GRi Business, Economics & Finance 18 – 03 - 2003

Banks should assist budding Ghanaian entrepreneurs

Ghanaians abroad to set up alternative telecom network

Regional Maritime Fund on Track

Inter-bank exchange rates

SSB Bank, UNIL push up GSE index

ECOWAS fairs to be held every two years

Low purchasing power affects trade in W.A.

Members of government to wear Ghanaian costumes

 

 

Banks should assist budding Ghanaian entrepreneurs

 

Tema (Greater Accra) 18 March 2003- President John Agyekum Kufuor on Monday appealed to the financial institutions to support budding Ghanaian businessmen and women when they approach them for assistance.

 

He said small and medium-scale entrepreneurs should be assisted to grow their business to become large scale, adding, "With such encouragement the country would be pushed forward to succeed".

 

President Kufuor made the appeal when he commissioned the first Ghanaian firm to export locally made goods under the President's Special Initiative (PSI) on Garments and Textiles and the African Growth for Opportunities Acts (AGOA) at Tema.

 

The one-million dollar Network Knitwear Fabrics Limited, manufactures of sporting socks for export established in March last year, has so far exported about 400,000 dozens of socks.

 

The company, which employs about 360 workers, is expected to export about four million dozens of socks this year and plans are under way to expand its production with the importation of more equipment soon.

 

It is a joint venture between the Company and Kentucky Derby Hosiery and Southern Textile Exchange, both in the United States, which imports most of the raw materials, the labelling and printing from the US market and exports the finished products under AGOA to the US markets.

 

President Kufuor said the NPP's philosophy had been that the way forward for the country's socio-economic development should be a nation that would be launched into the creation of wealth for its citizens to prosper.

 

He said to achieve such an objective, the private sector should become the sector to be developed, hence the government's programme on the Golden Age of Business being implemented through the President's Special Initiatives (PSI) to encourage the private sector as the engine of growth of the economy.

 

President Kufuor said the government would abide by its policy to encourage the private sector to use all the available resources and opportunities in the country to realise the objectives of the Golden Age of Business and move the country from its current status of a developing country to a more advanced stage.

 

President Kufuor said he was optimistic that with the necessary support to the private sector the upward push of the Gross Domestic Product (GDP) levels from 300 dollars to 1,000 dollars as being pursued by the government could be achieved within a decade.

 

He expressed appreciation to the US government for the AGOA that had enabled Ghanaian entrepreneurs to venture into their markets and urged those who have the opportunity to ensure that they have the right quality, volume and time available to take advantage of the competitive market in the US.

 

"We should be self-confident and conscious of our responsibilities to take our work seriously to procure our share of the global market and try to make full use to our vantage," he added.

 

President Kufuor said government was determined to support all worthy ventures but appealed to Ghana's development partners that the Ghanaian entrepreneur needed the capital, know-how and the market.

 

He called on the management and staff to be more efficient and competitive than before, produce quality products and continue to be shining example in the private sector.

 

Dr Kofi Konadu Apraku, Minister of Trade and Industry, said AGOA holds a lot of promise to achieve the government's export-led development goals. The Ministry had, therefore, undertaken some initiatives to maximise the benefits of AGOA, he added.

 

He said one of the initiatives was the establishment of a Textiles and Garments Training Centre last year at the Accra Technical Training Centre (ATTC) to upgrade skills of the small scale manufacturers in the garment sector to help them export apparel to the US under AGOA.

 

Dr Apraku said Belin Textiles International Limited, a Ghana-Mauritius joint venture project, had been incorporated to establish a T-shirt and Jeans factory at Adjabeng in Accra and would commence operation within the next three months.

 

He said proceeds from Non-Traditional Exports which had stagnated at 400 million dollars over the past four years, had increased from 418 million dollars in 2001 to about 537 million dollars by last year 2002.

 

He expressed optimism that the Ministry's target of 575 million would be achieved. Prosper Adabla, Chairman of the Board of Directors of the Company, said the idea to set up the company began about two years ago.

