GRi Business, Economics & Finance 23 – 01 - 2003

Indian delegation calls on Mines Minister

Tripartite committee holds first meeting

Liberal Transport Operators review fares

USAID initiates $5m Tourism Development Project

Bartels to lead investors' delegation to UK

Shares on GSE go up

Inter-bank exchange rates

GNPC reviews regulation regime

Drivers complying with new fares

Cabbies withdraw services

Boat owners on Volta Lake hike prices

 

 

Indian delegation calls on Mines Minister

 

Accra (Greater Accra) 23 January 2003- A five-member Indian delegation made up of representatives from the Indian Ministry of Commerce and Trade and the Gems and Jewellery Export Promotion Council of India (GJEPC) on Wednesday paid a courtesy call on the Minister of Mines Kwadwo Adjei-Darko in Accra.

 

The delegation, led by the Indian High Commissioner in Ghana, is in the country to explore trade opportunities, especially to source for diamond and undertake preliminary negotiations into the possibility of establishing diamond cutting and jewellery industry in Ghana.

 

The Deputy Director of GJEPC, an apex body of manufacturers, exporters and traders of gold, diamond and other minerals, Surinder Singh indicated the preparedness of the Council to compete in bidding for diamonds produced from Ghana Consolidated Diamond Company at Akwatia.

 

A statement from the Ministry said the Council was also prepared to assist in training personnel from the Precious Mineral Marketing Company and the private sector. "Our doors are also opened to new graduates who wish to acquire skills in jewellery design and manufacturing," the statement quoted Singh as saying.

 

Signh disclosed that the ultimate objective of the Council was to establish a jewellery industry in Ghana to transfer technology and add value to gems produced in the country.

 

Adjei-Darko welcomed the establishment of industries, which would contribute to value addition to the country's raw natural resources. He expressed the hope that the concretization of the plans indicated would help advance the co-operation between the two countries.

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Tripartite committee holds first meeting

 

Accra (Greater Accra) 23 January 2003- The Tripartite committee of government representatives, trade unions and the employers associations, held their first meeting at the ministries in Accra to find an acceptable minimum wages for workers.

 

A source close to the Ministry of Manpower Development and Social Welfare told the Ghana News Agency that the meeting lasted for about two hours and was attended by all stakeholders.

 

The committee appointed a technical sub-committee to work out the technicalities by considering the proposed inflation for the year 2000 by the government, through the necessary restoration to halt the erosion of wages for workers.

 

The source said a technical sub-committee chaired by a representative of the government, had also considered the impact of the recent fuel increases, as well as the impact on utility services that would be effected within the next few months.

 

It said after the appointment of the sub-committee, another meeting was scheduled for next week Wednesday to consider the report to be submitted. Government representatives included the Minister of Manpower Development, Minister of Information, the Deputy Minister of Finance and a representative of the Internal Revenue Service, while the 11-member Ghana Employers Association team was led by its President, Ato Ampiah.

 

Kwesi Adu Amankwa, his two deputies led the Trade Unions Congress team to the meeting which also had representatives of the Ghana Civil Servants Association attending.

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Liberal Transport Operators review fares

 

Kumasi (Ashanti Region) 23 January 2003- In line with the directive of the Ghana Road Transport Co-ordinating Council (GRTCC), the Association of Liberal Transport Operators (ALTOPS), has reviewed its transport fares to reflect the average 40 percent increase.

 

Nana Owusu Bempah, National Chairman of the ALTOPS, told the Ghana News Agency in Kumasi on Wednesday that almost all the drivers were complying with the new directive and had started using the revised fares to work on their routes.

 

He gave the breakdown of revised taxi fares as approved by the GRTCC as follows; Railways to Ahodwo, TUC, Dakodwom and Adiebeba, 1,200 cedis. Railways to Daban Panin, Adiembra, Fankyinibra and Paraku Estates, will now attract 1,500 cedis, he said.

 

Regarding 'tro-tro' fares, Nana Owusu Bempah said 800 cedis was being charged from Railways to Ahodwo and TUC while Railways to Daban Panin is 1,000 cedis. A railway to Jachie-Pramso is 1,500 cedis, Railways to Kuntanase, 1,600 while Railways to Onwi and Akokofe will now attract at 2,600 cedis.

