GRi Business, Economics & Finance 21 – 03 - 2003

Golden Age of Business is well intentioned

Need for clear and dynamic ideas

Ghana must adopt aggressive market strategies

J.H. Mensah leads discussion on budget

 

 

Golden Age of Business is well intentioned

 

Accra (Greater Accra) 21 March 2003- Hon. Jake Obetsebi-Lamptey, Minister of Information and Presidential Affaires on Thursday said that government would strengthen and promote the private sector to make it viable for the creation of job and wealth in the country.

 

He said the Golden Age of Business declared by the President and the state desire for partnership between local and foreign investors was a well-intentioned policy, which would be pursued.

 

A statement signed by Ferdinand Ayim, Special Assistant to the Minister said the Minister made this known when a delegation from Global Response, a US based customer contact centre company called on him in his office.

 

Global Response, already in the country, was a direct result of the President's visit to Salt Lake City, Utah last year to establish 500 call centre that would employ 3,000 people over the next two years.

 

The statement noted that this was the first time that government was composed of individuals who have chalked success in the private sector and are committed to translate them to benefit the nation.

 

"The ruling party is a pro- business and pro-private, we understand the need to create the environment conducive enough for business to thrive so it can create work and wealth for the people," it said.

 

The statement said government would exhaust all opportunities available to the benefit of the people, adding, "Government is to make the public service pro-business and proactive to facilitate the promotion of the private sector".

 

It urged foreign investors to have confidence in the government and the ability of the Ghanaian investor to partner them for successful business. Samuel Crabbe, Chief Executive Officer of Global Response, Ghana who led the delegation said the company, which was among 50 big Call Centres in the US, intends to package Ghana as a multi-lingual centre to enhance the gateway concept. He said the company was working assiduously to link Ghana to the international community through modern communication system.

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Need for clear and dynamic ideas

 

Accra (Greater Accra) 21 March 2003- President John Agyekum Kufuor on Thursday, stressed the need for a clear and dynamic set of ideas to motivate and activate the private sector to exploit opportunities to maximum benefit on a sustainable basis.

 

"Government will do its part by working to ensure macro-economic stability but it is obvious that to make a breakthrough, we need a clear and dynamic set of ideas to motivate and activate the private sector to exploit the opportunities to maximum benefit on sustainable basis".

 

President Kufuor made the call when inaugurating a nine-member Presidential Committee on the Promotion and Revitalisation of the Industrial Sector on Sustainable Basis, at the Castle, Osu.

 

He administered the oaths of office and secrecy to the Committee that is under the Chairmanship of Dr Kwabena Duffuor, former Governor of the Bank of Ghana. The Committee is to identify and specify how Ghana could grow the industrial sector, be able to compete with the rest of the world and through modernisation and the creation of jobs urgently needed in the country.

 

President Kufuor said at independence, the nation had high hopes of rapid industrialisation, unfortunately, the enthusiasm had not kept pace with the abilities and often projects began with high hopes turned out to be unsustainable.

 

"The countryside is littered with the remnants of factories full of inappropriate machinery or where not enough planning had been done to ensure sustainability," he added.

 

President Kufuor urged the Committee to make its recommendations realistic and sustainable far into the future, adding, "government will play an enabling role but it must be up to the private sector to lead the drive for industrialisation".

 

Dr Kofi Konadu Apraku, Minister of Trade and Industry, said all the distressed companies could not compete in the industrial sector because they had no working capital.

 

He said the Committee would do its best to find sustainable financing from both internal and external sources. Dr Apraku said the focus would be on small and medium scale enterprises and urged the members to work hard to produce results in the shortest possible time to enable the government to address problems in the industry.

 

He said the technical base of the economy for the industrial sector was weak and posed problems for the macro-economic sector of the economy. Dr Duffuor said most of the Committee's work would depend on the government and the various ministries to assist the members to understand the problems better to put up measures for the implementation of government to push the economy forward.

 

Other members of the Committee are, Professor Ivan Addae Mensah, former Vice Chancellor of the University of Ghana (UG), Ms Josephine Amoah, Insurance Commissioner of the National Insurance Commission and Ernest Sampong Bediako, Managing Director of Ernest Chemists.

 

The others are, Albert Essien, Managing Director of ECOBANK, Mrs Mary Akua Edusei-Herbstein, Managing Director of AKUABA Limited, Dr Boye Occansey, Director-General of the Private Enterprises Foundation (PEF), Prosper Adabla, Chairman of the Board of Directors of Network Knitwear Fabrics Limited and Yassar Aschkar, Managing Director of Wire-Weaving Limited.

