GRi Business, Economics & Finance 07 – 11 - 2002

Ghana and Shandong Province sign Memorandum of Understanding

All Share Index plunges on Aluworks loss

Current trends in telecom industry is satisfactory- Minister

Thousand dollars per capita income achievable -Dr Nduom

Brong Ahafo launches anti-cocoa smuggling campaign

Government urged to promote alternative commodities for export

 

 

 

Ghana and Shandong Province sign Memorandum of Understanding

 

Accra (Greater Accra) 07 November 2002- A Memorandum of Understanding to strengthen economic and trade co-operation has been signed between Ghana and the business delegation of Shandong Province, China, in Accra.

 

Kojo Agyepong, Chief Director of the Ministry of Trade and Industry, signed on behalf of Ghana whilst Liang Bo, Deputy Director of the Department of Foreign Trade and Economic Cooperation signed for the Chinese Province.

 

The memorandum was signed when the delegation paid a farewell call on the Minister of Trade Dr. Kofi Konadu Apraku in his office. The 31-member delegation arrived in the country on Saturday, 2 November to explore opportunities, which exist in the country.

 

According to the memorandum, the two parties would focus on and enhance co-operation in fields of agriculture, machinery, building materials and textiles and any other fields that may be agreed upon.

 

The parties would also assist each other in the organisation of participation in exhibitions, fairs, seminars and similar events taking place in each party's country aimed at the expansion of economic cooperation.

 

Dr Apraku said 12 business deals were close to be sealed by the delegation. These have been categorised into three segments, namely, the importation of goods like automobile parts, ceramics, floor and wall tiles into Ghana. It also includes the export of pineapple ocean fishing, cassava, shea butter processing, wood processing, warehousing, salt processing, textile and garment.

 

He said the team also identified Ghanaian counterparts and were working on modalities of joint-venture agreements. Liang B, said the visit has deepened their understanding of the country. The delegation departs for China on Wednesday.

GRi…/

 

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All Share Index plunges on Aluworks loss

 

Accra (Greater Accra) 07 November 2002- The Ghana Stock Exchange (GSE) All Share Index, the main market indicator, slipped on Wednesday by 1.34 points on account of a whopping 100 cedis loss by Aluworks.

 

The bourse, which also saw four equities gaining, ended trading 1,339.66 points. The change year to date dropped at 40.14 per cent from 40.28 per cent. Market capitalisation dropped marginally at 4,939.44bn cedis from 4,942.08bn cedis.

 

There were five price changes four positive one negative. Aluworks lost 100 cedis at 3,700 cedis. Guinness Ghana Limited gained 10 cedis to close at 1000 cedis and the Social Security Bank gained three cedis to close at 3,957 cedis.

 

Uniliver and Fan Milk Limited gained two cedis and one cedi to close at 4,316 and 1,751 cedis respectively. Total shares traded dropped significantly at 51,200 shares from 191,100 shares at previous close.

 

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

ABL                      380

AGC                     18,807

ALW                    3,700                      -100

BAT                      1,001

CFAO                  67

EIC                       4,526

FML                     1,751                      +1

GBL                      500

GCB                     3,510

GGL                     1,000                      +10

HFC                     955

MGL                     254

MLC                     270

MOGL                  19,721

PAF                      750

PBC                      390

PZ                         2,000

SCB                      28,000

SPPC                    387

SSB                      3,957                      +3

SWL                     285

UNIL                    4,316                      +2

CMLT                  460

GRi…/

 

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Current trends in telecom industry is satisfactory- Minister

 

Accra (Greater Accra) 07 November 2002- The Minister of Communication and Technology, Felix Owusu-Adjapong has said that the healthy interconnectivity of telecom service enjoyed by subscribers now is the result of the new sense co-operation existing between operators in the industry.

 

"With the new sense of harmony and cooperation, we have successfully smoothened relations and have secured greater interconnection among networks which has reduced frustration that subscribers go through."

 

Owusu-Adjapong who said this at a maiden press conference for key players and operators in telecommunication sector to interact with the media said this has set a good pace for Ghana to achieve the dream of becoming the hub of ICT in the sub region.

 

The Minister, however, assured that measures were being put in place to ensure that this healthy cooperation did not result in the establishment of a cartel to the detriment of subscribers.

