GRi Business, Economics & Finance 19 – 03 - 2003

Inter-bank exchange rates

France to support agriculture development in Africa

Ghana will facilitate initiative to make business aid NEPAD

Volta Region to step up VAT collection

United States delivers food aid to Ghana

4.6 billion cedis surplus accrued

Parliament adopts 57.3 million dollars loan agreement

Ports Authority to be transformed

Terminal tripartite meeting opens in Accra

Make effective use of AGOA-US Commercial Attaché

 

 

Inter-bank exchange rates

 

Accra (Greater Accra) 19 March 2003

 

Currency                      Buying                          Selling

U.S. Dollar                   8,454.09 cedis             8,651.00 cedis

Pound Sterling              13,250.94                    13,563.99

Swiss Franc                  6,113.75                      6,253.99

Canadian Dollar            5,705.22                      5,835.07

Danish Kroner             1,210.66                      1,238.35

Japanese Yen               71.28                           72.91

South African Rand      1,032.06                      1,049.49

Euro                            8,991.61                      9,195.90

CFA Franc                   13.71                           14.02

Naira                            67.62                           69.19

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France to support agriculture development in Africa

 

Accra (Greater Accra) 19 March 2003- France is to support the agricultural sector in Africa to enable it attain the seven per cent average annual growth rate that would enable the continent to achieve the millennium goals.

 

It was thus considering her support to export subsidies, special and privilege trade treatment and raw material prices, an official statement from the French Embassy said. French President Jaques Chirac at the just ended Africa-France Summit in France made the three proposals to encourage African countries to develop ambitious agricultural policies to eliminate hunger and poverty on the continent.

 

He said France was prepared to liaise with the European Union and the G8 partners, to look into eliminating the elements of actions that created instability and precariousness for the most modest agricultural producers in Africa.

 

"France, for its part, proposes that a moratorium, decided on by all the developed countries, be placed on destabilising aid for agricultural exports to Africa for the duration of the World Trade Organisation (WTO) negotiations."

 

The moratorium would also apply to food aid used for commercial purposes and to privileged export credits, President Chirac said and added that they would consider dialoguing with Africa countries to know where their interests lay.

 

He stressed the need to defend preferential treatment for Africa at the WTO and guarantee the continent privileged and sustainable access to developed countries. President Chirac said: "There is no agricultural competition between Europe and Africa, there is complementarity. We import your tropical products and you use our temperate products. The major challenge today is to improve the way in which this complementarity functions by stepping up co-operation to give Africa a firm market, which is the basis for faster development".

 

"In recent years, we have not been attentive enough to Africa's real economic and trade needs. We have allowed our relations to become hackneyed and risk losing their special character, even though Africa's position in world trade has never been so weak," he said.

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Ghana will facilitate initiative to make business aid NEPAD

 

Accra (Greater Accra) 19 March 2003- Vice President Aliu Mahama on Tuesday said Ghana was well positioned to facilitate the initiative of the World Economic Forum to mobilise resources from West African entrepreneurs towards the implementation of NEPAD.

 

At a meeting with Haiko Alfeld, the Forum's Director for Africa, at the Castle Osu, Vice President Mahama stressed the commitment of the government to NEPAD (New Partnership for Africa's Development) and said the private sector had the expertise and knowledge to make the programme successful.

 

He said: "Our government is a firm believer in a private-sector led economic growth, good governance and the rule of law, which are all in line with the objective of NEPAD and the position of our country in the Sub-Region makes it easier for us to push the process."

 

NEPAD was born as a result of a pledge by African leaders in October 2001 and aims at promoting good governance, eliminating poverty and conflicts and addressing issues of illiteracy and HIV/AIDS on the continent.

 

Vice President Mahama said it was important for the public and private sectors to work in partnership to enhance socio-economic growth and fulfil the aims of NEPAD, adding that Ghana had the infrastructure to achieve that.

 

Alfeld, who is in Ghana at the invitation of some Ghanaian businessmen to assess how they could contribute to NEPAD, said the framework for their objective had been successfully established in Southern Africa.

 

Following the Forum's 12th Africa Economic Summit, held in Durban, South Africa, in June last year, more than 100 companies and many business leaders, signed up to support NEPAD.

 

They have endorsed a declaration that commits businesses to develop best practices standards of corporate governance throughout Africa, improve corporate social responsibility programmes and help governments in various fields, working in partnership with the NEPAD secretariat to achieve its aims.

 

Alfeld said the Forum was responding to concerns that these efforts should not be concentrated in Southern Africa, hence his visit to Ghana to replicate the programme. He said with the favourable political will in Ghana, the government's commitment to dialogue at the national, regional and international levels to resolve problems and the positive attitude of the business community, the country would be used as a focal point to reach the entire Sub-Region.

