GRi Business, Economics & Finance 08 – 07 – 2003

Ghana can benefit from liberalized trade

Unimpressive session on Stock Exchange

Volta Region to set up garment factory

PSI's garment hit America's market this month

Cotonou agreement is deceptive-Official

 

 

Ghana can benefit from liberalized trade

 

Accra (Greater Accra) 8 July 2003 - Ghana's liberalized foreign trade policy could act as a catalyst for achieving the President's vision of a golden age of business if constraints in the supply-side were removed.

 

Speaking at a public lecture in Accra on Monday, Kwadwo Afram Asiedu, Deputy Minister of Trade, Industry and President's Special Initiatives, said the trade policy had so far failed to provide the means to propel the domestic economy because of impediments that made it difficult for businesses to take advantage of market openings.

 

He said the primary concern of the private sector was the high cost of doing business in the country due to high cost of credit, high inflation rate and government's excessive borrowing from the banking sector that crowds out the sector.

 

Ghana currently pursues a liberalized trade regime with a flexible market-determined exchange regime, interest rates and prices and open competition in goods and services.

 

The Institute of Accountancy Training organized the lectures as part of its annual accountancy week on the broad theme: "The Public Sector in the Golden Age of Business," to discuss issues of national development.

 

Asiedu, who spoke on: "Ghana's Foreign Trade Policy as a catalyst for the Golden Age of Business," said to ensure that businesses in the country achieved success, government through the Ministry was taking steps to develop a modern robust trade and industry sector with the private sector as its focus.

 

This would be done through the formulation and harmonization of policies to ensure inter-sectoral collaboration in the implementation of trade and industrial policies both at the national and international levels.

 

The Deputy Minister said to guarantee success of the policies, government was following a two-pronged approach of export-led industrialization and a comprehensive import substitution programme with the aim to cutting down on all non-petroleum government imports by 70 per cent and all processed food and agricultural products by 50 per cent in order to revitalize the trade and industry sectors.

 

Other areas of focus were to negotiate and secure improved market access for the country's exports and to create a self-sustaining export sector that placed emphasis on value addition.

 

Asiedu expressed the hope that through the various initiatives of the President, the country would be able to utilize market access opportunities, which were hitherto unexploited.

GRi…/

 

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Unimpressive session on Stock Exchange

 

Accra (Greater Accra) 8 July 2003 - The Ghana Stock Exchange recorded an unimpressive session on Monday with total shares traded slumping to a 62,300 low.

 

Total shares traded last Friday ended higher at 626,200 shares. The GSE-All Share Index went up by 8.95 points to fix at 2,136.72 points from the 2,127.77 points registered on Friday. Market capitalization edged up slightly closing trading at ¢8,778.81bn. It ended at ¢8,757.03bn from a total of 2,729.93 issued shares.

 

The change in the year to date was 53.44 per cent. On the broader market two equities appreciated with no decliners. Produce Buying Company (ABL) made the day with a gain of ¢44 to close at ¢495 while Accra Brewery Limited (ABL) made ¢4 to end at ¢460.

 

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

 

ABL              460          +4    

AGC             28,600 

ALW             4,000   

BAT              1,913 

CFAO           73 

CPC              630 

EIC               6,000 

FML             2,507 

GBL              552   

GCB             6,302 

GGL             3,001 

HFC             2,600 

MGL            258      

MLC            466 

MOGL         21,000 

PAF             750

PBC             495           +44 

PZ                2,057    

SCB             48,400 

SPPC           390

SSB              7,304

SWL             285

TBL              6,000 

UNIL            7,305 

CMLT           460

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Volta Region to set up garment factory

 

Ho (Volta Region) 8 July 2003 - The Ho District Assembly, in partnership with Ghanaian entrepreneurs, would establish a garment factory within the next 12 months, Mawutor Goh, the District Chief Executive (DCE) said on Monday. He said as part of the plan 100 dressmakers had been selected for training to make clothes to meet international standards.

