GRi Business, Economic & Finance 03 – 12 - 2002

Poor performance of Accra bourse continues

Germany urges Ghana to deepen investment climate

Ghana, EU sign 40 million euro agreement

Office of Senior Minister to hold workshop on ‘Golden Age of Business’

African countries urged to trade more among themselves

Development partners should offer the needed assistance - Kufuor

 

 

Poor performance of Accra bourse continues

 

Accra (Greater Accra) 03 December 2002- The Ghana Stock Exchange (GSE) was virtually still on Monday as the main index inched up by only 0.11 points.

 

The GSE All-Share Index, the main market index, closed trading at 1,362.76 points from 1,362.65 points, with only two equities making gains. Shares that changed hands dropped again slumped to 21,500 from 131,000 as big time investors stayed away. Change for the year was 42.56 per cent from 42.55 per cent.

 

On the broader market, Fan Milk Limited continued its slow push by gaining three cedis at 1,781 cedis and Ghana Commercial Bank was up by one cedi 3,516 cedis. Market capitalisation ended at 5,108.75 billion from 5,108.53 billion cedis.

 

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

ABL                        390

AGC                  18,807

ALW                   3,700

BAT                     1,001

CFAO                     67

EIC                     4,600

FML                   1,781                                    +3

GBL                       500

GCB                   3,516                                    +1

GGL                   1,040

HFC                      955

MGL                     254

MLC                     270

MOGL             19,721

PAF                      750

PBC                      390

PZ                      2,001

SCB                 28,002

SPPC                    387

SSB                   3,963

SWL                     285

TBL                   4,550

UNIL                 4,700

CMLT                  460

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Germany urges Ghana to deepen investment climate

 

Accra (Greater Accra) 03 December 2002- Germany on Monday asked Ghana to deepen the development of her investment climate to attract the required investment and make the economy more prosperous.

 

Mr Harold Loeschner, German Ambassador to Ghana, said Germany is desirous of taking her relations with Ghana onto a new level. However, it could only do that "if there is rule of law, security and an environment where the private sector is allowed to thrive and is the main mover of the national economy".

 

Mr Loeschner said this at the beginning of two-day bilateral economic and technical consultations in Accra. Dr Gheysika A. Agambila, Deputy Minister of Finance, is leading the Ghanaian side, while Dr Andreas Pfeil, Deputy Head of Division, Federal Ministry for Economic Cooperation and Development is leading the German delegation.

 

He said after 40 years, the two countries have agreed to focus on three main areas of cooperation. These are agriculture and food security, especially in the Northern Region, democracy and good governance in the area of decentralization and the development of the private sector.

 

Mr Loeschner said bilateral consultations with Ghana over the years have proved very fruitful and "worthwhile". "Ghana's outstanding performance in maintaining peace and stability, economic stability and role in ensuring integration in Africa is creditable and will be supported.

 

"Ghana's anchor as an enclave of stability merits our support," he added. Mr Loschner said cooperation between the two countries would henceforth ensure that development cooperation falls in line with stated objectives in the Ghana Poverty Reduction Strategy.

 

He said implementation of the processes since the last consultations is on track and the three areas are being followed. However, the Ambassador said, technical implementation procedures have to be tightened. "There are some loose ends and these must be looked at again."

 

On-going German assisted projects and programmes throughout the country would be assessed during the consultations to find out if they are on track while adjustments are made to achieve stated objectives.

 

New programmes would also be considered for financial commitments to be made during the next inter-governmental negotiations in Bonn next year. Dr Agambila thanked Germany for her continued support to Ghana since independence during which she has received a total of 860 million euros in financial and technical assistance.

 

He said the two-day consultations would offer Ghana the opportunity to critically examine all pertinent issues in the areas of cooperation between the two countries and make recommendations to further strengthen the partnership.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Ghana, EU sign 40 million euro agreement

 

Accra (Greater Accra) 03 December 2002- Ghana and the European Union (EU) on Monday signed a 320 billion-cedis (40 million Euros) agreement that would assist the mining sector to attract investment so as to regain its economic importance as a major foreign exchange earner for the country.

 

The contract signed under the Mining Sector Support Programme is aimed at increasing private sector-led exploration activities and investments in mining through the strengthening the sector's regulatory and support agencies.

 

It is also to make available funds for feasibility studies on improving the Takoradi Port and connecting railway lines. It would in addition provide resources for geological data collection and dissemination, a nationwide socio-economic and environmental impact assessment of large scale mining in order to help mitigate the adverse environmental effects of mining, especially mercury pollution, in small-scale mining.

 

The Minister of Finance, Mr Yaw Osafo-Maafo signed on behalf of Ghana and Mr Poul Nielson, European Commissioner for Development and Humanitarian Aid, initialed for the EU.

