First factory for starch production to be ready in November
Accra (Greater Accra) 18 January 2002 - The Ghanaian government has said it has no immediate plans to shed the 'golden share' that gives it control over the ownership of Ashanti Goldfields.
But officials suggested the government would be willing to do so if the goldminer persuaded Ghanaians it was necessary. Ghanaians have tended to think of Ashanti as a national heirloom and the golden share as the last defence against a feared, foreign takeover.
The golden share allows the government to intervene in the corporate decisions of what was once one of the world's largest goldmining companies. Ashanti officials argue that the state's reluctance to let go of the golden share has contributed to depressing its share price and prevented it from taking part in industry consolidation.
The government has a 19 per cent stake plus the golden share in Ashanti, which was floated in 1994. Lonmin, the platinum-focused miner, has 32 per cent.
When John Kufuor was elected as the country's president a year ago - pledging to usher in a "golden age of business" - the company hoped his government would be more sympathetic to its view.
"We are not going to fight Ashanti on this, but it is up to the company to lay the groundwork by persuading public opinion that we need to get rid of it [the golden share]," said Jacque Obetsebi-Lamptey, information minister. "Meanwhile, we are not going to use the golden share to intervene in the way the business is run."
Ashanti officials said they could not comment on the impact further delays in resolving the issue could have on the company's efforts to refinance $219m of convertible bonds. Ashanti's cash position is not strong enough to withstand the level of cash redemptions that would be likely if its share price fails to recover by 2003, when the bonds mature.
In a bid to repair its balance sheet, the company has reached conditional agreement with creditors to extend the maturity of the bonds by five years. But one of the conditions is that the government lets go of the golden share.
A close adviser said Mr Kufuor's instinct was to relinquish the golden share. But he was concerned that opponents could use the move to whip up hostility to his government.
The population has been hard hit by austerity measures taken to restore fiscal discipline after a prolonged slump in the price of Ghana's main commodity exports and a wave of mismanagement under Jerry Rawlings, the former president.
Source: - FT
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Accra (Greater Accra) 18 January 2002 – The Government on Thursday said comments by some leading politicians that the low inflation rate was artificial were not supported by the facts and figures and urged them to avail themselves with the requisite information and knowledge.
This was contained in a statement Mr Jake Obetsebi-Lamptey, Minister of Information and Presidential Affairs, issued in Accra in reaction to recent comments on the economy by leading politicians.
"The government has noted with concern recent statements by certain leading politicians to the effect that the rate of inflation, which is currently less than the projected 25 per cent is artificial," the statement said.
"Among the premises being used for the so-called artificial inflation rate is the rather false argument that government is not spending as much as is required," the statement noted and gave comparative figures of some monies spent so far.
In 2001, the government paid a total of 262.729 billion cedis into the District Assemblies' Common Fund as against 77.75 billion cedis paid into the fund by the previous government in 2000.
In the same period the government paid a total of 260.20 billion cedis into the Ghana Education Trust Fund compared to 30 billion cedis paid into the fund by their predecessor the year before.
The government also paid 214.1 billion cedis to clear all outstanding arrears it inherited as well as the payment of 467.4 billion cedis arrears in fulfilment of external obligations.
Mr Obetsebi-Lamptey said 59 billion cedis was also paid in Social Security zand National Insurance Trust contributions which had accumulated over the years under the previous government.
"The facts and figures, for instance, constitute enough proof that the government has been very forthcoming in discharging its obligations. "These successes, modest but significant, are real and have been achieved through prudent management, discipline and sincere commitment to its pledge to work conscientiously to alleviate the suffering of the average Ghanaian," the Minister said.
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Accra (Greater Accra) 18 January 2002 - The SSB Bank Limited on Thursday launched its 25th anniversary celebrations in Accra with a renewed commitment to be more relevant to its shareholders, customers and business partners.
Speaking at the launching ceremony, Mr Kwadwo Thompson, Managing Director, said the celebration was in recognition of the Bank's significant contribution to the economic and financial service industry development.
He said the Bank had operated meticulously over the years to maintain cohesion among its staff, shareholders and customers in a balanced way. The SSB Bank, a publicly listed but privately owned bank is 52 per cent owned by foreign investors with the rest held by local investors.
Mr Thompson said the focus of the celebrations was to increase bonds with customers, "hence our celebration is under the theme: "Bonding with our Customers." He said, "SSB Bank is determined to be the leading bank in the next couple of years and is ready to lift banking onto a new level in the country."
