PEF
advocates alternative Pension Scheme, slams budget
Merchant
Bank sources $15.7m for Shippers
Council project
PEF
advocates alternative Pension Scheme, slams budget
Elmina (Central Region), 3 March 2000
The Private
Enterprise Foundation says it welcomes a Bill to allow the operation of pension
schemes other than the one being run by the Social Security and National
Insurance Trust (SSNIT) as a means of raising long-term capital for the private
sector.
This will be an opportunity for private
businesses to assist in raising funds for the development of the country and
the private sector in particular.
These were contained in PEF's comments on
the Budget Statement and the government's economic policy for this year at a
forum with select groups of parliament and the private sector at Elmina on
Wednesday.
The Foundation said it hopes that the
bill would also provide tax breaks for both contributors and pension fund
companies in order that substantial amounts of funds could be raised through
it.
PEF advocated a more independent SSNIT,
which will not have any government interference and boost its ability to take
most prudent investment decisions.
It described the Education Fund as
laudable but said since the private sector is not in favour of an increase in
the rate of VAT, other sources of funds should be exploited.
"It is our hope that the fund would
be well managed to support needy students."
PEF said the government should ensure
that its machinery exists and works to implement policies geared towards the
private sector as outlined in the 2000 Budget.
It noted that this year's budget again
contains numerous policy measures and initiatives for the private sector.
However, very little has been achieved
from such measures and initiatives in previous budgets "because we do not
have an effective government machinery to implement them effectively."
PEF said it is the private sector's view
that Ghana is unable to achieve its goals because of poor implementation of
policy measures and suggested that the government critically examine its
implementation machinery to make it more effective.
Reviewing the economic performance in the
past year, PEF said Ghana's long-term goal, as spelt out in Vision 2020, is to
transform the economy from a low-income to a middle-income country by 2020.
It is projected that the economy will
have to grow by at least eight per cent per annum while population growth will
have to be reduced from three to two per cent per annum in order to allow for
real income per head to rise.
"It is, therefore, disturbing to
note that the real GDP growth was only 4.4 per cent, which is far below the
growth target set in the Vision 2020 document."
The Foundation said to achieve the
objectives of Vision 2020, a growth rate in excess of five per cent should be
planned and achieved.
"Indeed, the real GDP growth in 1999
is not any different from the results of previous years when the average GDP
growth rate was four to five per cent."
It described the "poor
performance" last year with regard to the Vision 2020 growth target, as an
indication that the country's policies and initiatives are not yielding the
expected results hence the need for a re-examination of strategies.
PEF called the performance of the
agriculture, industry and services sectors over the years as
"sluggish".
It noted that one of the key ingredients
for a strong growth of the private sector is macroeconomic stability, which is
characterised by low inflation, low interest rates and a stable exchange rate.
"Unfortunately, the Ghanaian economy
has not sustained such stability. The economy has experienced high inflation
leading to high interest rates and fast depreciation of the cedi.
"We are of the view that further
success in lower inflation can be achieved if more stringent fiscal and
monetary measures are put in place and agriculture can have a boost."
On total outstanding credit granted to
public institutions and the private sector, PEF said considering that a portion
of this outstanding credit is by proxy borrowing by the government, the private
sector's real share of this credit is much lower than what is being portrayed
by the budget statement.
"In our view, it will be very
helpful to present a disaggregated record to indicate how much went to public
institutions and the private sector, as well as how much the government owes
the private contractors and suppliers who may have taken loans to undertake
government projects etc."
The Foundation said it believes such
details would provide a much clearer picture of the credit situation and how
the private sector is coping with the arrears.
GRi
Accra
(Greater Accra), 3 March 2000
Merchant Bank Ghana Limited (MBGL) is raising
15.7 million dollars (about 60 billion cedis) from local and international
sources for the construction of an office complex for the Ghana Shippers
Council (GSC).
Mr Felix Anyinsah, Head of Merban
Stockbrokers Limited (MSL), made this known at a seminar to mark the bank’s day
at the on-going Seventh Ghana International Trade Fair, dubbed "The
Millennium Fair", to introduce various products of the bank to the public.