 

"We agree to the principle that the programme should have a Pan-African character and I am impressed with what I have seen in Ghana," he said. Alfeld said the next African Economic Summit, which would be held from 11 to 13 June in South Africa, would focus on moving NEPAD forward by exploring how business could make available skills and technology needed to bridge gaps in capacity, resources and expertise.

 

Seven African leaders, including that of Uganda, Senegal, Kenya and Namibia, he said, had indicated their intentions to attend the Summit. The Geneva-based World Economic Forum, which started in 1971, is an independent international organisation committed to improving the state of the world.

 

Funded by the world's foremost 1,000 companies, the Forum, which works with academia, the media, government representatives and others, provides the collaborative framework for the world's leaders to address global issues.

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Volta Region to step up VAT collection

 

Ho (Volta Region) 19 March 2003- The Volta Region Value Added Tax (VAT) Office collected 900 million cedis out of a targeted 1.2 billion cedis for 2002, Mr Emmanuel Akpaku, Regional VAT Head told the Ghana News Agency in an interview on Tuesday.

 

He blamed the shortfall on the "normally dull business activity" in the region and consumer apathy. Akpaku, however, said the 2003 target of 7.4 billion cedis was achievable due to the listing of more companies and new strategies to prevent leakages in collections.

 

Giving a scenario of VAT related business situation in the region, he said about 70 per cent of the around 500 businesses registered to collect VAT were mainly small communication centres.

 

Akpaku said the trend of operation of these centres was that they folded up in no time after being set up making monitoring by his Office difficult. The VAT Regional Head also blamed government agencies for dealing with non-VAT collecting businesses despite a directive from the Regional Minister to the contrary.

 

He said often departments, including district assemblies, got services on credit and also asked for rebates thereby weakening their position to insist on VAT receipts. Akpaku expressed regret about the trend among small-scale service providers to drop VAT components of cost in their invoices so as to enhance their competitiveness.

 

He commended the Keta Government Hospital for insisting that all companies they dealt with paid VAT on their service charges. Akpaku said the VAT Regional Office was considering writing to the Regional Minister to order the enforcement of the earlier directive for all government agencies to deal only with VAT collecting suppliers. He said this year "Test Purchase" measures would be stepped up and VAT evaders would be prosecuted.

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United States delivers food aid to Ghana

 

Tema (Greater Accra) 19 March 2003- Madam Mary Carlina Yates, United States Ambassador on Tuesday took delivery of 25,000 metric tonnes of wheat valued at over five million dollars at the Tema port.

 

The wheat is under the US government's food for peace programmes and is to be shared among three Non-Governmental Organisations (NGOs) to address the needs of food security in the country.

 

The NGOs are the Catholic Relief Services (CRS), which will receive 12,500 metric tons, Adventist Development and Relief Agency (ADRA), 9,850 tons and Opportunities Industrialisation Centres International (OICI), 2,650 tons.

 

Madam Yates explained the whet would be sold to local flour mills, particularly, Irani Brothers and Ghana Agro Foods Company (GAFCO) both in Tema and the proceeds used in improving food security in the country, starting with the three northern regions.

 

Payment for the wheat would be in local currency. The Ambassador said the beneficiary NGOs would use the money generated to fund projects such as training in modern methods of agriculture and micro-credit to farmers to increase rural incomes through higher crop yields.

 

The amount will also be used to provide wells to improve access to clean drinking water, enhance child survival, increase enrolment and attendance in primary schools, as well as support vulnerable groups, including orphans, the elderly, as well as the physically and mentally challenged.

 

Madam Yates noted that the programme has contributed to the socio-economic development of Ghana, and that in the northern region, ADRA farmers have increased crop yields from 290 kg to 850 kg per acre over a five-year period, increasing their net profits on maize from about 76,000 cedis to 2.6 million cedis per acre.

 

The total enrolment in primary schools, assisted by CRS within a four-year period increased by 43 percent, while last year, the CRS girls' education promotion project, which provides take-home rations as an incentive for attendance, exceeded its target of 48,300 by 7.2 percent.

 

Dr Abdul Majeed Haroun, Deputy Minister of Trade and Industries, said the shipment was the first of three major ones expected this year with a total of 32 metric tons. He said the programme has been in existence since 1958, and its main thrust is to bolster Ghana's food security by providing resources to the rural poor.

 

Dr Haroun emphasised that the wheat would be sold and the proceeds will be used to support the nutrition and development activities under the food for peace programme, which currently supports about 495,000 people in all the 10 regions.

 

"However, our main focus is the three northern regions, which appear to be the most food insecure," he added citing statistics indicating that 42 percent of Ghanaians suffer from some form of food insecurity.

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4.6 billion cedis surplus accrued

 

Accra (Greater Accra) 19 March 2003- The Minister of Finance, Yaw Osafo Maafo on Tuesday said 4.6 billion cedis had so far accrued as surplus income after the increment in petroleum prices in January.

