GRi Business, Economics & Finance 20 – 02 - 2003

Pay attention to Ghana Airways

Ministry of Trade and Industry prepares bill to facilitate growth of industries

GCB gain maintains Accra bourse momentum

Inter-bank exchange

 

 

Pay attention to Ghana Airways

 

Accra (Greater Accra) 20 February 2003- Italy has asked government to demonstrate greater interest in solving the problems bedevilling the Ghana Airways to warrant Italian government support to the ailing national carrier.

 

Senator Alfredo Mantica, the visiting Italian Vice Minister of Foreign Affairs for Africa and Middle East was reacting to a request from the Minister of Roads and Transport for support from Alitalia for the Ghana Airways.

 

He said even though Alitalia from whom support is being sought is a private entity," we believe we can help and advice in one-way or the other to get support for Ghana Airways.

 

He said Italy needs assurance from the Ghana government among other things that, the $26m debt Ghana Airways owes Alitalia in the form of cost of airline repairs will be guaranteed.

 

"It is essential that the problems facing Ghana Airways is quickly addressed and for government to guarantee Ghana Airways' debt of $26m." Senator Mantica noted that Italy and Alitalia believes in Ghana Airways hence the soft approach adopted to solve the differences between the two airlines.

 

He said the problem was important for two reasons since when it is solved; it "would lead to an increase in flights between the two airlines, something which is being stalled by the debt.

 

"Secondly, for Italian investors to come here to invest, we need a satisfactory atmosphere, confident that problems like what Alitalia is facing now do not occur." Senator Mantica is accompanied by a private business delegation of eight, and will hold discussions with the Ministers of Foreign Affairs, Food and Agriculture, Works and Housing, Private Sector Development, Senior Minister and private sector operators.

 

He said Italy wants to have stronger ties with Ghana and West Africa, adding that, it is no coincidence that we are in Ghana first." Earlier, Dr Richard Anane said Ghana welcomes Italy's cooperation with her and "would do everything to ensure that the right atmosphere is created for successful business operations.

 

"What we would like Italy to do first is to relocate in the sub-region, using Ghana as your base." On Aviation, Anane said discussions are underway to sort out the sore points between Ghana Airways and Alitalia to clear the path for further discussions.

 

On the road sector, he said it is a major focus of government, adding that, investment by private sector operators is welcome. "The roads where we require investment from Italy are the Accra-Cape Coast, Accra-Aflao, Accra-Kumasi and Kumasi to the Northern Region all of which would be tolled."

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Ministry of Trade and Industry prepares bill to facilitate growth of industries

 

Kumasi (Ashanti Region) 20 February 2003- The Ministry of Trade and Industry is in the process of drafting a bill, 'The Content Bill', that will enable multi-national consortiums to make a more positive impact on national development while paving way for Small and Medium Enterprises (SMEs) to also expand their production.

 

Solomon Boateng, Programme Co-ordinator of the United Nations Industrial Development Organisation (UNIDO), said the bill, when enacted will compel multi-national and larger companies to procure part of their raw materials and inputs from local sources.

 

Boateng, who was speaking at a Ghana Sub-contracting and Partnership Exchange (SPX) awareness seminar in Kumasi on Wednesday, said by procuring part of their raw materials from local sources, various jobs would also be opened to the SMEs.

 

The one-day seminar was organised by the Association of Ghana Industries (AGI) in collaboration with the UNIDO and sponsored by the United Nations Development Programme (UNDP) under the Government of Ghana private sector development programme.

 

The seminar was designed to educate and sensitise members of the business community in the Ashanti and Brong-Ahafo regions on the benefits of industrial sub-contracting and partnership exchange for Ghana.

 

Ernest A. Debrah, the Brong-Ahafo Regional Minister, called on small and large industrial companies in the country to cease operating in isolation of each other. They should rather begin forming linkages and partnership with one another.

 

He explained that it is only when small and medium companies in particular, start to partner and collaborate with one another that they could expand production and add value to their products and thereby guarantee their effective competition and entry into the global market.

 

"Without this sense of partnership, our companies in the country will find it difficult to enter the global or external markets", Debrah added. Miss Harriet Osei-Amoah, AGI Regional Manager for Ashanti and Brong-Ahafo, said even though the SMEs form 90 percent of industries in the country, their inability to transform into larger and bigger industries coupled with the lack of knowledge about sub-contracting, had made their performance ineffective.

 

Miss Osei-Amoah, however, gave the assurance that with the numerous programmes embarked on by the AGI, backed by practical implementation of government policies, she was optimistic the trend would soon change for the better.

 

Andrew Lawson, Executive Director of the AGI, disagreed that the woes of industries in Ghana were mainly due to finance, saying, mismanagement had equally contributed to the mal-performance of the industries.

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GCB gain maintains Accra bourse momentum

 

Accra (Greater Accra) 20 February 2003- An 80-cedi gain by Ghana Commercial Bank (GCB) on Wednesday maintained the momentum of the Ghana Stock Exchange (GSE) as the main market index rose by 6.14 points.

 

The GSE All-Share Index closed at 1,469.86 points from Monday's figure of 1,463.72 points. Traded shares almost doubled to 109,700 from 57,200 shares in trading that saw only eight out of the 25 listed equities making sales.

 

On the broader market, there were four price changes, all positive. GCB was 80 cedis richer at 4,100 cedis, Unilever rose by 14 cedis at 4,890 cedis, SSB Bank appreciated by 10 cedis at 4,210 cedis and Guinness Ghana Limited inched up by one cedi at 1,116 cedis. Market capitalisation ended at 7,024.54 billion cedis from 7,009.63 billion cedis. The change for the year went up to 5.34 per cent from 4.90 per cent.

 

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

ABL                   410

AGC                  28,110

ALW                 3,500

BAT                   1,102

CFAO               67

CPC                  626

EIC                    4,850

FML                  2,001

GBL                   520

GCB                  4,100 +80

GGL                  1,116 +1

HFC                  1,205

MGL                  254

MLC                  274

MOGL              19,750

PAF                   750

PBC                   390

PZ                      2,016

SCB                  28,700

SPPC                 390

SSB                   4,210             +10

SWL                  285

TBL                   4,900

UNIL                 4,890             +14

CMLT               460

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Inter-bank exchange

 

Accra (Greater Accra) 20 February 2003

 

Currency                     Buying                          Selling

U.S. Dollar                   8,420.00 cedis            8,607.55 cedis

Pound Sterling              13,429.90                    13,733.35

Swiss Franc                  6,132.93                      6,267.21

Canadian Dollar             5,557.81                     5,680.10

Danish Kroner             1,213.97                      1,240.73

Japanese Yen               70.77                           72.32

South African Rand      1,002.07                      1,020.87

Euro                             9,024.86                    9,221.34

CFA Franc                   13.76                           14.06

Naira                            67.07                           68.56

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