GRi BEF News Ghana 20 – 02 - 2001
Apraku: Impediments to trade will be removed
Statistics show huge deficit in Ghana-South Africa trade
Reduction in rice importation laudable
Fuel Price to hit 13,000 cedis per gallon
Seminar for banking supervisors opens
Apraku: Impediments to trade will be
removed
Accra (Greater Accra) 20 February 2001
Dr Kofi Apraku, Minister of Trade and Industry, on Monday said impediments to trade relations with African countries will be tackled as early as possible to make the gateway concept a reality.
"We are very much interested in forging investment relationships and are prepared to encourage greater inter-relationship in trade with other nations," he said.
He was speaking during a courtesy call on him by a delegation of the Ghana-South Africa Chamber of Commerce at the ministry to review trade relations between the two nations.
Dr Apraku said Ghana is prepared to explore all trade opportunities that will be offered by South Africa, adding that the trade agreement between Ghana and South Africa has not received much attention because of the change of government.
He said the ministry would have to review it and look for other possible areas of exploration before its ratification by parliament.
The Minister said the Export Development Investment Fund (EDIF) to be set up this year, would help cushion the problem of high cost of capital by providing long-term funds to local businesses interested in export marketing.
Dr Felix Kwabena Frempong, Chairman of Ghana-South Africa Chamber of Commerce, who led the delegation, said the relationship between the two countries was initially based only on friendship.
He said the balance of trade weighs heavily in favour of South Africa and the purpose of the delegation's visit was to encourage greater equitable business.
Mr Chris N. Qiqimana, First Secretary at the South African High Commission, said the poor packaging standards of Ghanaian products must be looked at seriously.
He said local businesses find it cheaper to import packaged products than locally produced ones.
The trade balance is in favour of South Africa because of historical reasons and the relatively large size of the South African economy, he said.
GRi…/
Send your comments to news@ghanareview.com
Statistics show huge deficit in Ghana-South
Africa trade
Accra (Greater Accra) 20 February 2001
Ghana suffered huge deficit in her trade with South Africa between 1995 and 1999, according to statistics from the Ministry of Trade released on Monday.
During the period, Ghana imported goods worth 301.78 million US dollars from South Africa but exported only 43.41 million US dollars, this excluded export figures for 1999.
The trade deficit, the Ministry said, is likely to continue for some time mainly due to the increasing preference for South African products.
The document attributed the trend partially to the large imports of investment goods such as mining and telecommunication equipment.
Mr. Chris Qiqimana, Secretary to the Ghana-South Africa Chamber of Commerce, told the Ghana News Agency (GNA) that South Africa has comparative advantage in trade due to the size of her economy as against Ghana.
Ghana's exports to South Africa consist of pineapples, coffee, cotton, cocoa beans, gold, diamonds, chocolate, sawn or chipped wood and wood Marquette.
Ghana imports from south Africa a wide range of manufactured products such as clothing, machinery, mechanical appliances, telecommunication equipment, chemical and allied products and alcoholic beverages.
Others include assorted transport equipment and accessories, cement clinker, paper and newsprint, and fertilisers.
Ghana and South Africa are currently involved in negotiating a trade and investment promotion and protection agreement.
The bill for the agreement will soon be put before parliament.
Currently, South Africa's effort in exploring trade and investment in Ghana has resulted in the establishment of businesses particularly in the mining, manufacturing, construction, general trading and the services sectors.
GRi…/
Send your comments to news@ghanareview.com
Reduction in rice importation laudable
Koforidua (Greater Accra) 20 February 2001
The Eastern Regional President of the Association of Ghana Industries (AGI), Mr Samuel Appenteng, has lauded government's decision to reduce rice importation by 50 per cent by the end of the year.
The policy, he said, would be a positive step for agro-industry and the nation as a whole.
Mr Appenteng told the Ghana News Agency at Koforidua at the weekend that "it will be a brilliant idea if enough measures are put in place to take care of any shortfall in local production of the crop when the need arises".
He pointed out that if people disabused their minds of the perception that "unless we open our doors to free trade, we will not be accepted in the business world", the idea of the government to boost the local industry would be a success both to industries and the nation.
He, however, expressed concern about the poor policing of the country's entry points, which, he regretted, had created room for the influx of inferior goods onto the market, thereby creating untold hardships on local industries.
He said Ghanaian industries, in an effort to meet both internal and external standards, incurred extra costs on their finished products which thereby increase their cost of production.
Mr Appenteng said that, apart from these problems, industries have to contend with unstable exchange rates, the depreciating cedi, import bills and the pre-financing of the VAT, thereby making the people not able to afford to buy locally-manufactured products due to their low income levels.
He, however, cautioned that in the government's effort to raise the production levels of local industries, it should do so on a calculated approach by ensuring that there were enough facilities to re-tool and re-engineer the industries so that they could perform to perfection.
He said the effort by the government to encourage local industries should be seen as a national development to build the country, and called on all to support it.
GRi…/
Send your comments to news@ghanareview.com
Fuel Price to hit 13,000 cedis per gallon
Accra (Greater Accra) 20 February 2001
Mr Francis Owusu-Agyapong, Minister of Transport and Communications, on Monday hinted that the economic price for fuel could almost double from 6,400 cedis to around 13,000 cedis per gallon for premium patrol.
He said the options available to government are to either "let the public take the dosage at a go or adopt a gradual increment to soften and reduce its effect on the ordinary people."
Mr Owusu-Agyapong was answering questions after members of the Cabinet Committee on the media had interacted with chief executives and editors of the state-owned media in Accra.
He said government has instructed the Ministry of Finance to work out modalities for salary adjustment for workers.