 

Under the terms of the agreement the Ghana government would have to continue with the programme of re-organising the mining sector, revising the legal framework for the mining sector, including a new mining code, and providing adequate resources to Mining Sector Institutions.

 

Mr Osafo-Maafo said the various activities lined up in the agreements tied in with government's programme to sustain the mining sector's contribution to the overall improvement in the performance of the national economy.

 

"Government has identified the discovery of new mineral resources, the gradual replacement and diversification of presently exploited ores as part of its strategies to help alleviate poverty by increasing employment and incomes of people in the mining areas," he said.

 

The Minister appealed to the EU to ensure that equipment was provided in efforts to build the capacity of institutions under the programme. "In addition where studies are proposed, we need to ensure that studies are conducted as joint effort between foreign and local consultants."

 

Mr Osafo-Maafo expressed the hope that the EU would adopt simplified procedures to ensure the timely release of funds for the implementation of the programmes. Mr Nielson stressed the need for a review and modernisation of Ghana's mining code, saying it did not compare well with similar codes in other investment destinations.

GRi…/

 

Send your comments toviewpoint@ghanareview.com

 

Return to top

 

Office of Senior Minister to hold workshop on ‘Golden Age of Business’

 

Accra (Greater Accra) 03 December 2002- The Office of the Senior Minister will organise a four-day workshop on "Investments and Finance in the Golden Age of Business" at Elmina in the Central Region from Thursday 5 December.

 

A statement signed by Mr Sammy Osei-Bonsu, Special Assistant to the Senior Minister, said the objective of the workshop is to stimulate new thinking and generate ideas on investment and finance support for a vision of a private sector-led era of rapid national development.

 

The workshop, which would be held at the Elmina Beach Hotel, would end on 8 December. The President declared a ‘Golden Age of Business’ in Ghana when he took office in January last year.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

African countries urged to trade more among themselves

 

Accra (Greater Accra) 03 December 2002- African countries have been urged to trade more among themselves than look at markets in other economies because that was the only way they could exploit the gains of division of labour.

 

Mr Paul Nielson, the European Union Commissioner for Development Humanitarian Aid, who made the call, said integration of the economies of countries on the continent was important if Africa could play its part in the global world economy.

 

He was speaking at a public lecture on the topic: "World Solidarity and Global Stability: The role of the EU Development Policy." The commissioner said the absence of intra-regional trade could facilitate smuggling and called for structures and logistics to be put in place to encourage more trade among the countries on the continent.

 

He said the imposition of excessive tariffs on products from other developing countries was an affront to promotion of integration and wider markets. Mr Nielson described the Economic Community of West African States as a building block for integration, saying it was the most advanced bloc in Africa.

 

He said the EU would do all it could to help ECOWAS succeed in its efforts at integration of the countries in the West African sub-region. "We are ready to move with those ready to move in the good direction," he said.

 

Mr Nielson, however, cautioned against the blind copy of stereotypes from Europe in their integration process, saying, "doing things exactly the ways we have done in Europe is not always recommendable."

 

He said the importance of globalisation to create wealth is not enough if the gains were not equitably distributed to reduce the level of poverty among the majority of the people in developing countries.

 

On terrorism, Mr Nielson said it should be seen as a shared problem since the attack was not usually aimed at any one particular country. He called for the formulation of adequate response to the menace, however, ruling out unilateral action in the combat of terrorist activities.

 

Mr Nielson tasked the international community to create a forum to promote peaceful interaction among people to enable them to tolerate and live with each other.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Development partners should offer the needed assistance - Kufuor

 

Accra (Greater Accra) 03 December 2002- President John Agyekum Kufuor on Monday appealed to Ghana's development partners to provide the needed assistance to the government to overcome the difficulties in the country's development efforts.

 

He cited the Tema Oil Refinery (TOR), which had been plunged into a huge debt that was likely to affect some financial institutions while local revenue mobilisation was also a problem.

 

"We need more assistance to be self-reliant in local revenue mobilisation", he added. President Kufuor made the appeal when Mr Paul Neilson, EU Commissioner for Development and Humanitarian Aid on a visit to the country paid a courtesy call on him at the Castle, Osu.

 

He said the government now had to concentrate more attention on investment programmes than aid and such investments would be used in critical areas of the economy.

 

Mr Neilson said the EU had an investment facility of about 2.4 billion Euros at the European Investment Bank that was available and Ghana could access such a facility when the appropriate fiscal measures were put in place.

 

He said the peace and stability coupled with the rule of law and the government's policy on zero tolerance for corruption when well implemented could be a boost to attract investors into Ghana.

GRi…/

 

Send your comments to viewpoint@ghanareview.com

 

Return to top