GRi Business, Economics & Finance 18 – 02 - 2003

Government pledges support for ECOWAS bank

Nigerian Finance Minister confers with President Kufuor

GEPC sets up nurseries for production of pepper and potato

Minority MP says government is not doing well

Kumasi Shoe factory to be reactivated

GSE active, but records low trading

Tripartite Committee rises without agreement

 

 

Government pledges support for ECOWAS bank

 

Accra (Greater Accra) 18 February 2003- President John Agyekum Kufuor on Monday pledged government's support for the ECOWAS Bank for Investment and Development for it to help the country's private sector.

 

He said "the Bank's guarantee to the Ghana Commercial Bank (GCB) and the National Investment Bank (NIB) to source for loans outside the country indicates that you mean business and I will support you as President of Ghana and Chairman of ECOWAS".

 

President Kufuor made the pledge when Christian Adovelande, President of the Bank, led a four-man delegation to pay a courtesy call on him at the Castle, Osu. He said, "I like the business approach you are bringing into the Bank's operations. I also do appreciate the problems of non-payment of capital by member countries of ECOWAS to enable the Bank to operate effectively due to the many priority areas confronting the governments".

 

President Kufuor called on the management of the Bank to continue to persevere to uplift the image of the Bank from the Sub-Regional level to an international level for the benefit of the people. He gave the assurance that Ghana would soon submit names of representatives to the Board of Governors and Directors of the Bank.

 

Yaw Osafo-Maafo, Minister of Finance, said Ghana's equity payment to the bank had been included in this year's budget to be released soon. He appealed to the Bank to use its leverage to access loans from international banks to support the private sector in member countries.

 

Kwamena Bartels, Minister of Private Sector Development, said the linkages established between the bank and the private sector in Ghana had enabled the private sector to access long-term loan facilities for their operations.

 

He said in the past loans to begin and expand businesses was lacking but with the assistance of the bank there had been much improvement. Bartels said the bank began with the guaranteeing of a 40 million-dollar loan from the HSBC for the salt industry and agro-processing in the country, and "there had been assurances that more assistance from the HSBC would be provided to support the President's Special Initiatives in Palm Oil; Garments and Textiles industries.

 

Dr Paa Kwesi Nduom, Minister of Economic Development and Regional Integration, said Ghana had applied for financial assistance to reactivate the Jute factory in Kumasi.

 

He said in the past Ghana was not accessing funds from the bank and appealed to the management of the fund to expedite action on the processing to enable Ghana to access the loans.

 

Adovelande, a Beninois who assumed duty about six months ago, said the delegation was in Ghana to present a progress report on the transformation process going on within the bank to the ECOWAS Chairman, President Kufuor. He said the bank shared in the government's vision of promoting the private sector to create wealth and fight poverty and this could be achieved through massive support to the sector.

 

Adovelande said some member countries had failed to pay their submission to the bank and that had prevented the bank from mobilising the needed funds to support countries within the Sub-Region.

 

"There are a lot of delays in the bank's desire to move rapidly since there are a lot to do to operate effectively in the Sub-Region," he added. Adovelande later presented a copy of the Bank's report to President Kufuor.

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Nigerian Finance Minister confers with President Kufuor

 

Accra (Greater Accra) 18 February 2003- Mallam Adamu Ciroma, Nigerian Finance Minister, on Monday appealed to ECOWAS Chairman, President John Agyekum Kufuor to assist in finding solution to the re-location of the Headquarters of the African Development Bank (AfDB) due to the crisis in Cote D'Ivoire.

 

He also asked President Kufuor to endeavour to bring peace to that country to create a congenial atmosphere for the bank to operate. Mallam Ciroma, who is in Ghana to attend the AfDB Governors Consultative Meeting, made the appeal when he paid a courtesy call on President Kufuor at the Castle, Osu.

 

President Kufuor said ECOWAS was aware of the tremendous contributions the bank had made in the socio-economic development on the continent and that the Sub-Regional Organisation would endeavour to ensure that peace and stability was maintained in Cote D'Ivoire.