Mr. Owusu-Agyapong said currently the state runs a daily deficit of six billion cedis as a result of failing to charge economic prices for fuel.
He said the price ranges between kerosene, diesel oil and liquefied petroleum gas (LPG) should be closely related.
"If you lower the price of kerosene and raise that of diesel, you are inviting adulteration with all its consequences," he said. "Similarly, if you raise the price of LPG too much, you will be hurting the environment indirectly. We have to consider all these things," he added.
He said from the research and advice government is getting, it is likely that the final price could be between 12,000 and 14,000 cedis per gallon of premium petrol. "But the problem is, should it be dispensed at one go or in phases".
The minister said for the business community, which plans on a long-term basis, long intervals between price hikes are more favourable but for the public, "we need to find tolerance levels especially when we cannot raise wages by similar margins".
He appealed to the media to sensitise the general public on government policies and programmes for accelerated development.
Ms Elisabeth Ohene, Minister of State for Media Relations said the government has no intention of instructing the state-owned media on how to operate. However, she said, "you must know that the people of Ghana have chosen a path through their vote for the NPP."
She asked the media to inform government of attitudes and perceptions of people while informing the people about programmes and policies of the government and opposition.
The media heads questioned the rationale for inviting only the state-owned media and appealed to the government to be more tolerant to all views, especially those that may seem to be critical.
They urged the government to provide resources for the state-owned media to effectively carry out their assignment.
Media houses represented were the Ghana News Agency, Graphic Communications, Ghana Broadcasting Corporation and the New Times Corporation.
GRi…/
Send your comments to news@ghanareview.com
Accra (Greater Accra) 20 February 2001
The Ghana Association of Bankers (GAB), on Monday February 19, 2001, released the following average inter bank exchange rates of the cedi equivalent to the dollar and derived rates for other major foreign currencies:
Currency Buying Selling
US Dollar 6,851.73 7,070.36
Pound Sterling 9,924.05 10,247.78
French Franc 954.51 984.77
Swiss Franc 4,080.95 4,210.09
Deutsche Mark 3,200.38 3,303.71
Canadian Dollar 4,447.65 4,589.65
Japanese Yen 59.09 60.98
Dutch Guilder 2,841.12 2,931.20
S/African Rand 881.61 908.89
Euro 6,261.23 6,459.77
CFA Franc 9.55 9.85
Naira 63.05 65.06
Ecowas/WAUA 8,976.85 -----------
GRi…/
Send your comments to news@ghanareview.com
Seminar for banking supervisors opens
Accra (Greater Accra) 20 February 2001
The Governor of the Bank of Ghana (BOG), Dr Kwabena Duffour on Monday stressed the need for an effective banking supervision in the financial services market, saying it provides the legal and regulatory framework for a vibrant financial system.
Addressing a five-day seminar for middle level bank supervisors from Central and West Africa, the Governor said a vibrant banking system is necessary in promoting economic growth and development.
The seminar organised by the Switzerland-based Financial Stability Institute and BOG, has brought together participants from the central banks of Ghana, the Gambia, Sierra Leone, Liberia, Cape Verde, Rwanda, Nigeria, Cameroun and Sudan to discuss the theme: "Current supervisory issues and challenges."
They will examine topics like Capital Accord, Core Principles for Effective Banking Supervision and Information Technology.
Dr Duffour said the role of supervisors in the management of internal control systems is important since banks must on their own establish the first lines of defence against unsound practices.
He said a good grasp of current supervisory issues and challenges due to a change in focus and operations of banks is crucial to the success of banking supervision.
Dr Duffour, therefore asked the participants to make sure that the knowledge they would acquire from the meeting enriches their experiences to enhance safe, stable and sound banking systems in their respective countries.
He pledged the continuous support of BOG to laudable training programmes that will add to the understanding of supervisors in current developments in the banking sector and other financial institutions.
Mr. Emmanuel Asiedu-Mante, Head of the Banking Supervision Department of BOG asked the participants to forge a mutual relationship in sharing ideas that are peculiar to them.
GRi…/
Send your comments to news@ghanareview.com
Accra (Greater Accra) 20 February 2001
The Ghana Stock Exchange All-Share Index appreciated by 0.23 points on Monday on the strength of gains by Aluworks (ALW) and Metalloplastica Ghana Limited (MGL), but traded shares remained very low.
The index opened the week up at 861.80 from Friday's close of 861.57 points, pushing the change for the year to 0.45 per cent as the bourse continues to reel under heavy bearish sentiments.
Traded volumes that changed hands were up marginally at 29,600 shares compared to 11,900 at the previous session. Only six equities made sales, with Pioneer Aluminium Factory and SSB Bank selling a total of 27,700 between them.
Offers declined more than half to close at 325,010 shares as against 615,810 shares on Friday.
Bids inched at 93,300 up from 74,500 shares.
On the broader market, there were three price changes - two up and one down.
ALW gained 37 cedis at 5,002 cedis, MGL went up by five cedis at 210 cedis while Pioneer Aluminium lost 10 cedis at 245 cedis.
Market capitalisation was up at 3,662.28 billion cedis from 3,661.84 billion cedis.
The following are the last prices of listed equities in cedis:
ABL 630
AGC 18,600
ALW 5,002 +37
BAT 380
CFAO 57
EIC 2,890
FML 855
GBL 1,350
GCB 1,540
GGL 850
HFC 952
MGL 210 +5
MLC 140
MOGL 18,700
PAF 245 -10
PBC 490
PZ 400
SCB 21,550
SPPC 296
SSB 2,080
UNIL 1,598
CMLT 425
GRi…/
Send your comments to news@ghanareview.com