 

He, therefore, proposed that the said amount now lodged in an escrow account be transferred into the road fund. The Finance Minister had answered queries raised by the Minority last Thursday on the legality of the deduction of the money and how government intended to use it.

 

The queries came about during a debate on the Custom and Excise (Petroleum Taxes and Petroleum related Levies) amendment bill started on last Thursday but frozen until Tuesday.

 

Osafo Maafo said he had not breached any law since he did not raise the road fund levy, but rather labelled the excess money under "margins" component of the petroleum price built up.

 

On Thursday, Seidu Pakuna Adamu, NDC Bibiani/Anhwiaso/Bekwai, had questioned the legality of the bill since he claimed the authority it sought to claim had already been exercised.

 

He said the Presidency had already levied Ghanaians without prior approval of Parliament, which was unconstitutional. "Perhaps, the Minister was in dilemma, to come to Parliament and meet the disapproval of the hike in petroleum prices as it is tied to the levy or stay away and come later."

 

He said the integrity of the House was being undermined by the Minister's request. Abraham Osei-Aidoo, the Deputy Majority Leader, said the bill did not contain any piece of information to suggest that it possessed a retroactive proposition.

 

He said Tema Oil Refinery (TOR) was a limited Liability Company that had the right to adjust prices of its products and set aside part of its money for any purpose that it deemed fit.

 

The member said money lodged in the escrow account could be transferred into the road fund without breaching any legality. Now that the bill had been passed, the road levy jumps from 230 cedis per litre of premium petrol to 400 cedis.

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Parliament adopts 57.3 million dollars loan agreement

 

Accra (Greater Accra) 19 March 2003- Parliament on Tuesday adopted the report on 57.3 million dollar loan agreement between Ghana and the International Development Association (IDA) to finance the second health sector programme support project.

 

The loan has a repayment period of 30 years, 10 years moratorium, commitment fees of one-half of one percent per annum, which may be waived at the discretion of IDA's Board of Executive Directors.

 

Three-fourth of one percent service charge per annum is payable on the principal amount of the credit withdrawn and outstanding from time to time. Recommending for the adoption of the report, Eugene Atta Agyepong, Chairman of the Committee on Finance, said the objectives of the project was to improve the health status of the Ghanaian population while reducing the geographical, socio-economic and gender inequality in health delivery.

 

He said in considering the loan, the committee noted that the health sector was still confronted with challenges including high maternal mortality rate, persistence of communicable diseases like malaria and tuberculosis and newly emerging non-communicable diseases and relatively high levels of death and injury from road traffic accidents.

 

Atta-Agyepong said the prevalence of three percent in HIV/AIDS infection poses a major threat to health and development and therefore, the Ministry of Health had embarked on the health sector programme project to address these challenges.

 

He mentioned some of the benefits to be achieved as the reduction of infant mortality rate from 57 to 50 per 1000 live births, under-five mortality rate from 108 to 95 live births, reduce HIV prevalence to 2.6 percent and to increase the cure of tuberculosis from 43 percent to 60 percent. The consequential resolution on the loan was deferred due to low numbers in the House.

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Ports Authority to be transformed

 

Accra (Greater Accra) 19 March 2003- Ghana Ports and Harbour Authority (GPHA) is progressively being transformed in line with Government policy to enable it to focus efforts on the provision and maintenance of basic port infrastructure and the regulation of the private sector.

 

Under the new programme, GPHA will be required to maintain a slimmer headquarters whilst the two ports of Tema and Takoradi would be given greater operational autonomy.

 

Sector Minister Dr Richard Anane who was addressing the third in the series of the meet-the-press this year said to actualise this objective, government was undertaking various projects aimed at increasing the operational efficiency and reduce the cost of doing business at the ports.

 

The projects also aimed to push the country to a position as the 'preferred destination in the sub-region'. The Minister said as part of the efforts, Government through the help of the Japanese International Cooperation Assistance (JICA) had developed a master plan for the Tema and Takoradi ports.

 

The plan of Tema seeks to expand the existing harbour with the construction of a new breakwater on the western side of the harbour to accommodate third generation vessels.

 

It would also be developed into a container terminal for fast developing container trade. The plan for Takoradi, valued at 100 million dollars is to be implemented through a concession to interested terminal operators on 'Build Operate and Transfer' basis.

 

The Minister expressed the hope that a contract for the project would be signed before December this year. He said berths at the Tema Port had been dredged from 8.5 metres to 11.5 metres to accommodate larger and modern vessels, and reduce waiting time of deep-drafted vessels. Similar dredging activities would be carried out at the Takoradi port.

 

A contract was being signed for private sector development of an area outside the bonded area of Tema Port for the relocation of imported vehicles and the inspection of imported cargo outside the bonded area.