 

"Matters that hitherto were referred to the courts for settlement are now openly discussed and resolved to the mutual satisfaction of the operators." Owusu-Adjapong said, though government recognizes the fact that it was unnecessary for it to involve in the day-to-day affairs of these limited liability companies, it owes it as a responsibility to nurture the practice in the country.

 

He added that because infrastructure was a major prerequisite for the development of the industry, the involvement of government might be difficult to conceal. Owusu-Adjapong, refuted reports carried by some sections of the media that Telecom Malaysia has offered its share of 30 percent in Ghana telecom for $200m.

 

This he said has not come to the notice of the government and added that a recent letter received from Telecom Malaysia has even questioned the validity of the offer indicating that it was not true.

 

The Minister said government would soon receive the final valuation report of the shares from its financial advisors. "It is in government own interest to get the figures of the valuation as early as possible so that the problem of membership of the company could be solved," he said.

 

Some answers provided by the operators included the problem of interconnection, which it was said would be phased out by March 2003, extension of service to the middle belt and the Northern parts of the country especially access to the remotest areas.

GRi…/

 

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Thousand dollars per capita income achievable -Dr Nduom

 

Nerebehi (Ashanti Region) 07 November 2002-Dr Paa Kwasi Nduom, Minister of Economic Planning and Regional Co-operation, has said that with the initiation of a number of programmes designed to alleviate poverty, the 1,000-dollar per capita income by 2010 declared by the government was achievable.

 

He said the HIPC initiative had so far yielded good results and the fact that most donor agencies and countries were prepared to assist the government were healthy signs. Dr Nduom was addressing two separate durbars at Nerebehi and Kuntanase as part of his visit to launch and inspect projects of the Ghana Poverty Reduction Project and the Social Investment Fund (SIF) in the Atwima and Bosomtwe-Atwima-Kwanwoma districts in the Ashanti Region.

 

In the Atwima District 14 projects including nine schools buildings and five income-generating projects under the SIF are to be undertaken at a cost of 2.1bn cedis. The construction of a block of six classrooms with three toilets had begun at Nerebehi at a cost of 650m cedis.

 

The Bosomtwe-Atwima-Kwanwoma District is the beneficiary of 1.7bn cedis for the execution of 17 projects including 10 schools buildings and the funding of seven income-generating projects.

 

Dr Nduom said the introduction of the SIF, which was component of the Ghana Poverty Reduction Strategy (GPRS), would help to establish income-generating projects at the district level.

 

''This will encourage rural dwellers, especially farmers, to stay and work in their villages to increase food production for local consumption and for export.'' He said the government's major agenda was the provision of infrastructure to which the Japanese Government had promised to assist and called on district assemblies to draw up income generating programmes and submit them to the SIF for funding.

 

''Such projects would be supervised and inspected regularly to ensure that funds are being put to the use for which they were intended.'' Madam Ama Serwaah, Executive Director of SIF, said so far 45 districts had benefited from the fund made available by the African Development Bank (ADB) and the United Nations Development Programme (UNDP).

 

She called on women not to sit idle but to take advantage of the many programmes under the fund. Charles Yeboah and Bright Addai Mununkum, District Chief Executives for Atwima and Bosomtwe Atwima-Kwanwoma respectively, who took the Minister round on his tour, promised to ensure strict supervision of the projects.

 

Ben Bukari, Minister of State at the National Development Planning Commission, appealed to those who will benefit from the fund to put the money to good use.

GRi…/

 

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Brong Ahafo launches anti-cocoa smuggling campaign

 

Nkrankwanta (Brong Ahafo) 07 November 2002- The Ghana Armed Forces (GAF) has instituted a probe into a recent media report of an alleged involvement of some security personnel in cocoa smuggling outside the country.

 

Brigadier George Ayiku, General Officer Commanding the Northern Command disclosed this on Tuesday at the launch of the Brong Ahafo Regional anti-cocoa smuggling campaign at Nkrankwanta in the Dormaa Ahenkro District.

 

He said the GAF was conducting investigations into the case and the appropriate actions would be taken against the personnel if found guilty. "Personnel found to be involved in the smuggling of cocoa will be dismissed from the service if the truth of the matter is established and will also be prosecuted at the law courts".

