GRi Business, Economics & Finance 29 – 03 - 2003

Easter trade bazaar opens in Kumasi

Coconut development project progressing

GCB recommends final dividend of 350 cedis per share

All-Share Index picks up again

Shareholders express dismay about Osei-Bonsu

Ghana to attract foreign professionals

French Company to invest in fruit production

 

 

Easter trade bazaar opens in Kumasi

 

Kumasi (Greater Accra) 29 March 2003- Sampson Kwaku Boafo, Ashanti Regional Minister, has re-emphasised the government's determination to ensure that Ghanaian entrepreneurs played a leading role in every sector towards economic development.

 

He said government was committed to vibrant commercial activities employment and reduction of poverty in the Ghanaian society. This was contained in an address read for him at the opening of an eleven-day "Super Easter" bazaar in Kumasi on Thursday.

 

The bazaar, which was organised by Driwald Consult, an Accra-based publicity firm, is under the theme: "Trading - The bedrock of industrial development". About 150 local and foreign exhibitors were participating in the bazaar, which has on display, clothes, jewellery, cosmetics, drugs, household appliances, food and beverages, and others.

 

Boafo said the government's liberalisation policy on trade fairs held over the past years provided ample testimony and demonstrated its commitment to create congenial and conducive environment for local manufacturers and service providers.

 

He commended Driwald Consult for the initiative and said the government would continue to support such local initiatives. Samuel Donkor, Deputy Co-ordinating Director of Kumasi Metropolitan Assembly (KMA), said Ashanti abounds in both human and natural resources, which needed to be tapped for national development.

 

He pledged the assembly's support towards the fair and commended Driwald Consult for its sustained interest in the promotion of business in the metropolis. Walter Djokoto, Chief Executive Officer of Driwald Consult, said it was important for Ghanaians to recognise and appreciate the critical role of trading in all human endeavours.

 

He said the bazaar was to recognise the important role of trading and the ingenuity of Asanteman, as well as the need to grow and expand market potentials in Ashanti, the second largest in Ghana.

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Coconut development project progressing

 

Sekondi (Western Region) 29 March 2003- The Coconut Sector Development Project (CSDP) re-planted 860 hectares out of a target of 1,200 hectares for 713 farmers in six districts in the Western and Central regions between April 1999 to December 2002.

 

The beneficiary districts include Nzema East, 264 hectares, Ahanta West, 226 hectares, Komenda Edina Aguafo-Abrim, 165 hectares, Shama Ahanta East Metropolis, 84 hectares, Abura Assebu-Kwamang-Kese, 63 hectares and Wassa West, 58 hectares.

 

Ransford Arthur, Project Manager of the CSDP disclosed this to the Ghana News Agency in an interview on Thursday at Sekondi. The CSDP is a five-year project launched in April 1999 to combat and replace 4,000 hectares of coconut trees in the coastal belt, infected by the Cape St Paul Wilt disease.

 

Arthur said the project is aimed at revitalising the coconut sector in Ghana and improving the socio-economic conditions of communities, including women involved in the coconut processing and marketing.

 

He said the Nzema East and Jomoro districts, which had not been affected by the disease, were benefiting from the intensification programme, adding that between October 2002 and December 2002, some 1,210 hectares out of a target of 2,000 hectares, representing 60.5 percent had been fertilized.

 

So far, 893.28 tons of fertilizers had been used on the 1,210 hectares in the intensification programme in the Nzema East and Jomoro. Arthur disclosed that Anyinase-Abura-and Asuansi seed gardens were being intensified, using polythene imported from Marc Delorme Coconut Research station in Cote d'Ivoire and that from January to December 2002, 85,434 seed nuts were harvested.

 

He said 34.5 hectares of land had been acquired in Bonsaso in the Western Region while another 15 hectares had also been purchased in the Central Region for the Malayan Yellow dwarf (MYD) and Sri Lanka Green dwarf seed garden.

 

Arthur noted that the project, which is expected to be completed in March 2004, has so far completed a greater percentage of its estimated figure and called on the French government to extend the expiration of the project because there were a lot more applications from farmers with several hectares of land.

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GCB recommends final dividend of 350 cedis per share

 

Accra (Greater Accra) 29 March 2003- Ghana Commercial Bank (GCB), the best performer on the Ghana Stock Exchange for 2002, has recommended a final dividend of 350 cedis per share amounting to 57.950 billion cedis for shareholders due to appreciable capital gains and an after-tax profit of 174.372 billion cedis.

