GRi Business, Economics & Finance 05 – 11 - 2002

Fan Milk, Guinness give life to Stock Exchange

New financial system introduced

Chinese delegation visit could be beneficial- Apraku

Government initiates move for establishment of Pulp and Paper Mill

 

 

Fan Milk, Guinness give life to Stock Exchange

 

Accra (Greater Accra) 05 November 2002- Fan Milk Limited (FML) and Guinness Ghana Limited (GGL) gave the Ghana Stock Exchange (GSE) something to smile about as their gains pushed the main stock index up by 1.14 points.

 

The GSE All-Share Index, the main market indicator, ended 1,341.46 points from 1,340.32 points. Change for the year was up at 40.28 per cent from 40.15 per cent while market capitalisation was up at 4,942.08 billion cedis from 4,939.84 billion cedis.

 

Total shares traded went up at 191,100 shares from 17,800 shares. In the broader market, there were there changes. FML gained 50 cedis at 1,750 cedis, GGL gained 10 cedis at 990 cedis and SSB Bank was one cedi richer at 3,954 cedis. Following are the last prices of listed equities in cedis:

 

ABL                        380

AGC                  18,807

ALW                   3,800

BAT                     1,001

CFAO                      67

EIC                      4,526

FML                    1,750                       +50

GBL                        500

GCB                    3,510

GGL                       990                       +10

HFC                       955

MGL                       254

MLC                       270

MOGL               19,721

PAF                        750

PBC                        390

PZ                        2,000

SCB                   28,000

SPPC                      387

SSB                     3,954                       +1

SWL                       285

UNIL                   4,314

CMLT                    460

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New financial system introduced

 

Accra (Greater Accra) 05 November 2002- A new Budget and Public Expenditure Management System (BPEMS), which would be the bedrock for all Government financial management transactions will become operational from 01 December this year.

 

The Controller and Accountant General's Department has begun a three-day regional training workshop on the new system at the Institute of Local Government Studies in Accra for about 180 participants drawn from the Ministries, Departments and Agencies (MDAs).

 

John Prempeh, Controller and Accountant General told the workshop that the BPEMS which was a core component of the Public Financial Management and Reform Program (PUFMARP) was to ensure an efficient implementation of the budget, with adequate flexibility to the MDAs in the management of their programs and projects.

 

He said it would also enable the Ministry of Finance to maintain an oversight for macro-economic stabilization. He said a review of Government Public Accounting and Financial Management Systems, which initiated PUFMARP in 1993 highlighted problems such as weak expenditure, monitoring and control systems and lack of proper accounting and monitoring systems.

 

Prempeh said the BPEMS would improve internal control systems, support the business process of the Government and the Modified Accrual concept of accounting within the public sector.

 

He said to aid the new system, high powered computer systems and communication infrastructure were being installed in the various plot implementation sites, adding that in all 67 sites would be involved in the first phase, including the Office of the President, Parliament (Public Accounts Committee) and the Ministry of Finance.

 

Prempeh said a comprehensive seven segment Chart of Accounts had also been designed for accounting and reporting on financial transactions. In an address, Sheikh I.C. Quaye, Greater Accra Regional Minister, observed that weaknesses such as the lack of proper accounting and a more efficient data collection system plagued the Public and Financial Management systems in the country.

 

He said this was most unfortunate, since those deficiencies were most crucial to the development of the country. Sheikh Quaye noted that the system would ensure better accountability and urged the participants to make as much use as they could of the workshop.

 

Professor Sam Wood, Director of the Institute of Local Government Studies, said education on the new system was most important, noting that several reforms failed because of inertia, vested interests and lack of understanding. He said the successful implementation of the new system lay chiefly in its being well understood.

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Chinese delegation visit could be beneficial- Apraku

 

Accra (Greater Accra) 05 November 2002- Dr Kofi Konadu Apraku, Minister of Trade and Industry, on Monday said Ghana stood to benefit immensely from the visiting Chinese trade and business delegation should even 10 percent of them decide to invest in the country.

 

"If 10 percent of them are going to invest in the country, there will be an improvement in the general welfare of Ghanaians within a short period of time," he said. "China is far advanced in the industrial and technological sector, and we are talking of a market of about 1.3 billion; you can imagine the opportunities that exist," he said.

 

The 33 delegates from Shandong Province, Eastern China who arrived in Ghana on Sunday, are in the country to explore opportunities for trade and investment. The Shandong Province with a population of about 95 million, has great economic potentials with world known giant textile, electronic, food processing and chemical industries. Its annual total export is about $20bn.

 

Dr Apraku noted that Ghana is a country whose industrial potentials have not been fully explored, hence every area in the industry is yet to be tapped. "That is why we are more interested in a mutually satisfying relationship."

 

He announced that tomorrow's Economic and Business forum for local and foreign investors at the Ghana International Trade Fair would address critical issues relating to investment opportunities.

 

Dr Apraku said it would afford the delegation the opportunity to know which areas potentially exist for good investment. Bo Liang, Leader of the delegation, said China was very much aware of Ghana's great attention to economic and trades relation with her sister countries.

 

He expressed the hope that their visit would be meaningful and fruitful to strengthen cooperation between the two nations. He said Shandong Province over the years has set up economic and business relations with over 200 countries and is hoping to further widen and strengthen the relationship.

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Government initiates move for establishment of Pulp and Paper Mill

 

Daboase (Western Region) 05 November 2002- The government has started negotiations with Exim Bank for a loan of 105 million dollars for the establishment of a Pulp and Paper factory at Subri Industrial Plantation Limited (SIPL) at Daboase in the Mpohor Wassa East District.

 

Doctor Kofi Konadu Apraku, Minister of Trade and Industries said this during his familiarisation visit to SIPL at the weekend. He also stated that a Chinese Company, 'Complaint' and another company from Britain, have expressed interest in the establishment of the pulp and paper project.

 

Dr Apraku said Complaint had gone further to sign a memorandum of understanding with the government on conditions that would make it possible to implement its plans. He said he had been to China and held talks with the company, adding that President J.A. Kufuor was expected to hold further negotiations with the company during his visit to that country.

 

Dr Apraku expressed the hope that the outcome of the President's negotiation would be made public on his return to Ghana. He assured the workers that government would ensure none is laid-off by any company that takes over SIPL.

 

He disclosed that a new board of directors has been appointed for the company and the names would be announced soon. The Managing Director of SIPL, George Naah, said the company was set up to establish an additional 4,000 hectares of 'Gmelina Arborea' to the existing 1,000 hectares plantation.

 

He said the company achieved its target in 1996 and has since been looking for a strategic investor who would provide funds for the establishment of a Pulp and Paper Mill. Mr Naah said a number of feasibility studies had been done and all have concluded that a Pulp and paper mill at Daboase would be a viable venture.

 

He said Ghana imports 59,806 metric tonnes of paper annually at a cost of 44 million dollars or about 317 billion cedis. The Managing Director said the company lacked funds for the maintenance of the existing plantations adding that it was also grappling with non-payment of tax arrears as well as utility bills in addition to its indebtedness to suppliers and other creditors.

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