 

This, the Minister, explained would free up space for the efficient handling of containers inside the port. Dr Anane said four additional private stevedoring companies had been licensed, bringing the number to seven with a control of 75 percent of traffic to offer competitive service to shippers.

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Terminal tripartite meeting opens in Accra

 

Accra (Greater Accra) 19 March 2003- The first Terminal Tripartite Meeting of the Government of Ghana, UNDP and Global Environment Facility opened in Accra on Tuesday and discussed the Renewable Energy Services Project (RESPRO).

 

The meeting discussed the experiences and lessons learnt on the project with the objective of incorporating them in future projects. The RESPRO seeks to address sustainable energy paths for social and economic development that can use renewable energy and fuel supply technologies in place of fossil fuel-based electrification.

 

Opening the meeting, Albert Kan-Dapah, Minister of Energy commended the role of RESPRO in meting the energy needs of most deprived communities, adding that under the project, 80 rural communities in the three Northern regions have solar energy services.

 

"Indeed, over 1,800 homes, which hitherto relied on inferior lighting systems such as candles and kerosene lanterns, have been provided with solar home systems," saying, "seven remote rural clinics have been equipped with solar PV systems for very critical health activities and refrigeration of vaccines."

 

Kan-Dapaah said 42 schools have been provided with solar system and, "are now able to study at night. "This should allow them to improve on their performance at school." Kan-Dapaah said when the National Electrification Scheme (NES) was initiated about 10 years ago it was intended to provide the basis for accelerating socio-economic welfare and wealth generation in the rural areas, "and this is what the government intends to pursue."

 

He said even though its only 17 percent of the rural areas, who have access to electricity, this would be changed through the RESPRO project. Kan-Dapaah said the biggest challenge was the huge financial support that a wider use of solar PV systems in any country demanded.

 

The MP for Bunkpurugu-Yunyoo, Namburr Berrick said the project did not meet the full impact of its target. He told the Ghana News Agency (GNA) in an interview after the meeting that the people could not even use irons since they needed 10,000 watts to charge a pressing iron.

 

"But the maximum that the RESPRO project is providing for the communities is 100 watts. What they have now can only power small fridges and some types of TV sets." He said the schools mentioned as having electricity only have them in their compounds and not wired to their classrooms where they can have an effective use.

 

"They will need extra panels to generate extra wattage for such purposes." Berrick said government should go ahead and ensure that the full benefits other communities enjoyed when connected to the national grid, should be available to the rural communities in the three Northern Regions.

 

He said residents pay 25,000 cedis for 100 watts and 15,000 cedis for 50 watts. Berrick was not happy with the low level of involvement of the community in responding to the power needs of the people in the area, saying invitations to consultative meetings often came after they had taken place. "I therefore urge government to increase its portion of funding for such projects to create a level playing field for all communities," he added.

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Make effective use of AGOA-US Commercial Attaché

 

Tema (Greater Accra) 19 March 2003- Ms Janice M. Bruce, Commercial Attaché of the US Embassy in Accra has called on Ghanaian businessmen and women to use the African Growth and Opportunity Act (AGOA) as an effective instrument to help them gain a better foothold on the international market.

 

She said, however, AGOA was not enough and by itself cannot and should not be expected to ensure their success as a first class international trading partner. "Much would depend on each Ghanaian company's approach to researching their markets, studying the demographics of their target audience, assessing customer needs, focusing on competitive pricing, quality and customer service", she added.

 

Ms Bruce was speaking at the commissioning of the first Ghanaian firm to export locally made socks under the President's Special Initiative (PSI) on Garments and Textiles and 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 to expand its production with the importation of more equipment.

 

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.

 

Ms Bruce said government's policy, legal and regulatory framework, which governed the daily operations of commerce in Ghana and its relations with foreign investors, was of equal importance.

 

She said, "when these elements operating in harmony and unison, serve as the foundation for each company, then the benefits offered by AGOA could serve as a springboard to help the companies make the sale, find an investor or sign the long-term contract".

 

The US Commercial Attaché said trade was the answer and the means by which Ghana would succeed in its aspirations for a stronger economy and a better life for its citizens.

 

"This nation has embarked on a course which recognizes that trade, internal, regional and international is the most effective and sustainable means by which to generate employment, improve technical and managerial skills, transfer of technology and achieve a higher standard of living for the people".

 

Ms Bruce said the commissioning of the factory, was a hallmark of progress, marking Ghana's advancement in international trade, further strengthening the commercial linkages between Ghana and the US.

 

She said it also served to underscore the importance and the potential of the contributions that AGOA could make to Ghana's commercial and economic development.

 

"The impressive circumstances of this new venture highlight the fact that Ghana's private sector has accepted the mantle of responsibility to help propel the nation towards greater economic prosperity, human development and the achievement of the government's vision of a Middle Income status by the year 2020", she added.

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