GRi Business, Economics & Finance 22 – 05 - 2003

Inter-bank exchange rates of the cedi
USAID launches Trade Capacity-Building Initiative
Third Asian business session underway in Accra
Standchart gain pushes index up
Trade Minister visits Free Zone
Pay Reform Policy approved - Aliu
Oversight body needed to coordinate salaries - Armah

 

Inter-bank exchange rates of the cedi

Accra (Greater Accra) 22 May 2003 - The following are the average inter-bank exchange rates of major currencies against the cedi issued by the Ghana Association of Bankers on Wednesday 21May:

Currency                          Buying (Cedis)       Selling (Cedis)
U.S. Dollar                      8,552.55                  8,742.42
Pound Sterling                 14,039.87                14,356.85
Swiss Franc                    6,636.67                   6,783.62
Canadian Dollar              6,348.86                   6,488.09
Danish Kroner                1,349.75                   1,379.33
Japanese Yen                  73.32                        74.93
South African Rand        1,103.37                    1,123.59
Euro                               10,022.03                 10,241.00
CFA Franc
                    15.28                        15.61
Naira                              67.84                        69.38
ECOWAS WAUA        11,796.42
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USAID launches Trade Capacity-Building Initiative

Accra (Greater Accra) 22 May 2003 - The United States Agency for International Development (USAID) has unveiled an enhanced strategy to help boost less developed countries' capacity to participate in the global trading system. In the plan unveiled on Monday, USAID said its trade capacity building initiative was designed to increase the number of developing and transition countries able to use global economic forces to accelerate economic growth.

Projects stemming from the strategy would support those countries' participation in trade negotiations, implementation of trade agreements and economic responsiveness to trade opportunities, it said in a statement
issued in Accra on Wednesday.

In most cases, USAID said, specific projects would be selected jointly with partner governments with top priority given to proposals that help generate local support for trade reforms. "The strategy recognises that trade capacity building activities are likely to have the greatest impact in reform-minded developing countries that have made advances in establishing a sound investment climate and creating an export-supporting environment," USAID said.
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Third Asian business session underway in Accra

Accra (Greater Accra) 22 May 2003 - The Third Asian Business Session is underway in Accra to forge South-South cooperation between Ghana and Asia to promote private sector investment and technology transfer.

The session attracted participants from the Confederation of India Industries, Korea International Trade Association and Malaysian Chambers of Commerce, who are interacting with Ghanaian trade officials and entrepreneurs to expand investment opportunities.


The forum, a collaborative effort of the Ghana Investment Promotion Centre (GIPC); United Nations Industrial Development Organisation - Asia-Africa Investment and Technology Promotion Centre (UNIDO-AAITPC), would facilitate the building of alliances amongst African Investment Promotion Agencies and their counterparts in Asia.

Kwamena Bartels, Minister for Private Sector Development, said government had revised the legal and regulatory framework on investment to encourage the growth and development of the private sector. Bartels in a speech read on his behalf by Ishmael Ashitey, a Minister of State at the Ministry of Trade, Industry and President's Special Initiatives, outlined the numerous benefits that would accrue from foreign investors that included a corporate tax of only eight per cent on export
income.


Bartels said the extension of the railway network to the Northern Sector of the country and investments in the agricultural sector were among the priority investment opportunities. "Indeed with cocoa, our aim is to increase processing from the current 10 per cent to 20 per cent to at least 40 per cent of the total production and we will do all we can to encourage you to get into these areas," he said.

Ahmed Akpa, UNIDO Regional representative lauded the impressive growth rates of Asian countries within the past 30 years, and this he said was the result of their willingness to attract foreign investments.

He said Ghana's policy of "Golden Age Of Business" was likely to attract the same investments to increase the country's Gross Domestic Product. Masato Tsukiji, Leader of the Asian Business Delegation, said their focus was now on investments in the textiles, printing and the pharmaceutical sectors.

Referring to the benefits that would accrue to Ghana by the visit, he said the AAITPC had concluded one investment in Uganda whilst negotiations were going on in Tanzania and Zimbabwe through similar interactions.

Tsukiji said the distance between Ghana and Asia would not mar any investment drive in the country, since after all Ghana was closer to markets in Europe and the Americas. Kwasi Abeasi, Chief Executive of the GIPC, who chaired the function,
said research had shown that developing countries could generate over ¢300bn annually if trade barriers were lifted and fair prices paid to them.

"Clearly weighed against the requirement of only $50 to $60bn by the New Partnership For Africa's Development programme per annum, it is obvious that there should be more trade for developing countries if the world were to make any headway in development and in fighting poverty."


The session would discuss: "Investment Opportunities In Ghana;" "Ghana Export Processing Zone" and "Facilitating Trade Investments In Ghana". The entrepreneurs would also spend the next three days to visit some industrial firms in the country and organise one-on-one business meetings with President John Kufuor.
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Standchart gain pushes index up

Accra (Greater Accra) 22 May 2003 - A big gain by Standard Chartered Bank (SCB), the highest priced equity on the Ghana Stock Exchange (GSE), on Wednesday gave a big shot to the All-Share Index although traded volumes hit another low mark.


