GRi Business, Economics & Finance 14 – 03 - 2003

ISODEC holds discussion on budget

President’s Initiative on Cotton production to be launched soon

Private Enterprise Foundation reviews 2003 budget

2003 ADB Annual Meetings for Addis Ababa

Ministry of Trade and UNIDO agree to complete projects

UNIDO Director-General holds talks with Trade Minister

Government to sanction companies

Cedi regains value

Inter-bank exchange rates

Country loses 54 million dollars through illegal forest activities

 

 

ISODEC holds discussion on budget

 

Accra (Greater Accra) 14 March 2003- Panellists at a discussion programme on the 2003 Budget on Thursday noted the importance of low inflation to the success of government's economic goals, but warned that care should be taken not to strangulate the economy.

 

They expressed the view that the pursuit of a tighter fiscal and monetary regime could harm economic performance through the shutting down of the productive sectors of the economy.

 

The panellists said while a tighter fiscal policy could reduce government borrowing and make more money available to the private sector for production, lack of money in individual pockets would squeeze demand for goods on the market and in the process stifle growth.

 

The panellists were Professor Ernest Aryeetey of the Institute of Statistical, Social and Economic Research (ISSER), Seidu Adamu, Member of Parliament for Bibiani and Amos Sarfo, Secretary of the Institute of Financial and Economic Journalists.

 

The rest were Vitus Azeem, Programme Co-ordinator ISODEC and Charles Appeagyei, President of the Ghana Federation of the Disabled. The Integrated Social Development Centre (ISODEC) organised the forum to scrutinise the economic policies underpinning the 2003 budget and to suggest more viable options for consideration in future budget preparations.

 

Professor Aryeetey said a low inflation rate was important to inspire confidence in the economy. However, he said, there was the need for government to adopt an approach that would find a comfortable level of inflation that could support the growth of the economy.

 

This was important to ensure that the desire to keep inflation low did not compromise the growth of the economy, he said, adding that there was the need to strike a delicate balance. Touching on increased tariffs on imported rice and poultry products, Professor Aryeetey said if the objective was to make local industries competitive, it should be backed by focused government assistance to boost production since imposition of tariffs alone would not make the cost of local products cheaper.

 

Adamu said bringing down the rate of inflation was very good but to suppress demand in order to achieve it was not in the best interest of the economy. "There is need for caution as to how far we can go and care needs to be taken at the level to tighten the economy to prevent strangulation," he said.

 

Sarfo said the imposition of the tariff was good, as it would protect domestic producers from the unbridled importation of such products onto the Ghanaian market. Azeem said there was the need for government to make tax administration effective but warned that emphasis on consumption tax would make the majority of Ghanaians poor. Appeagyei called on government to consider making specific budgetary allocation for people with disability.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

President’s Initiative on Cotton production to be launched soon

 

Accra (Greater Accra) 14 March 2003- President John Agyekum Kufuor would soon launch the President's Special Initiative (PSI) on Cotton Production. President Kufuor, who announced this in Accra on Thursday, said it would boost the PSI on Garments and Textiles with cotton produced in the country while offering more employment to people in cotton producing areas.

 

Other PSIs are on Cassava Industrial Starch and Oil Palm, which would be launched next month. He announced this when the visiting Director-General of the United Nations Industrial Development Organisation (UNIDO), Mr Carlos Magarinos paid a courtesy call on him at the Castle, Osu.

 

Magarinos, who is on a two-day visit to Ghana, would hold discussions with officials of the trade sector on UNIDO's programmes and inspect some UNIDO-sponsored projects.

 

President Kufuor said government was prepared to undertake joint partnership ventures with institutions to develop the PSIs initiated to move the private sector forward and help diversify the economy.

 

He commended Magarinos for the visit saying the organisation had the capacity to assist the private sector in its development efforts. Magarinos expressed his appreciation at Ghana's efforts at sustaining the democratic system as well as her economic drive, especially the poverty reduction programme.

 

He said last year UNIDO provided $4 million for its activities in the country with grants from Japan, Denmark and the United Kingdom and expressed the hope that the assistance would be increased this year.

 

The Director-General said UNIDO had confidence and trust in ministries and institutions that had the capacity to utilise their resources efficiently and effectively for the development of the people. Magarinos invited President Kufuor to attend the General Conference of UNIDO at its headquarters in Vienna in December.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Private Enterprise Foundation reviews 2003 budget

 

Accra (Greater Accra) 14 March 2003- Dr Augustine Fritz Gockel, Senior Lecturer at the Department of Economics, University of Ghana, on Wednesday questioned the continued recording of actual projected figures of GDP each year and called on the Government Statistician to explain the cause of the phenomenon.

