GRi Business, Economics & Finance 23 – 06 - 2003

South African supermarket chain closes down

Inter-bank exchange rates of the cedi

Rural banks commended for services in rural areas

Consult Councils and Assemblies for assistance

 

 

South African supermarket chain closes down

 

Ho (Volta Region) 23 June 2003 - The decision of PEPKOR, the South African operators of PEP Stores, to close down all its 16 branches in Ghana would leave Ho with no branch of the well known supermarket. PEP Stores remained in Ho after MELCOM, another super market chain, closed its Ho branch for lack of business.

 

Bernard A. Acheampong, Ho Branch Manager of PEP Stores, told the Ghana News Agency (GNA) on Monday that the June deadline for the PEP Stores shutdown might be extended because a few of the branches, including that of Ho, still hold a considerable amount of stock which needed to be sold.

 

He said the PEP stores fold up in Ghana was as a result of the decline of business fortunes of the mother company. Acheampong conceded that sales output at the Ho branch had been bad lately and attributed it to the massive inflow of smuggled goods into the area to undercut their prices.

 

He said initially, PEP Stores Ho branch had a good turnover but business slumped considerably especially in the outerwear, including shoes and dresses. Acheampong denied speculations that goods sold by PEP Stores were of low quality, saying that all goods have quality ranges.

 

''PEP Stores branches in Achimota, Kaneshie, Madina, Nima, Kokomemle all in Accra, Cape Coast and Tema Community Two are among those already closed down while the branches in Ho, Tamale, Tarkoradi are among a few operating to clear stocks.''

 

Acheampong declined to say what agreement management and workers had reached on payoffs. 

GRi…/

 

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Inter-bank exchange rates of the cedi

 

Accra (Greater Accra) 23 June 2003

 

Currency                      Buying              Selling

U.S. Dollar                   8,591.09          8,755.55

Pound Sterling              14,288.70        14,566.61

Swiss Franc                  6,468.40           6,589.73

Canadian Dollar            6,302.36           6,420.40

Danish Kroner              1,340.19           1,365.55

Japanese Yen               72.79                74.16

South African Rand      1,088.80           1,105.43

Euro                             9,951.73           10,138.94

CFA Franc                   15.17                15.46

Naira                            68.14                69.45

ECOWAS WAUA      12,213.83

 

The rates for countries under BCEAO are as follows:

 

Togo                CFA                15.17               15.46       

Gambia            Dalasi               331.89             338.28 

Mauritania        Ouguiya            38.86               39.60

Nigeria             Naira                68.14               69.45 

Sierra Leone     Leone               3.74                 3.81

ECOWAS       WAUA            12,213.83         

GRi…/

 

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Rural banks commended for services in rural areas

 

Zabrama (Brong Ahafo) 23 June 2003 - Alhaji Amadu Montia, Chief Manager of the Bank of Ghana (BOG) has expressed the Bank's appreciation for efforts made by rural banks to extend their services to remotest parts of the country.

 

He said the trend had contributed immensely to making institutional credit available to micro-scale economic operatives in the rural communities and assisting them to create wealth to improve their living standards.

 

Alhaji Montia was addressing the official commissioning of the Zabrama Agency of the Yapra Rural Bank Limited at the weekend at Zabrama in the Atebubu District of Brong-Ahafo.

 

He explained that the originators of the rural banking idea saw it as a simple and flexible system to meet the peculiar needs of predominantly small depositors and borrowers in the rural areas.

 

That was why the BOG appreciated in significant terms, the efforts being made by rural banks in extending banking services to the remotest corners of the country, the chief manager added.

 

Alhaji Montia said the opening of the Zabrama agency attested to the readiness of the management of the Yapra Rural Bank to rise up to the emerging opportunities and challenges in the banking industry.

 

"The operations in this area would become one of the most profitable ventures of the bank, if appropriate marketing and sound operational practices are adopted to suit the needs of customers in this fast growing commercial community," he said.

 

Alhaji Montia commended the management and board of directors of the Yapra Rural Bank not only for ensuring the establishment of the Zabrama agency but also for proving as the sole financier of the agency from its profits and called on the management of all rural banks to emulate the Yapra bank.

 

He advised the management of the bank to finance capital projects from shareholders' funds and not from depositors' funds.

 

Alhaji Montia also advised management of rural banks to institute strong internal control measures to forestall unsound banking practices like embezzlement, granting of unauthorized credit facilities, suppression of deposits, cross-firing, manipulation of accounts, imbalances of accounts among others.

 

The BOG official appealed to opinion leaders in the Zabrama community to educate their people not only to patronize the rural bank but also to repay their loans promptly so that funds could be recycled for the benefit of others.

 

He charged the authorities of the Yapra main bank at Prang also in the Atebubu District to adopt good credit management practices to protect the interest of the newly carved Zabrama agency.

 

Alhaji Montia said the commitment of the BOG to the steady growth and development of rural banks within a vibrant banking system was crucial, adding that efforts would be made to pursue policies and programmes to strengthen the rural and community banks to perform their developmental role in the economy.

 

In a welcoming address Mr. Ahmed Mohammed Awal, Chairman of Board of Directors of the Yapra Rural Bank said with the commissioning of the Zabrama agency, the bank established in 1984 at Prang, now had four agencies and named Yeji, Abease and Atebubu as the others.

