GRi Business, Economics & Finance 03 – 07 - 2003

Seminar on performance of privatised enterprises opens

Pineapple export is not in crisis - SPEG

Stock market maintains momentum

New vehicle taxes take off 1 July

About 500 Bank of Ghana staff to go home

Inter-bank exchange rates of the cedi

Edumadze worried about attempts to sabotage investments

 

 

Seminar on performance of privatised enterprises opens

 

Accra (Greater Accra) 3 July 2003 - A total of 233 state owned enterprises were divested between 1991 and 1999 when the government started its privatisation programme.

 

Out of the number, 190, representing 81 per cent were divested to Ghanaians, with 20 being joint ventures between Ghanaians and foreigners whilst 23 were sold to foreign investors.

 

Dr Kwame Adom-Frimpong, of the Chartered Institute of Administrators (CIA) said this at the opening of  a two-day seminar to discuss Ghana's privatisation programme and the performance of  privatised enterprises.

 

The seminar, which was organised by CIA for its members was also used to introduce the types and techniques of privatisation available to the participants.

 

Dr Adom-Frimpong said by the end of the seminar, members would be able to describe the various privatisation techniques that could be applied by the state and explain why government decided to adopt the privatisation system.

   

He said though privatisation helps to increase the revenue of government, its negative effects on the country's gross domestic product, inflation, market competition, savings rate was enormous.

 

According to Dr Adom-Frimpong, whilst some of the privatised enterprises were performing well, others were struggling to find their feet in the competitive market. He gave some of the reasons why government divested state owned enterprises as political intervention, high cost of employment, high wage agitation by trade unions and insufficient consumer orientation.

 

He said government sometimes privatise profitable companies to ensure competitiveness and cost effective operation, generate positive cash flows for government to ensure the implementation of development projects, among other reasons.

 

Adom- Frimpong said to be successful privatisation programmes should have clear objectives, sound strategy, well-defined plan, good management and strong commitment.

 

He said development of regulatory bodies to oversee and monitor the prices as well as the quality of various products could also be a measure to counter the negative impacts of privatisation.

GRi…/

 

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Pineapple export is not in crisis - SPEG

 

Accra (Greater Accra) 3 July 2003 - Sea-Freight Pineapple Exporters of Ghana (SPEG) has described as incorrect TECHNOSERVE's assessment that Ghana's pineapple export was in crisis. "The export of Ghanaian pineapple is not declining as TECHNOSERVE wants to portray. Again the year 2002 export of 37,000 tonnes quoted by TECHNOSERVE was incorrect."

 

This was contained in a release signed by the General Manager of SPEG, Stephen Mintah on Wednesday in reaction to a statement made by TECHNOSERVE at a recent workshop. It said: ''Ghana rather exported a total of about 50,000 tonnes in 2002 and had a market share of about 10.5 per cent of the 474,000 tonnes European market. Indeed, it is wrong to suggest that Ghana's market share has been dwindling, it is rather increasing steadily."

 

The statement said currently, pineapple exports by SPEG members accounted for over 95 per cent of the total exports from Ghana and that from a modest beginning of 2,718 tonnes shipped in 1995, volumes of shipment by sea increased significantly to 32,000 tonnes in 2002, representing 65 per cent.

 

It said the remaining 18,000 tonnes were shipped by air adding that with the exception of negative growth in 1997 and 1998 due to the excessive droughts, pineapple exports continued to grow significantly.

 

The release said SPEG was conscious of the threats posed to the industry such as inroads being made by multinational companies, the introduction of MD2 variety on the market and the current demands by supermarkets and buyers for strict suppliers with a minimum food safety and other agricultural standards.

 

It said SPEG in collaboration with USAID and AMEX International and other governmental and non-governmental organizations were making efforts to set up a tissue culture facility for mass production of healthy and identical plantlets of crops including new varieties of pineapples that were now preferred in the European market.

 

The statement, therefore, requested TECHNOSERVE to consult the right players in the pineapple industry for discussions on any concerns it has or any support it may want to offer to the pineapple industry.

GRi…/

 

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Stock market maintains momentum

 

Accra (Greater Accra) 3 July 2003 - Trading on the Ghana Stock Exchange slowed on Wednesday with a mere 29,100 shares changing hands, down from Monday's close of 118,000, as institutional buyers stayed on the sides.