 

This is in addition to an interim dividend of 150 cedis per share amounting to 24.550 billion cedis brings the total dividend per share to 500 cedis that comes to 82.500 billion cedis.

 

Kwabena Osei-Bonsu, Chairman of the Board of Directors, said this at the Bank's 9th Annual General Meeting (AGM) on Friday, for its 80,000 shareholders most of who struggled but could not enter, the National Theatre auditorium until the meeting was over at 1200 hours.

 

The meeting was to enable the Board Members present the 2002 Annual Report and Account to the shareholders and to re-elect past directors and elect new ones for the operations of the Bank. This year also marks the 50th anniversary of the Bank's existence and activities for its celebrations would end in June.

 

Profit before tax for 2002 stood at 281.908 billion cedis against the previous year's mark of 296.962 billion cedis. After making provisions for the Reconstruction Levy and corporate tax, profit after tax came to 174.327 billion cedis, representing an increase of three per cent over that of 2001, Osei-Bonsu said.

 

The Board Chairman said total income for the period stood at 695.088 billion cedis registering a growth of 38 per cent over the operating expenditure in 2001. He said the Bank registered a total return of 153 per cent made up of 124 per cent in capital gains and 29 per cent income yield adding that the average gain on the market over the same period was 45 per cent.

 

Touching on both the international and domestic environment in which the bank operated, the Board Chairman said the world economy showed a marked growth in the first quarter of 2002 reflecting a robust six per cent growth of the United States economy as well as rates of 4.3, 4.4 and 3.0 per cent for Canada, Denmark and Japan in that order leading many to believe that economic recession had abated.

 

"However the growth prospects of the world economy stagnated after the first quarter necessitating a downward revision and the projected world outlook for 2003 was reduced from four per cent to 3.7 per cent.

 

Osei-Bonsu said these developments impinged on the domestic economic performance, which among other things made the cedi to depreciate by 15.4 per cent against the dollar during 2002 with inflation at 15.2 per cent resulting in a marginal real depreciation against the major currencies.

 

He said in furtherance of the Bank's objectives to improve and continue its recent achievements, the Board and Management had approved a new corporate plan to focus on shareholder value and customer satisfaction covering the period 2002 to 2004.

 

Osei-Bonsu said though the fall of interest rates with its attendant dwindling margins in the economy continued to affect the performance of banks, the resilience brought in by the new corporate plan as well as prudent management practices moderated the effect on the GCB.

 

He said the new corporate plan was designed to enhance profitability, improve the preferences of staff and the effectiveness of the organisation as well as to effect change in GCB's culture.

 

Osei-Bonsu expressed the hope that shareholders as well as the numerous customers of the Bank would give their total commitment and co-operation to the Management and Staff to enhance its financial stature and investor appeal.

 

Answering questions on the Tema Oil Refinery (TOR) debt owed the GCB, Mrs Matilda Obeng-Ansong, Managing Director of the Bank, said the TOR debt had been converted into bonds adding that its removal from the percentage of gross non-performance loans to total credit portfolio was 35 per cent in 2002 as against 18 per cent in 2001.

 

She said the bank had proposed 3.5 billion cedis remuneration for Directors that was approved by the shareholders, adding that it had ordered the Directors to fix the remuneration of the Auditors.

 

Members of the Board as well as the shareholders re-elected Mr Felix Ntrakwah, Peter Augustus Ocran and Kojo Mensah as Directors of the Bank. Mrs Cecilia Nyann elected as a new Director of the Bank.

 

The Financial Times Group of London crowned GCB the Bank of the Year in Ghana in 2002 for the third consecutive time. The Chartered Institute of Marketing Ghana in 2001 also crowned it as the Bank of the Year.

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All-Share Index picks up again

 

Accra (Greater Accra) 29 March 2003- The GSE-All Share Index maintained its momentum in trading on Friday, rising by 1.34 points although shares changing hands remained low.

 

The Index ended trading at 1,631.76 points from 1,630.42 points on Wednesday. The number of shares that changed hands rose to 126,000 shares from 23,400 but remained low as institutional investors continued to shy away from the market.

 

The change in the year to date was 16.95 per cent. In the broader market, there were only three price changes. Mechanical Lloyd Ghana Limited was 30 cedis richer at 310 cedis, Ghana Commercial Bank closed 10 cedis better at 5,110 cedis and Home Finance Company rose by five cedis at 1,220 cedis. Market capitalisation closed up at 7,465,18 billion cedis from 7,461.93 billion cedis.