 

Railways to Bekwai will now cost 3,000 cedis, the chairman said. Nana Owusu Bempah said fares for some of the routes were pegged below the 40 percent increase as directed and therefore, appealed to the drivers to co-operate to ensure that sanity prevails in the transport business. The ALTOPS chairman entreated commuters to co-operate and pay the revised fares.

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USAID initiates $5m Tourism Development Project

 

Accra (Greater Accra) 23 January 2003- Collaboration between the Ministry of Tourism and the United States Agency for International Development (USAID) to improve on the tourism industry has won Ghana a $5m Ghana Tourism Capacity Development Initiative Project.

 

The project being facilitated by the Georgia State University and the Robinson College of Business in the US is designed to develop and expand the tourism industry to make it Ghana's main foreign exchange earner.

 

Dr Earl Picard, Project Director at Georgia State University made this known when he presented a report on the project to Nana Akomea, Deputy Minister of Tourism at a ceremony in Accra.

 

The five principal objectives of the project to be launched this year, are the marketing of Ghana's tourism attractions, human resource development, technical assistance to enhance the policy and regulatory environment, capacity building for all aspects of the tourism and hospitality industry and a comprehensive and effective Tourism Management Information System that supports planning and decision making.

 

"The project will promote public/private sector co-operation in the interest of developing Ghana's tourism sector," Dr Picard said. The Ghana Tourism Board (GTB), the Parliamentary Select Committee on Trade, Industry and Tourism, Ghana Tourism Federation, Tourism-oriented Non-Governmental Organisations and other stakeholders would be part of the project implementation.

 

"With its rich history and culture, friendly and engaging people and market-oriented economy, we feel that Ghana is ripe for tourism expansion," Dr Picard said. Nana Akomea said the project was the result of years of fruitful deliberations by the Ministry to develop and implement a tourism development plan.

 

"Tourism is a potential goldmine, but handicapped by lack of resources" he said, and expressed optimism that the project would identify the needs of private sector in the industry. "I hope all the stakeholders will help make the project a success," he said.

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Bartels to lead investors' delegation to UK

 

Accra (Greater Accra) 23 January 2003- Kwamena Bartels, Minister for Private Sector Development and three members of Ghana Investors' Advisory Council (GIAC), have been invited to the United Kingdom as guests of the Foreign and Commonwealth Office and Trade Partners UK.

 

A statement from the British High Commission in Accra on Wednesday named members of the council as Dr Kofi Amoah, Mrs Elizabeth J. Villars and Elias Preko. They will be in the UK between 18 and 23 January.

 

It said the purpose of the visit was to introduce the Minister and the members of the GIAC to the United Kingdom model. The UK attracts more Foreign Direct Investment (FDI) than any other country in the European Union.

 

The statement said it is hoped that on their return, the team would be able to create the necessary conditions that will help Ghana attract FDI from the UK and elsewhere in Europe as well as the world at large.

 

Whilst in the UK, the Minister and the three GIAC members would be meeting with officials of the Foreign and Commonwealth office, the Cabinet office, Her Majesty's Treasury, the Department of Trade and Industry, the British Consultants and Construction Bureau, the Confederation of British Industry, British Trade International and other private sector organisations. The Minister and the other members will also attend a Ghana Briefing, chaired by the West Africa Business Association.

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Shares on GSE go up

 

Accra (Greater Accra) 23 January 2003- Shares on the Ghana Stock Exchange ended higher on Wednesday, with the benchmark GSE-All Share Index up 2.61 points to close at 1,427.09 points as the bourse maintained its moderate performance.

 

Traded share volumes were up at 143,700 shares from 105,000 shares on Monday as big time investors continued to shy away from the market. Despite low demands, the financial stocks led a rally of price appreciation, with five of the 24 listed equities making gains.

 

Home Finance Company (HFC) gained 50 cedis at 1,200 cedis, Ghana Commercial Bank was up six cedis to close at 3,641 cedis and SSB Bank closed three cedis higher at 4,113 cedis.

