GRi Business, Economics & Finance 19 –
02 - 2003
Alfredo Mantica,
Italian Deputy Foreign Minister, who announced this, said the loan was to
facilitate the realisation of the government's desire to use the private sector
to develop the economy. He said the first instalment of the loan was expected
in the country soon.
Mantica was speaking when he led an
Italian delegation to pay a courtesy call on President John Agyekum Kufuor at
the Castle, Osu on Tuesday. The
delegation was in
Mantica said
He said the relationship between
President Kufuor said whatever
agreement was reached between both countries was borne out of mutual interest
and common visions shared between them. He said the co-operation between both
countries would be centred on the energy, infrastructural development,
agricultural and the private sectors.
President Kufuor said
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Tikobo (Western Region)
Dr Assuah
Kwesie, Western Regional Chairman of the Convention
People's Party (CPP) made the appeal at the Jomoro
constituency conference of the party at the weekend. He noted that the
re-acquisition of the two sugar factories would go a long way to save the
country several millions of cedis spent on importation of sugar from
He said the re-acquisition of
the two sugar factories would also offer employment for the unemployed youth in
the country. Dr Kwesie noted that the unemployment
rate is mounting higher and higher everyday and said unless drastic measures
were taken, the crime rate would also go up.
He said sometimes, "it is
not the intention of one to commit a crime but he or she is compelled by hunger
and necessity to indulge in a crime like stealing". Dr Kwesie
suggested that government should initiate an attractive agricultural programme
that would entice the youth to go back to the land.
He said free acquisition of
land, provision of free seedlings, supply of needed agricultural implements,
pesticides,
Dr Kwesie
said poor planning on the part of successive governments after Dr Kwame Nkrumah
had made
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Accra (Greater Accra) 19 February
2003- The produce Buying Company Limited (PBC) on Tuesday said it is determined
to capture part of its lost market share and maintain profitability in the
years to come.
The company, as part of a
strategy to achieve this, has maintained existing logistics, buying centres and
storage capacity that can handle more than half of the national cocoa
production, a statement from PBC said on Tuesday.
The statement signed in
The statement said PBC also made
a slight recovery of its lost market share as a result of improved recycling
rate and availability of short-term credit attributed to renewed confidence in
the company by the financial market.
The Company registered a net
profit before tax of 10.335 billion cedis indicating an 80.6 per cent
improvement over the previous year's 5.723 billion cedis. According to the
statement, an improvement in cocoa delivery rate to the ports brought about a
reduction in the cost of borrowing to minimise the general operating costs
thereby resulting in the improved performance.
To achieve more profitability,
therefore, the company intends to expand its sources of seed fund guarantee to
ensure adequate and timely receipt of such funds for cocoa purchases.
"Steps are being taken to
access needed working capital to buy more cocoa to utilise full capacity,"
the statement said. "It is expected that with the proper implementation of
these strategies the company will be firmly put on the path of
profitability," the statement said.
Earnings per share for the year in
review based on consolidated operating profit attributable to members of the
company after the deductions for preference dividends is 14 cedis.
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Accra (Greater Accra) 19 February
2003- Vice President Aliu Mahama on Tuesday asked the ECOWAS Bank for
Investment and Development (EBID) to assist the private sector to secure
long-term loans in line with government's vision to create jobs and wealth
through the private sector.
He commended the Bank's
guarantee to the Ghana Commercial Bank (GCB) and the National Investment Bank
(NIB) to source a 40 million-dollar loan from the HSBC Equator Bank, US, saying
more of such facilities should be arranged for other financial institutions.
Vice President Mahama was
opening a meeting at which an EBID delegation led by Mr Christian Adovelande, President of (EBID), is briefing more than 30
representatives of the private sector and ministers of state on the operations
of the Bank and how they could utilise opportunities it offers.
Vice President Mahama noted that
securing long-term credit schemes was one of the major constraints of private sector
development and this was undermining the government's vision to create wealth and
reduce poverty through the sector.