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Ghana must adopt aggressive market strategies

 

Accra (Greater Accra) 21 March 203- Ghana must adopt a more aggressive market development strategies to increase her share of the manufactured products market in the ECOWAS Sub-Region.

 

She should, in addition, explore other business opportunities in shipping; road haulage; insurance services among other things to enable her take the maximum business advantage of the conflict situation in Cote D'Ivoire.

 

These were part of key recommendations of a report on market access and facilitation for selected Ghanaian products in Burkina Faso, Mali and Nigeria presented to stakeholders on Thursday.

 

The Ghana Export Promotion Council commissioned the report to collect relevant marketing information towards the establishment of basic market requirements and environments in the three countries.

 

The report asked trade promotion organisations and associations in the country to co-operate with leading banks in the Sub-Region, particularly ECOBANK to organise special training programmes to inform and educate economic operators about trade documentation and banking.

 

It also tasked the GEPC to organise special seminars on packaging and labelling, costing and pricing for exporters to adequately prepare them for a possible contact promotion programme.

 

The GEPC should liaise with the President's Special Initiative Secretariat and other stakeholders to investigate and review the pricing of salt to render it competitive on the export market.

 

Presenting the findings of the project report to exporters and stakeholder institutions in Accra, David Oppong, the Project Consultant, said much more work needed to be done by exporters in order to penetrate the Sub-Regional Market.

 

He said inadequate marketing information, especially on the export procedure and requirements for these countries, was a major hindrance that the project sought to reverse.

 

Oppong said, as part of the project, participating companies would be assisted to register and obtain ECOWAS status for their products. The next phase of the project would involve a contact promotion programme and market access for participating companies to be identified after the supply study.

 

Collins Boateng, Executive Secretary of GEPC, said the report would be implemented to ensure that Ghanaian exporters took full advantage of the opportunities in the three countries.

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J.H. Mensah leads discussion on budget

 

Accra (Greater Accra0 21 March 2003- Senior Minister Joseph Henry Mensah has said despite the bold efforts by government to revive the economy, it would endure a long period of convalescence because of the seriousness of the problems.

 

"Unless the tax base is broadened with revenue generation at a much faster rate than what we are doing now, the nation will be in trouble," he said at a seminar on the 2003 Budget held in London.

 

A statement from the Ghana High Commission in London received in Accra quoted Mr Mensah as saying that to reverse the trend there was the need to expand the base of public finance to enable the Government to provide the required services.

 

It said issues raised by participants centred, among other things, on difficulties in clearing cheques, increase in prices of petroleum products, development of private public partnerships, the inefficiency of the telecommunications system, the need to take measures to increase local production of rice and poultry and measures being put in place to reduce poverty in the country.

 

Mensah appealed to Ghanaians in the Diaspora in the finance sector to help build a strong finance base for the country and emphasised that without it industry would be handicapped.

 

He gave the assurance that all foreign accounts would be protected and announced that following Government's intervention the banks in the country had started paying interest on foreign accounts.

 

"I, therefore, urge you to consider increasing the level of your foreign accounts," he said. On the proposed health insurance scheme, he said it would help eliminate the trauma of having to find money out of people's pockets for treatments they had not budgeted for.

 

He said although some people might think it was ambitious for a poor country such as Ghana to have a health insurance scheme, the alternative would have been worse for people who required hospital care but had avoided going there because of economic reasons.

 

With regard to the HIPC, he said there was no need for people to sneeze at it.  He said the initiative had been beneficial, led to generous cancellation of debts by the donor community and the release of resources for development in vital sectors, such as health and education, especially in the rural areas.

 

Kwesi Abeasi, Chief Executive of the Ghana Investment Promotion Centre, pointed out the Government was becoming more realistic with the national budget, a trend, which, he said, should give hope to Ghanaians.

 

"As realism is injected into the pricing of utilities, distortions in the economy would be minimised", he said. "The reason why we did not succeed in the past is because the previous Government did not have the guts to take realistic decisions," he said.

 

"It is important for us to realise that when you have a Government that, at a risk of being unpopular, is prepared to take hard but necessary decisions, then we should all rally behind it." Touching on investments, Abeasi called on Ghanaians to help promote investment into the country by helping to create the right image and perception.

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