 

Other gainers were Unilever with one cedi at 4,861 and Guinness Ghana Limited, which also went up by one cedi at 1,102 cedis. Market capitalisation was up at 6,378.88bn cedis from 6,373.31bn cedis at the previous close. The change for the year now stands at 2.28 per cent.

 

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

ABL                      390

AGC                     28,000

ALW                    3,700

BAT                      1,001

CFAO                   67

EIC                       4,600

FML                     1,800

GBL                      510

GCB                     3,641                       +6

GGL                     1,102                      +1

HFC                     1,200                      +50

MGL                     254

MLC                     272

MOGL                  19,730

PAF                       750

PBC                       390

PZ                          2,010

SCB                       28,700

SPPC                     387

SSB                       4,113                     +3

SWL                      285

TBL                       4,850

UNIL                     4,861                     +1

CMLT                   460

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Inter-bank exchange rates

 

Accra (Greater Accra) 23 January 2003- The following are the average inter-bank exchange rates of major currencies against the cedi on Wednesday, January 22:

 

Currency                        Buying                        Selling

U.S. Dollar                   8,321.00 cedis            8,542.09 cedis

Pound Sterling               13,440.91                    13,800.60

Swiss Franc                  6,108.39                      6,267.30

Canadian Dollar            5,432.21                     5,574.65

Danish Kroner               1,201.09                     1,232.49

Japanese Yen                70.43                           72.27

South African Rand       921.35                        940.35

Euro                             8,933.07                      9,167.40

CFA Franc                   13.62                           13.98

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GNPC reviews regulation regime

 

Accra (Greater Accra) 23 January 2003- The Ghana National Petroleum Corporation (GNPC) is on the verge of completing a review of its regulation regime to make oil exploration and production in Ghana more competitive to investors.

 

The Commonwealth Secretariat, which undertook the review exercise of the current regulation established in 1984, presented a report to the GNPC in December last year for a final discussion at a workshop of stakeholders that began in Accra on Wednesday.

 

The stakeholders deliberating on the report include consultants, the Ministry of Energy and Ministry of Finance, the Parliamentary Select Committee on Energy, the Attorney-General's Department, the Environmental Protection Agency (EPA), Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS) and oil companies in Ghana.

 

Bryan Land, a member of the Commonwealth team that reviewed the regime, told the Ghana News Agency (GNA) that the exercise was necessary because about 20 years after the first regime, the oil industry had moved on to become more competitive.

 

He said the team looked at Ghana's strengths and weaknesses in oil exploration and production and identified the kind of changes and adjustments and most of all, considered the best options that would be fair to Ghana in any contract or decision it made.

 

The team also considered the tax and fiscal issues and other issues such as environment, which has assumed international dimensions. S. Sekyere-Abankwa, Board Chairman of the GNPC, said the Corporation in the 1990s lost focus of its goal and rather engaged in non-core activities that were not profitable.

 

To turn things around, the GNPC has had to downsize its work force from about 500 to 89 as part of activities to enable it to refocus on the core functions. Sekyere-Abankwa said the workshop would also discuss two issues and make recommendations that are expected to accelerate the development of hydrocarbons.

 

One of the issues, he said, would enable the GNPC to shift its focus from only on-shore activities to engage in deep water exploration. Sekyere-Abankwah explained that the decision was on the basis of the fact that Ghana has similar geology as Ivory Coast and Equatorial Guinea, which are involved in deep water exploration and have chalked significant successes.

 

"If we want to achieve our goal, then it is necessary for us to make our regulations attractive to investors because oil exploration is quite risky, requires a lot of capital," he said.

 

Sekyere-Abankwa added that the bottom line was for the investors to recover their investment since the GNPC would now have the investors to fully fund its programmes.

 

Dr John Frank Abu, Member of Parliament and Former Energy Minister, told the Ghana News Agency (GNA) that the review was important to make Ghana competitive in the oil and mineral industry.

 

He said, for instance, gold production in Ghana used to be expensive and unattractive due to the unfavourable tax regime among other factors. He said it was therefore, a welcome initiative to make business in the country as competitive and inexpensive as possible.