The index, the main gauge of the bourse, gained 14.53 points to close at 1,830.02 points from 1,815.49 points. SCB gained ¢1,995 at ¢36,000. Daniel Ogbarmey Tetteh of Data Bank Brokerage firm told the GNA in Accra that most of the listed equities including the banking stocks recorded no offer price because of the short supply of shares.

On Wednesday, 20 of the 25 listed equities recorded no offer prices. Total shares traded slumped to 54,300 from 1,164,800 on Monday. Total shares traded on Monday jumped largely on SSB Bank selling more than one million shares.

Tetteh said generally, the banking sector has remained attractive for investment. He said GCB had not been performing very well after its Annual General Meeting because of the reluctance of investors to sell in expectation of high performance if government should sell the bank.


Market capitalization went up from ¢7,922.82bn to ¢7,958.18bn while the change in the year to date fixed at 31.16 per cent. On the broader market, there were three price changes - all positive. Accra Brewery Limited (ABL) and Unilever Ghana Limited (UNIL) gained ¢1 each to close the day at ¢431 and ¢6,752 respectively. SCB gained ¢1,995 at ¢36,000.

The following are the last prices of listed equities in cedis:
ABL             431            +1
AGC            28,500
ALW            4,000
BAT             1,702
CFAO          72
CPC             630
EIC               5,005
FML             2,216
GBL             550
GCB             5,400
GGL             2,001
HFC             1,500
MGL            258
MLC            400
MOGL         19,950
PAF             750
PBC             380
PZ                2,040
SCB             36,000   +1,995
SPPC           390
SSB              7,000
SWL             285
TBL              5,200
UNIL            6,762      +1
CMLT           460
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Trade Minister visits Free Zone

Accra (Greater Accra) 22 May 2003 - Allan Kyeremanteng, Minister of Trade and Industries on Wednesday led a visiting two-man United States Trade delegation to tour the textiles and garment village in the Free Zone enclave at Tema to enable the visitors to explore the possibilities of establishing industries in Ghana.

The visit is under the President's Special Initiative in promoting the garments and textiles industries under the African Growth and Opportunity Act (AGOA). It is also to afford the delegation the opportunity to appraise the infrastructure development at the Free Zone village.


Kyeremanteng told the GNA that the government wanted to encourage potential foreign investors to set up garment and textile manufacturing companies that would take advantage of the AGOA initiative and produce for the U.S market. He said the proximity of the Ghanaian market to both the U.S and Europe was favourable to the exporting companies of textiles and garments.


They visited PRINTEX Company Limited, manufacturers of wax prints and Agridot Company Limited, a garment factory in Accra. The leader of the U.S Business delegation, Ms. Rosa M. Whitaker said their visit was to facilitate trade relations between the US and Ghana.


She said the delegation examine means of fulfilling the dream of President Kufuor of creating an export led economy. Ms Whitaker said the delegation had already placed an order for 200,000 pairs of pants for a Ghanaian company to supply under AGOA to the U. S market.

The delegation is also looking at investing in other areas such as power production, chocolate and sea-foods manufacturing. She said the prevalence of peace, stability and skilled labour force in Ghana were factors that made it ideal to invest in the country.

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Pay Reform Policy approved - Aliu

Accra (Greater Accra) 22 May 2003 - The Government has approved a Pay Reform Policy that would ensure a proactive and motivated Public Sector, capable of supporting good governance, sustainable development and other objectives
toward socio-economic growth.


Vice President Aliu Mahama, who announced this at a lecture, on Wednesday, said with the approval, the National Institutional Renewal Programme (NIRP), which formulated the policy, had been mandated to develop
implementation strategies.


This would enable the Cabinet to consider a more holistic, systematic and comprehensive compensation package that would be competitive to attract and retain critical skills in the public sector and also help change employee habits, productivity and performance.


The Lecture, the sixth to be organized by the Public Services Commission since 1998, was under the theme:" Toward a Disciplined and Productive Public Services: Implications of Adequate Compensation and Motivation for Efficient Service Delivery".


Vice President Mahama, who delivered the keynote address, noted that many of the problems resulting in the poor performance of the public services were related to low levels of compensation and lack of appropriate incentive, making pay reforms essential.


He said the NIRP had also finished work on a study that compared Public Sector Pay with analogous grades in the Private Sector, explaining that the results established the actual cost    implications for salary administration in the Public Service.

"The NIRP is working on a Public Sector Employee Census and functional reviews to establish the right size of the public service and to apply data to remove any 'ghost names' that may be detected on the Payroll." Vice President Mahama said the elimination of ghost names would release additional funds for human resource development, stressing that the government would monitor the implementation timetable to ensure that the programme was completed on schedule.

