GRi Business, Economics & Finance 25 – 04 - 2003

New Border Post at Dakola in Burkina Faso

EC Economic Partnership Agreement

Partnership between EU and ECOWAS is ideal

Salt producers demand easier access to iodine

Find quick solutions to trade disputes

HFC to pay 48 cedis per dividend to its shareholders

 

 

New Border Post at Dakola in Burkina Faso

 

Dakola (Burkina Faso) 25 April 2003-Mahami Salifu, Upper East Regional Minister, on Thursday urged governments in the West African Sub-Region to create structures that would facilitate trade, promote goodwill and simplify transit procedures between neighbouring states.

 

This would bring to fruition the ideals of the ECOWAS Protocol as well as enhance the economic well being of countries in the Sub-Region. Salifu, who led an eight-member Ghanaian delegation, was delivering a speech at the formal opening of a new border post at Dakola in the Nahouri Province of neighbouring Burkina Faso.

 

The post was originally located at Po, about 12 kilometres from the Paga border but the Burkinabe authorities moved it to Dakola, a distance of about three kilometres from the Ghana side of the frontier at Paga. "The opening of this new frontier between Ghana and Burkina Faso presents us with another opportunity to revisit the ideals that brought the leaders and peoples of our Sub-Region together under ECOWAS," the Regional Minister declared.

 

He said the Government of Ghana was committed to the promotion of bilateral co-operation as enshrined in the ECOWAS Treaty and the achievement of regional integration. This commitment he said was manifested by the government's Gateway Project as well as the recent introduction of the Ghana Community Network (GCNET) and the Ghana Customs Management System, he said.

 

Salifu announced that the Customs, Excise and Preventive Service (CEPS) station at Paga had been designated as one of the frontiers where the GCNET system would be installed. He called on communities residing along the borders to regard themselves as the same people separated only by artificial boundaries, and stressed the need for governments to concretise the mutual and symbiotic relations between such communities by providing social and economic amenities that would strengthen good relations.

 

Making reference to allegations of extortion and harassment of foreign nationals in transit, the Regional Minister told officials at both sides of the border that they held the key to the realisation of the ideals of ECOWAS. He warned that any Ghanaian border official caught involved in such negative acts would be dealt with drastically.

 

Jean-Baptiste Campaore, Burkina Faso Minister of Finance and Budget, later explained to newsmen that the increasing volume of trade between Ghana and Burkina Faso necessitated the relocation of the clearance point at Dakola, near Paga.

 

"Compared to the previous one at Po, the Dakola post has more modern clearance facilities, with a larger car park capable of holding more vehicles at a time", he said. Campaore referred to Ghana-Burkina Faso collaboration in recent times as a good example for other neighbouring countries and expressed the determination of the Burkinabe Government to join hands with its Ghanaian counterpart to fight cross-border crime.

 

Earlier in a welcoming address, the Haute Commissaire or Regional Commissioner of the Nahouri Province, Mr Habie Adama said the relocation of the post closer to the Paga Border was another manifestation of his government's confidence in the Ghana-Burkina bilateral relations. He expressed the hope that the new port would benefit the people of the two countries and conveyed his Government's gratitude to the Government of Ghana for the assistance extended to Burkina Faso returnees being evacuated from Cote d'Ivoire.

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EC Economic Partnership Agreement

 

Accra (Greater Accra) 25 April 2003- ECOWAS and the European Commission on Thursday emphasized the need for the two parties to see their Economic Partnership Agreement (EPA) as an instrument of development to create a viable regional market as a necessary step to facilitate the integration of the region into the global economy.

 

They agreed that the negotiations of the EPA should take into account the region's developmental priorities to ensure its sustainable development and contribute to the eradication of poverty. Briefing journalists at the end of the three-day meeting, Dr Kofi Apraku, Minister of Regional Cooperation and NEPAD said the meeting provided a forum for exchange of ideas on Phase I as well as serve as preparations for the launching of Phase II in September this year.

 

He said the meeting decided that both phases of the agreement would run concurrently and that the two parties should take the necessary measures to ensure its implementation from 1 January 2008. High on the agenda was also how the EU could support ECOWAS member countries to become competitive both in the field of agriculture and industry so as to take advantage of the EU market.