 

However, the GSE All-Share Index climbed by 3.54 points to 2,088.24 points in trading that saw only three equities making price movements.

 

Guinness Ghana Limited (GGL) was the biggest gainer with a ¢71 rise to ¢2,901. SSB Bank and Ghana Commercial Bank each gained ¢1 in trading that saw only seven of the 24 listed equities selling shares.

 

SSB Bank ended the day at ¢7,301 while GCB closed at ¢6,301. Change for the year was 49.66 per cent from Monday's close of 48.20 per cent. Market capitalisation improved at ¢8,660.91bn from ¢8,652.34bn.

 

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

ABL              456     

AGC             28,600 

ALW             4,000   

BAT              1,913 

CFAO           72 

CPC              630 

EIC                6,000 

FML              2,607 

GBL               552   

GCB              6,301      +1

GGL              2,901      +71

HFC              2,600 

MGL             268      

MLC             466 

MOGL          21,000 

PAF              750

PBC              451 

PZ                 2,056    

SCB              44,000 

SPPC            390

SSB               7,301      +1

SWL              285

TBL               6,000 

UNIL             7,204 

CMLT            460

GRi…/

 

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New vehicle taxes take off 1 July

 

Accra (Greater Accra) 3 July 2003 - The Internal Revenue Service (IRS) on Wednesday announced that it has given a one month grace period ending 31 July to commercial drivers to purchase the new Vehicle Income Tax (VIT), which came into effect from 1 July 2003.

 

The system was introduced under the Legislative Instrument 1727, that empowers the IRS to implement the Sticker System as a new mode of payment of income tax on quarterly basis by commercial transport operators to replace the current weekly payment.

 

Mrs. Janet Opoku-Akyeapong, Commissioner of IRS, who disclosed this at a seminar with the Regional Commanders of Police on the role of the police in the VIT sticker system, said the new tax was reduced drastically to encourage transport operators to patronize the system.

 

She said the quarterly payment has become necessary because the weekly one has been bedevilled with many negative factors, which have made the mobilization of optimum revenue collection impossible from an otherwise potentially rich sector.

 

The Commissioner said the seminar was convened because the IRS recognizes and appreciate the role the police could play in enforcing tax laws and urged them to co-operate with the service to ensure the success of the programme.

 

"The success or failure of the implementation of the system depends, to a large extent on activities of the police. The arrest and prosecution of defaulting transport owners and drivers are best executed by the police, hence any lapses on their part will result in a huge loss of revenue to the state."

 

Kwame Adjei-Djan, Deputy Commissioner in-charge of Legal Services, said defaulters would be prosecuted and on summary conviction, the person is liable to a fine not less than ¢500,000 and ¢1m maximum or to a term of imprisonment of not less than two months and not more than three months.

 

He therefore, urged all commercial drivers to ensure that they purchase the tax and display their stickers on the windscreen to avoid prosecution. David Oppong, Chief Inspector of Taxes, said the vehicles were grouped into four categories and the stickers were printed in four colours to eliminate fraud.

 

He said for example, Taxis/Hiring cars are in category one, Trotro buses, category two, commuters (long distance vehicles), category three, while heavy-duty vehicles are in the fourth category.

 

Chief Supt. David Tandoh, Commander of Central MTTU, was grateful to the Service for the co-operation and pledged the support of the police for the system to ensure its success. He advised that IRS should intensify public campaign in the various local languages so that the message would go down well with the people to avoid misinformation.

GRi…/

 

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About 500 Bank of Ghana staff to go home

 

Accra (Greater Accra) 3 July 2003 - The Bank of Ghana (BoG) is installing a $1m Sorting Machine that would replace over 500 members of counter staff at the Bank.

     

The installation is part of the Central Banks' transformation exercise that intends to shed off about 1,000 staff members. The programme, which started last week, would continue for two weeks, after which staff, who wished to leave the Bank would be processed and appropriate compensation paid to them.

 

In an interview with the Ghana News Agency (GNA) Business Desk in Accra on the current disengagement exercise by the Bank, Kassim Yahya, Head of Public Affairs, said the machine would do the work of 500 persons in the main banking hall and be "100 times faster."