 

He noted that it was not easy for the Management and Board of Directors of the Bank to get BOG's approval for the establishment of the Zabrama agency because of the fear that the communities would not patronize it.

 

The Board chairman advised the people to patronize the agency's services as a way of assuring the BOG and everybody that the agency was worth its establishment and commissioning.

 

"The Yapra Rural Bank views ignorance and hunger as the most dreadful disease in the world today and not leprosy, tuberculosis or even HIV/AIDS," he said, adding that the bank last year instituted a programme to reduce the ignorance level among the people about banking.

 

He said the on-going educational programme on ignorance and hunger in the various communities within the Yapra area was aimed at educating the people to cultivate banking habits to avoid financial mishaps including armed robbery, fire and other negative activities that impede progress.

 

The campaign team, he said visited about 54 communities within the Atebubu District last year, adding that consultations were going on to assess the possible involvement of health personnel for the discussion of AIDS awareness topics.

 

As part of the campaign to reduce hunger within the catchments area, the Board Chairman announced that Yapra injected a total of 202 million cedis as credit to farmers and another 192 million cedis granted to traders in foodstuffs to ensure ready markets for the farmers.

 

The credits excluded the District Assembly's Poverty Alleviation Fund and 310 million cedis credit granted to the farmers by the government, both of which were channelled through the Bank.

 

Awal announced that in the year 2002 Yapra rural bank instituted a 10 million cedis scholarship scheme for the poor but brilliant Junior Secondary School (JSS) students seeking to enter Senior Secondary Schools (SSS) within the district with the searchlight on students scoring between aggregate six to 12

 

The scholarship scheme of the bank will take effect from the 2003/2004 academic years and alongside the policy, the Bank would be donating educational materials to identified performing schools in the area.

 

The rationale behind these policies is to enhance the poor enrolment levels in the SSS in the district, the Board Chairman further explained and appealed to Non-Governmental Organisations (NGOs) and other societies to support the Bank in its scholarship scheme.    

 

Richard Mettle Addo, Head of Training of ARB APEX Bank announced that there were 451 rural banks in the country, including the Zabrama agency.

 

Robert Nantoma Samari, Chief Project Manager of Prang Rural Bank told Ghana News Agency in an interview that it cost the bank 192 million cedis to renovate the office building of the Zabrama agency, which was also expected to cater for Beniem, Kyerembo, Burkina, Krobo, Kyiremako, Kumfoukrom, Basa, Abom-Basare, Yaw Dapare, Bronikrom and many more communities whose main occupation is the cultivation of cereals and tubers.

 

Nana Osabarima Kokroko Nyumakwa II, Omanhene of Abease Traditional Area presided.

GRi…/

 

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Consult Councils and Assemblies for assistance

 

Bolga (Upper East) 23 June 2003 - Mahami Salifu, Upper East Regional Minister, at the weekend advised contractors engaged on government projects to consult Regional Coordinating Councils and the relevant district assemblies each time they encountered problems with communities.

 

Failure to do so, often resulted in the delayed projects at the expense of the contractor and the government, he said. Salifu gave the advise when he inspected on-going works on the final portion of the Bolga-Bawku main road, a World Bank project being carried out by PW Ghanem Construction Company at the cost of three billion cedis.

 

The project, which was started in November 2002, was supposed to be completed in October this year. However, in the view of the Minister the contractor was not likely to beat the deadline given the volume of work yet undone. The site engineer, Douglas Agyepong, explained that progress had been slow due to the shortage of base material.

 

He said the approved category of gravel for the work was located in only one area around Tilli in the Bawku West District but that the people in the community had refused the contractor permission to extract the gravel.

 

Agyepong indicated that with the availability of material the project could still be completed on schedule, adding that, "funds is not the problem" since the contractor had already received part payment for the work.

 

The Regional Minister offered to meet the chiefs and elders of the community to persuade them to allow the contractor access to the gravel pit. He, however, stressed the need for such problems to be brought to the quick notice of either the RCC or the relevant DCE in future to forestall delays.

 

"The Bolga-Bawku Road in particular is of great importance to government not only for its economic benefits but also because of its international status linking Ghana to neighbouring Togo, Burkina Faso, Niger and other ECOWAS member States," he declared.

 

Other projects Salifu inspected included repairs and drain construction on the Bolga-Pwalugu road at a cost of ¢1.8bn and the construction of a retaining wall on the Navrongo-Chuchuliga road at a cost of ¢700m.

 

Salifu also inspected work on the upgrading of the Chuchuliga-Sissili road from Kilometre 18 to 25 by Ghanem Construction Company and from kilometre 25 to 36 of the same road by Alhaji Awudu Ali (AAA) Construction Limited at the cost of ¢2.6bn and 5.8bn respectively.

 

Another World Bank project the Chuchuliga-Sissili road serve as a major link between the Upper East and West Regions and should be completed in December this year.

 

The Regional Minister indicated that the construction of roads was part of the government plan to provide a solid infrastructure base for economic growth particularly in the rural areas.

 

"This plan will be pursued in all parts of the country irrespective of who voted or who did vote for us," he said and asked the contractors to speed up work. Salifu commended the contractors for the quality of work and urged them not to rest on their oars as there was still much left to be done.

 

Francis Hammond, Regional Director of the Ghana Highways Authority and other officials of the GHA accompanied the Minister.

GRi…/

 

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