Mr Joseph Henry Mensah, Senior Minister of State urged the bank to increase its accessibility in the rural areas, especially, in the cocoa growing areas.
He noted that the rural areas "are seriously under-banked" adding that the absence of such financial resources was a serious impediment to growth that must be avoided.
Mr Mensah tasked the bank to explore the possibility of leading a special effort to re-create the accessibility of banking to the smallest depositors since they formed a large chunk of the rural population.
"You must take a close look at the small saver and the small borrower." The Senior Minister urged the bank to ensure that it increased its capital base, which would grow over the next 25 years to support medium to long-term requirements of modern business.
Mr Mensah said there was a huge volume of capital moving across the globe and wondered why very little, or none came to Africa. "It is important to reflect on this as a bank, to see how some of this significant resource can be channelled to our country for development."
The success of private capital injection vindicated the vision of the government to increase private sector participation in changing the face of development in the country, he said.
"This vindicates our vision that Ghana has the managers that can build stitutions such as the SSB Bank on sound business practices. SSB Bank's history demonstrates that we can aim and attain excellence."
Mrs Marian Barnor, General Manager Strategic Management and Corporate Affairs, said with 37 branches networked, "SSB Bank has been relevant in the last 25 years and will continue to be relevant in the many years to come."
She said they were working hard to unlock the potential of the branch network while motivating staff to perform at their maximum.
Mrs Barnor said the year-long celebrations included, awards ceremony, customer appreciation, efforts to decongest the banking halls and reposition the bank to its new copy call - SSB Bank Today's Bank; Tomorrow's Bank. The bank born in 1977 was originally called Social Security Bank Limited.
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Accra (Greater Accra) 18 January 2002 - The Auditor General's Department says it had completed the submission of special audit reports on accounts of all the 110 district assemblies.
Mrs Ruby Nyarko, Deputy Auditor-General, presented the last batch of five audit reports to the Ministry of Local Government and Rural Development this week, a statement from the Ministry said in Accra on Thursday.
The statement named the last five districts as Abura-Asebu Kwamankese, Asikuma/Odoben/Brakwa, Gushiegu/Karaga, Kassena Nankana and Wassa West. Mrs Nyarko requested the Ministry to include the audit service in the training programmes of the assemblies so that malfeasance and all negative practices could be curbed.
Captain (rtd) Effah Nkrabea Dartey, Deputy Minister of Local Government, received the reports and commended the service for the job done.
He advised district chief executives, presiding members and staff of assemblies to desist from corruption since "this government will not allow them to go free when caught by the law."
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Tumu (Upper East) 18 January 2002 - Kuoro Buktie Liman, Chairman of the Cotton Farmers Association has appealed to the government to release funds for the purchase of cotton to relieve the farmers of their indebtedness. "If money has been released to purchase cocoa, coffee and sheanuts throughout the country then why not cotton?
Kuoro Liman told the Ghana News Agency in an interview at Tumu that although the companies would eventually purchase the cotton, it was imperative to consider the fact that most of the farmers depended solely on cotton production for their livelihoods.
He said most farmers as a result of the delay had resorted to borrowing from other sources with the hope of settling their debts when they were paid, "which is not good enough".
Kuoro Liman, who is also the Paramount chief of the Gwollu Traditional Area, also called on the government to consider reviewing the new zoning system for cotton production in order to increase productivity.
He said the delay in purchasing the cotton was discouraging most farmers from engaging in its production and called for increase in prices to compensate the farmers for their hard work.
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Accra (Greater Accra) 18 January 2002 - Vice President Aliu Mahama on Thursday urged Germany to assist small-scale industries with investments and technical expertise in line with the government's vision to create jobs and wealth.
Addressing a delegation of German Parliamentarians at the Castle, Osu, Alhaji Mahama, appealed to Germany to also support the road sector to improve the transportation in the country.
The delegation from the Eastern German Regional Parliament of Mecklenburg-Western Pomerania, led by Mr Hinrich Kuessner, its President, is in the country to assess the viability of supporting an Nsawam-based Rehabilitation Home for Street Girls.
Mrs Dora Otima-Quainoo, a Ghanaian social worker and resident in the region owns the Home.
Alhaji Mahama urged the delegation, which included Mrs Karla Staszak, Parliamentary Secretary, Mrs Claudia Montoreano and Mrs Gudrun Kuessner, to be advocates for investment in Ghana and support for structures that would promote democracy, good governance and the rule of law.