 

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

ABL                            420

AGC                  28,500

ALW                  4,300

BAT                          1,102

CFAO                   67

CPC                     630

EIC                     5,005

FML                   2,009

GBL                            520

GCB                   5,110                        +10

GGL                         1,218

HFC                         1,220                  +5

MGL                           257

MLC                           310                   +30

MOGL               19,751

PAF                            750

PBC                      390

PZ                       2,016

SCB                   30,001

SPPC                    390

SSB                    6,005

SWL                     285

TBL                    4,900

UNIL                  5,201

CMLT                      460

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Shareholders express dismay about Osei-Bonsu

 

Accra (Greater Accra) 29 March 2003- Shareholders of Ghana Commercial Bank (GCB) on Friday expressed dismay about the behaviour of Kwabena Osei-Bonsu, Chairman of the Board of Directors, for not allowing them to speak their minds after discussions on the main agenda at the Bank's Annual General Meeting (AGM).

 

GCB's over 80,000 shareholders some of who struggled but could not enter the National Theatre Auditorium where the meeting took place, were not happy when the Chairman ended proceedings without allowing people to express their views on "other matters."

 

''How could you treat us like this, after paying so much to the bank is this how you will reward us? This is not fair" one shareholder retorted as members of the high table started to leave the auditorium.

 

Some of the shareholders' wanted to know the extent of indebtedness of the Tema Oil Refinery (TOR) and A-life Supermarket to the Bank. They claimed very little explanation was given on the matter.

 

They also wanted to know why GCB had proposed 3.5 billion cedis remuneration for its Directors and the procedures for their nomination among other things. Some of the shareholders complained that the Board and Management took decisions and imposed them on shareholders adding that the AGM was just a rubber stamp.

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Ghana to attract foreign professionals

 

Accra (Greater Accra) 29 March 2003- Explore Abroad and Africa, a South African non-governmental organisation, has initiated moves to attract foreign professionals into key areas in the country.

 

"Ghana as a developing country needs the infusion and exchange of technical skills and manpower resources of the developed world to accelerate its growth. "This calls for networking and establishment of collaboration and partnership," Ms Lezelle Botha, Explore Director, told Journalists in Accra on Friday.

 

Ms Botha commended Mrs Cecilia Bannerman, outgoing Minister of Employment and Manpower Development, for her commitment and contribution to the creation of an enabling environment to reduce unemployment in the country.

 

She said key skilled and non-skilled professionals would be identified, processed and packaged for export to Europe, Asia, Far East, United State and other African countries whilst other professionals in demand in the country would be imported.

 

This would be done through the Ministry and its local counterparts, Youth Educational Rural International (YERI). The first group of 100 Ghanaians would be sent to the United States as part of a pilot programme by June.

 

Ms Botha said through such collaborative efforts, Ghana and other developing and developed countries would re-distribute their professionals equitably; reduce unemployment and generate foreign exchange for the development of infrastructure to retrain local manpower skills.

 

She said working holiday programmes would also be developed for students during vacations for a period of three months. YERI's Director, David Kumah said the exchange programme would also be used to sell the country's tourism potentials.

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French Company to invest in fruit production

 

Accra (Greater Accra) 29 March 2003- A French Company, La Compagnie Fruitiere, the World's largest fresh fruits producing company, is to invest about seven million dollars this year in the production of pineapples in Ghana for export.

 

The company plans to invest about 20 million dollars in the next five years and employ 1,500 people. It is expected to export about 30,000 tonnes of pineapples per annum.

 

Pierre Arnaud, Vice Chairman of the Company, said this when he led a three-man delegation to pay a courtesy call on President John Agyekum Kufuor at the Castle, Osu, on Friday.

 

Arnaud said the company had already acquired land at Obom in the Eastern Region to begin the production of pineapples, while negotiating with the management of the Agricultural Development Bank (ADB) to acquire Jei River Farms at the western part of the Greater Accra Region.

 

He said the company, established about 10 years ago had established similar companies in Cote d'Ivoire, Senegal and Cameroon and is investing in Ghana because of prospects.

 

The Vice Chairman said, in addition, the Company was negotiating for a container terminal at the Tema port to export their produce, which would in future include banana and vegetables.

 

President Kufuor said the government shared the same vision with the Company to establish industrial farms, provision of capital and know-how, create employment and export their produce.

 

He said while they assist to improve the living standard of the people within their area of operation, they should become good corporate citizens in Ghana. "We want to be part of your team in order that Ghana can become a major exporter of fresh fruits to Europe because your operations in Cote d'Ivoire, which has the same vegetation as Ghana, thrived," he added.

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