 

He said the company had plans to expand its operations to employ additional 150 people while a second company would be established soon. Sam Adabla, Chief Executive of the Company, told the GNA that their major problem had been delay at the port during the delivery of raw materials and export of finished products. He said they need more supplies of hydrogen peroxide, which is one of the raw materials and expressed the hope that these problems would be eliminated.

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Ghanaians abroad to set up alternative telecom network

 

Accra (Greater Accra) 18 March 2003- A team of communication experts including Ghanaians living abroad have applied to the National Communication Authority (NCA) for a license to provide an alternative Nationwide Telecommunication Network in Ghana.

 

The new network would be competing with the Ghana Telecom and Western Tele Systems. In a brief on the alternative telecommunications network, Bing Aidoo, Chief Executive of One Dial Communications, Ghana, told the Ghana News Agency (GNA) Business Desk in Accra that One Dial will introduce fixed and mobile wireless communication infrastructure and service in conjunction with its joint venture partner, Star Communication of the USA.

 

"This would be a simple, affordable and efficient communication service to each region in Ghana offering the largest consumer market for voice, data, and Internet service in a growing world of satellite communication technology."

 

He said the team is poised to redefine how business is carried out and establish a system in Ghana, which would be an adjunct to the Multi-National Single Communication Network in Africa.

 

Bing was keen to bring the deal to Ghana and urged government and other stakeholders to make it work since it holds the potential of creating employment for over 600 employees nationwide.

 

Bing said the transaction would represent the largest wireless backbone with substantial gateways to allow speed and uninterrupted wireless communication network within and outside Ghana.

 

He said the Multi-nation Communication Network would enable One Dial Communication, Ghana, to negotiate better pricing and delivery arrangements. "Areas that would benefit immensely are the internet, financial service arrangements to deliver goods and services, including dedicated and secured networks, ATM's including other point of delivery, applications for government and the consumer market," adding that, " our network would operate effectively on 400 and 1,900 band with our specific equipment designed by Huawei and other Chinese and Canadian equipment manufacturers.

 

Bing told the GNA that their alternative would not hurt the Ghana telecom or Westel, "it would rather improve the services of the two current operators and provide consumers with efficiency and affordability.

 

Access to Internet would be more affordable and subscribers and café operators would no longer be charged twice. "A fixed fee for the telephone line, which goes to the ISP would be negotiated between the ISP and the national communication carrier, he added.

GRi.../

 

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Regional Maritime Fund on Track

 

Accra (Greater Accra) 18 March 2003- The Regional Maritime Fund under the auspices of the Maritime Organization of West and Central Africa (MOWCA) is on track to achieving the nine million dollar capital for its establishment and operation.

 

The 25-member MOWCA has most of the countries represented paying averagely between 100,000 to 200,000 dollars annually. Moses Addico, Secretary-General of MOWCA told the Ghana News Agency (GNA), Business Desk in Accra that, "Nigeria had paid 800,000 dollars in the last five months, while Congo had a system that pays 100,000 dollars a year. Angola pays 200,000 dollars a year."

 

He was speaking just after the opening of the 3rd Regional meeting to Promote Sub-Regional Cooperation to Combating Piracy and Armed Robbery Against Ships. Ghana, he said had also passed the Ghana Maritime Law and is expected to pay 600,000 dollars a year.

 

He said Cote d'Ivoire had just passed a law to ensure the collection of monies for the fund when the civil unrest started, saying, he hoped things would return to normal to enable the country get back on to the path of economic prosperity.

 

The Fund is to be used to implement projects and programmes designed to meet the rapid technological and structural changes in the maritime industry. Some of these are the funding of maritime institutions in the sub-region.

 

Addico said other member countries were also paying up satisfactorily, adding that, " with 25 members if everyone pays on time and regularly, we definitely would make it." Revenue for setting up the Fund is derived from deductions of 10 cents per ton charged on goods that come into the various ports.

 

The MOWCA Secretary-General said a conservative figure of nine million dollars is expected to be collected this year from the 90 million tons expected in the MOWCA region.