Mr. Anyinsah said following the
presentation of a proposal on the viability of the Shippers Council's projects
to several potential financiers, "we had to short-list and select a few
because most of them responded positively".
He noted that currently negotiations with
the selected financiers pertaining to who handles which phase of the project is
at an advanced stage, adding that the project is poised to take off soon.
"When completed, the office complex, which is already
designed, would put the GSC in a position to serve not only Ghana but also the
Sub-region and Africa as a whole."
Mr Anyinsah said as part of the bank's
commitment to the development of the country, it also sourced seven million
dollars for the construction of the multi-storey City Car Park in Accra.
Currently the bank's national network
allows customers to do business with any of its branches nation-wide and plans
are afoot to link customers' personal computers to the bank's network.
Mr Anyinsah noted that the bank played a
major role in the establishment of the Ghana Stock Exchange (GSE) aimed at
reducing cash flow in the informal sector by encouraging local corporate bodies
to raise capital from the stock market.
He, however, deplored the 70 per cent
foreign dominance of the stock market as against 30 per cent from local
sources, adding that strategies are being put in place to raise the local
representation on the stock market.
GRi
Accra (Greater Accra), 3 March 2000
The
Ministry of Mines and Energy on Thursday signed a 29.5 million-dollar loan
agreement with the China International Water and Electric Corporation (CWE) to
extend hydro-electric power to settler communities affected by the creation of
the Akosombo and Kpong dams.
Dr. John Abu, Minister of Mines and
Energy, who signed on behalf of government in Accra, said the beneficiary
settler towns created by the Volta River Authority for over 100,000 people are
located in the Brong Ahafo, Eastern, Northern and Volta Regions.
The Minister said the money is a concessionary
credit provided by the Chinese government through the China Exim Bank and
represents 90 per cent of the total cost of the programme.
The remaining 10 per cent will be borne
by the Ghana government.
The cost of the electrification programme
is 32.8 million dollars.
The loan has a repayment period of 10
years with a two per cent interest rate and a grace period of three years for
the principal and interest.
So far, 171 townships within the Volta
Lake resettlement area have been identified for immediate attention under the
programme, which will be carried out in two phases.
The first phase, covering 30 months, will
commence this year and will involve the electrification of 106 towns located in
13 districts, including West Gonja, East Gonja, Sene, Atebubu, Kpando, Kete
Krachi, Kwahu North, Akuapim North and the Fanteakwa.
Dr. Abu explained that it has been the
government's intention to provide electricity to the towns since the creation
of the dams.
"Unfortunately, it was not
technically feasible to do this much earlier in view of the non-proximity of
the communities to the sub-stations and the transmission lines."
He said due to the government's
commitment to extend electricity to district capitals and other communities in
the rural areas, an electricity network has been expanded to the level that
makes it possible to connect resettlement towns to the national grid.
"We of this Ministry and its
agencies are happy that we are now in a good position to respond to the
heartfelt needs of many of the resettled communities."
Mr Zhao Zhucong, Executive Director,
Vice-President and Senior Engineer of CWE, who signed for his company, said it
shows a good beginning for mutual co-operation between the government, various
sectors involved in the drawing of the project and the CWE.
Mr Zhucong said the Corporation, which is
listed as one of the top 225 international contractors, has stuck to the
quality principle of being contract abiding and providing best quality, satisfactory
work and first class service.
GRi
Trade
delegation from Singapore visits Trade Fair
A 17-member
Trade Development Board (TDB) Mission from Singapore, on Thursday visited the
on going seventh International Trade Fair.
The
Mission, which is a national trade promotion agency set up to develop the
country's international trade is on a tour of three West African countries
including Cote D'Ivoire and Nigeria.
Mr Rossman
Lthnain, Deputy Director, International Operations and leader of the mission,
said the delegation has a diverse membership including trade, manufacturing and
financial services.
Singapore's
volume of trade is about 230 billion dollars but its trade with Ghana is very
low.
He said the
Ministry of Trade and Industry will organise briefing sections for the
delegation, which will be in Ghana for two days. It will also meet officials
from the public and private sectors to discuss trade relations.
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