He commended the Public Service Commission for linking the issue of discipline to compensation, saying the canker had to be addressed while that of compensation was being addressed. He said: "It is quite clear to all that indiscipline is a big problem in our country. Many people infringe the laws with impunity and many more take these laws into their own hands.

"Late attendance to work, poor reception of clients, poor attitudes toward government property, weak supervision at workplaces and the lackadaisical attitude to work had contributed to low productivity and performance in the Public Service."


Vice President Mahama, however, expressed regret that acts of indiscipline during school strikes, workers' demonstrations, struggles within churches and undemocratic intervention in the body politic, were sometimes justified or explained away as struggle for justice.


"The struggle for the restoration of justice need not be waged with indiscipline. Discipline should rather enforce justice if it articulates and reflects the will of the people." Vice President Mahama reiterated that his call for discipline in all spheres of life was not new, saying, "it has been the call of organised societies for ages".

Discipline, he said, should, therefore, not be considered as an imposition, but the ability for self control... to train the mind and
character in a way that makes a human being accept that he or she is living in a society and therefore has certain obligations and responsibilities toward the other person."

He warned that families, companies, professional organisations and societies would not survive without discipline. Mrs. Elizabeth Joyce Villars, President of the Association of Ghana Industries, who chaired the function, urged Ghanaians to contribute toward the creation of wealth for the nation to benefit from its sharing.

She said it was important for workers to be discipline to raise productivity. Prof Bartholomew Armah, Senior Fellow of the Institute of Economic Affairs, who delivered the lecture, traced efforts at developing a National Income Policy since 1967 through the formation of various committees and bodies, saying it was still unfortunate that there were distortions in the
wage and salary structure.


He urged the government to address the distortions, that had worsened in recent times because of lack of coordination between the two responsible review bodies and selective pay enhancement packages by government for certain organisations.


About 80 minutes of the two-hour lecture attended by heads of institutions, members of the Council of State and Parliamentarians proceeded in darkness because of a power outage.
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Oversight body needed to coordinate salaries - Armah

Accra (Greater Accra) 22 May 2003 - A senior fellow of the Institute of Economic Affairs, Professor Bartholomew Armah on Wednesday said the lack of an effective oversight body to coordinate the multiple salary system in the country had
made the issue of salary distortion through the Ghana Universal Salary Structure (GUSS) less effective.

Delivering the sixth annual lecture of the Public Services Commission in Accra, Prof Armah said the failure to place the salaries of all public sector employees and state functionaries on the GUSS, following its introduction had culminated in two parallel salary structures in the country.

Salary payment to state functionaries identified in Article 71 of the Constitution is currently being informed by the A1-A154 salary structure, which is determined by the President on recommendations of a committee appointed by him acting in accordance with the advice of the Council of State.

He spoke on the topic: "Realistic Income Policy Measures and Strategies to ensure Sustainable Adequate and Equitable Compensation in the Public Services."

Prof Armah said because the processes for salary review under the GUSS was different from the corresponding processes for the A range, salary distortions in the public sector had been exacerbated resulting in curious anomalies in the pay scale.
"This phenomenon, partially accounts for the salary distortions existing within the judicial and Legal Services where two salary structures operate currently, creating a situation where a Circuit Court Judge on GUSS is on a higher salary than a High Court or an Appeal Court Judge on the 'A' range salary structure."

According to him, this distortions cut across public services, with the President's salary, which is the highest on the 'A' range scale being lower than the highest paid person on the GUSS scale.

"In sum, attempts to address salary distortion through the introduction of the new incomes policy have not met with much success," Prof Armah said, adding that, lack of rigorous process of job evaluation and grading in the public service to establish job equivalencies within the service had created distortions in the salary scale, which undermine the incentive to work and the principle of equal pay for equal work.

Prof Armah said distortions have also risen because of lack of a coordinated framework for salary review in the past and government tendency to selectively accede to wage demands for some workers while leaving others with the same job classification untouched.


Prof Armah traced the history of past committees set up to look into the issue, arguing that, they had all failed to pay attention to developing a framework for absolute income by focusing on resolving issue bordering on relative incomes or income disparities.


He said the implementation of the Price Water House Coopers framework that ensured public service personnel received equal pay for comparable work must be tackled if government was to realise the full benefits of its investment in the job grading exercise.


Prof Armah said despite its usefulness the PWA exercise did not however provide a framework for achieving a living wage in a sustainable manner. He called for the development of indicators of public sector productivity, which in combination with considerations of inflation and the overall resource of the country provide a basis for salary negotiations.

Prof Armah also stressed the need for expediting action on the implementation of the total compensation policy by incorporating allowances in the salary structure, saying poor monitoring of the process and the fact that institutions were allowed to adopt their own interpretation of consolidation, salary disparities within the service had not diminished.

Mrs. Elizabeth Joyce Villars said there was the need to open a national debate on the issue of public sector wages and income.
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