 

Goh was speaking at a course organised by the Ghana Export Promotion Council (GEPC) in collaboration with the Ho District Assembly for 40 Small-Scale Entrepreneurs in Export Marketing,

 

He said the programme, which is in line with government policy that each district facilitates the establishment of at least three industries, fruits and tomatoes processing and oil extraction factories would be set up.

 

Goh called for the cultivation of plantation of fruits including mangoes, oranges and papaw to feed the factories. He said the district needed active support of the private sector to achieve its objective.

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PSI's garment hit America's market this month

 

Accra (Greater Accra) 8 July 2003 - The first consignment of garment produced under the President's Special Initiative (PSI) would hit the American Markets by the end of this month. For a start, 19,000 shirts and 19,000 trousers would be exported. The current production capacity is about 2,000 trousers and 2,000 shirts a day.

 

The garment and textile initiative is expected to bring in about three billion dollars within a period of four years of operation. This came to light on Monday when Hajia Alima Mahama, Deputy Minister of Trade, Industry and President's Initiative visited the factory to get acquainted with the production process.

 

Nana Tweneboa-Boateng, Coordinator of the Garment and Textile segment, who conducted the Deputy Minister round, said the processing time, quality consciousness, and the need to expand or set up more factories were crucial to meet the international competitive market.

 

He said currently the US alone imported about $70bn worth of garment every year with a total market demand of one million garments under the AGOA, something far above what Ghana could offer at present.

 

Nana Tweneboa-Boateng said that currently the factory was training national service personnel with Higher National Diploma (HNDs) for supervisory and managerial positions. He said the government had injected huge capital into the project, adding, "preparations are underway to set up some of the factories in Kumasi and Takoradi before the end of this year.

 

Deputy Minister said the training programme for the trainees would equip them and create the ready pool of personnel not only for the factory but also for private investors, who might want to venture into garment and textile production.

 

Hajia Mahama urged the trainees, especially the service personnel to take advantage of the situation after their training to form joint partnerships and set up businesses on their own instead of waiting to be provided with employment. She expressed satisfaction with the progress of the initiative so far and said it was a clear indication that the PSI was on course.

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Cotonou agreement is deceptive-Official

 

Accra (Greater Accra) 08 July 2003 - The African Growth and Opportunity Act (AGOA), and the African Caribbean Pacific-European Union (ACP/EU) Cotonou Agreement have become avenues for the industrialized countries to further throw dust into eyes of developing economies, a trade unionist said on Sunday.

 

"Being instruments of neo-liberal paradigm, AGOA and the Cotonou Agreement are not different from the WTO system in the way that they seek to coerce African countries into total trade and financial liberalization," Michael Besha, Assistant Secretary-General of the Organization of African Trade Unions Unity (OATUU), said.

 

Besha was speaking at the opening of a three-day workshop for trade union leaders in the sub-region, aimed at building a consensus on some multilateral trade agreements that have been perceived to be inimical to developing economies.

 

The Trade Union Congress (TUC) and the Friedrich Ebert Foundation (FES) are organizing the workshop in Accra. Issues to be discussed would centre on the new trade rules of the World Trade Organisation (WTO) that would be considered at this year's ministerial conference in Cancun, Mexico.

 

Besha said: "The unequal and unbalanced character of international economic relations, the undemocratic nature of the multilateral trading system...and the problem of capacity on the part of African governments to negotiate on equal footing...present daunting challenges to Africa which OATUU must address."

 

He said among the major challenges facing trade unions in Africa are the on-going negotiation of Economic Partnership Agreement between ECOWAS and the European Union (EU), which call for united efforts by unions to address possible concerns.

 

According to him, the elements of the international order have combined to trap the economies of African countries. These elements consist of unsound macro-economic policies imposed through structural adjustment conditions by the World Bank and the IMF.

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