Eighth Ghana International Fair launched
Demand for tuna increases in Europe
Accra chosen for Africa's largest Internet Centre
ADB to assist private entrepreneurs in Ashanti --Kabajj
Accra (Greater Accra) 22 March
2001
Finance Minister Yaw Osafo-Maafo
said on Thursday that government may review downwards the proposed 15 per cent
special levy on banks for economic reconstruction.
The levy, which was proposed in
the government's maiden budget statement, has been criticised by the banks as
being on the high side.
Speaking in a telephone interview
with the Ghana News Agency, the Minister refuted allegations that the levy is
based on the assumption that the banks are making huge profits from investing
in treasury bills.
Mr Osafo-Maafo said: "I have
spoken to some bankers who think that the levy has the potential to cripple
their activities".
"Based on this and other
concerns, (the) government may review the figure and spread it over 12 months
for ease in payment."
The Minister said he is yet to
receive a proposal from the Ghana Association of Bankers to consider the levy.
The levy is to be charged on the
gross profits of the banks and forms part of measures outlined in the budget to
put the nation's economy on track.
The measures are expected to
reduce the debt level and borrowing, control expenditure, and reconstruct the
economy.
Government's domestic debt now
stands at nine trillion cedis out of which it owes the banks two trillion cedis
in interest. The domestic debt is mostly in treasury bills. The total national
debt is pegged at 43 trillion cedis.
Earlier, Mr Dan Mensah, Executive
Secretary of the Ghana Association of Bankers, said the association supports
any move by the government to ensure fiscal discipline.
However, government must ensure
that such moves do not have negative effect on activities of the banks.
He said the quantum of the 15 per
cent levy is on the high side and noted that the assumption that banks make
huge profits from treasury bills is wrong.
Mr Mensah said the banks rather
invest in treasury bills as part of efforts to fulfil statutory requirements to
meet stipulated reserves.
Members of the association are yet
to meet the Minister to discuss the issue following the submission of a
petition.
Mr Mensah noted that the bulk of
domestic debt is owed the public and rejected claims that the banks are not
lending but rather making profits from treasury bills.
He also explained that members
already pay 35 per cent tax to government. The 15 per cent levy, even though may
not be charged annually, would put total tax at 50 per cent.
"This is going to have a very
big effect on our activities and lead to a huge outflow of funds from the
banks," he said.
Mr Mensah added that there are
already a lot of strains on the banks, including depreciation of capital, due
to the rising dollar to cedi ratio.
He said stakes from bonds, which
come in the form of incomes, are also taxed while dividends on shares are not
taxed.
"If we are further
constrained, we will not be in the position to grant advances or lend to move
the private sector forward. This may also prevent investors from investing in
the country."
He called on the government to
consider the effect of the levy and also define the incidence of the levy since
the gross profit of industry is different from that of the banks.
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Accra (Greater Accra) 22 March
2001
Fifty per cent of water produced
by the Ghana Water Company Limited (GWCL) is not accounted for. This means that
the company gets only half of the targeted revenue to meet its cost of
production.
This came to light during a
discussion at a workshop in Accra for stakeholders in the water industry to set
water rates.
The objective of the workshop is
to discuss and collate comments made by participants and give them the
opportunity to articulate their views through graphic demonstrations that would
finalise views and comments.
Participants attributed the loss
of revenue to the GWCL is to waste in the water distribution system and lack of
mechanisms by the company to ensure that its bills are paid.
As a measure to ensure that every
consumer pays his bill, John Amedior, Finance Manager, Beverage Investments
Ghana Limited, suggested that all consumers be given pre-paid meters.
Mr Amedior questioned why
consumers should reach a certain consumption limit before they are given
pre-paid meters as it exists with the Electricity Company of Ghana.
He said when pre-paid meters are
provided to every consumer, it would reduce the level of non-payment of water
bills which has led to the loss of revenue.
