GRi Business, Economics & Finance 05 – 06 - 2003

ADB unveils strategic plan for 2003-1007

Inter-bank exchange rates of the cedi

Unity Rural Bank expands its operations

Upper West exhibits its investment potentials

Unreliable data making economic assessment difficult

 

 

ADB unveils strategic plan for 2003-1007

 

Accra (Greater Accra) 05 June 2003 - The African Development Bank Group (ADB) has unveiled the main lines of its Strategic Plan for 2003-2007 meant to help to operationalise the development mission of the ADB Group.


Ousmane Kane, Director of Budget and Planning, said in a statement received in Accra on Wednesday that the ADB Group would also assist regional member countries to put in place effectively and efficiently the Millennium Development Goals.

"To this end, the Plan is an instrument destined to improve and strengthen the implementation of ADB operations, particularly those linked to important development initiatives such as the New Partnership for Africa's Development (NEPAD) and the Water Initiative," he said in the Plan presented in Addis Ababa.

Kane said thanks to a better allocation of the Bank Group's resources, which evolves around priority key sectors defined in common accord with beneficiary countries, and the reinforcement of strategic partnerships, the Plan would help the institution to improve the impact of its interventions with regard to sustainable development.

At that stage, the Strategic Plan introduces an important innovation in the way the Bank Group operates as the emphasis shifts from the number of selected projects to quality, supervision, improvement, control and follow-up.

"To achieve these objectives, the Plan would enhance internal efficiency of the ADB Group by aligning more the specific objectives of the various support complexes to the major strategic orientations of the Bank."

Kane said the Plan received massive staff support, a foundation upon which its whole implementation would be built in the next five years. With regard to the Bank Group's financial results for 2002, Ahmad Bahgat, Vice-President in charge of Finance, expressed satisfaction about the institution's performances, which had scored its highest financial achievements, with net reserves of $1.8bn and operational results of $257m in 2002.

Mrs Arunma Oteh, Treasury Director, analysed the economic and social impact of the Bank Group's operations in regional member countries and stressed the its catalytic role in its interventions.

The Bank Group's interventions were thus able to mobilise, in 2002, $3bn, in addition to its own financing of $2.8bn including its contribution to the Highly Indebted Poor Countries (HIPC) Initiative.

Founded in 1964, the African Development Bank is the premier development financing institution in Africa. To date, the Bank Group has financed more than 2,800 loan and grant projects for total commitments of $47bn.

The African Development Bank Group is composed of the ADB, non-concessional loans to regional member countries, African Development Fund, for mobilization of concession financial resources and the Nigeria Trust Fund, which gives out concessional loans to the less privileged countries in their developmental efforts.
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Inter-bank exchange rates of the cedi

 

Accra (Greater Accra) 05 June 2003

 

Currency                      Buying                     Selling
U.S. Dollar                  8,575.91                   8,749.45
Pound Sterling            13,995.89                 14,280.85
Swiss Franc                 6,558.83                   6,685.48
Canadian Dollar          6,309.00                   6,431.37
Danish Kroner            1,357.41                   1,383.94
Japanese Yen              72.31                        73.74
South African Rand    1,066.00                   1,080.65
Euro                            10,079.13                 10,274.73
CFA Franc                  15.37                        15.66
Naira                           68.14                        69.52
ECOWAS WAUA      12,198.85
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Unity Rural Bank expands its operations

 

Ho (Volta Region) 05 June 2003 - The Unity Rural Bank at Ziope in the Ho District is expected to increase its net profit this financial year from ¢100m to ¢200m.

Togbui Binah Lawluvi VI, Chairman of the Board of Directors of the Bank, expressed this optimism at the commissioning of an agency of the bank at Fiave, a suburb of Ho.

He said the Bank, whose deposit amounted to ¢1.7bn at the end of April this year, proposed to disburse ¢32m as dividends to its shareholders this year. A new banking complex built at a cost of ¢250m at Kpetoe is almost ready for commissioning, he said.


Togbui Lawluvi said the opening of a third agency of the bank at Ho Fiave in addition to Dakpa and Kpetoe Agencies attested to the confidence the Bank of Ghana (BOG) had in its viability.  