 

Dr Apraku said the meeting also recalled the objective to establish an economic Union in West Africa to improve the living conditions of its people maintain and enhance economic stability and strengthen existing relationship among member countries.

 

Pascal Lamy, Commissioner in charge of Trade at the European Commission, said the EPA should be seen as a real attempt by the EU to improve real market access to countries within the region. The European Commission, he said, was ready to provide technical and financial assistance to support countries to be ready before the agreement comes into force.

 

The ECOWAS Secretariat, the UEMOA Commission and the Minister of Trade and Finance of the ECOWAS member states represented the West African Region while Pascal Lamy stood in for the European Commission.

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Partnership between EU and ECOWAS is ideal

 

Accra (Greater Accra) 25 April 2003- ECOWAS Chairman, President John Agyekum Kufuor on Thursday said the partnership between the European Union (EU) and the Economic Community of West African States (ECOWAS)has provided a good opportunity for West African States to modernize their economies and become competitive in the global market.

 

He said the West African States were organising themselves under ECOWAS to provide a common market to enhance their total development, trading competence and afford them a stronger voice in the world. President Kufuor was proposing the toast at a dinner held at the Banquet Hall, State House in Accra, for participants attending the three-day first EU-ECOWAS Ministerial meeting on the negotiation of an Economic Partnership Agreement (EPA).

 

The meeting, attended by Ministers of Trade and Finance from 13 ECOWAS member states, was aimed at negotiating a dynamic and mutually beneficial economic partnership with the EC. The ECOWAS Chairman said the Sub-Region, had been watching the remarkable progress made by Europe in forging a unified front in many areas to strengthen their already very strong position in the world.

 

"With the Euro becoming a common currency in Europe, we in West Africa would realise our dream with a common currency through strenuous efforts," he added. President Kufuor urged both parties in the negotiations for the EPA to be guided by the years of history behind them and the common vision of the global village to realise their objectives.

 

He commended the participants for reaching an agreement that would be beneficial to the Sub-Region, adding "it is a good opportunity to negotiate an accord that can serve as an idea that could be used in our dealings with other trading blocs."

 

Pascal Lamy, EU Commissioner on Trade, replying to the toast, said the agreement on negotiations reached at the meeting would be implemented for their mutual benefit. He said both parties listened to each other and made compromises on the valid points that would be handled well in future negotiations. Lamy pledged the EU's support to foster regional integration in the Sub-Region.

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Salt producers demand easier access to iodine

 

Apam (Central Region) 25 April 2003- Salt producers at Apam in the Central Region have appealed to the government to make iodine more accessible to enable them treat their produce to protect the public against goitre and other iodine deficiency disorders (IDD).

 

They said the scarcity and the high cost of the chemical was thwarting their efforts to add value to their produce. Martin Ekwam, Chairman of the Interim Management Committee (IMC) of the Apam Salt Industry who made the appeal on behalf of his colleagues at Apam said a small container of the chemical was being sold at 5.5 million cedis, which many of the salt producers could not afford.

 

He said although salt iodation was introduced  in the country in 1995 only few producers could process their salt as directed by the World Health Organization (WHO). 'We appeal to the government to subsidize the cost of iodine as a measure to protect the health of the people," HE SAID

 

On the IMC's development programme for the industry, Ekwam said efforts were being made to access funds the government had made available to promote the president's special initiative PSI on salt to enable it embark on the rehabilitation and expansion of the industry.

 

Ekwam expressed the hope that with financial support and prudent management of resources the industry would play a major role in accelerating the pace of the development of the town.

 

He, however, expressed concern about interference in the administration of the industry by some members of the Asafo companies and certain personalities who wanted to make the place their gold mines. In another development citizens of Apam have decided to form a board of directors to supervise income generating ventures in the town including the salt industry, sale of plots of land and tolls from the beach and harness them for the development of the town.

 

The nine member board would have representations of the chief, the Tufuhene, Asafo Number One, and Number Two groups, the Town Council, Accra branch of Apam Citizens Association, Apam Youth and Development Association, Kumasi and Tema branches of Apam Korye Kuw.

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Find quick solutions to trade disputes

 

Accra (Greater Accra) 25 April 2003- West Africa says it is optimistic that quick and effective resolutions would be found to worrying trade disputes with its European partners immediately to ensure mutual benefits to all parties under the Cotonou Agreement.

