GRi Business, Economics & Finance 14 – 12 - 2002

Accra bourse makes marginal gains

Bank of Ghana warns banks against pre-fixing rates

Ghana to meet cocoa projections

Small Scale miners to get rich areas

 

 

Accra bourse makes marginal gains

 

Accra (Greater Accra) 14 December 2002- After an impressive showing in mid-week trading, the GSE-All Share Index, the main gauge of the Accra bourse, gained a marginal 0.32 points to close slightly higher at 1,376.38 points.

 

Traded volumes also managed a slim gain, rising to close at 136,500 shares compared to the previous close of 134,100 shares.

 

On the broader market, there were four positive price changes. CFAO regained the seven cedis it lost on Monday to close at 67 cedis, Fan Milk Ghana Limited was up at one cedi at 1,784 cedis, Guinness Ghana Limited went up one cedi at 1,043 cedis and Unilever gained two cedis at 4,802 cedis.

 

Market capitalisation now stands at 5,136.66 billion cedis from 5,136.01 billion cedis on the previous session on Wednesday.

 

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

 

ABL                        390

 

AGC                  18,807

 

ALW                   3,700

 

BAT                     1,001

 

CFAO                     67                        +7

 

EIC                     4,600

 

FML                   1,783                        +1

 

GBL                       500

 

GCB                   3,516

 

GGL                   1,043                        +1

 

HFC                      955

 

MGL                      254

 

MLC                      270

 

MOGL              19,730

 

PAF                      750

 

PBC                     390

 

PZ                     2,001

 

SCB                28,002

 

SPPC                  387

 

SSB                3,963

 

SWL                  285

 

TBL                4,850

 

UNIL              4,802                +2

 

CMLT               460

GRi…/

 

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Bank of Ghana warns banks against pre-fixing rates

 

Kumasi (Ashanti Region) 14 December 2002- The Bank of Ghana (BOG) has warned banks against pre-fixing of rates at which remitted foreign currencies were exchanged and asked them to desist from the practice since it partly accounted for the depreciation of the cedi.

 

''BOG will de-license any bank that flouts its regulations.'' Mr Emmanuel Asiedu-Mantey, Deputy Governor of BOG, said this when he inaugurated the new premises for ECOBANK Ghana in Kumasi.

 

The new bank building was built at a cost of 1.8 million dollars and will serve the northern sector of the country. The Deputy Governor said banks were expected not only to link their deposit rates to the falling Treasury bill rate but also to have this impacted on their lending rates.

 

''This will bring about expansion in the private sector which will in turn cause an increase in the domestic savings,'' he said.

 

Mr Asiedu-Mante expressed concern about the high minimum accounts opening balances as well as the minimum operating balances required by some banks and said this had deprived most people, especially salaried workers, access to banking services.

 

He spoke about the incompatibility of the various electronic cards such as the Sika Card, Visa Horizon and Barclays Card among others, introduced by some banks and said "life will be more comfortable for customers if a product or service introduced by one bank could be used at other banks network".

 

The Deputy Governor appealed to banks to explore the possibility of developing a common platform with a view to interfacing their automated teller machines that would not only be most effective but would make life more comfortable for their clientele.

 

Mr Edward Larbi Gyampo, Chairman of the Board of Directors of ECOBANK, said the bank held 9.91 percent of the market share of deposits and managing an asset portfolio of approximately 1.3 billion cedis.

 

Mr Gyampo said as at this year the bank's net worth stood at about 124.5 billion cedis. In a message read on his behalf, the Asantehene, Otumfuo Osei Tutu II, commended ECOBANK for setting itself the formidable task of contributing to the financial, economic and social development of Ghana by providing a full range of banking services and products to individuals, companies, institutions and the government.

 

Mr Sampson Kwaku Boafo, Ashanti Regional Minister, hoped the new edifice would symbolise the good work being done in facilitating the rapid growth and development of the banking industry.

GRi…/

 

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Ghana to meet cocoa projections

 

Accra (Greater Accra) 14 December 2002- Ghana is sure to meet its projected harvest target of more than 400,000 metric tons of cocoa for the 2002-03 crop year, according to field reports being monitored by the Ghana Cocoa Board (Cocobod).

