GRi Business, Economics & Finance 18 – 12 - 2002

State Insurance Company faces many challenges

Tanink launches five brands of Alfa Romeo vehicles

Exporters urged to build customer base

 

 

State Insurance Company faces many challenges

 

Ho (Volta Region) 18 December 2002- Mr Kofi Davor, Executive-Secretary of Industrial and Commercial Workers Union of the Trades Union Congress (TUC), on Tuesday asked Management and workers of the State Insurance Company (SIC) to brace up to face challenges posed to the profitability of the company.

 

He said many other outfits, including banking institutions had moved into selling products that were in the past the preserve of SIC and have even introduced new ones thereby, creating intense competition in the market.

 

Mr Davor was addressing the third Quadrennial Delegates Conference of the SIC Employees' Union of ICU of TUC, Ghana in Ho. Thirty delegates are attending the three-day conference, under the theme, "Challenges Facing The Insurance Industry In The Golden Age of Business- The Role of Management and Union".

 

Mr Davor said the loss of SIC's market share to newer companies might not mean the company was not doing well but the reality was that competition had put it in turbulent times.

 

He said issues of under cutting prices of products such as vehicle premiums were testimonies to the fierceness of the competition which might result in some close ups of some companies in the near future.

 

Mr. Davor said other challenges for workers in Insurance Business and other financial institutions included globalisation, which has led to the closure of branch offices because customers could be accessed through technological mediums.

 

He called for cooperation between management and unions to tackle the mutual interest of keeping their outfits above the bottom line. Mr Davor said both sides must "develop the reflex to talk", saying that labour had stopped "banging tables as we do, as there is pressure on all of us to understand the environment."

 

He said managements should take workers into confidence, knowing that as their heritage they must work for the survival of the company. Mr Davor called on the Union to look beyond issues of salaries and also tackle issues affecting job security.

 

Professor Isaac Mensah Ofori, Board Chairman of SIC, said the dynamics of business ownerships today called for a re-visit to the confrontational and adversarial relationship between managements and unions

 

He said the monopoly SIC enjoyed in the past was gone and hinted that a new Insurance Bill in Parliament would bring significant changes into the business. Mr Kwasi Owusu-Yeboa, Volta Regional Minister, in a speech read for him appealed to the SIC Management to be transparent and involve the Union in decision making while the Union should in turn provide credible and truthful feedback for management initiatives.

 

He condemned the habitual late start of programmes, saying the concept of "African time" must be got rid off. The opening ceremony scheduled to begin at 0100 hours got off at 1330 hours as a result of the late arrival of delegates from Accra.

 

Mr Michael Biney outgoing Chairman of the Union said the SIC had in the year raised its market share from 39 to 47 per cent and called for motivational packages to galvanise workers to increase productivity.

GRi…/

 

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Tanink launches five brands of Alfa Romeo vehicles

 

Tema (Greater Accra) 18 December 2002- Mr Kwaku Agyeman-Manu, Deputy Minister for Roads and Transport, on Tuesday called on the private sector to take advantage of the trade liberalisation policy to expand their businesses to ensure economy growth.

 

He said the reduction in the inflation rate and the decline of interest rate was an indication of improvement in the economy and urged business people to enter into the industry to enable it flourish.

 

Mr Agyeman-Manu was launching five brands of Alfa Romeo vehicles for the Tanink Euro Ghana Limited. The brands are 147, 156, 166, GTV, and the Spider. He commended the company for its innovation that had made it to come out with durable and beautiful vehicles that will compete in the automobile sector.

 

The Deputy Minister said it was appropriate that Tanink was training a technical team on the Alfa Romeo brand in Italy to contribute to the manpower development in Ghana and urged companies in the auto industry to emulate it and contribute to the success of the government's objectives of the Golden Age of Business.

 

In a welcome address, Mr Roger Klogo, Managing Director of Tanink, assured the customers of the availability of spare parts, a modern workshop and after sales service support.

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Exporters urged to build customer base

 

Accra (Greater Accra) 18 December 2002- Success in the export business is not based on merely the number of products exported but on the number of customers that an exporter is able to build and sustain, Mr Augustine Adongo, Chief Executive of the Federation of Association of Ghanaian Exporters (FAGE) said on Tuesday.

 

He said it was important to ensure that exporters did not place too much focus on just producing their products and sending them onto the European and other markets. 

 

Mr Adongo was speaking at a trade information forum with foreign trade attaches of foreign embassies in Accra on Tuesday. The forum, which was to have attracted trade attaches from Nigeria, France, Mali, Germany and the Netherlands, only saw the Netherlands representative in attendance.

 

He stressed the need for market information for exporters and prospective exporters, which he said, would promote increased export volumes and earnings.

 

"When exporters are well informed and educated on export matters, they will be serving a good purpose not only for themselves but the country as well," he noted.

 

On the question of non availability of export earnings repatriation, Mr Adongo said "some people bring in foreign exchange, buy goods and export them and import other goods necessary for the Ghanaian market, hence you never get the actual cash coming into the system."

 

He therefore, asked banks in the country to make export finance more accessible. Banks at the forum replied saying it was difficult to provide support for a company whose activities you cannot monitor.

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