GRi BEF News Ghana 05 - 01 - 2001
Private Enterprise Foundation urges Kufuor
to make use of talents
Assembly improves
revenue collection
Private Enterprise Foundation urges Kufuor
to make use of talents
Accra (Greater Accra) 05 January 2001
The Private Enterprise Foundation (PEF) said on Thursday that talents within and outside the incoming government must be tapped to help solve the economic difficulties facing the country.
"There is the need for a change in the style of governance," PEF, Director-General, Mr Kwasi Abeasi said in an interview with the Ghana News Agency (GNA) on Thursday.
"The days that decisions are only taken by those who are part of the ruling government should be over," he said. "We must marshal all resources and efforts to improve the country."
Mr Abeasi, who was speaking on PEF's expectations of the in-coming NPP government, said the decision of president-elect John Agyekum Kufuor to form an all-inclusive government should change the style of governance that Ghanaians have witnessed in the past eight years of constitutional rule.
He talked of the need for pragmatic programmes to quickly address the macro economic problems of depreciation of the cedi, high interest rates and inflation so as to restore confidence in the business environment.
As a first step, Mr Abeasi said, the government must change the focus of financial institutions from short term lending to providing long term capital to help resuscitate industries, especially agro-based ones, which could get their raw materials from within.
He stressed that inflation, the fast depreciation of the cedi and high interest rates, which have worked against the business community, should as a matter of urgency, be tackled to help put the economy on sound footing.
Inflation was pegged at 39.5 per cent at the end of November last year while the cedi has nose-dived against major foreign currencies.
It now exchanges for 6,700 cedis for one US dollar and 9,700 cedis for one Pound Sterling. Interest rates have shot up to nearly 50 per cent, making the cost of borrowing expensive to entrepreneurs and businesses.
Governments, Mr Abeasi said, has through high borrowing from the private sector succeeded in crowding out the sector's access to funding and hoped this would change with the in-coming administration.
Touching on the trade liberalisation policy of the out-going government, Mr Abeasi said there should be a change from allowing virtually all kinds of imports into the country. He said the unbridled open-door policy made it impossible for the local companies to compete.
He said local production of substitutes of some imported goods should be encouraged to improve on the quality.
Mr Abeasi expressed the hope that privatisation under the new government would create the opportunity for indigenous businessmen to buy some of the divested companies.
He said the PEF expects a very tight budget this year since the coffers of the state may not be healthy.
However, there must be a clear departure from resort to excessive borrowing from the domestic front to finance budget deficits.
"We need to take stock of our debts before we borrow more," he said. "But with goodwill for the government, there is the hope that if its programmes are packaged well it could get short-term loans from the donor community."
Mr Abeasi, however, urged Ghanaians not to expect the changes promised so early since external factors such as the high cost of crude oil, the falling prices of the country's exports and fatigue from the donor community may not permit the rapid changes that Ghanaians would wish.
"For me, the first year should be the focus and not the 100 days that the people are craving for," he said.
Mr Abeasi said although Ghanaians have proved to be tolerant they should not be under-rated by the politicians who make promises.
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Accra (Greater Accra) 05 January 2001
Prices of spare parts have slid in Accra Takoradi and Kumasi but the Spare Part Dealers Association has dismissed suggestions that the high prices before the victory of the opposition was to bring down the government.
Paa Kofi Ansong, Chairman of the Abbosey Okai Spare Parts Dealers Association, told the Ghana News Agency on Thursday that "the reduction is not in support of the incoming government but for the average Ghanaian".
Reacting to speculations that the action of the traders is a directive from the executives, Mr Ansong said the price reduction is due to "an appreciation of the cedi against the dollar". The dollar has come down from 7,200 cedis to 7,000 cedis, he said.
"I must stress that we have not asked anyone to reduce prices," Mr Ansong, who is also the Public Relations Officer for the Ghana Union of Traders Association (GUTA), said.
"How can we ask people to reduce the prices of their goods? Are they not operating a business? I mean we can't just do that. In any case when people are excited, they do all kinds of things."
Prices of some parts have gone down from about 1.8 million cedis to about 1.5 million cedis. Other prices have come down from about 500,000 cedis to about 400,000 and from 100,000 cedis to about 80,000 cedis.
Mr Ansong said the reduction in the prices is spontaneous and people have taken advantage of the situation and are patronising spare parts, with some traders making high turnovers.
He said if operators of all sectors of the economy will go an extra mile to sacrifice a little for the country, it will trickle down to alleviate the socio-economic difficulties facing the ordinary Ghanaian.
He appealed to the in-coming government to be transparent in all its undertakings so as to have the support of the business community, saying a stable economy would promote good governance and instil confidence in the economy.
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Assembly improves revenue
collection
Apam (Central Region) 05 January
2001
The Gomoa District Assembly
collected 169 million cedis, being 91 per cent of revenue target last year from
its traditional sources.
Mr Kow Anyanful, District Chief
Executive (DCE) told the last session of the Assembly at Apam for the year
2000, that the assembly spent 135.275 million cedis out of an estimated amount
of 185 million cedis for the year.
The DCE said the assembly is
expected to generate 301.562 million cedis from local resources as revenue for
2001 and spend 296.878 million cedis.
Mr. Anyanful commended the revenue
collectors for a good work done and urged them to work harder to achieve the
target for this year.
The session approved the budget
for the year and fixed fees.
The Presiding Member, WO Richard
Annan, urged the members to educate the people on the new fees to promote
co-operation between them and the collectors.
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Inter bank exchange rates
Currency Buying Selling
US Dollar 6,794.09 7,012.55
Pound Sterling 10,199.29 10,534.25
French Franc 977.55 1,009.17
Swiss Franc 4,226.28 4,361.29
Deutsche Mark 3,278.25 3,384.83
Canadian Dollar 4,542.10 4,688.56
Japanese Yen 59.62 61.54
Dutch Guilder 2,909.76 3,003.86
S/African Rand 903.11 931.22
Euro 6,413.84 6,620.74
CFA Franc 9.78 10.09
Naira 67.87 70.05
Ecowas/WAUA 8,985.04 ------
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