GRi Business, Economics & Finance 30 – 01 - 2003

Help maintain quality of Ghana's cocoa

Establish body on cashew

Intensify education on insurance

Emphase on postproduction

Labour tables 12,000 cedis as minimum wage

Institute advises on government tax revenue

Inter-bank exchange

Accra bourse index inches up on another dull day

 

 

Help maintain quality of Ghana's cocoa

 

Kumasi (Ashanti Region) 30 January 2003- Licensed Cocoa Buying Companies (LBCs) have been called upon to help maintain the quality of Ghana's cocoa through the adoption of healthy marketing practices.

 

Nana Kwaku Nyarko, National Vice-Chairman of the Ghana Cocoa, Coffee and Sheanut Farmers Association (GCCSFA), who made the call, cautioned that the eagerness to out-do each other by way of the volume of cocoa purchases should not make them compromise on quality.

 

He was speaking to the Ghana News Agency (GNA) in Kumasi after his tour of some cocoa growing areas in Ashanti and the Central regions. Nana Nyarko decried the situation where Purchasing Clerks of some of the LBCs use hanging scales and pressurise farmers into selling cocoa beans that are not well dried and in most cases, including the flat and bad beans which are not sorted out.

 

He said apart from the potential to undermine quality, this had also led to a high incidence of pilfering of cocoa in some communities. The GCCSFA National Vice-Chairman said from his tour, he observed that there was now marked improvement in the living conditions of farmers as the thatch and bamboo roofing on their houses had been replaced with roofing sheets.

 

Nana Nyarko praised the government for its efforts at making cocoa farming attractive and rewarding and asked farmers to work hard to expand their farms to increase production and boost their returns. He also advised them to encourage the youth and assist them obtain farmlands to go into cocoa growing to sustain the industry.

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Establish body on cashew

 

Nkoranza (Brong Ahafo) 30 January 2003- Nana Kwadwo Osei-Baafour, the Brong-Ahafo Regional Best Cashew farmer, has called on the government to establish a marketing company for the purchasing of cashew nuts in order to enhance the activities of cashew farmers.

 

Nana Osei-Baafour told the Ghana News Agency (GNA) at Nkoranza on Friday that because private individual businessmen purchase the crop, its price is not stable.

 

The cashew farmers have also not got a common purchasing season for the crop, hence, the people who purchase it buy at the price of their own.

 

He stressed the need for cashew farmers to come together to form an association in order that they could share ideas to promote their economic activities to enhance their living standards.

 

Nana Osei-Baafour described cashew as the cocoa of the grassland and urged the youth who are not in any employment to grow the crop to improve upon their lifestyles.

 

He commended the Government for proposing the establishment of food processing factories towards the storage of foodstuffs in the country to prevent post-harvest losses.

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Intensify education on insurance

 

Accra (Greater Accra) 30 January 2003- President John Agyekum Kufuor on Wednesday called on stakeholders in the insurance industry to be more dynamic and intensify the education on the advantages of insurance to attract more diverse clientele.

 

He said "it is time to bring in all the small-scale businesses to appreciate the importance of insurance to protect their investments” adding that “farmers, fisher folk, traders, chop-bar keepers should all be persuaded to insure their businesses.  Every house, every business, no matter how humble must carry an insurance."

 

President Kufuor made the call when he unveiled a plaque to commission the eight billion cedis new Head Office building for Ghana Union Assurance Company Limited (GUA) in Accra.

 

He said an increase in coverage would inevitably lead to the generation of more funds being available for investment through the insurance companies as pertains in other countries.

 

"It will require greater effort on the part of the insurance companies, their financial advisers and lawyers to work on potential policy holders to expand this vital business," he added.

 

President Kufuor said for the economy to be modernized, insurance policy should become a normal and everyday aspect of the lives of Ghanaians and should not be limited to only big business and the sophisticated people in the urban areas.

 

"This is the challenge, the industry must face and overcome," he said. President Kufuor said whilst urging a change in attitude to make more people to insure their businesses, properties and take life policy and that insurance companies should also keep an eye on the affordability of the premiums they demand.