   

He said at the end of the three-week period disengagement would start from August 2003 by which time staff wishing to leave the Bank would be free to leave.

 

Yahya said the equipment being installed was capable of dispensing, picking out counterfeit and mutilated notes while arranging them in an order that would keep the notes in good state.

 

This, he noted would ensure that the lifespan of the Cedi notes are prolonged. The Bank of Ghana spends about three billion cedis a month to replace mutilated cedi notes through poor handling. The Central Bank withdraws about nine million mutilated notes, which have been in circulation for up to six months or a year are withdrawn every month.

 

Yahya explained that the developmental style of approach adopted by Dr Kwame Nkrumah led to the creation of certain departments in the Bank, which resulted in the employment of a rather large number of people to handle issues of development financing.

 

He said as part of the transformation, the BoG merged the Development Finance, Rural Banking Finance Department and the Non-Bank Financing Department.

 

He said the disengagement of about 1,000 people in the Bank would be across the entire levels of the Bank, "and not necessarily from the non-core areas," adding that besides," the entire exercise is voluntary."

 

Yahya said a counselling unit had been set up to counsel staffs that have decided to leave. He said they would be advised freely on what exactly to do. He said some other people would be freshly engaged to address the growing needs of the Bank.

 

He said Ghana had 12.33 banking staffs per 100,000 customers; the highest on the continent, saying this must change since it was not sustainable. "Kenya has 2.14 banking staff per 100,000 persons, South Africa has 6.43 per 100,000 and Nigeria 4.49 per 100,000.

 

The UK has 3.65 banking staff per 100,000 customers.

GRi…/

 

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Inter-bank exchange rates of the cedi

 

Accra (Greater Accra) 3 July 2003

 

Currency                          Buying                      Selling

U.S. Dollar                      8,596.55                  8,764.45

Pound Sterling                 14,284.03                14,567.39

Swiss Franc                     6,396.22                  6,518.43

Canadian Dollar               6,374.54                  6,496.63

Danish Kroner                 1,335.52                  1,360.97

Japanese Yen                   72.16                       73.54

South African Rand          1,157.99                  1,175.79

Euro                                 9,921.53                  10,112.03

CFA Franc                      15.13                        15.42

Naira                               68.14                        69.47

ECOWAS WAUA          12,377.25

GRi…/

 

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Edumadze worried about attempts to sabotage investments

 

Elmina (Central Region) 3 July 2003 - The Central Regional Minister Isaac Edumadze on Tuesday, expressed concern that certain people in the Komenda-Edina-Eguafo-Abrem (KEEA) District were sabotaging investment in the area.

 

He said some people had put warnings on the Internet claiming falsely that investors and tourists risked their lives going to the area, because there was a dispute raging there.

 

Edumadze expressed this concern, when he addressed the chiefs and people of the Edina Traditional Area, during a purification ceremony to lift the month-long ban on fishing in the 'Benya Lagoon, as part of activities marking their annual 'Bakatue' festival.

 

The ceremony, began with the chief Fetish Priest assisted by two others, casting the 'Omanhene's net' three times into the Lagoon, amidst the firing of musketry, and jubilation by the people, to signify the lifting of the ban.      

 

The Regional Minister, noted that these negative actions were taking their toll, as only a handful of tourists showed up this year to witness the festival, as compared to attendance in previous years.

 

He cautioned that the area, would "not see development" if the trend continued, and urged the saboteurs, to stop, reminding them that tourists' participation in such events, was of economic importance to the area and the country at large.

 

The Minister reiterated the government's determination to enhance socio-economic development, but warned that it would, however, not undertake any development projects in areas where "conflicts and chieftaincy disputes abound".

 

He, therefore, stressed the need for aggrieved persons to use the appropriate channels to seek redress and warned that the law would deal with those who used unorthodox means.

 

Other activities to mark the ceremony included a regatta and swimming competition. The district assembly presented cash prizes to the winners of the regatta, which was won by 'Bantuma', with 'Abese Highlife' and 'Yadodo' placing second and third, respectively.

 

There were, however, no prizes for winners of the swimming competition, because there was no sponsorship for the event.

GRi…/

 

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