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Drivers complying with new fares

 

Accra (Greater Accra) 23 January 2003- Many drivers at various lorry stations in Accra were on Wednesday complying with new fares agreed upon between the Ghana Road Transport Co-ordinating Council (GRTCC) and the Ministry of Road and Transport following new fuel prices.

 

When the Ghana News Agency (GNA) visited the Accra-Bawaleshie and Accra-Tema New Town stations it found that the confusion that arose after Friday's fuel price hike had cleared.

 

The GRTCC successfully negotiated a 40 percent increase in fares instead of 30 percent agreed on Friday after petrol prices were increased by 90.4 per cent. In an interview with the GNA, Nicholas Sowah, Station Manager for Accra-Bawaleshie Union, said the union and the drivers had discussed the new fares and were no longer charging the arbitrary fares.

 

Sowah said they were charging 2,000 cedis when the new fuel prices were announced, but they were now charging 1,500 cedis for the same route. He expressed the hope that as time goes more of his colleagues would understand the new measures and abide by them.

 

Sowah said even though everything is going on well, some of the drivers who drive Nissan Urvan buses have been complaining that the enforcement by police of the number of passengers the vehicles should carry would affect their income.

 

At the Accra-Tema New Town station, Eric Teye Puplampu, the station manager, said drivers in his union were still charging the arbitrary fares because their route did not appear in the list published on the new fares. Puplampu said they were waiting for directives from their officers to decide on what to do.

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Cabbies withdraw services

 

Sunyani (Brong Ahafo) 23 January 2003- Some taxi drivers in Sunyani have withdrawn their services following the refusal of passengers to pay the new fares they were demanding in the wake of the hike in fuel prices.

 

Commuters on the Penkwase-Sunyani route have insisted on paying 1,000 cedis instead of the 1,500 cedis the drivers were demanding as the new fare and which they have been charging since the announcement of the increases.

 

Before the announcement, taxi drivers on the route were charging 700 cedis. The few drivers who are charging the 1,000 cedis, however, spoke against the 100 per cent increase, saying, "we are left with almost nothing after making the daily sales to our vehicle owners".

 

Some passengers, including workers in state institutions now prefer to walk to their various destinations and workplaces because they could not afford the new fares the drivers are demanding and this is adversely affecting productivity with associated lateness and weariness.

 

Even though we knew the price of fuel would be increased, we were not expecting a hundred percent increase; one of he drivers said and urged the government "to do something about it". Meanwhile the taxi drivers are taking 5,000 cedis for a "dropping" service within Sunyani. The charge was 3,000 cedis before the hike in fuel prices.

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Boat owners on Volta Lake hike prices

 

Tapa-Abotoase (Volta Region) 23 January 2003- The Tapa Abotoase Boat Owners Association in the Jasikan District have expressed concern over the fuel price increases and complained about the poor quality of pre-mix fuel supplied to them.

 

Members of the Association, at a meeting to discuss the fuel price hike and determine new fares on the lake, called on the sector Ministry to provide them with quality pre-mix fuel and outboard motors at affordable prices.

 

Kaizaro Yao Awoye, Secretary of the Association, said boat owners had increased fares on the Volta Lake by 100 per cent. Abotoase to Didja, from 15,000 cedis to 30,000 cedis, Abotoase to Otiso, 12,000 cedis to 24,000 cedis and Abotoase to Kete Krachi, 25,000 cedis to 50,000 cedis.

 

Fares charged by smaller boats, popularly known as "taxis", have also gone up by 110 per cent. Public reactions to the fuel price increases in the Jasikan and Kadjebi, Districts, have been mixed.

 

Kofi Adjei Ntim, Kadjebi District Chief Executive, described the decision as "bold and positive" as it would save the petroleum industry from collapse. ''I appeal to Ghanaians to take the increase as a vital bitter pill that will help sustain the petroleum industry.''

 

Divine Foli, a civil servant, said food prices were rising, ''adding to the financial burden of civil servants.'' Foli suggested the reintroduction of the leave allowance as part of measures to cushion workers against the increases.

 

A fuel dealer at Hohoe Zongo was worried about low fuel sales following the increases. He said the highest quantity of fuel being bought by car owners now was two gallons while taxi drivers bought only one-gallon at a time.

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