 

He said a nine-member Ministerial Committee had been set up to oversee the Fund. Addico said the Fund is vital since previously a number of projects had failed to see light because government could not secure funding for them.

 

He said a major step of zoning the coastline is in the offing to post Coast Guards for the effective combating operations. "In the United States (US), there is only one Coast Guard system but here in Africa, between Mauritania and Angola, we have over 20, hence the need to zone the Coast Guard operations on the continent."

 

Addico was happy that a number of MOWCA states had taken measures to support the organization, a trend he noted would make MOWCA play a major and effective role in the maritime industry.

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Inter-bank exchange rates

 

Accra (Greater Accra) 18 March 2003

 

Currency                      Buying                          Selling

U.S. Dollar                   8,454.82 cedis            8,651.00 cedis

Pound Sterling              13,428.79                    13,744.71

Swiss Franc                  6,245.95                      6,389.02

Canadian Dollar            5,753.55                      5,884.12

Danish Kroner             1,233.15                        1,261.60

Japanese Yen                71.78                             73.43

South African Rand      1,046.52                         1,064.29

Euro                             9,160.16                      9,371.82

CFA Franc                   13.96                             14.29

Naira                            67.46                             69.03

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SSB Bank, UNIL push up GSE index

 

Accra (Greater Accra) 18 March 2003- SSB Bank and UNIL on Monday helped to sustain the rise of the Accra bourse which rose by 6.68 points in trading. The GSE All-Share Index, the main market gauge, rose to 1,592.92 points from 1,586.24 points on a day that only seven of the listed 25 equities traded a total of 101,900 shares.

 

There were three price changes - all positive. UNIL was 149 cedis richer at 5,160 cedis, SSB Bank rose by 85 cedis at 5,900 cedis and Ghana Commercial Bank picked up five cedis at 4,831 cedis. Market capitalisation ended the day at 7,370.97 billion cedi.

 

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

ABL                            420

AGC                  28,500

ALW                  3,500

BAT                          1,102

CFAO                   67

CPC                     630

EIC                     5,005

FML                   2,009

GBL                            520

GCB                   4,831                        +5

GGL                         1,205

HFC                         1,205

MGL                           257

MLC                           280

MOGL               19,751

PAF                            750

PBC                      390

PZ                       2,016

SCB                   30,001

SPPC                    390

SSB                    5,900                        +85

SWL                     285

TBL                    4,900

UNIL                  5,150                        +149

CMLT                        460

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ECOWAS fairs to be held every two years

 

A. A. Blay and Dominic Adoboli, Lome

 

Lome (Togo) 18 March 2003- ECOWAS trade fairs are to be held every two years instead of the current four years, Dr Mohammed Ibn Chambas, Executive Secretary of ECOWAS, said this when he closed the Third ECOWAS Trade Fair in Lome on Sunday.

 

He said Nigeria had been selected to host the fourth fair in 2005. Dr Chambas said about 500 exhibitors from 12 ECOWAS member states participated in the fair. Cape Verde; Guinea and Bissau were absent while Cote D'Ivoire had a symbolic representation.

 

Non-West African countries at the fair were Pakistan, Italy, Morocco and Syria. Dr Chambas said ECOWAS financed the fair and acknowledged the contribution of Foire Internationale de Lome, the Togo Trade Fair Authority and the exhibitors.

 

He noted that the private sector was assuming an important role and said firm and practical measures were being taken to encourage it to lead in the integration process of the Sub-Region.

 

He appealed to the business community to follow up contracts, agreements and deals concluded at the Fair. Dr Chambas announced the creation of an Internet facility, SIGOA-TOPS, for ECOWAS to provide information on business opportunities and urged operators to visit the Website frequently to exploit the opportunities on offer.

 

He pledged the commitment of ECOWAS to promoting private sector development and regional business transactions. "We are determined to build a strong partnership with the West African business community.