 

He said there was the perception that the enthusiasm with which insurance companies take premiums tended to disappear when it comes to paying claims. "Many people are put off by the perception that insurance companies always find something in the proverbial 'fine print' to frustrate their customers," he added.

 

President Kufuor said the activities of fraudulent claimants contributed to make the industry adopt this sceptical attitude to clients.

 

Kwadwo Duku, Managing Director of the company said the new facility was a sign of their continued commitment to their vision of improving services to their clients and to maintain dedicated client loyalty. He said the company paid 786 million cedis to flood victims in 1995 and about 2.8 billion cedis to flood victims last year.

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Emphase on postproduction

 

Tema (Greater Accra) 30 January 2003- An agriculturist on Wednesday charged agricultural extension officers to come out with strategies that would change the current marketing environment to absorb greater quantity of farm produce.

 

Frank William Aidoo, a Director of Human Resource Management and Development of the Ministry of Food and Agriculture said the bulk purchase of farm produce would serve as a morale booster to farmers to work harder and increase their yields.

 

He was opening a three-day national executive council meeting of the Ghana National Agricultural Technical Class Association (GNATCA) in Tema. It was under the theme: "the agriculturist in the production sector".

 

Aidoo said the current glut in the system should be the prime concern of all agricultural staff and it is about time they moved away from production to post production by changing the marketing environment.

 

He said marketing of produce has been a major issue confronting the ministry and, therefore, impressed upon agricultural extension officers to educate and provide the right information to the farmers to enable them to appreciate the system and go into postproduction activity.

 

Presently, he said, the ministry is laying emphasis on rehabilitation of dams and irrigation projects in the country to encourage all year round farming to increase productivity.

 

According to the Director, the survival and effectiveness of the ministry depends on the efficiency of agricultural extension officers and, therefore, urged them to be conversant with the "Food/Agriculture Sector Development Programme" (FASDP) a blueprint document that the ministry works with.

 

The document contains the vision, objectives, and function as well as provides vital points on guidelines such as marketing strategy, facilitation of food production for security, policy formulation of effective coordination and distribution system, among others.

 

Emmanuel Kuwornu, national president of the GNATCA commended Major Courage Quashigah, the sector minister, for the efforts he is making towards boosting agricultural productivity, especially in rice production, fisheries, livestock and the mechanisation sectors resulting in abundant food.

 

In a welcoming address, Patrick Amartey, Greater Accra regional president of the Association debunked the notion that the region is not an agricultural area, saying that the region, as a gateway to exports and imports of agricultural products, and inputs, continues to play a role to boost productivity.

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Labour tables 12,000 cedis as minimum wage

 

Tema (Greater Accra) 30 January 2003- The Trades Union Congress (TUC) on Wednesday formally tabled its proposed 12,000 cedis minimum wage before the resumed sitting of the Tripartite Committee.

 

A source close to the Ministry of Manpower Development and Employment told GNA that Kwesi Adu Amankwah, Secretary General of TUC, who tabled the proposal, a 68 per cent increase in the minimum wage, said TUC would provide the scientific basis for the proposal at the appropriate time.

 

The source said when the technical committee presented its report at the meeting it was agreed that members should be given time to study it and reconvene on Tuesday, 4 February.

 

Jake Obetsebi Lamptey Minister of Information and Presidential Affairs, Dr Kofi Konadu Apraku, Minister of Trade and Industries, and Mrs Grace Coleman, Deputy Minister of Finance attended the meeting.

 

Also at the meeting was an eight-member team from the Ghana Employers Association, led by its President, Ato Ampiah. Last Week Wednesday, the tripartite committee held its first meeting following the hike in fuel prices.

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Institute advises on government tax revenue

 

Accra (Greater Accra) 30 January 2003- The Institute of Economic Affairs (IEA) on Wednesday called for a yearly fiscal reconciliation of government tax revenue vis-à-vis the amount allocated to the Common Fund Administrator to ensure that the statutory five per cent of revenue earmarked for the fund is complied with to forestall any shortfalls in monies due district assemblies for development.