"Germany has one of the best technical expertise that we can tap for building our industries and manufacturing companies. Germany can also help us with technical and vocational training".
He said the government was committed to transforming the weak economy it inherited into a prosperous one and to promote democracy, good governance and the rule of law.
He lauded Germany for what he described as "her tremendous assistance to Ghana over the years" and commended Mrs Otima-Quainoo for her humanitarian work, which involved rehabilitating street girls and integrating them into their communities.
Mr Kuessner pledged the delegation's goodwill and support for Ghana, as they had been impressed by the potentials, dedication and friendliness of the people they had met during their two-week tour of the country.
He drew some similarities between the experiences of his region when democracy was introduced in 1988, saying drastic, but necessary decisions such as paying economic rates for fuel, had to be implemented to ensure financial discipline and economic progress.
Mr Kuessner said he would link up Ghanaian business people and their German counterparts for networking and the establishment of fruitful relations.
The German Ambassador to Ghana, Dr Harald Loeschner and Mr Isaak Obuba, a Ghanaian resident in Germany, who was instrumental in organising the trip accompanied the delegation.
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Accra (Greater Accra) 18 January 2002 - The President has, in consultation with the Council of State, reconstituted membership of the Securities Exchange Commission (SEC) with Professor G. Ofosu-Amaah as chairman. A statement from the Ministry of Finance said the appointments take effect from Thursday, January 17, 2002.
Other members of the commission are Dr Charles Asembri, Director-General of SEC, Ms Eudora Quartey Deputy Director-General of SEC, Mr Fracncis Badasu, Director of Non-Financial Institutions, Bank of Ghana and Dr K. Anyemadu of the Ministry of Finance.
The rest are Mr Joseph Kofi Harley, Chief State Attorney and Deputy Registrar-General, Mr Kojo Graham, a Legal Practitioner, Mr Elsie Addo, a Legal Practitioner and Financial Analyst, Dr Nii K. Sowah of the Centre for Policy Analysis and Mr M. K. Buabeng of the National Banking College.
The Commission is tasked to revitalise the capital market activities and to promote the growth of the private sector and to generate employment.
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Accra (Greater Accra) 18 January 2002 - A three million-dollar starch processing plant would be built at Bawjiase in the Awutu-Efutu-Senya District in November under the President's Special Initiative (PSI) on agri-business. Ayensu Starch Company (ASCO) would operate the plant owned by 25,000 farmers located in the five districts.
This was announced by Mr Allan Kyeremateng, Ghana's Ambassador to US and Head of the Technical Support Group of the PSI, at a press briefing on the status of the implementation of the PSI in Accra on Thursday.
He said farmers from the five districts, namely Awutu-Efutu-Senya, Gomoa and Agona (Central Region), Ga (Greater Accra region) and West Akim District (Eastern Region) cultivated over 607 hectares of cassava during the minor season between September and October last year and were expected to cultivate additional 1,457 hectares during the major season between March and May this year.
Mr Kyeremateng said the project had been programmed in such a way that cassava, which takes about 12 months to mature for harvesting would be ready for processing when the plant is installed to begin the export of the starch.
He said it was projected that 90,000 tonnes of cassava would be harvested to yield about 20,000 tonnes of high-grade cassava starch for export per annum.
Mr Kyeremateng said the company had entered into an arrangement with International Starch Trading of Denmark to market their product and in addition it was negotiating market access arrangements in South Africa.
Mr Kyeremateng said about 10 proposed farmer-owned companies in 50 selected districts throughout the country would be involved in the project intended to address the problem of rural poverty through wealth creation in rural communities.
He said starch was one of the most widely used industrial raw materials in the world with extensive application in the pharmaceutical, food, textile, paper and allied industries.
About 25,000 farmers would be engaged in the project launched by the government in August last year.
Mr Kyeremateng said under the Garments and Textiles Initiative, over 200 local companies have already been screened and selected to participate in the programme based on their interest after visits to their companies.
He said the choice of garment production for export was based on the expected contribution of the sector to export revenue generation as well as enormous potential for job creation.
It is estimated that over 70,000 jobs would be created within the next three years and the primary export destination would be the US market taking advantage of the US Africa Growth and Opportunity Act (AGOA).
Mr Kyeremateng said currently, a capacity audit and assessment exercise was being conducted in selected companies to assess their technical, managerial, investment and infrastructure requirements to enable them to gear up for mass production of garments.
He said an intensive market search exercise was being conducted in the US and Europe to identify market opportunities for garments to be produced under the PSI.
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