GRi Business, Economics & Finance 13 – 12 - 2002

Morocco eager to strengthen Economic ties with Ghana

Government disburses money from HIPC

Switzerland provides Ghana with grant

Italy cancels Ghana's debt

OGR Launches luxury bus fleet

Chamber of Commerce and Industry criticises Assembly

 

 

Morocco eager to strengthen Economic ties with Ghana

 

Marrakech, (Morocco) 12 December 2002 - Morocco is set to make Ghana her strategic economic partner in the West African sub-region with investments in the textiles sector, tourism, airline industry, fishing, mining and other areas.

 

Ali Belhaj, Ghana's Consular General in Morocco, told journalists on Thursday after Vice President Aliu Mahama held bilateral discussions with Driss Jettou, Prime Minister of Morocco at the prestigious Hotel Mamounia, said to be the most popular in the world. It was an ancient palace that was developed into a hotel.

 

The discussions, which were held behind closed doors, were said to have centred on strengthening the renewed diplomatic and economic ties between Ghana and her North African partner.

 

Belhaj said in furtherance of his country's commitment, he would lead a Moroccan business delegation to Ghana in February in next year to build on relations that were formed when they visited Ghana last year, while new ones would be established.

 

"We are building the vision for our future relations with Ghana as a strategic development partner in West Africa. We are happy that our relations, which were dormant for more than 20 years, have now been revitalised with the visit of President John Kufuor to Morocco last year and the visit of the Vice President," he said.

 

Vice President Mahama is in Marrakech to participate in the Fourth Global Forum on Reinventing Government. The three-day event, organized by King Mohammed VI of Morocco with support from the United Nations and the World Bank, seeks to achieve partnerships and dialogue that can identify common values and concrete initiates to facilitate governance, democracy and development.

 

Belhaj said Jettou, who visited Ghana before he became Prime Minister, was eager to see the relations flourish for the mutual benefit of both countries. He said Morocco was collaborating with Senegal in the telecom sector and expressed the hope that such cooperation would also be extended to Ghana.

 

Alhaji Mustapha Ali Idris, Deputy Foreign Minister, who sat in the meeting, described the interest of Morocco in Ghana as deep and with bright prospects. He said Ghana invited Morocco to explore the prospects of investing in the cash-strapped Ghana Airways, adding that issue had been prioritised.

 

Alhaji Mustapha said the two countries were working toward the establishment of a Joint Economic Commission to facilitate their cooperation. Morocco, which has a population of $30m, earned $8.2bn in exports. Its main industries are in phosphate rock mining and processing, leather goods, food processing, textiles and construction.

 

It has an annual tourist receipt of about three million. In another development, Vice President Aliu Mahama held discussions with his Nigerian Counterpart, Abubakar Atiku, who expressed contentment with the fruitful ties between Ghana and his country.

 

Atiku, who said Ghanaians and Nigerians, clicked so well that their two countries should have been one, called for support for ECOWAS to develop strong economic cooperation in the sub-region to enhance the living standards of the 250m people there.

 

He expressed regret about the frequent conflicts that emerge every now and then and said Ghana and Nigeria had to work together to restore peace to the troubled areas.

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Government disburses money from HIPC

 

Accra (Greater Accra) 13 December 2002- Government has so far disbursed a total amount of 180bn cedis from monies accruing from the Highly Indebted Poor Country (HIPC) initiative to finance various development projects aim at reducing poverty in communities throughout the country.

 

An amount of 80bn cedis was also spent for payment of government debt and the interest accruing on it. Dr Anthony Akoto-Osei, Special Adviser to the Minister of Finance announced this at the national launch of Ghana HIPC Watch; a project, which aimed to educate civil society organizations to be proactive in the monitoring of HIPC, funded projects.

 

The Social Enterprise Development Foundation of West Africa (SEND), a non-Governmental Organisation is facilitating the project to sensitise civil society organizations and local-based community groups to partner with District Assemblies to ensure that the projects impact on the lives of beneficiaries.

 

Dr Akoto-Osei said an additional 30bn cedis of the funds would soon be given out to finance projects that meet the guidelines. He explained that the process of disbursement was moving slowly because government wanted to ensure that it was transparent and accountable.

 

"The Ministry of Finance is concerned about proper use of resources to impact the lives of the people in the country." It is in this connection that the Ministry of Finance had involved the Ministry of Local Government to co-ordinate the projects, since they were aware of the real situations in districts of the country.

 

Dr Akoto-Osei pledged Government commitment to providing the necessary support for civil society to disseminate information and educate people on the Ghana Poverty Reduction Strategy.

 

He, however, noted that the participation of the poor should go beyond benefits to actual participation in decision-making to enhance whatever was derived from the programmes.  Siapha Kamara, Chief Executive Officer of SEND, said the HIPC Watch project would work towards the maximization of the effects of the HIPC on people with disability, widows, small-scale producers and the vulnerable in society.

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Switzerland provides Ghana with grant

 

Accra (Greater Accra) 13 December 2002- Ghana has signed a 15m Swiss Franc (84.14bn cedis) budgetary support grant agreement to Ghana in Accra. Yaw Osafo-Maafo, Minister of Finance signed for Ghana, while Georg Zubler, the Swiss Ambassador signed for his country.

 

This is the first official bilateral assistance from Switzerland to Ghana in more than 15 years. Osafo-Maafo said the grant followed the Swiss government's satisfaction at Ghana's efforts at macro-economic stabilization, respect for human rights and the rule of law.