 

He said: "When we look at the GDP performance in 2001, the nominal GDP projection of 38,014 billion cedis was exactly achieved to give a real GDP growth rate of 4.2 per cent using a percentage GDP deflator of 34.7 per cent.

 

"In 2002, although the projected nominal GDP of 46,875 billion cedis was exceeded when provisional estimates put the budgetary out-turn at 47,764 billion cedis, the projected real GDP growth rate of 4.4 per cent was what turned out to be actual."

 

Deflator is statistical factor or device designed to adjust the difference between values unaffected by inflation, called real or constant values, and the value as affected by inflation, called nominal or dollar values.

 

Dr Gockel, who was speaking at a seminar to review the 2003 budget statement organised by Private Enterprise Foundation (PEF) said: "I think we must this time call on the government statistician to educate us on several of these fine tunings."

 

The seminar, sponsored by the United Nations Development Programme (UNDP) formed part of an annual review of the national budget to enable the PEF identify areas of concern with the aim of making recommendations to the government to help move the private sector forward.

 

Dr Gockel explained that it was rarely possible to continue to achieve the exact figures of macro economic targets over a number of years. He said for 2003, government had set general targets to strengthen the tax base, reduce the burden of domestic debt and improve public expenditure management.

 

The targets also set out to allocate resources efficiently, according to the designated priorities in the Ghana Poverty Reduction Strategy (GPRS) now the Growth and Poverty Reduction Strategy.

 

Specific indicators for the year, among other indices, are GDP growth rate of at least 4.7 per cent; reduction of inflation from 15.2 to nine per cent; budget deficit equivalent to 3.6 per cent of GDP and domestic primary budget surplus of three per cent of GDP.

 

On the implications of the indicators of the targets and whether they were achievable, Dr Gockel said there was the need for government to exercise caution on several grounds in implementing policies geared to achieve, primarily the GDP target.

 

He explained that besides the very mediocre performance of 3.7 per cent in 2000, the GDP growth rates experienced in 2001 and 2002 were not substantially different from historical antecedents since 1996.

 

"Secondly, the statistical basis, as researchers on Ghana's economy have persistently noted are not exactly convincing," Dr Gockel said. He also warned that the "well deserved ambition of raising per capita income to at least 1,000 dollars in the foreseeable future would require growth rates that are at least twice what they are now".

 

Dr Gockel said the targets of the 2003 budget required that the government worked to overcome the macro economic setbacks which included the hybrid set of problems in the manufacturing sector and to ensure that the exchange rates for the cedi would not be overvalued.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

2003 ADB Annual Meetings for Addis Ababa

 

Accra (Greater Accra) 14 March 2003- The Ethiopian government has agreed to host this year's Annual Meeting of the African Development Bank. The meeting originally scheduled to take place at Abidjan; the headquarters of the bank would now take place in Addis Ababa from 3 to 5 June 2003.

 

A statement issued by the Board of Directors of the Bank in Tunis on Thursday said the Bank's governors representing 53 regional and 24 non-regional member-countries of the Bank, would evaluate and approve the operations of the bank in the previous year and its work programme for the following year.

 

The Annual Meeting, which is a privileged meeting point for the African and global business and finance communities, for the first time would be held jointly with the ministerial meeting of the United Nations Economic Commission for Africa (UNECA). The agenda of the meetings would also include a symposium to focus on key aspects of African economies and development.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Ministry of Trade and UNIDO agree to complete projects

 

Accra (Greater Accra) 14 March 2003- Government and the United Nations Industrial

Development Organisation (UNIDO) on Thursday agreed to finalise, adopt and implement Ghana's Integrated Industrial Policy which falls under key on-going projects and programmes.

 

A communiqué signed by Dr Kofi Konadu Apraku, Minister of Trade and Industry, and Carlos Magarinos, Director-General of UNIDO in Accra, said the two bodies also agreed to review the second edition of Ghana's industrial and trade performance.

 

The communiqué was signed at the end of a two-day visit of Magarinos, who was in the country as a follow up mission to assess the implementation of UNIDO-funded projects and programmes under the Government of Ghana (GOG) and UNIDO Integrated Programmes (IP).