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GEPC sets up nurseries for production of pepper and potato

 

Saltpond (Central Region) 18 February 2003- The Ghana Export Promotion Council (GEPC) in conjunction with the Ghana Irrigation Development Authrority (GIDA) has established nurseries at Baifikrom near Mankessim in the Central Region for production of seedlings of chilli pepper, known in Akan as (Mesewaa) and sweet potato (exportable variety) for farmers.

 

Gerald Nyarko Mensah, Deputy Director of GEPC, said the Council had also made available a quantity of seeds of the pepper to be supplied to interested farmers free of charge.


He was addressing the Mfantseman District Assembly at Saltpond. Mensah said the Council had taken the measures to promote the production of the commodities that were in high demand in Europe.

 

He said last year GEPC could not meet the demands of the importers of the two commodities and appealed to farmers to take advantage of the facilities being offered by the Council and assured them of the ready market to meet the demands of the importers.

 

This, he explained would enable the Council to maintain the trust between it and the importers. The Deputy Director said in order not to expose the potato seedlings to infestation by worms a special nursery known as tunnel has been established for their production. He appealed to District Assemblies to support and encourage farmers to grow the crops in large quantities.

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Minority MP says government is not doing well

 

Ho (Volta Region) 18 February 2003-Johnson Asiedu-Nketia, Member of Parliament for Wenchi-West, on Saturday alleged that the government could not release its latest Trade Statistics on Agriculture because the sector failed to achieve its targets.

 

Asiedu-Nketia, a Deputy Minister of Food and Agriculture in the National Democratic Congress (NDC) government, said this at a forum of the Volta Region branch of the Tertiary Educational Institutions Network (TEIN) of the National Democratic Congress at Ho.

 

He said rice imports for instance had doubled from 100 million dollars to 200 million dollars while yellow maize imports rose from 5,000 tonnes to 15,000 tonnes in 2001 and again rose to 20,000 tonnes in 2002, bringing the government's total yellow maize imports to 35,000 tonnes.

 

Asiedu-Nketia said the government's importation of chicken parts also rose from 11 million dollars previously to 26 million dollars in 2001 and to 30 million dollars in 2002.

 

He said large-scale chicken breeders were starved of support that was shifted to small-scale producers with adverse effects on the country's poultry industry. ''The fisheries sector has virtually collapsed where for instance the price of a gallon of pre-mix fuel has risen from 5,000 cedis to 16,000 cedis and the price of 30 bundles of fishing nets increasing from 15 million cedis to 50 million cedis.''

 

Asiedu-Nketia alleged that "a few people have been groomed to import fish into the country instead of large-scale cold-store operators, who now depend on the few importers for their supplies resulting in local fish shortage.''

 

On cocoa, he said the previous government was paying 70 per cent of the world market price of the produce to farmers but now farmers were being paid 46 per cent of the world market price.

 

''These and many other shortfalls in the performance of the agriculture sector for two years now do not match the high profile pronouncements of commitment to making it the backbone of the economy.

 

"Any praise of the government's performance, therefore, cannot include the agriculture sector", Asiedu-Nketia said. However, when the GNA interviewed the Minister of Food and Agriculture, Major Courage Quashigah on Monday in Accra, he described Nketia's assertions as malicious and false.

 

He said there was nothing wrong with the statistics saying; "it is totally ridiculous for a past Minister and an MP to give false figures to the people". He said 10,589 tonnes of maize worth 1.526 million dollars was imported into the country in 2001 and 9,142 tonnes worth 1.308 million dollars came in during the first six months of 2002.

 

Rice import was 311,513 tonnes worth 72.456 million dollars in 2001 while 378,311 tonnes worth 85.23 million dollars was imported in 2002. Major Quashigah said 10,962 tonnes of poultry worth 8.258 million dollars was imported in 2001 while 19,199 tonnes was imported in 2002.

