GRi Business, Economics & Finance 17 – 06 - 2003

Stock market records active trading

No more World Bank conditionality

World Bank to give Ghana $600m to reduce poverty

Salt producers receive ¢1.4bn loan facility

Inter-bank exchange rates of the cedi

PBC urged to look at its re-zoning of cocoa districts

 

 

Stock market records active trading

 

Accra (Greater Accra) 17 June 2003- The GSE All-Share Index, the main market gauge, pushed further up on Monday climbing by 4.1 points at 1,936.46 points although traded volumes declined by about half.

 

A total of 91.300 shares changed hands, down from Friday's 187,400 shares, in business that saw eight price changes. Enterprise Insurance led the way with a 194-cedi gain at ¢5,200 followed by a 100-cedi gain by Home Finance Company at ¢2,500.

 

SSB Bank was five cedis up at ¢7,231, Ghana Commercial Bank rose by ¢3 at ¢5,653 Patterson Zochonis gained two cedis at 2,045 cedis, British American Tobacco inched up by ¢1 at ¢1,912, Standard Chartered Bank gained one cedi at ¢37,501 and fan Milk Limited was up by one cedi at ¢2,304. Market capitalisation was up at ¢8,229.33bn cedis from to ¢8,219.38bn on Friday.

 

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

ABL              456    

AGC             28,600 

ALW             4,000   

BAT              1,912        +1 

CFAO           72 

CPC              630 

EIC                5,200       +194 

FML              2,304       +1

GBL              552     

GCB              5,653       +3

GGL              2,515 

HFC              2,500       +100

MGL             268      

MLC             465 

MOGL          20,002  

PAF              750

PBC              380 

PZ                 2,045       +2  

SCB              37,501     +1     

SPPC            390

SSB               7,231       +5

SWL              285

TBL               5,300     

UNIL             6,852         

CMLT           460

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No more World Bank conditionality

 

Accra (Greater Accra) 17 June 2003 - Mats Karlson, World Bank Country Director, on Monday admitted that unequal relationships and marginalisation existed between the Bank and developing countries, which must be changed.

 

"Yes, it is true that unequal relationship exists," he said.  "Developing countries are living in unequal relationship and it is very difficult for them to make choices and I agree that there are a lot of World Bank issues that need to be looked at," he added.

 

Karlson said this in reaction to a number of issues participants at a day's consultative discussion on World Bank assistance to Ghana's Poverty Reduction Strategy asked him on the bank's conditionalities for developing countries.

 

He said, "The World Bank may be powerful to a degree, but not all-powerful. The time of conditionalities is over and there should be a paradigm shift". Some of the questions included, "Is the World Bank here to teach Ghana how to fish or to provide us with fish?" "Why are you asking us not to give subsidies to our farmers, but you allow others in Europe and America to provide subsidies to their sectors?"

 

The discussion, which cantered on the Country Assistance Strategy (CAS), was organized by Institute of Economic Affairs (IEA) in Accra for civil society organisations such as trade unions, religious organisations, and NGOs.

 

Its primary objective was to enable the Word Bank to solicit the view of civil society organisations regarding the most effective way the bank could support Ghana's Poverty Reduction Strategy (GPRS).

 

Reacting to the issue on subsidy, Karlson said the point was not that the World Bank and its allies were discouraging developing countries. Rather they were reactions to the implications in terms of their effect on the macro economic stability such as inflation and interest rates.

 

He said the problem facing the Third World was the lack of proper systems in place to develop this provision of subsidy. "Even in the developed world, experience has shown that agriculture subsidy has not been a success. Subsidy is not the solution to the problems."

 

In his intervention, Stephen Adei, Director of the Ghana Institute of Management and Public Administration (GIMPA), said the thrust of the discussion must be geared towards what the World Bank could do to help restore the trust that the average Ghanaian was losing in its government vis-à-vis its relationship with the Bank.

 

According to him the World Bank was also losing the trust of the Ghana government, which should have been the focus of the discussion. He said national resource mobilization was key in the poverty reduction strategy if we wanted to develop.

 

"Ghana has the capacity of mobilizing twice what is currently being generated because every Ghanaian knows that he is not paying half of what he is supposed to pay as tax," he said.

 

Kenneth Quartey of Ghana National Association of Poultry Farmers said there was the need for the Bank to review and reverse its policies in order to regain the trust from developing countries. "If you say subsidies are detrimental to our development, then you must speak about it in total; tell the development countries (the same)," he said.

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World Bank to give Ghana $600m to reduce poverty

 

Accra (Greater Accra) 17 June 2003- The World Bank would in the next three years provide Ghana with $600m as part of its assistance to the country's efforts to eradicate or reduce poverty.

 

Mats Karlson, World Bank Country Director, who announced this on Monday, said the assistance was the result of Ghana's current economic performance in the overall macroeconomic stability indicators. He said the figure could be higher depending on Ghana's negotiation ability.

 

"If we do our job well, the World Bank can give higher than this. The Bank is reviewing its partnership with countries. We must do things different now. In partnership both must feel free to express their likes and dislikes, lets all embrace the new change," he said.       

 

The Country Director was speaking at a day's consultation discussion on the Country Assistance Strategy (CAS) organised by the Institute of Economic Affairs (IEA) in Accra for civil society organisations such as trade unions, religious organisations, and non-governmental organisations (NGOs).