 

Brigadier Ayiku said the Army was aware of the good work of security personnel at the borders but there were "a few bad nuts" who were destroying the image of the profession and must be weeded out.

 

He urged the personnel to take advantage of the government's incentives package for those who could arrest smugglers and desist from conniving with the smugglers. The Commander advised the public to provide information about any personnel found aiding smugglers for their arrest and gave the assurance that their identities would be protected.

 

Ernest Akubuor Debrah, the Regional Minister, noted that cocoa as a major source of revenue for the nation over the years would continue to be the back bone of the economy in view of its contributions to the Gross Domestic Product (GDP), foreign exchange earnings and employment generation.

 

The government regularly reviews the producer price of the crop upwards and has available logistics for the mass spraying exercise of cocoa farms against pest and other diseases because of its immense contribution to the nation's economy, he added.

 

"Government has remained committed to enforcing the use of the Akuafo Cheque in the purchase of cocoa to protect farmers against unscrupulous buyers". The Regional Minister expressed regret that in spite of such efforts by the government the crop had continued to be smuggled across the borders to neighbouring countries.

 

The smuggling of cocoa, which has become a chronic problem with disastrous effects on the economy, has contributed to Ghana losing her enviable position as the world's largest producer of cocoa to Cote d'Ivoire in the 1970s, he said.

 

Debrah added that recent studies indicated that Ghana had lost her second place to Indonesia. The Regional Minister announced that the regional Security Council (REGSEC) was also putting up measures to check the smuggling of petrol, kerosene and other petroleum product to Cote d'Ivoire.

 

He warned that smuggling was an offence punishable by law and any one caught would be made to face the full wrath of the law. Debrah said the REGSEC was making arrangements to receive and care for all refugees who might find their way into the Dormaa District because of the crisis in Cote d'Ivoire.

 

He appealed to residents along the border to assist and direct refugees to the registration centres and also to report the presence and movement of strange persons in their communities to the security agencies.

 

Dr Kwame Addo-Kuffuor, Minister of Defence, who launched the programme, reiterated the adverse effects that the smuggling of cocoa across the borders had on the nation's economy.

 

The country has already lost its former glory in timber, mines and is now left with cocoa, which is gradually being smuggled into neighbouring countries. He reiterated that cocoa smuggling reduced Ghana's total output by as much as 60,000 metric tonnes and expected revenue in foreign exchange amounting to $62m.

 

He advised the people to stop the negative practice and help save the nation's limited foreign exchange earnings for development. This will also help the government to fulfil its promise of providing good roads, water, and health facilities to raise the living standards of the people, he said

 

Dr Addo-Kuffuor, who also acts as Minister of the Interior later presented 700 school uniforms, 240 notebooks, 400 exercise books and 1,550 pencils to support education in the district.

 

He promised to provide three pick up vehicles and three motorbikes to enable the district to fight effectively against smuggling. Sam Appah, Deputy Chief Executive of COCOBOD in charge of marketing announced that 242 billion cedis had been set aside to control pests and other cocoa diseases in all cocoa growing areas next year.

 

He added that 10m cedis had also been allocated to the COCOBOD education scholarship scheme for brilliant but needy children. Osagyefo Oseadeeyo Agyeman Badu II, Omanhene of Dormaa Traditional Area, who presided, commended the government for increasing cocoa producer price three times since it assumed office and called for more increment to bridge the gap between Ghana and the neighbouring countries to prevent the smuggling of cocoa.

GRi…/

 

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Government urged to promote alternative commodities for export

 

Techiman (Brong Ahafo) 07 November 2002- The Government has been urged to give equal attention to non-traditional commodities for export. Dr S.K. Gyamfi-Yeboah, a homeopathic practitioner, who made the call in an interview with Ghana News Agency, held that the price of cocoa could fall "as it happened in 1999-2000," hence the need to promote other commodities.

 

He urged the government to give equal attention to maize, millet, yams and tomatoes, "which can also be exported for foreign exchange." Dr Gyamfi-Yeboah, also called for the re-organisation of the Ghana Food Distribution Corporation (GFDC) to provide ready market for farmers.

 

The government must also work to re-activate tomato processing factories to give small-scale farmers the opportunity to contribute to the Golden Age of Business, he said.

GRi…/

 

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