Mr Amedior asked the Public
Utilities Regulatory Commission (PURC) to come out with clear policies on
whether a company should lend money to the GWCL before being accepted as a
lessee in the private participation in the water industry and the level of
contribution to the infrastructure of the GWCL.
It should also define the
relationship between a lessee company and the GWCL. Mr Amedior said the PURC
should also regulate and limit the level of expatriate staff and use much local
expertise to reduce the high cost of dollar-generated remuneration for
expatriate staff.
He requested the PURC to publicise
its stand on such issues for lessee companies to make informed decisions.
In an intervention, Mr. Kwame Osei
Poku, Commissioner, PURC, said providing pre-paid meters to all consumers is
very expensive and will add up to consumers' bills.
He said the GWCL should work hard
to reduce the rate of unaccounted water to 25 per cent. He said government is
not going to privatise the GWCL but is only inviting private participation. Mr
Poku said the GWCL is mandated to revise its rates at least once every five years.
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Accra (Greater Accra) 22 March 2001
Currency Buying Selling
US Dollar 6,997.82 7,201.45
Pound Sterling 9,994.99 10,288.71
French Franc 955.82 982.67
Swiss Franc 4,091.11 4,206.00
Deutsche Mark 3,204.14 3,297.24
Canadian Dollar 4,443.60 4,569.51
Japanese Yen 56.57 58.19
Dutch Guilder 2,845.06 2,925.09
S/African Rand 869.89 893.72
Euro 6,269.59 6,445.75
CFA Franc 9.56 9.83
Naira 63.71 65.56
Ecowas/WAUA 9,052.99 ========
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Accra (Greater Accra) 22 March 2001
Dr Kofi Apraku, Minister of Trade and Industry, on Thursday launched the Eighth Ghana International Trade Fair in Accra, saying it is an opportunity to demonstrate Ghana's viable investment climate to her development partners.
"It will offer a unique opportunity for Ghanaian economic operators to interact with their counterparts from the sub-region and the rest of the world to consolidate the gains they made during the last millennium fair," he said.
Dr Apraku said Ghana has immense potentials and must make sure that it is able to move various sectors of the economy to greater heights through the development of the small, medium to large-scale sectors.
The launch was to initiate preparations towards the fair held every two years.
Dr Apraku said it is government's policy to ensure a close relationship and partnership with the private sector.
"Government recognises and believes that the driving force behind sustainable growth is a dynamic, innovative and vibrant private sector, capable of competing in the fast changing technological global market," he said.
The Minister said the government is initiating measures, which would assist the private sector to overcome the chronic shortage of affordable capital and motivate investors to restructure their capital investment in order to add value.
He asked the organisers, Ghana Trade Fair Company, to ensure that the fair brings Ghana into the International Union of Trade Fair Organisations.
Mr Kwame Ofori-Amanfo, Acting Chief Executive of GTFC, said the fair would be held under world class standards.
He appealed to embassies to promote the fair in their countries to make it a success.
Mr Ofori-Amanfo said there would be seminars to sensitise prospective exhibitors for a successful fair.
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Tema (Greater Accra) 22 March 2001
The price of tuna has shot up from
300 dollars to 800 dollars per tonne as result of increase in demand following
the outbreak of the mad cow and the foot and mouth diseases among livestock in
Europe.
"The new price has brought a
new relief to the industry but unfortunately we are not enjoying the full
benefits of it in Ghana currently", Mr Joseph Kudjordji, President of the
Ghana Tuna Association told the Ghana News Agency in an interview.
He said the Association is not
happy with the low price the Pioneer Food Cannery (PFC), the main local buyer
affiliated to the giant multinational companies, Heinz and Star-Kist pay to
them.
PFC pays between 50 to 120 dollars
less than the current world market price of 850 dollars per tonne to local tuna
suppliers, who catch between 80,000 and 90,000 tonnes annually.
"We have been subservient in
the buyers market and we are not allowed to negotiate", he said.