 

He said it was also based on the convincing report on the economy by a Swiss Mission that visited the country in May which studied the Ghana Poverty Reduction Strategy, explored possibilities of private sector investment and export promotion and areas of promoting venture capital.

 

Osafo-Maafo indicated that half of the grant; about 42.07bn cedis would be disbursed immediately while the other half would be disbursed by April, next year. Zubler said the agreement signified the opening of a new era of opportunity between the two countries, saying, "it is going to open more doors for technical cooperation between Ghana and Switzerland.

 

He said the fact that the money was a grant also signified the confidence that the Swiss government has in the Ghana government to deliver on its promise of economic performance, good governance and peace and security.

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Italy cancels Ghana's debt

 

Accra (Greater Accra) 13 December 2002 - Italy has cancelled $5m owed her by Ghana, under an agreement signed in Accra on Thursday. A statement signed by Nana Ohene-Ntow, government spokesman for finance and the economy, said the $5m is part of the benefits Ghana is enjoying as a result of reaching decision point in the HIPC Initiative last February.

 

The agreement was signed by the Minister of Finance, Yaw Osafo-Maafo and the Italian Ambasador, Giancarlo Izzo. The statement said under the agreement, Italy would automatically cancel another $32m owed by Ghana when she reaches the completion point under the HIPC Initiative by the beginning of 2004.

 

The agreement said Italy would continue to support Ghana's efforts at poverty reduction as part of its policy of instituting measures to reduce the external debt of HIPC countries with low per capita incomes.

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OGR Launches luxury bus fleet

 

Accra (Greater Accra) 13 December 2002- OGR Tours Ghana Limited on Wednesday introduced a fleet of buses that will facilitate easy and luxurious movement of airline passengers destined beyond Accra.

 

The buses, which will carry travelers from the Kotoka International Airport (KIA) to areas beyond Accra, are extensions of air tickets purchased from Europe, America or Asia.

 

According to Mrs Grace Botchwey, Executive Director of OGR, the idea is to create a secure and comfortable mode of transport for foreigners and Ghanaians alike who are returning from abroad and have their final destinations beyond the capital.

 

She said the company saw the void in transportation in this area and is committed to creating a niche for travelers from abroad. "We noticed that for several years airline passengers, Ghanaians and foreigners alike had to struggle to get to their towns in comfort.

 

Hence the decision to move into this area and fill that void." The company currently has three Volvo buses with a capacity for 54 passengers. The buses, each valued at 250,000 dollars, are air-conditioned and fitted with washrooms for extra comfort. It is the first in the country to operate such buses.

 

Launching the buses, Kwamena Bartels, Acting Minister of Tourism said they are coming at an opportune time when government was keen on raising standards in the transport industry and make it more convenient for operators and users.

 

He said OGR has come of age - from just selling airline tickets and arranging tour operations - and congratulated them for their foresight and resolve to bring change into the transportation industry.

 

He said the Ministry of Tourism was in the process of supporting tour companies to purchase luxury buses to meet the expected increase in tourists. Bartles said government welcomed such a move and would take decisive steps to ensure that it succeeded.

 

He deplored the state of rest stops in the country, saying, "They are not anything to write home about. Some are just disgraceful. It is in this regard that I welcome these buses that are fitted with washrooms and which will give such passengers the security and comfort they are used to."

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Chamber of Commerce and Industry criticises Assembly

 

Accra (Greater Accra) 13 December 2002- The Ghana National Chamber of Commerce and Industry (GNCCI) on Thursday said it is dismayed at the action taken by the Accra Metropolitan Assembly (AMA) against some banks and companies over the payment of business operating permit fees saying locking out businesses is not the best approach.

 

"The Chamber is of the view that locking out businesses will thwart all the efforts government and the private sector have been making to attract foreign investment into Ghana and also create the wrong impression that Ghana does not have a congenial investment climate," it said in a statement signed by Sal Amegavie, the Chief Executive.

 

The Chamber specifically referred to the locking out of Barclays Bank and Standard Chartered Bank and some business operators who are its members. The statement said the Chamber, in collaboration with the Ghana Association of Bankers, had been in negotiation with the AMA over the rate of increase and the mode of classification of businesses for levying the Business Operating Permit Fees since 1995.

 

It said negotiations for 2002 commenced in March, 2002 and the Chamber last met AMA on 12 November 2002. "The negotiations were not concluded and the AMA agreed to another meeting to finalise the rate of increase for 2002 and 2003."

 

The statement said it was agreed that the business operators could pay what they paid in 2001 on account to enable the AMA to continue with its operations pending the next meeting between the two parties.

 

"The GNCCI therefore regrets the AMA action which is against the spirit of the negotiations on the Business Operating Permit Fees since 1995." The Chamber called on the AMA to withdraw its action and reconvene the negotiations soonest to enable a quick resolution of the issues raised at the previous meeting.

 

Banking activities at the High Street branches of Standard Chartered Bank and Barclays Bank were disrupted for at least two hours on Tuesday morning when AMA closed them for not paying their business operating permit fees for the year 2002.

 

Personnel from the Police and the AMA Task Force prevented customers from doing business with the banks. The AMA has increased the business operating permit fees for the banks from 27m cedis to 140m cedis.

 

AMA said only these two banks were resisting the payment of the new fees. Ebenezer Essoka, Managing Director of Stanchart, described the action of the AMA as "irresponsible". AMA carried out similar actions against two mobile phone operators on Wednesday, Spacefon and Millicom.

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