 

The trend of the returns so far indicated that cocoa purchasing is on course and that the projection of 430,000 tons by the close of the crop year can be attained. The company's weekly returns indicated that more than 205,000 tons have been purchased as at 28 November barely seven weeks into the main crop season, up from 178,000 tons in the sixth week ending 21 November.

 

The Board has projected a harvest of 380,000 tons of cocoa in the main season, which is expected to end in April 2003. This represents an improvement on the 2001-02 main crops, which produced 321,321 tons.

 

The Board has taken over direct control of the disease and pest control programme (mass spraying campaign), which the government started last year to rid cocoa trees of black pod and capsid.

 

The take over has led to a tremendous improvement in the disease control programme, buyers have indicated. There is also a general decrease in the rate of smuggling of beans across the borders, especially to the Ivory Coast.

 

The government said at least 60,000 tons of cocoa was smuggled out in the last season, up from 50,000 tons that was smuggled out in the previous season and launched a vigorous drive to arrest the situation.

 

It has also stepped up the development of cocoa growing areas by providing them with social infrastructure such as houses for farmers and good community roads. Cocobod is currently seeking about $300 million to expand a hi-tech farming project, which involves application of fertiliser on cocoa farms in all centres.

 

If successful, the expansion is expected to be more than double the national production in three years towards the half a million ton target by the close of the 2004-05 crop year as set under the cocoa sector development programme.

 

Ghana, the world second largest cocoa producer is said to be losing out to Indonesia, following her abysmal performance in the last three years. Production for the 2001-02 crop-year was 340,000 metric tons, the lowest in six years, as a result of a bad mid-crop, which fetched below 20,000 metric tons as against an average of 50,000 tons.

 

Both the government and the Cocobod attributed last season's poor production to unfavourable weather conditions, rampant smuggling and disease infestation and have since launched a frantic drive to improve the three areas.

 

Stakeholders are optimistic that the current recovery measures would yield positive results and make Ghana to regain its substantive position as the second world largest producer which it recently lost to Indonesia. Ghana was the largest exporter of cocoa beans in the world until 1978 when Ivory Coast overtook it.

GRi…/

 

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Small Scale miners to get rich areas

 

Accra (Greater Accra) 14 December 2002- The Geological Survey Department is identifying rich areas for small-scale miners to optimise their operations.

 

Mr. Kwadwo Adjei Darko, Minister of Mines said, "Government is prepared to assist small scale miners, and not 'galamsey' operators. It is the vision of the Ministry to optimise the contribution of the small-scale mining sector".

 

He was speaking at this year's Winner's Awards Night of the Precious Mineral Marketing Company (PMMC) to recognise the contribution of small-scale gold miners and diamond winners held in Accra on Friday.

 

It was also to create a forum for the PMMC to express its appreciation to the award winners and honouring them for their contribution to the progress of the Company.

 

The sector is the key to the success of Ghana's drive towards the promotion of a local jewellery industry since it is the main source of raw material, the Minister said.

 

Mr Darko said Ministry envisaged maintaining its lead in foreign exchange generation by optimising the contribution of the sector and ensuring its sustainability. He said some of the strategies to achieve these objectives include the diversification of the mineral base by adding value to maximise returns, legislative review to attract investment and the application of the best environmental management practices.

 

The Minister said, the Minerals and Mining Law 1986, PNDCL 153, is to be reviewed to create a competitive environment to attract and retain investors. He said emphasis was to be shifted to the exploitation of industrial minerals like salt, clay, kaolin, lime, granite, and their chemicals derivatives including caustic soda, chlorine and pharmaceuticals.

 

Mr. Peter Boachie, Managing Director, PMMC said customer satisfaction was important in the industry, adding that, the Company was evolving strategies to get closer to its clients by identifying and providing their needs.

 

The award categories were for gold and diamond categories with the winners in the first group receiving a trophy and a certificate each while those in the second had a certificate and a wristwatch each.

GRi…/

 

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