GRi BEF News Ghana 26 - 02 - 2001

 

World Bank to support small and medium term enterprises

 

Government says concern with huge domestic debt

 

GSE index continues strong performance

 

 

World Bank to support small and medium term enterprises

Ho (Volta Region) 26 Feb. 2001

 

The World Bank has secured a 300,000-dollar assistance for the Community Water and Sanitation Agency (CWSA) towards capacity development and strengthening of private sector participation in the Rural and Small Water and Sanitation sector.

The two-year pilot initiative will focus on the provision of technical assistance to the CWSA to involve small and medium scale enterprises in providing goods and services in rural water supply throughout Ghana.

Mr Arthur Swatson, Water and Sanitation Specialist of the World Bank who disclosed this to the Ghana News Agency in Ho on Thursday said the project is to ensure private sector participation in management, operation and maintenance and possibly providing investments for small town water supply systems.

He said a lot of investments have been made in the rural water sector through the construction of new and rehabilitation of old water systems over the years.

There is therefore the need to provide a sustained and continuous operation of the systems through proper management by the communities, "but some of the systems are so complex that the operation and maintenance is beyond the community".

Mr Swatson said the fund was therefore secured to enable the CWSA to involve the private sector in the delivery of services to communities to manage their systems to guarantee a sustainable operation of the facilities constructed.

He said the Bank had been involved in the construction and rehabilitation of 36 small town water supply systems in the Upper East and West, Northern, Ashanti and Brong Ahafo regions.

"In these regions there has been the active involvement of the district assemblies, private sector and community based Water and Sanitation Development Boards to address the issue of sustainable operation and maintenance" he added.

GRi../

 

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Government says concern with huge domestic debt

Accra (Greater Accra) 26 February 2001

 

Government said on Saturday it considers the huge domestic debt it inherited as the biggest single obstacle facing the nation and called for support to critically addressed it.

Finance Minister Yaw Osafo-Maafo said the debt stock has negatively affected crucial areas of business and investment and has particularly jeopardised the viability of state banks.

He was briefing reporters shortly after President John Agyekum Kufuor and some top ministers met with Baroness Linda Chalker at the President's residence in Accra.

Official figures put Ghana's total debt stock at 41.1 trillion cedis at the end of December 2000. Out of this amount, 31.7 trillion, or 5.8 billion dollars, was external and 9.4 trillion cedis or, 1.7 billion dollars, was domestic.

Mr Osafo-Maafo said the meeting underscored the need to strengthen the private sector to enable it play an effective leading role in the growth of the economy base.

He restated that government will not relent in its determination to place a special tag on the private sector and made this known to the Baroness. "Of course, the appointment of a minister solely responsible for that sector is a clear indication," he added.

He said Baroness Chalker, who is also Board member of some international groups including Ashanti Goldfields and Unilever International, pledged to further push the determination of those companies to assist Ghana.

She has expressed the good will to help attract direct foreign investment into Ghana and also help government to identify certain institutions that would improve areas such as procurement to ensure value for money.

Baroness Chalker, however, asked Ghana to seriously consider the issue of Highly Indebted Poor Countries (HIPC) initiative.

Citing Uganda as a successful country after opting for the initiative, she dismissed the notion that the it is likely to harm the private sector if adopted.

Government has stated that it would make its decision regarding the HIPC initiative before its maiden financial policy statement and budget, slated for early next month.

"We're still looking for some numbers to take that decision," Mr Osafo-Maafo said, adding that whatever decision that is taken, will be in the nation's interest.

Among those present were Vice President Aliu Mahamah, Mr Jake Obetsebi-Lamptey, Minister of Presidential Affairs and Mr J.H. Mensah, Majority Leader and Minister of Government Business.

President Kufuor also had discussions with Mr Abbas Mirakhor, Executive Director of the International Monetary Fund in Ghana.

The talks centred on how the institution could contribute to the revamping of the economy with special focus on reducing poverty as well as  improving the general well being of the people.

It was a follow-up to last week's meeting between West African leaders and heads of the  Bretton Woods institutions held in Bamako, Mali.

GRi…/

 

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GSE index continues strong performance

Accra (Greater Accra) 26 February 2001

 

Major indices rallied during trading on Friday as the Accra bourse struggled to shake itself from bearish sentiments. The GSE-All Share index, the key stock gauge, rose by 3.53 points to close at 871.12 points, up from 867.59 points on Wednesday.

Traded volumes for the first time this year, climbed beyond the one million mark, pushed by sales by Pioneer Aluminium Company, which sold 1,043,800 shares to propel total volumes to close at 1,058,400 shares, compared to 280,300 on Wednesday. 

Bids were up at 1,143,600 from a low of 531,400 shares. 

On the broader market, there were four price changes - three positive and the other negative.

ALW made a gain of 100 cedis at 5,400 cedis and Enterprise Insurance went up by five cedis at 2,895 cedis. SSB Bank appreciated by 75 cedis to close at 2,200 cedis. PAF was the sole loser, going down by five cedis to close at 240 cedis.

Market capitalisation shot up at 3,679.94 billion cedis compared to 3,673.27 billion cedis at the previous close.

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

ABL                    630              

AGC                18,600

ALW                 5,400             +100                                       

BAT                    380

CFAO                 57                           

EIC                  2,895              +5                   

FML                   855              

GBL                 1,350

GCB                1,545                                     

GGL                    850

HFC                    952

MGL                    210             

MLC                    140             

MOGL             18,700

PAF                     240              -5        

PBC                      490

PZ                         500

SCB                 21,550            

SPPC                    296            

SSB                   2,200             +75     

UNIL                 1,598            

CMLT                  425

GRi…/

 

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