establishment of a research chair in agro-forestry at its Institute of Renewable Natural Resources.

 

He said to commemorate the company's golden jubilee it donated 100 million cedis seed capital to the Western Regional Administration for the establishment of an Educational Trust Fund for the region aimed at improving educational standards. Idun-Ogde said 100 million cedis, was also donated to the University of Ghana Jubilee Hall Fund.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Ghana Stock Exchange index re-bounces after dip

 

Accra (Greater Accra) 24 April 2003- The Ghana Stock Exchange All-Share Index, the key measure of the Accra Bourse, re-bounced on Wednesday, climbing by 21.41 points after a dip of 5.15 points during the previous trading session.

 

The Index climbed to 1,738.84 points from 1,717.43 points on the strength of strong gains by Standard Chartered Bank, British American Tobacco (BAT) and Unilever. Shares traded climbed to 108,400 from 28,200 shares that changed hands in a dull market on Tuesday.

 

There were four price changes - all positive. Standard Chartered Bank, the highest priced equity, jumped by 1,999 cedis to 34,000 cedis, BAT was 100 cedis better at 1,400 cedis, Uniler gained 150 cedis at 6,450 cedis and Guinness Ghana Limited moved up by five cedis at 1,223 cedis. Market capitalisation was better at 7,736.49 billion cedis from 7,684.38 billion cedis on Tuesday.

 

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

ABL                   426

AGC                  28,500

ALW                 4,000

BAT                   1,400             +100

CFAO               72

CPC                  630

EIC                    5,005

FML                  2,201

GBL                   531

GCB                  5,400

GGL                  1,223             +5

HFC                  1,230

MGL                  258

MLC                  312

MOGL               19,761

PAF                   750

PBC                   390

PZ                      2,040

SCB                   34,000                       +1,999

SPPC                 390

SSB                   6,621

SWL                  285

TBL                   5,010

UNIL                 6,450             +150

CMLT               460

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Ghana losing $300 million yearly through accidents

 

Ho (Volta Region) 24 April 2003- Ghana loses 300 million dollars yearly through road accidents, a summary of road accidents and their effect on the economy by the Agency for Sustainable Development (ASD), a developmental organisation, has said.

 

It said the loss covered vehicle damage, hospital treatment and loss of working capacity apart from the human cost. The ASD is scheduled to organise a regional training workshop for drivers in the Volta region from May 5 to 7, this year under the theme "Development Organisations' response to the indiscipline and subsequent carnage on our roads: the time of prevention is now".

 

The statement said the rate of road accidents in the country "is a big disincentive to our efforts to generate substantial foreign exchange through the fastest growing industry, tourism". It noted that in 2001 Ghana was rated the second highest road traffic accident-prone among six West African countries with 73 deaths per 10,000 accidents.

 

"In August 2002 it was observed that more than 2,000 people were killed and tens of thousands more injured in road accidents every year". A World Health Organisation (WHO) study projects that by 2020 road accidents would be the third highest cause of death in developing countries including Ghana.

 

The workshop is part of efforts by the organisers to complement the work of the National Road Safety Commission (NRSC) to curb the high rate of accidents in the country, the statement signed by Fred Agbogbo said. "Let us help reduce the carnage on our roads before it reduces us," it concluded.

 

The Volta Regional Co-ordinating Council has recommended the workshop to District Assemblies, departments and institutions in the region. In a letter signed by Steve Selormey, Regional Co-ordinating Director, it urged them to seize the opportunity by sponsoring some of their drivers to reduce accidents.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top