"It is in the efforts that
we, as a Government, are making for the provision of medium and long-term loans
to the private sector that have brought you, our esteemed guests here," he
said, and tasked the Ministry of Private Sector Development to facilitate
resource acquisition.
The vision of EBID, the funding
institution of the Sub-Region, is to contribute towards the creation of conditions
for the emergence of
EBID has an authorised capital
of 750 million dollars and a call up capital of 262.5 million dollars. About 66.67
percent of the capital is apportioned to member states with the rest going to
non-members.
Vice President Mahama said the
government had prioritised agro-industry as a means of speeding up the creation
of jobs and wealth. "We believe that we can accelerate the production of
local raw materials to meet our consumption needs as well as serve as a source
of inputs for agro-based industries, thus, the President's Special Initiatives for
Garments, Cassava Starch and Oil Palm."
The rapid and successful implementation
of the initiatives, he said, would significantly impact on non-traditional
exports. Vice President Mahama gave the assurance that the government was addressing
the problem of low technical capacity in the private sector through a
skill-training programme by the Ministry of Employment and Manpower Development
for unemployed and underemployed youth.
Efforts, he said, were ongoing
to help improve corporate governance. He commended the Ministry of Private
Sector Development for procuring a 50 billion-cedi facility to improve the
nation's food security and for facilitating another 21 billion cedis Swiss loan
for on lending to small and medium enterprises.
The Sector Minister, Kwamena
Bartels, who talked about the crucial role the private sector had to play to
ensure a flourishing national economy, said the meeting was important to create
the requisite awareness on the EBID.
He said
Bartels said: "Private
Sector Development is necessary to mitigate the threats of dwindling foreign
direct investments to
"The higher revenues from
expanded private sector activities will enable the government to invest more in
social services like schools, primary health care, potable water etc." Bartels
said with the guaranteeing of the 40 million-dollar loan from the HSBC Equator
of the
Adovelande said EBID operates through two
subsidiaries: the ECOWAS Regional Investment Bank (ERIB) for the promotion of
the private sector and public commercial sector and the ECOWAS Regional
Development Fund (ERDF) devoted mainly to the public sector and poverty
alleviation programmes.
ERIB, whose objectives include
supporting projects aimed at creating infrastructure that enhances regional
integration or any other public and private sector development project, has an
authorised capital of 500 million dollars, with a called up capital of 125
million dollars.
ERDF grants loans for the
financing of infrastructure and economic and social projects in member
countries, financing of feasibility studies and special community programmes,
among other activities.
It has the same amount in
authorised capital and called up capital as its counterpart. Senior Minister J.
H. Mensah, who chaired the meeting, said it was high time ECOWAS made more
commitment towards economic advancement to reflect its name rather than on
issues of military and security.
He noted that economic progress
would be limited without peace and security, but said the focus of the regional
body should be on improving the lot of its 250 million people economically.
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"All excessive price
increases are unjustified and we would not tolerate black marketing of
cement", he said. The Minister was speaking at a meeting with officials of
the Ghana Cement (GHACEM) Limited at his office in
Dr. Apraku
said reports reaching the Ministry indicated that distributors were retailing
cement at prices ranging between 45,000 cedis to 50,000 cedis, and that this
was exorbitant since GHACEM had only increased its ex-depot prices by 6.4
percent bringing a bag to 34,650 including VAT.
He said the 6.4 percentage increase
by GHACEM was due to the depreciation of the Cedi and the cost of transporting
cement from its depot in
Bjarne Schmidt, Managing Director of
GHACEM also explained that the company's 6.4 percent increase was due to the
depreciation of the Cedi and the increased cost of transporting stock between
the
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Currency Buying Selling
U.S. Dollar 8,419.55 cedis 8,602.91 cedis
Pound
Swiss Franc 6,149.64 6,281.23
Canadian Dollar 5,538.07 5,656.72
Danish Kroner 1,216.26 1,242.62
Japanese Yen 70.58 72.10
South African
Euro 9,043.91 9,236.94
CFA Franc 13.79 14.08
Naira 67.07
68.53
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