 

The Minister said fishing net had been selling at between 25 million cedis and 30 million cedis since last year and the price was still the same and called on political opponents to speak the truth and not play "pull him down politics".

 

Major Quarshigah said due to hostilities in neighbouring Cote d'Ivoire, countries like Burkina-Faso, Niger, Togo and Mali were using the Tema and Takoradi Harbours and increases in importation did not mean that all the rice and maize importation were for Ghana. He said the Ministry was bent on cutting down the importation of rice for Ghanaians to patronise local rice.

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Kumasi Shoe factory to be reactivated

 

Accra (Ashanti Region) 18 February 2003- An agreement is expected to be signed in Accra on Monday between the government and a Chezkoslovakia Republic based company, TELFIN for work to begin on the abandoned Shoe Factory in Kumasi.

 

The company is investing about 6.5 million dollars into the factory that is expected to begin operations by April with an initial workforce of 800. This was disclosed by Sampson Kwaku Boafo, Ashanti Regional Minister to newsmen after he led a delegation from the company to pay a courtesy call on President John Agyekum Kufuor at the Castle, Osu. Jan Gaszczyk, Chief Executive of the Company, said they were motivated to assist in reactivating the factory that was built with assistance from the Czeck government during the First Republic. The factory would produce shoes of all types including leisure ones and boots for the security services. President Kufuor was shown some samples made by the factory.

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GSE active, but records low trading

 

Accra (Greater Accra) 18 February 2003- Trading on the Ghana Stock Exchange (GSE) on Monday was active with six price appreciations, but total shares traded slumped to just 57,200 from Friday's 91,900 shares.

 

The market index edged up slightly by 2.33 points, to open Monday trading at 1,463.72 points, up from Friday's close of 1,461.39 points. SSB Bank closed trading with the highest gain of 30 cedis to end at 4,200 cedis.

 

Ghana Commercial Bank (GCB) and Mobil Oil Ghana Limited followed with each making 19 cedis to finish at 4,020 cedis and 19,750 cedis, respectively. British American Tobacco (BAT) and Mechanical Lloyd Company made only one cedi each to end trading at 1,102 cedis and 274 cedis.

 

The day's other gainer was Unilever, which made three cedis to close at 4,876 cedis. Market capitalisation was 7,009.63 billion cedis from 2,553.75 issued shares. The change for the year went up to 4.90 per cent from 4.74 per cent.

 

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

ABL                   410

AGC                  28,110

ALW                 3,500

BAT                         1,102                               +1

CFAO                  67

CPC                    626

EIC                    4,850

FML                  2,001

GBL                           520

GCB                  4,020                         +19

GGL                        1,115

HFC                        1,205

MGL                          254

MLC                          274                                +1

MOGL              19,750                 +19

PAF                           750

PBC                     390

PZ                      2,016

SCB                  28,700

SPPC                   390

SSB                   4,200                         +30

SWL                    285

TBL                   4,900

UNIL                 4,876                         +3

CMLT                       460

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Tripartite Committee rises without agreement

 

Accra (Greater Accra) 18 February 2003- The tripartite committee negotiating for a new minimum wage for workers rose from their meeting on Monday without any agreement. The Committee, however, agreed to have further consultations on Thursday on the various proposals.

 

A source close to the Ministry of Manpower Development and Employment, who spoke to the GNA, declined to give details of the proposals. Mrs Cecilia Bannerman, Minister of Manpower Development and Employment, had promised demonstrating workers of the Tema District Council of Labour last Wednesday when they presented a petition to her that the Committee was likely to come out with a new minimum wage last Thursday.

 

A previous meeting on the issue last week ended in deadlock after the stakeholders failed to reach a consensus on the thorny issues of productivity, the economy and inflation. The TUC is proposing a 68 per cent increase in the daily minimum wage currently pegged at 7,150 cedis. The government is, however, reported to be offering a 12.5 per cent increase.

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