PFC, which he described as the
Bill Gates of the tuna industry, currently uses the average price of Bangkok
and Abidjan, deducting 150 dollars and 45 dollars per tonne respectively as
freight to reach the price for local suppliers.
Out of the 11 member Ghana Tuna
Association, four of them - TTV Limited, Infitco Ghana Limited, Signotrade
Limited and Greenwich Tuna Fishing sell their tuna locally to PFC, which
processes about 250 tonnes of tuna per day.
The rest of the producers either
export or sell on the local market mostly in raw form.
In the last two years, the tuna
industry has been struggling with low prices, which has never been seen in 25
to 30 years, he said.
In December last year, the Tuna
Purse Seiner Boat owners met in Manila, Philippines to try to create artificial
shortages to get good prices for their fish and were able to achieve new prices
ranging between 350 and 400 dollars per tonne within a month.
Some of the local tuna suppliers
have suggested the setting up of a co-operative tuna-processing factory so that
they can add value and sell at higher prices instead of its raw state.
Mr Kudjordji said the Association
has accepted this in principle and is working out modalities for its
implementation.
Tuna producers have realised that
captains and officers of tuna vessels are mostly foreigners and have suggested
the creation of a Tuna Faculty at the Regional Maritime Academy (RMA) to
train staff locally.
Mr Kudjordji said the Ministry of
Transport and Communications has accepted the suggestion and has referred it to
the Ministry of Finance to seek
funding for it.
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Accra (Greater Accra) 22 March
2001
Busyinternet Ghana Limited, a
partnership between Ghanaian investors and a US-based technology company on
Wednesday announced that Accra has been chosen as the first site in the set up
of a series of internet centres across Africa.
These centres will provide
individuals and businesses with the expertise and resources needed to promote
and expand their traditional businesses into electronic commerce and other
internet-related activities.
A statement by Yankah and
Associates in Accra and signed by Mr. Kojo Yankah, the Chief Executive Officer,
said the project is due to open in August this year.
It said plans are far advanced to
launch two new centres each year to rapidly spread the project across Africa
and create a network of excellence where participants and businesses can share
best practices and help each other exploit new opportunities.
The statement said Ghana was
chosen as the first site for the project because the country has a bright
future in the global village that seems to be emerging.
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Kumasi (Ashanti Region) 22 March 2001
African Development Bank (ADB) is to assist private entrepreneurs in the Ashanti region to improve and expand on their operations.
A special fact-finding mission is expected from the bank soon to undertake feasibility studies on their problems and the assistance required.
Mr Omar Kabajj, President of the Bank, announced this when he led a three-man delegation to pay a courtesy call on Otumfuo Osei Tutu II, Asantehene at Manhyia Palace in Kumasi on Tuesday.
He said the bank has assisted in financing many projects in the region and a cordial relationship has developed as a result.
Minister and Leader of Government Business, Mr John Henry Mensah said the government was determined to utilise the country's human and material resources for the efficient and effective development of the country.
"The country now has the right leadership to pull it out of the past mismanagement and put it on a sound footing".
Mr Yaw Osafo-Maafo, Minister of Finance, who led the delegation, explained that Mr Kabajj was in the country to hold talks with the government and inspect some projects being financed by the bank.
He said the bank's assistance in the education sector has been to the tertiary level but now efforts are being made to assist at the primary level, which form the basis of the country's education.
Otumfuo Osei Tutu appealed to the bank to take the initiative and the lead to assist African countries in line with the aims and objectives that led to its establishment in 1963.
He said it would be ideal for the bank to offer more assistance to the private sector, which holds the key to accelerate the country's development, by offering more jobs to the youth.
Earlier, Mr Kabajj and his entourage inspected two hostel facilities for non-resident students and an abandoned building to house the Department of Physiology of School of Medical Sciences of the Kwame Nkrumah University of Science and Technology (KNUST) being financed by the bank.
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