GRi Business News 29-01-99

Accra (Graeter Accra), 29 Jan.

The Bank of Ghana (BOG) yesterday reduced the bank rate (rediscount rate) from 37 per cent to 32 per cent for the third time since last September. A statement signed by Mr James A. Odei, Acting Secretary of BOG, and made available in Accra said the new rate takes immediate effect. The statement said the action is in response to the sustained decline in monetary expansion and rate of inflation, as well as the relative stability of the exchange rate.

The Central Bank urged all commercial banks to respond accordingly to the new change by reducing the cost of lending and borrowing. The old bank rate was fixed on November 12, 1998. The Bank of Ghana said it is encouraged to reduce the bank rate as a result of the modest growth in year-on-year broad money supply of 17 per cent and the steady decline in the rate of inflation to 15.7 per cent at the end of December, last year.

"These developments reflect continuing improvements in the macro-economic conditions of the Ghanaian economy." The statement said "the Bank of Ghana assures the nation that it will continue to pursue prudent monetary policies in 1999 to ensure the achievement of financial stability of the economy and thus provide a sound basis for the sustained growth of the economy in the medium-term".

Accra (Greater Accra), 29 Jan.  

Ghana's strategy of putting civil society in the centre of the planning and implementation of national programmes has been hailed by the international community as a novelty worth emulating. Mr Al Gore, American Vice-President, who opened a world forum on public sector re-invention in Washington last week, said the strategy demonstrates a will to actualise accountability and transparency in governance.

Ghana's representative to the forum, Dr Appiah Koranteng, National Co-ordinator of the National Institutional Renewal Programme (NIRP), told newsmen in Accra today that about 40 ministers and public service administrators converged at the United States' capital last week to brainstorm on public sector reforms.

He said members viewed Ghana's public sector reform as a home- grown approach, which is based on consultation among the major players. " Our modernisation and re-invention process has proved to be sustainable since no player was left out in all stages of planning.

The NIRP was inaugurated in 1994 to oversee the reformation of the entire public sector to make it more responsive to national priorities. Dr Koranteng said the district assembly concept which allows the people to state their own priorities in national planning received commendation.

" We are not pursuing a grandiose or ambitious programme, but our smooth method of administration is certainly one of the best in the world and we proved it at the forum.

" We have touched all facets of the public sector. Very soon we shall be seeing results, having moved from analysis to implementation and monitoring."

Dr Koranteng said experiences shared by Canada in the area of fiscal administration and the measurement of performance proved crucial to the nation's re-invention process. " It is about time that we started holding managers accountable for results and delivery in our public sector."

Accra (Greater Accra) , 29 Jan.  

Mr Dan Abodakpi, a deputy Minister of Trade and Industry, yesterday advocated more private investment in the importation of genuine spare parts to reduce the rate of fatal accidents in the country.

He said the government is concerned about the country being turned into a ''graveyard'' for used spare parts and called for support of the transport industry to help eliminate such practices.

Mr Abodakpi said this when he opened the first-ever international motor and truck show, dubbed ''Motor Show and TruckEx '99'', in Accra. The four-day show, which is aimed at improving the commercial vehicles and automotive component industry, has over 50 exhibitors.

The major sponsors are Mobil Ghana Limited and Barclays Bank Ghana Limited.

The Deputy Minister said the government has removed duties on the importation of commercial vehicles to enhance economic growth, especially in the agricultural sector.

He said currently the ministry, in conjunction with the industry, is drawing up proposals on means of reducing tax on the importation of parts and tyres.

''In spite of this, most importers still bring fake parts and very old vehicles, which not only endanger the lives of people but slows down development.''

Mr Abodakpi said the show has come at an opportune time when the 'Gateway Project' is on course and would depend heavily on road transport, which remains the cheapest and quickest way of transporting goods in the sub-region.

He, therefore, urged financial institutions to come out with attractive packages to boost the transport industry.

Mr Tim Gros, Director of the Show, expressed the hope that the expectation of both exhibitors and the public would be met.

Mr Gavis Anderson of the Barclays Bank said the Bank would launch an executive loan, a new personal lending product at the show.

He said the loan, which is both "cheap and flexible", has preferential interest rates and flexible repayment period and can be used for any purpose, including the purchase of vehicles.

Accra (Greater Accra), 29 Jan. 

The implementation of the medium and long term public sector salaries and wages policy would be effective from January one, 1999 and any back-pay accruing to workers would be honoured accordingly, a communique issued in Accra yesterday said. This came to light at a meeting between the Central Management Board (CMB) and representatives of the Civil Servants Association (CSA) on the implementation of the new policy.

The communique was signed by Mr A. Y. Yankey, Chairman of the CMB and Mr S. Y. A. Chigabatia, Executive Secretary of CSA. It said the meeting discussed rules to govern the negotiation process and noted that many organisations have complied to the directive to convert to the new 22-level structure, even though, some are yet to do so. The joint communiqu=E9 by the CMB and CSA said the next meeting scheduled for Thursday February 11, 1999, will discuss the off-loading exercise for all civil servants compiled by the Office of the Head of Civil Service.

Business at the Ghana Stock Exchange took a plunge today in thin trading that saw market indicators tumbling.

Aluworks Company Limited (AWL) suffered a big loss while there was no significant appreciation in the prices of the only two equities which made gains - Ghana Brewery Limited (GBL) and Mechanical Lloyd Company (MLC).

The GSE All-Share Index dropped by 0.26 points in a dull session which saw the index closing the week at 893.42 points compared with 893.68 registered on Wednesday.

Total volume of shares traded finished lower at 97,400 from Wednesday's 142,300.

Volume of shares offered today slipped to 1.9 million shares while bids closed at 318,100 shares.

Market capitalisation also dropped to 3,407 billion cedis from Wednesday's 3,408 billion cedis.

In the broader market, there were three price changes - two up and one down.

Ghana Brewery Limited (GBL) made 10 cedis to finish at 1,660 cedis while Mechanical Lloyd Company inched up by two cedis to end at 252 cedis. AWL lost 50 cedis to end at 2,750 cedis.

The following are the last prices of listed equities :

ABL 800

AGC 19,000

ALW 2,750 -50

CFAO 55

EIC 2,300

FML 1,680

GBL 1,660 + 10

GCB 1,100

GGL 1,000

HFC 750

MGL 225

MLC 252 +2

MOGL 20,000

PAF 400

PTC 400

PZ 900

SCB 25,350

SPPC 250

SSB 2,280

UNIL 1,650

UTC-E 125