 

UNIDO's interests in Ghana are to help improve the industrial sector and promote cleaner production practices. In furtherance of this, the communiqué said the two parties also agreed to collaborate to improve the quality of food production, support private sector associations and rural enterprise development projects and build the capacity of the Ghana Investment Promotion Centre and the Free Zones Board.

 

The communiqué said Ghana and the UNIDO further agreed to explore new opportunities for collaboration to expand textile/garment training centre with particular reference to a textile-training unit to support the President's Special Initiative.

 

The collaboration would also involve Agricultural Machinery Industrial System Project and the establishment of a cleaner production centre with particular focus on technology transfer to reduce the level of industrial pollution.

 

The communiqué said the implementation of the agreements would be guided by the principles of ownership of programmes and projects by key stakeholders in the private sector and government.

 

Other principles would be to generate employment through investment promotion and partnership particularly for the development of small and medium industries. "The government is by this enjoined to exhibit commitment to invest resources in the programmes developed and to mobilise additional resources from donors," the communiqué said.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

UNIDO Director-General holds talks with Trade Minister

 

Accra (Greater Accra) 14 March 2003- Carlos Magarinos, Director-General of the United Nations Industrial Development Organisation (UNIDO), said on Thursday that the organisation was impressed with the way Ghana's economy had been managed so far and expressed the hope that the achievements made especially in the industrial sector would be sustained to make the nation a model for replication.

 

At a meeting with Dr Kofi Konadu Apraku, Minister of Trade and Industry in Accra,  Magarinos, however, said it was necessary for the government to evaluate the performance of the industrial sector to ensure that programmes were in line with development goals.

 

Magarinos said UNIDO had so far funded the first phase of its projects in Ghana relating to the development of the industrial sector, improving on standards and promoting cleaner production practices to the tune of about $5 million.

 

The second phase of similar projects, which would begin, soon would also attract the same amount. The Director General is in the country to hold talks with development partners in the industrial sector and assess progress of projects with the National Board for Small-Scale Industries, Ghana Investment Promotion Centre, the Association of Ghana Industries and the Ghana Standards Board.

 

Other local partners include the Institute of Economic Affairs, which reviews trade and industrial policies and performance and the Environmental Protection Agency, which undertakes education on the adoption of cleaner production practices proven to be more cost effective.

 

Magarinos said he and Dr Apraku would review areas of interest in order to know in what way UNIDO could assist Ghana to alleviate poverty. Some areas of concern to the Director-General include technology transfer, facilitating trade in the Sub-Region and cleaner production practices, which, he said, were necessary to reduce pollution in Ghana.

 

The Director-General said UNIDO was committed to helping developing countries to attract investment. He said the organisation would facilitate an investment forum for developing countries in October and urged Ghana's delegation to prioritise about two sectors that would attract investment as part of their agenda.

 

Representatives of projects being implemented briefed the Director-General on their activities, which were mostly sensitisation programmes and called for increased support to sustain them. Dr Apraku said the government appreciated the assistance given by UNIDO and added that they would together work to develop Ghana's industrial sector.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Government to sanction companies

 

Kumasi (Ashanti Region) 14 March 203- The government has warned that it would not hesitate to sanction distribution companies that arbitrarily increased the prices of their goods.

 

Yaw Osafo-Maafo, Minister of Finance, who gave the warning, said although the government would not re-introduce price controls into the system, the Ministry of Trade and Industry would not sit down unconcerned for some unscrupulous businessmen to cheat the people and create bad image for the government.

 

Osafo-Maafo was reacting to a question posed by a participant at a public forum to discuss the 2003 budget in Kumasi on Wednesday on the need for the government to introduce measures to curb the arbitrary increases of prices of goods and services by retailers and distributors, following the recent increase in petroleum prices.

 

He said the government might be forced to revoke the licences of companies that were taking undue advantage of the situation to cheat Ghanaians and tarnish the image of the government.

 

Osafo-Maafo also announced that the government would soon review rent laws in the country as part of measures to introduce sanity into the housing industry. He said the current situation where landlords demanded between one and four years' rent advance before providing accommodation was unacceptable and should not be allowed to continue.

 

He said landlords had over the years, abused the laws governing rent in the country and were demanding unreasonably high rent advances to the detriment of tenants. The Finance Minister said government would pursue vigorous laws that would prevent landlords from cheating and collecting rent advances covering more than six months.

 

He said as part of measures to solve the accommodation problems facing Ghanaians, government had directed the Social Security and National Insurance Trust (SSNIT) to construct additional housing units in regional and district capitals and rent them out to workers.

