GRi Business, Economics & Finance 11 – 07 – 2003

Govt initiates new industry reform programme

GES denies Deputy Controller and Accountant-General's claim

Experts suggest three options to fund AU

Inter-bank exchange rates of the cedi

Stock Exchange in tremendous half-year performance

 

 

Govt initiates new industry reform programme

 

Accra (Greater Accra) 11 July 2003 - The government, through the Ministry of Trade, Industry and Presidential Special Initiatives has initiated a "New Industry Reform and Accelerated Growth Programme" that would help provide the foundation for the needed growth of Ghana's economy.

 

The programme would involve the development of an export-oriented industrialization drive, focused on agro-processing and manufacturing activities that would include mass mobilisation of the rural communities and other vulnerable groups.

 

It would also involve the development of a comprehensive import substitution industrialisation programme targeted at producing locally, 70 percent of all non-petroleum government imports as well as 50 per cent of all processed food and agricultural products imported into the country by individuals and companies.

 

Ishmeal Ashitey, Minister of State, at the Ministry of Trade, who announced this in Accra on Thursday at the launch of the "Industrial Pinacle Award" (IPA) programme said, to bring the growth programme into fruition, a technology improvement policy to facilitate it had been adopted.

 

The policy would facilitate technology audit, retooling of obsolete equipment, sub-contracting and packaging. The Pinacle award has been designed to reward entrepreneurs, business executives and Ghanaian individuals both at home and abroad for excelling in their chosen fields of endeavours.

 

It would identify and unearth existing and potential talents and skills in both corporate and non-corporate Ghana in three categories of enterpreneurship, technology, education and research.

 

It is being instituted by the Industrial Pinacle Africa Network, a subsidiary of Sound and Vision Multikom Network Limited, in collaboration with Association of Ghana Industries, (AGI) Ministry of Trade and Industry, National Board of Small Scale Industries, Ghana Chamber of Mines, and other organisations.

 

The Pinacle award would highlight the achievements and successes of nominees in their respective categories and the first award is scheduled for March 2004 to coincide with the celebration of Ghana's Independence Day activities and would be held yearly.

 

Ashitey, who represented Vice President Alui Mahama, commended the organizers of the award and urged AGI and other similar award organisers to bring the various private sector award initiatives under a common fold to avoid duplications.

 

Abu-bakar Saddique Boniface, Deputy Minister of Trade and Chairman of the IPA explained that selected winners from all over the country would be awarded with prizes ranging from financial support for production, technology and consultancy services, industrial or life insurance, certificates and plaques, and trade promotion in both local and international markets.

 

He said such an award for Ghana's development partners was indispensable in the drive of getting her onto the global market. Rev Dr. Mensah Otabil, Chancellor of the Central University College who chaired the programme expressed the hope that the programme would reward quality work and achievement to make it unique and of higher standard.

GRi…/

 

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GES denies Deputy Controller and Accountant-General's claim

 

Accra (Greater Accra) 11 July 2003 - Charles Otoo, Financial Controller of the Ghana Education Service (GES) on Thursday denied that there were problems with the Education Ministry's payroll budget, which could affect government's payment of salaries this month.

 

"As far as we are concerned there are no problems with our payroll because the Controller and Accountant-General had paid all our salaries up to the month of June," he told the Ghana News Agency (GNA) in an interview in Accra.

 

"If there were problems, the Ministry of Finance would not have ordered the Controller to pay us our salaries," he said. Otoo was reacting to a statement made by Eugene Ofosuhene, Deputy Controller and Accountant-General on Wednesday that problems with the Education Ministry's payroll budget had derailed the entire payroll structure of government.

 

Otoo also denied knowledge of any scheduled meeting next week with the office of the Controller and Accountant-General to rectify the alleged anomaly. He said he was surprised when he heard the report on radio on Thursday morning.

 

"I cannot offer any further comment because as I have said there are no problems with our payroll." Ofosuhene made the assertion when he delivered a lecture at this year's Public Accountancy Week in Accra on the new Cash Management System in the public sector.

 

In his presentation he said, "until we met with the Minister of Education to resolve the Ministry of Education's payroll budget situation, which had currently derailed the entire payroll structure in the country, salary releases would not come". "The problem at MOE is so huge that there appears to be some concealing of names so they are unable to provide us with realistic figures for their budget."

 

Ofosuhene said the Ministry of Defence would be an exception since their salaries were paid fortnightly.