He called on rural communities in the Ho District to transact business with the Bank and take advantage of the opportunities it offered for community and personal improvement.

Togbui Lawluvi appealed to the BOG to empower rural banks to approve loans of up to ¢30m instead of the present ¢10m in response to the prevailing macro-economic environment in the country.
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Upper West exhibits its investment potentials

 

Wa (Upper West) 05 June 2003 - A well-patronised industrial fair was held at Wa on Wednesday to showcase the investment potentials of the Upper West Region as one of the highlights of the week-long 20th anniversary celebration of the creation of the region.

On display were a wide variety of products manufactured by individuals and institutions in the region. The products included gas and saw dust stoves, harnessing frames for weavers, bullock drawing devices, iron beds, wooden mobile kitchen and a chair bed, all manufactured at the Nandom Technical Institute.

Incidentally, the institute's stand attracted the largest number of people at the fair. There were also locally manufactured groundnut crushers, smocks of various designs, handicrafts, locally woven textiles and cultural products such as drums and xylophones.

Taking place alongside the fair was this year's Cook Art Competition in the region, which is organised annually by Trafix Catering Services and sponsored by Unilever Ghana Limited.
    

Kwadwo Asiedu-Affram, Deputy Minister of Trade, Industry and President's Special Initiatives who opened the fair, said the celebration would not have been complete without an event of that nature.

He said an astute investor would only invest in a community, based on what it has achieved and its potential as an investment friendly destination.

Asiedu-Affram commended the Regional Co-ordinating Council for organising such an impressive fair. The Regional Minister, Sahanun Mogtari described the region as "the sleeping economic giant" and urged district assemblies, non-governmental organisations and citizens living outside to consider investing in the tourism sector in particular.

Mogtari said the hippo sanctuary at Wechaw in the Wa District, which is among the exciting 14 eco-tourism sites currently being developed by the Ghana Tourist Board offered an authentic cultural product to tourists.
    

According to him, the industrial sector held a great potential for handicraft, artefacts, metal work and brick manufacturing and called on investors to explore those areas for investment.

On the cook art competition, the Regional Minister advised the organisers to get down to the district and community levels, in order to stimulate interest and popularise local dishes. Madam Hajia Saani took home a set of silver saucepans as her prize for winning the competition.
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Unreliable data making economic assessment difficult

Accra (Greater Accra) 05 June 2003 - Dr. Joseph Abbey, Executive Director, and Centre for Policy Analysis on Wednesday said unreliable data was making true assessment of economic performance in the country very difficult.

He said reliance exclusively on banking sector data could paint a rosier picture of good economic performance even at a time government was really plagued with serious financial problems, making it difficult to meet payment for executed projects.

"In the circumstances, healthy bank balances could be illusory with large amounts of payments vouchers bloating up the float," he said.

Dr Abbey was reviewing the first quarter performance of the economy at a business luncheon in Accra organized by the Ghana Chamber of Commerce and Industry.

According to Dr Abbey, records indicated that official estimates of budgetary outcomes in the annual budget statements, which were based on payments data from the Controller and Accountant General Department also failed to paint the correct picture in as much as payment arrears continue to mount, including statutory transfers.

Dr Abbey, who made reference to an International Monetary Fund Report, said there were also fears that the consumer price index over the years had been substantially under recorded.

"The practice of forcing a "no price change" into the system when a missing observation first occurs certainly inappropriate in periods of high inflation-is the blame for the serious statistical blunder."

The Advisor was, therefore, working to re-compute the CPI indices for publishing very soon. Dr Abbey, however, argued that leaving the computing of the national income statistics in the hands of a peripatetic advisor or outside expert was unacceptable, no matter how the situation.

On the economy, Dr Abbey said erratic fiscal and monetary policies and persistent delays in structural reforms had left the economy in some respects, weaker than it was four years ago.

He described as ambitious the revised end-of-year target inflation of 22 per cent, saying it would require an exemplary fiscal performance and sustained macroeconomic stability to achieve it.

Other factors for achieving the target are a steady decline in petroleum prices on international markets for the first quarter average of 31 dollars per barrel to 25 dollars per barrel and an exceptionally good food harvest.
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