 

The Ministry of Works and Housing was also pursuing housing policies that would ease accommodation problems in the country. Osafo-Maafo described the 2003 Budget as development and revenue mobilisation oriented and called on Ghanaians to assist the government to identify all loopholes to ensure increased revenue for development.

 

He observed that managing the national economy called for basic skills and common sense and gave the assurance that if war was averted in Iraq and the world economy went well, the budget would offer a better future for Ghanaians.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Cedi regains value

 

Accra (Greater Accra) 14 March 2003- The cedi clawed back its value against eight major currencies at the Inter-Bank Exchange Rates on Thursday. The Ghanaian currency gained against the Pound Sterling, Euro, Swiss Franc, Canadian Dollar, Danish Kroner, Japanese Yen, South African Rand and CFA Franc. It retained its value against the Naira and lost 18 pessewas against the Dollar.

 

Currency                      Buying (Cedis)             Selling (Cedis)

U.S. Dollar                   8,452.00                    8,648.00

U.S. Dollar                   8,451.82                    8,648.00

 

Pound Sterling              13,571.38                    13,890.42

Pound Sterling              13,574.47                    13,893.88

 

Swiss Franc                  6,276.94                     6,420.05

Swiss Franc                  6,351.52                     6,497.02

 

Canadian Dollar             5,719.56                     5,848.35

Canadian Dollar             5,737.79                     5,868.59

 

Danish Kroner             1,241.74                      1,269.98

Danish Kroner             1,255.77                      1,284.26

 

Japanese Yen                   71.63                       73.27

Japanese Yen                   71.97                       73.62

 

South African Rand      1,051.21                      1,068.94

South African Rand      1,066.77                      1,084.69

 

Euro                             9,221.56                     9,430.66

Euro                             9,327.61                    9,540.53

 

CFA Franc                 14.06                             14.38

CFA Franc                 14.22                             14.54

 

Naira                            67.46                           69.02

Naira                            67.46                           69.03

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Inter-bank exchange rates

 

Accra (Greater Accra) 14 March 2003

 

Currency                      Buying                          Selling

U.S. Dollar                   8,452.00 cedis            8,648.00 cedis

Pound Sterling              13,571.38                    13,890.42

Swiss Franc                  6,276.94                      6,420.05

Canadian Dollar            5,719.56                      5,848.35

Danish Kroner             1,241.74                      1,269.98

Japanese Yen                71.63                          73.27

South African Rand      1,051.21                      1,068.94

Euro                             9,221.56                    9,430.66

CFA Franc                   14.06                           14.38

Naira                            67.46                           69.02

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top

 

Country loses 54 million dollars through illegal forest activities

 

Akyawkrom (Ashanti Region) 14 March 2003- Ghana loses about 54 million dollars annually through the activities of illegal chainsaw operations in the forests as well as other nefarious activities which greatly threatened the economy.

 

Kojo Wireko-Brobbey, a member of the Forestry Commission, who disclosed this, therefore, called for stiffer laws against illegal chainsaw operators and others, who destroyed the forests as a measure to forestalling the increasing depletion of the country's forests.

 

He was addressing a three-day Capacity Building Workshop for representatives of the Forestry Commission and Environmental Non-Governmental Organisations (NGOs) at Akyawkrom in the Ejisu-Juaben District on Wednesday.

 

Wireko-Brobbey estimated that currently, the rate of deforestation stood at about 22,000 hectares a year. The workshop organised by the Forestry Commission in collaboration with Ricera e Co-operazione, an Italian NGO, sought to bring together forestry and environmental NGOs to co-ordinate their activities in an effective manner to harmonise their knowledge on forestry issue.

 

It was also expected to provide the opportunity for a strong partnership and dialogue between the government, civil society and stakeholders in forestry and NGOs in the field of natural resources management.

 

Consequently, he called for regular public education in forest preservation to enhance public awareness of environmental degradation and also be part of government's initiative to combat the illegal chainsaw menace.

 

Wireko-Brobbey said plans were underway to get the northern part of the country reforested to enrich the land. Dr G. Da Re, a representative of Ricera e Co-operazione, expressed the hope that the participants would benefit greatly from the workshop and thereby supplement government's effort at combating the activities of destroyers of the forests. She said the time had come for the forest to be reserved and protected since forests had a multiplying effect on the economy.

GRi.../

 

Send your comments to viewpoint@ghanareview.com

 

Return to top