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Experts suggest three options to fund AU

 

Maputo (Mozambique) 11 July 2003 - Financial experts have suggested three measures including a levy of Value Added Tax (VAT) to prevent financial crisis in the African Union (AU). The introduction of the VAT would require the prior harmonization of tax laws in member States to apply it.

 

The other two are a levy of 0.5 per cent of the Cost Insurance Freight (CIF) value of all goods imported from non-AU countries and a levy on air tickets to or from Africa. The implementation of the third option would require negotiation with International Air Transport Association (IATA) and African Airlines Association (AFRA).

 

The suggestions were contained in a report submitted by the experts to the Committee of Permanent Representatives (COREP) of the AU Summit in Maputo, Mozambique. The report would be submitted to the financial authorities of the member states for appraisal.

 

The AU would need at least $65m, a figure twice its current budget, to meet its operating costs. It is seeking alternative sources of funding to prevent pressure which insufficient funding could put on its future organs. Under the second suggestion of the CIF, which is currently being applied in the European Union (EU), the West African Economic and Monetary Union (UEMOA) and in the Economic Community of Central Africa (CEMAC), it would earn the AU about 600 million dollars yearly or 20 times the annual budget the former Organisation of African Unity operated with.

 

Other sources of earnings suggested by the report included systematic commercialisation of Pan African Trade Fairs, the sale of publications and the search for partnerships and grants. The report, however, said whatever the relevance of such measures, contributions from member states should be the main source of funding and should continue for a few more years.

 

The experts recommended that the contributions from member states should be integrated into national legislations and provide for stronger sanctions where necessary through penalties for arrears.

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Inter-bank exchange rates of the cedi

 

Accra (Greater Accra) 11 July 2003

 

Currency                        Buying                Selling

U.S. Dollar                    8,602.45           8,767.55

Pound Sterling               14,052.10         14,326.18

Swiss Franc                   6,340.34           6,459.34

Canadian Dollar             6,239.56           6,356.17

Danish Kroner               1,214.79           1,339.52

Japanese Yen                 73.18                74.56

South African Rand        1,138.10           1,155.29

Euro                               9,774.02           9,960.49

CFA Franc                    14.90                15.18

Naira                             68.14                69.45

ECOWAS WAUA        12,383.67 

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Stock Exchange in tremendous half-year performance

 

Accra (Greater Accra) 11 July 2003 - The Ghana Stock Exchange (GSE) in the last six months recorded a tremendous performance ranking it as one of three most profitable in Africa.

 

Presenting the half-year stock market review in Accra on Wednesday, Kinglsey S. Yamoah, Managing Director of the GSE, said the Management was keen on positioning the Exchange as an attractive investment avenue in the country.

 

The All-Share Index almost doubled to 49.41 from January to June this year as compared to 28.01 per cent for the same period last year. Indeed the Index moved from 1,395.31 points at the beginning of January to 2,084.72 points in June.

 

The gain in the index, even at half-year rate, was above the prevailing annual interest equivalent on 91-day treasury bills of 35.27 per cent at end June 2003. The gain was again above the June 2003, 12-month inflation rate of 29.80 per cent as well as the 45.96 index gain recorded for the whole of 2002.

 

He said market capitalization at the end of the period was ¢8.652bn as against the ¢4.429bn while percentage increase in market capitalization was fixed at 39.9 per cent. The figure for the same time last year was a low of 13.5 per cent. He attributed the increase to the rise in share prices of nearly all the listed equities.

 

Yamoah singled out the listing of Cocoa Processing Company as contributing a huge ¢538bn of total increase in market capitalization from ¢861.48m issued shares in February this year. The CFAO and the Ashanti Goldfield's additional listings contributed ¢10bn and ¢62bn, respectively, to the change in capitalization. Market capitalization went up by just 13.4 per cent to ¢4.429bn in the first-half of last year.

 

Yamoah said volume of shares traded was ¢51.38m, raking in ¢256.0bn. Volume of shares traded from January to June last year was 32.46 per cent and earned only ¢59.30bn. The value of bonds traded by corporate members closed at the period at $529,000 compared to the $249,750 posted last year.

 

Earnings from the Government of Ghana Index Linked Bonds (GGILBS) dropped, fetching a meagre ¢2.75bn against the ¢22.22bn for last year. Yamoah explained the situation to the recent increase in inflation due mainly to the increase in petroleum prices, which has made treasury bills more attractive.

   

The major increase in the volume and value of shares was the arrival of Societe General Group into SSB Bank operations where they bought controlling interest.

GRi

 

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