GRi Business, Economics & Finance 24 - 06 - 2002
Free Zones Board to hold forum on Export
Accra (Greater Accra) 24 June 2002- Chief Bimbola Ogunkelu, Nigeria's Minister of Regional Cooperation and Integration in Africa, has said achieving economic integration of the West Africa Sub-region appeared difficult but it was not insurmountable.
He said the goal could soon be accomplished if political leaders, technocrats and the citizenry of the sub-region worked in tandem with determination and unity of purpose, while using the experiences of other regions as their guide. Dr Ogunkelu was speaking in an interview in Accra at the end of the Eighth Meeting of the Convergence Council of Ministers and Governors of the West
African Monetary Zone.
More than 100 delegates, including, ministers of state, governors of central banks and technocrats attended the meeting, which assessed the progress made toward the adoption of a second monetary zone for Ghana, Nigeria, The Gambia, Sierra Leone and Guinea and charted a new course for advancement.
Dr Ogunkelu underscored the critical role of the media in sensitising the 250 million citizens of the Sub-region to appreciate the importance of integration, saying a great deal would be achieved if the media treated the issue with the same passion it attached to soccer
"Integration is the life-line to prosperity in Africa, therefore, we need to pool our resources to make it possible. The media's role is very crucial and if they believe in it like the way they appreciate football, they can bring everybody on board for success," he said.
Experts say economic integration would attract foreign direct investment through a stable macro-economic environment and a larger single market; facilitate free movement of goods, services, labour, and reduced transaction costs; push economic growth and reduce poverty, among other benefits.
Dr Ogunkelu expressed regret about the level of trade within the sub-region, which is only nine per cent, saying there was the need to bridge the gap to about 50 per cent within in the shortest possible time. The political will, he said, was prevalent, adding that with democratic governance restored in most countries it would be easier to move ahead.
He said: "Military governments do not pursue the wishes of their people, they have their own agenda. But with the political changes we have made significant gains under ECOWAS in the past three years and this will continue."
On the inability of the five West African countries to fully meet the convergence criteria for the adoption of a second monetary zone, Dr Ogunkelu said though stringent, they could be achieved with the implementation of strict fiscal and macro-economic measures.
He said because the goals would facilitate economic growth in the respective countries, the leaders were not eager to seek an extension of the deadline, but rather resolved to redouble their efforts to attain them.
By 2003, the countries are expected to achieve single digit inflation; have foreign exchange reserve to cover at least six months' imports; have ratio of fiscal deficit of GDP of three per cent and an upper limit of central bank financing of government deficit of not more than 10 per cent. The Gambia fully satisfied the conditions last year but it has relapsed.
Dr Ogunkelu said the most difficult of the conditions was the ceiling on the central bank's financing of government deficit and commended Ghana for passing legislation in line with the objective.
Two years ago, six heads of West African States met in Accra and recommended the adoption of a second monetary zone for countries outside the CFA zone by 2003 to facilitate the adoption of a single currency for sub-region by 2004. Liberia and Cape Verde are yet to formalise their membership.
Asked whether Nigeria would support Ghana's bid, for the headquarters of the Central bank Dr Ogunkelu said his country would not oppose Ghana "Ghana and Nigeria collaborate in all areas, except in football, which we compete. Therefore, we would not oppose Ghana and we hope Ghana would do likewise," he said. The participation of Nigeria, described as the "sleeping economic giant" of Africa is paramount in the integration process because big size of her market.
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Free Zones Board to hold forum on Export
Accra (Greater Accra) 24 June 2002- The Ghana Free Zones Board is to organise a forum to discuss issues that affect production and export of goods and services to European and American Markets and examine inhibiting factors to the smooth operation of the free zones concept on 4 July, this year.
The forum will also evaluate the performance of companies in the zones and aggregate ideas from operators and stakeholders to enable the board reshape its policies to ensure unruffled implementation of the programme.
Mr Andy Appiah-Kubi, Acting Director of the Board, announced this at a news conference to launch the forum on Friday. He said the meeting would share with companies in the export trade, development in the export market and the urgent need for them to obtain ISO 9000 certification, without which they would be denied access to markets of the developed world. It will also help companies to understand how to access the various government enterprise funds set up to assist industries.
Mr Appiah-Kubi said the discussions would also centre on the role of frontline organisations such as the Customs, Excise and Preventive Service, the VAT Service and Environmental Protection Agency on problems of companies within the zones and how to eliminate bureaucratic practices to bring down the cost of doing business.
The Acting Director also touched on efforts the board was making to ensure that free zones companies complied with the law governing operations within the enclave, especially on the export of 70 per cent of their products.
He said the Board had procured some machines to help it monitor and expressed the hope that together with other implementing agencies, it would be able to block free zones companies from off-loading more than the 30 per cent required under the law.
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