 

The meeting's primary objective was to enable the Word Bank to solicit the view of civil society organisations on the most effective way the Bank could support Ghana's Poverty Reduction Strategy (GPRS).

 

Karlson said this new kind of budget support by the Bank, which would flow in batches of not less than $250m a year, would be project based but stressed that the government of Ghana would have the leeway in determining priority areas.

 

He said currently the Bank's support to the country's GPRS was one billion dollars, half of which went to infrastructure development with the remaining going to rural development and natural resources and others.

 

Karlson mentioned partnership, empowerment and implementation as key elements that must be looked at in details in the new wind of change of doing things as partners, adding that the countries and WB needed to help each other in the whole business of development.

 

He agreed that there had been unequal partnership over the years, which had been detrimental to the developing countries but said there was the need to re-look at the past portfolio of WB programmes to postpone those that did not work.

 

"We all have to be part of the change that has started, scaling up, speeding up and making sure that things are done rightly and not just talking about them," Karlson said.

 

He said the link between the GPRS and what is done, must be tightened by making sure that the link between the strategies and the things that were being done were right.

 

He said the Bank was encouraged by Ghana's economic status so far and that indications were that GPRS would achieve the desired growth adding that more resources would flow in, if Ghana did things right.

 

The plumbing should be done well so that there would be no leakages, the World Bank Country Director said.  Giving an overview of the GPRS, Michael Ayesu of the Ministry of Finance and Economic Planning said the maintenance of macro economic stability, especially inflation and interest rates, sustainable employment, modernisation of agriculture and law enforcement were some of the major challenges facing the success of the programme.

 

He said currently the National Development Planning Commission was working on the measurement and evaluation on the GPRS, which would soon be made known to the public.

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Salt producers receive ¢1.4bn loan facility

 

Elmina (Central Region) 17 June 2003- Some ¢1.4bn out of the ¢3.2bn loan facility the government gave the Elmina Small Scale Salt Producers Association (ESPA) as part of  "Government Special Assisted Projects" has been disbursed to 14 members of the association.

 

Foster Forson, chairman of the four-member procurement committee set up by the Mineral's Commission to oversee to the disbursement of the loan, told the Ghana News Agency (GNA) in an interview on Monday, that it would be an indictment on the region and the association in particular if the programme failed.

 

''This is the first time the association has received an assistance of this nature and therefore it is a test case for the region.'' "To avoid a repetition of previous experiences in the case of the Poverty Alleviation Fund (PAF) when loans were diverted for other purposes other than what they were intended for, stringent measures have been put in place to ensure that the monies are used for the purpose for which they were disbursed", he said.

 

Forson said the measures would also ensure full recovery of the loan which is payable within a maximum of four years at an interest rate of 20 per cent per annum. He said for that purpose his committee had bought large quantity of materials such as stone, sand, cement and water pump machines needed for the excavation and rehabilitation works of the "crystallisation pan" for members.

     

Forson urged the 32 members who are yet to benefit from the loan to excise restraint and wait for the rains to subside to avoid a situation where the downpour would disrupt their work. He said each member received between five and ¢120m worth of materials and cash for excavation, construction and expansion works.

 

Forson said he was not happy that most members had wanted the loans to be credited to their accounts for them to purchase the materials themselves, a practice that was not in accordance with the guidelines and agreement of the loan.

     

He explained that the items being distributed by the committee were bought on discount from the factories to save cost and that the remaining members would be given their consignments soon.

 

Forson, who is also the executive secretary of the Central Region Development Commission, said after supplying members with the materials the committee took care of excavation and labour.     

 

Chairman of ESPA, Nii Okai Tagoe, said the aggrieved members must be assured that "nobody can touch that money." ''We have put in place enough checks and as the assistance is the first of its kind the association will ensure that no one sabotages the project,'' he said.

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Inter-bank exchange rates of the cedi

 

Accra (Greater Accra) 17 June 2003

 

Currency                      Buying              Selling

U.S. Dollar                   8,590.00          8,754.00

Pound Sterling            14,426.91        14,705.84

Swiss Franc                  6,637.64          6,760.38

Canadian Dollar            6,455.57          6,573.33

Danish Kroner              1,380.05          1,405.56

Japanese Yen               73.14               74.49

South African Rand      1,105.23          1,122.95

Euro                             10,246.38        10,437.08

CFA Franc                   15.62               15.91

Naira                            68.14               69.45

ECOWAS WAUA      12,211.97

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PBC urged to look at its re-zoning of cocoa districts

 

Nyinahin (Ashanti Region) 17 June 2003 - Cocoa farmers in the Nyinahin cocoa district of Ashanti have called on the Produce Buying Company (PBC) to take a second look at its re-zoning of the cocoa districts that had put certain societies in the area in other administrative districts.

 

A statement signed by Opanin Yaw Bronya, the district chief farmer at Nyinahin in Ashanti said some farming communities in the Nyinahin cocoa district which administratively, fall under the Atwima District, have their stocks sold to Bibiani in the Western region.

 

The statement mentioned communities, which suffered some setbacks in the last mass cocoa spraying exercise due to improper zoning by the PBC as Kuffour Camp, Kusikrom, Antwi-Adjeikrom, Kasotie, Awisesu, Bayerebon and Donkoto, among others.

 

"While we appreciate the efforts by the government for increase in the producer price of cocoa and its attendant mass spraying exercise, immediate action should be taken by the PBC to correct the zoning of cocoa districts in the country", the statement said.

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