GRi Business, Economics & Finance 01 – 10 - 2002

Economics Bank Management

Ivory Coast mutiny puts pressure on Tema port

Market records another drab trading

NEPAD is to rescue Africa

 

 

Economics Bank Management

 

Kintampo (Brong Ahafo) 01 October 2002 - Bank of Ghana has urged managements of rural banks not only to be concerned about making profits but also to ensure that their collective activities brought about social development of the rural communities.

 

For the achievement of this goal, the Central Bank has called for a well-composed and capable management that would ensure that adequate policies, practices, and procedures are established and complied with.

 

Mr Joseph B. Clottey, Head of the Banking Supervision Department of Bank of Ghana made the call at the 17th annual general meeting of shareholders of Kintampo Rural Bank at the weekend.

 

He said the Rural Banks should also ensure that appropriate information systems were established, statutory and regulatory directives regarding solvency and liquidity were observed as well as the adequate protection of the interest of shareholders and depositors.

 

It is in this light that the Bank of Ghana has been placing emphasis on the inclusion of accountants, economists, bankers and other seasoned professionals on the Boards of Rural Banks and the recruitment of experienced persons to occupy management positions, Mr Clottey said.

 

He emphasised that "such calibre of board and management would be well disposed to efficiently address the merging challenges on the banking scene."

 

Mr Clottey said the role of management should however be complemented by well-trained, motivated, loyal and responsible staff. "The level of competition in the banking industry requires competent and well-trained staff to assist the board and management to effectively exploit all the opportunities in the market to enhance profitability and growth."

 

He commended the board, management, shareholders, and staff of the Kintampo Rural Bank for their hard work, honesty and dedication. Mr Clottey noted that their efforts had contributed to the tremendous and sustained growth and development of the Bank as records at the Bank of Ghana showed.

 

The total assets of the Bank during the first half of the year expanded by 22.7 per cent to 7,271.3 million cedis while short-term investments rose by 1.3 per cent to 2,580.1 million cedis. He said the Bank's gross loans increased by 41.1 per cent to 3,079.5 million cedis while deposits surged up by 1,091.3 million cedis (29.5 per cent) to 4,792.6 million cedis.

 

Mr Clottey urged rural banks to take concerns raised by external auditors and Bank of Ghana in their examination reports and surveillance activities seriously and implement all the recommendations made promptly.

 

"Effective implementation of these recommendations addresses lapses and shortcomings to improve on performance," he said. The Head of Supervision gave the assurance that the Central Bank would, on its part continue to adopt policies and implement programmes aimed at restructuring the institutional framework, promoting human resource capacity building and sourcing of on-lending facilities to strengthen the working capital base of rural banks.

 

He said the Bank would also ensure the development and growth of efficient Rural/Community Banks as integral part of a vibrant banking system for sustainable economic development for an improvement in the living standards of people in the rural communities.

 

Mr Kwaku Poku, Chairman of the Bank's Board of Directors, said it recorded a pre-tax profit of 998.3 million cedis last year compared to 434.7 million cedis in 2000.

 

On the Bank's Group Micro-Credit Scheme for Women in the area started in October 2001, the Board Chairman said by December 31, that year the number of clients had increased to 348 with savings of 11.9 million cedis.

 

The scheme is expected to cover about 3,200 clients by the end of this month, he said and expressed the hope that the scheme would grow to become one of the Bank's sources of income and help to improve the economic situation of women in the district.

GRi…/

 

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Ivory Coast mutiny puts pressure on Tema port

 

Tema (Greater Accra) 01 October 2002-Vessels carrying cargo originally scheduled for the landlocked countries have been compelled by the on-going mutiny in Cote d'Ivoire to discharge at the Tema port.

 

The situation is gradually putting pressure at the berthing points at the port, Mr Cletus Kuzagbe, Operations Manager of the Ghana Ports and Harbours Authority (GPHA) told the Ghana News Agency in an interview on Monday after a visit to the port that showed increase in traffic.

 

At the moment, he said, the GPHA is capable of handling the situation but should the situation become unbearable for the Tema port alone to handle, the sister port at Takoradi may be asked to assist to ease the pressure.

 

He however, stated that they had been anticipating the situation because, since the mutiny started in that country representatives of the Shippers Council for the various landlocked countries had informed the GPHA to expert diverted vessels carrying cargo for those countries.

 

So far, the MV IST, a vessel from the Far East, which was scheduled to discharge rice for Mali and Niger through the Cote d'Ivoire discharged 6,000 tonnes of rice for Ghana and was compelled to discharge the remaining 13,000 tonnes at the Port.

 

Another vessel, MV Blanden Delmas, detailed for Burkina Faso is also discharging 2,500 tonnes of flour Two other vessels, MV Rays and MV Tina Two, carrying 10,500 tonnes and 5,000 tonnes of rice respectively, which were originally at anchorage at Abidjan waters diverted their routes and are waiting at the anchorage at Tema to berth at the port to discharge for Mali and Niger.

 

He said GPHA is carrying out these jobs in addition to its normal vessel calls at the port. Mr Kuzagbe therefore, advised owners of the diverted cargoes to provide trucks to deliver the goods directly when they are being discharged from the port to the various destinations.

 

In view of the mutiny, the trucks would be compelled to go through Ghana and that would prolong the journey instead of the short cut through Abidjan.