 

"In doing this ECOWAS would also foster close and mutually beneficial partnership between the private and relevant government agencies and institutions." Dr Chambas said this partnership was vital to making the private sector the driving force of West African development.

 

The ECOWAS chief expressed ECOWAS's appreciation to President John Agyekum Kufuor of Ghana and President Gnassingbe Eyadema of Togo for opening and setting the agenda for the fair.

 

Togo's Minister for Trade, Commerce, Transport and Free Zones Development, Drama Dramani, handed over the ECOWAS Trade Fair Flag to the Nigerian Ambassador in Togo Adebayo Yusuf.

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Low purchasing power affects trade in W.A.

 

A.A Blay and Dominic Adoboli, GNA

 

Lome (Togo) 18 March 2003- Mrs Theresa Koroma, Sierra Leone's Deputy Minister of Trade, on Sunday said the weak purchasing power of West Africans was a major reason for poor trade and economic development in the Sub-Region.

 

Mrs Koroma, who led her country's delegation to the closing ceremony of the 10-day third ECOWAS Trade Fair in Lome, said this in an interview with the Ghana News Agency.

 

"We have to facilitate trade and industrialisation for increased income for the people, who can then purchase regional goods for a buoyant regional economy to evolve." Mrs Koroma called for a common customs tariff and currency in addition to the elimination of the numerous checkpoints along Sub-Regional routes to allow free movement of people, goods and services.

 

She said ECOWAS states must remain focused and committed to the ideals of the ECOWAS trade liberalisation scheme to push trade in the Sub-Region beyond the current 12 per cent level.

 

Mrs Koroma said Sierra Leone had put its past behind and was committed to assuming its rightful place in the comity of ECOWAS states by re-building the war-shattered economy and to contribute to the integration of West Africa.

 

She said her country's participation in the Fair was a message to the world that Sierra Leone was still alive. Mrs Koroma said Sierra Leone's joint trade fair with Ghana in Freetown last October that was followed by a homecoming summit were platforms to put that country in a better shape.

 

She said the Sierra Leone Chamber of Commerce was preparing to organise another trade fair in April in Freetown and appealed to traders and investors from other countries to participate in it.

 

Mrs Koroma, who attended a trade fair in Iran, said West Africa could do a lot to expand trade like Iran that organises trade fairs every year in Italy to showcase itself to the rest of the world.

 

Madam Violette Elliott, Deputy Director of the Ministry of Trade of Sierra Leone, described the Togo Fair as successful but said the location of the fair ground was too far from the business centre of Lome thereby affecting patronage. She appealed to host countries of future trade fairs to take the location of the fair grounds into consideration to enable more people to patronise them.

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Members of government to wear Ghanaian costumes

 

Kumasi (Ashanti Region) 18 March 2003- A marketing consultant has appealed to members of government and other political leaders to always appear in Ghanaian costumes at official functions.

 

Walter Djokoto, Chief Executive of Driwald, a marketing and communication consultant, said this would help in promoting made-in-Ghana goods. He made the appeal when he spoke to newsmen after he had paid a courtesy call on the Asantehene, Otumfuo Osei Tutu II at his Manhyia Palace in Kumasi on Sunday to formally introduce the Driwald Consult and its activities.

 

Dzokoto informed the Asantehene about the outcome of two events - the Super X'mas Trade Fair and the General Buying and Selling Fair – the consultant organised last year at the Prempeh Assembly Hall.

 

Driwald donated two million cedis into the Otumfuo Education Fund. Djokoto said giving priority to the patronage of made-in-Ghana goods would not only help re-activate the local manufacturing industries like the garments, leather and shoe industries but would also create jobs.

 

Djokoto said Driwald Consult had drawn up a programme to hold two separate fairs in Kumasi this year. The first to be held in March is dubbed Super Easter Bazaar while the second to be known, as the Super X'mas Trade Fair would be held in December.

 

Djokoto said in view of the marketing potential in Kumasi and as part of its determination to promote trade especially in made-in-Ghana goods the consult had decided to organise and showcase various local products in Kumasi twice each year.

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