 

It has, therefore, backed the adoption of a homegrown philosophy and strategy for economic development that gives Africans hope that they are, at least, ready to take their own destiny into their own hands and determine their pace of development.

 

Dr Kofi Konadu Apraku, Minister of Regional Cooperation and NewPartnership for Africa Development (NEPAD), said these at the opening of the first-ever West Africa-European Union Ministerial Meeting in Accra on Thursday.

 

He observed that disputes were a necessary part of any commercial arrangement to which a solution ought to be found soon. He welcomed NEPAD saying, that it was Africa's response to the challenges of globalisation.

 

"We face increasing marginalisation in the global market where our major exports face downward spiral in prices determined by external forces. This must stop and we can do that through appropriate and effective negotiations with development partners," Dr Apraku said.

 

He said the Sub-Region faced a huge burden of globalisation under the World Trade Organization (WTO) and the challenge of improving trading arrangements, especially with the EU, the Sub-Region's major trading partner. Dr Apraku, who is the outgoing Minister of Trade and Industry, noted that development finance remained one of the topmost items on the meeting's agenda, and urged participants to give it attention "because of its wide implications."

 

He said the 13 participating ECOWAS countries had put together a draft report for the attention of the meeting, which he said ought to be addressed adequately. The draft report included status of regional integration in West Africa, the Doha Development Agenda and its links with the EPA and development financing.

 

Pascal Lamy, EU Trade Commissioner, described the meeting as important since it would enable both parties to have a better understanding towards the achievement of the common objective of promoting development across the world.

 

He gave the assurance to ECOWAS countries of the EU's candid response to the establishment of a free market access area with various shades of preferential treatment under the Cotonou Agreement.  Lamy said the EU was working towards convincing G8 members outside the EU to take another look at their agricultural polices, "in view of West Africa's peculiar situation. "We are also interested in the issue of tariffs and pricing situation." President John Agyekum Kufuor, current Chairman of ECOWAS, opened the meeting.

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HFC to pay 48 cedis per dividend to its shareholders

 

Accra (Greater Accra) 25 April 2003- The Home Finance Company (HFC) Limited on Thursday announced a profit after tax of 8.8 billion cedis for 2002 and 48 cedis per share as dividend to shareholders. Kwadwo Duku, Chairman of the Board of Directors, said at the company's Annual General Meeting (AGM) that the profit is 16.1 per cent up on 2001. It paid 45 cedis as dividend in that year.

 

Directors and shareholders have also approved the payment of 6,000 dollars per annum to the Chairman of the Board of Directors and 4,800 dollars per annum to the Directors due to increased responsibilities.

 

Duku said the mortgage portfolio, which had been the lifeblood of the company, increased from 186.5 billion in 2001 to 197.9 billion in 2002 while total assets increased from 274.7 billion cedis in 2001 to 349.8 billion cedis last year. He said this profit margin had made it possible to increase the dividend.

 

Duku said given the context of the global economy and the challenges faced internally, the Ghanaian economy achieved a modest level of stability in 2002 with Gross Domestic Product (GDP) growth of 4.5 per cent. He said the management team of HFC continued to be strong adding that the staff would continue to undergo professional training programmes in preparation for the challenging business opportunities ahead.

 

Mrs Stephanie Baeta-Ansah, Managing Director of HFC, said from a business base of home loans, HFC is proud to have become a strong financial services company geared to provide efficient service at competitive prices to individuals as well as corporate bodies.  She said commercial loans in line with the commercial mortgage business mentioned to shareholders at last year's AGM, would provide the needed diversification in an environment where house prices denominated in US dollars were still unaffordable to most resident Ghanaians, due to low incomes.

 

Mrs Baeta-Ansah said the company's customer deposits increased from 15.9 billion cedis to 33.5 billion cedis with an exceptional income of 436.7 million cedis being realized from the sale of a residential property at East Airport. She said the Union Bank of Nigeria (UBN), formerly Barclays Bank, has expressed interest to purchase the entire 20 million new shares approved by shareholders.

 

"At the same time management continues to seek other investors in its equity and debt instruments," Mrs. Baeta added. A statement from the company said the UBN had acquired 20 per cent shareholding in the company resulting in an increase to over 76.5 billion cedis of the shareholders' fund. It said the UBN was one of the largest banks in Nigeria with 270 branches.

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