GRi…/

 

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Market records another drab trading

 

Accra (Greater Accra) 01 October 2002- Share prices of three equities rallied at Monday's trading to push the All-Share Index up by 2.16 points in a dull market.

 

Although the market index rose from 1,308.51 points to 1,310.67 points to open the week trading, traded shares continued their downward slide. Total shares traded dropped from 55,700 shares last Friday to as low as 25,300 on Monday. Guinness Ghana Limited (GGL) sold the highest shares of 20,200.

 

The change in the year to date was at 37.11 per cent. Market capitalisation rose from 4,857.18 billion cedis on Friday to 4,861.38 billion cedis.

 

All the three price changes were positive. Fanmilk Limited gained the highest of 24 cedis at 1,651 cedis. Unilever and Ghana Commercial Bank gained 17 cedis and 14 cedis to close at 4,260 and 3,370 cedis respectively.

 

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

ABL                      380

AGC                  18,807

ALW                  4,000

BAT                            953

CFAO                   67

EIC                     4,520

FML                   1,651                        +24

GBL                            900

GCB                   3,370                        +14

GGL                           912

HFC                           955

MGL                           254

MLC                           262

MOGL               19,720

PAF                            750

PBC                      400

PZ                       1,850

SCB                   26,023

SPPC                          387

SSB                    3,901

SWL                           285

UNIL                  4,260                        +17

CMLT                        460

GRi…/

 

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NEPAD is to rescue Africa

 

Accra (Greater Accra) 01 October 2002- African countries have been urged to wake up to the realities of their underdevelopment and find a workable framework of recovery in view of the increasing spate of globalisation, declining foreign assistance and foreign direct investment and the marginalisation of the continent in world trade.

 

Africa accounts for less than two per cent of total world trade; 52 out of the 73 countries listed in the low human development category are in Africa; and over six million refugees and about 120 million illiterates are found on the continent and has the highest infant mortality rate in the world.

 

Mr Alfred Salliah Fawundu, UNDP Resident Representative in Ghana, said this in a speech at the opening of a three-day Sub-Regional Conference for West African Parliaments in Accra on Monday.

 

The Conference on the theme: "The Role of Parliament in Relation to NEPAD, Sustainable Development and HIV/AIDS." Parliamentarians from the 15 ECOWAS and European, experts from the West African Sub-Region and representatives from UNICEF and UNDP are attending the conference.

 

The agenda covers the main issues in contemporary African development, which are the main concerns of the New Partnership for Africa's Development (NEPAD) and aims at formulating a "parliamentary response" to the NEPAD initiative in the format of a parliamentary action plan on the main issues.

 

Mr Fawundu said it was heart warming that a new generation of African Leaders have decided to live up to their responsibilities and demonstrate leadership by fashioning out the NEPAD as the way forward to rescue the continent from its predicament.

 

"NEPAD is a bold initiative to have an integrated and comprehensive framework for Africa's development. It is designed and managed by African leaders themselves and premised on home-grown programmes."

 

Mr Fawundu said in designing a solution to the diagnostic assessment, NEPAD sets out a broad vision of the continent's future and outlines a strategy for achieving that vision. He said, "NEPAD argues that for socio-economic development to be realised there must prevail peace, security, democracy and good political governance, improved economic and corporate governance and regional co-operation and integration."

 

"NEPAD also provides a developmental framework guided by principles of sound economic policies and management as well as for transparent, accountable and democratic governance," he said.

 

Mr Fawundu said, "the UN and UNDP share NEPAD's vision and are working to ensure that it succeeds and that the UN General Assembly at its plenary session adopted a resolution to support NEPAD while all UN agencies are now committed to support NEPAD".

 

He said "sustainable development is simply not possible without sound, transparent, democratically accountable institutions, stretching from local to national level, capable of protecting the environment while providing critical services such as security, clean water, justice and economic opportunity for the poor."

 

UNDP has launched a series of concrete initiatives all built around partnership with civil society, the private sector, bilateral and others to catalyse the broad action around five priority areas of water, energy, health, agriculture and bio-diversity.

 

Mr Fawundu said the UNDP was, therefore, providing integrated approaches to sustainable development that cut across democratic governance, poverty reduction, HIV/AIDS prevention, environment and energy, information and communication technologies and crisis prevention and recovery.

 

He said, however, that the success of the NEPAD would depend on how African governments and leaders showed commitment and zeal in implementing its principles adding that Parliaments in the Sub-Region have a crucial role to play for its success.

 

Dr Joel N. Scholten, President of the Association of European Parliamentarians for Africa (AWEPA), called for the active participation of leading personalities of the ECOWAS Parliament in fashioning out a sustainable socio-economic programme to the benefit of the Sub-Region.

 

He said there was the need for joint efforts to combat the HIV/AIDS menace on the continent since the pandemic was now moving from a personal and family crisis to that of social and economic and potentially societal.

 

Mr Peter Ala Adjetey, Speaker of Parliament of Ghana, who chaired the conference, said it was regrettable that Africans seemed not to move forward but always backwards at their own detriment. He said the challenge facing the implementation of NEPAD to respond to the various inadequacies was enormous and all must ensure that this time round it did not fail since it was "home grown'.

GRi…/

 

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