 

Professor Bartholomew Armah, Senior Economist at the IEA, told a policy forum in Accra that since the inception of the District Assembly Common Fund, disbursements had not only fallen short of the stipulated a mount but had been characterised by delays in both stages of the release process.

 

According to him, analysis of actual disbursements and actual tax revenues had shown that apart from 1995, in which government fully exceeded its statutory obligations, average disbursements were 0.2 percentage points short of their statutory level.

 

Prof Armah said the requirement in the law that the Common Fund Administrator submits a disbursement formula proposal in March of every year constituted a major source of delay in the disbursement of the first quarter releases.

 

Further delays are caused by failure of district assemblies in submitting their supplementary budgets. Prof Armah said undue delays in the disbursement had adverse impacts on the execution of development programs in the districts and also adversely impact on their liquidity position.

 

"It also contributes to cost over-runs in project execution, particularly in a high inflation environment and in accumulation of deficits at the district level when commitments are made in anticipation of District Assembly Common Fund inflows," he said.

 

Prof. Armah said it would serve the needs of the district assemblies better if the Common Fund Administrator could come out with the formula early in the year instead of March to forestall delays in the first quarter disbursement.

 

Touching on misuse of development funds and revenue at the district level, Prof Armah said it was necessary to punish recalcitrant districts by placing a portion of Funds meant for them in an escrow account to be used in correcting any deficiencies in the capacity of personnel at that level.

 

He said there was equally the need to prosecute offending officials to serve as deterrent to others. Prof Armah said there was also the need to review the MPs share of the common fund to make it consistent with the needs of the district assemblies.

 

Captain (Rtd) Nkrabea Effah-Darteh, Deputy Minister of Local Government called for appropriate mechanism to remove bottlenecks to ensure the early release of funds, saying the delays in the release were unacceptable.

 

He also called for a proper linkage between the capacities of revenue generation at the district assembly levels, adding that reliance on the Common Fund tended to weaken the mobilisation base of most assemblies.

 

Participants at the forum, however, said the three years covered by the presentation was not representative enough. They called for appropriate monitoring to ensure that laid down procedures were followed.

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Inter-bank exchange

 

Accra (Greater Accra) 30 January 2003

 

Currency                      Buying             Selling

U.S. Dollar                     8,344.18 cedis           8,556.00 cedis

Pound Sterling              13,737.86                  14,090.88

Swiss Franc                    6,187.95                    6,341.24

Canadian Dollar              5,463.67                    5,601.18

Danish Kroner                1,220.96                    1,251.54

Japanese Yen                      70.66                         72.43

South African Rand           955.98                       976.89

Euro                               9,079.88                    9,307.67

CFA Franc                          13.84                         14.19

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Accra bourse index inches up on another dull day

 

Accra (Greater Accra) 30 January 2003- The main index of the Ghana Stock Exchange (GSE) inched up on another dull day on Wednesday that saw only six of the 24 listed equities trading shares.

 

The index ended 0.43 points higher at 1,429.25 points, up by a mere 0.43 points over Monday's close. Traded shares were 102,000 shares compared with 3,300 on Monday, with one equity, Camelot Limited (CMLT), selling 93,200 shares, as big institutional investors continued to shy away from the market.

 

On the broader market, there were only two changes, both positive. Ghana Commercial Bank continued its steady rise with an additional five cedis to end the day on 3,661 cedis while Unilever was one cedi richer at 4,862 cedis.

 

Market capitalisation was up at 6,395.43 billion cedis from 6,394.54 billion cedis at the previous close. The change for the year now stands at 2.43 per cent from 2.40 per cent.

 

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

ABL                        390

AGC                  28,000

ALW                   3,700

BAT                     1,002

CFAO                     67

EIC                     4,600

FML                   1,800

GBL                       510

GCB                   3,661                  +5

GGL                   1,102

HFC                   1,200

MGL                      254

MLC                      272

MOGL              19,730

PAF                       750

PBC                       390

PZ                       2,010

SCB                  28,700

SPPC                     387

SSB                    4,114

SWL                      285

TBL                    4,850

UNIL                  4,862                        +1

CMLT                   460

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