GRi Business, Economics & Finance 11 – 10 - 2002

Credit for small-scale poultry farmers to resume this year

Ministry of Local Government to set up Rural Development Fund

UNCTAD calls for actions to restore investor confidence

Political instability derailed Ghana's economy progress - Ndoum

More than 350 people trained on textiles initiative

 

 

Credit for small-scale poultry farmers to resume this year

 

Accra (Greater Accra) 11 October 2002- Credit support to small-scale poultry farmers is to be renewed this year, Dr Oppong Anane, Deputy Director of Animal Production, Ministry of Food and Agriculture, announced on Thursday.

 

The government, he said, had also taken delivery of a 5.2 million dollar facility from the African Development Bank for on-lending to poultry farmers under the livestock improvement project, to enable them buy drugs and equipment among other things.

 

Contributing to a roundtable discussion in Accra on support policies for the poultry sector, Dr Anane said the government was tapping ideas of all key players in the industry to enable it formulate a vibrant policy.

 

The Ghana Centre for Democratic Development organised the discussion to provide an opportunity for policy formulators and other stakeholders to examine support policies on the protection of the local poultry industry.

 

Participants criticised the country's lack of a workable agricultural policy, saying the sector would collapse if good policies were not drawn to solve the numerous problems affecting its development.

 

According to them a government policy backed by the appropriate legislation was necessary to ensure that the poultry industry's development agenda was implemented to the full to boost people's interest in the sector.

 

They said the government's call to people, especially the youth, to take up employment in farming would fail unless express attention was paid to resolving the problems facing the agricultural sector to make it attractive for businessmen to invest both money and time in it.

 

The Participants urged government to expedite action on the formulation of a comprehensive workable policy to encourage both investors and other key players into the sector to boost food production.

 

They also called for the protection of agricultural imports, especially poultry products from countries where they were heavily subsidised, to ensure the survival of the local industry.

 

Mr Kenneth Quartey, Chairman of the Ghana National Association of Poultry Farmers (GNAFF) said government support for the poultry sector was necessary to ensure growth and should not be seen as an act of favouritism, adding that, the high cost of production could not be borne by farmers alone.

 

Mr Quartey drew attention to the importance of subsidies to farmers in reducing some of the cost, saying that the benefits of such interventions were not only to the farmers but also to the whole country.

 

"World-wide, government support and intervention in the food production industry has been necessary and is common practice," he said. Mr Quartey questioned the rise in the importation of frozen chicken, which increased from 11 million dollars in the year 2000 to 26 million dollars last year.

 

Mr Kwabena Darko, a renowned poultry farmer, stressed the need for all stakeholders to be involved in the policy formulation for the sector.

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Ministry of Local Government to set up Rural Development Fund

 

Lawra (Upper West) 11 October 2002- The Ministry of Local Government and Rural

Development is setting up a trust fund into which companies could pay contributions to promote development programmes in the rural areas.

 

Known as the Rural Development Trust Fund, it is expected to enhance and make development programmes more meaningful to the rural population. Mr. Kwadwo Baah-Wiredu, the sector minister, said this when addressing a durbar of chiefs and people of the Lawra District at Lawra on Wednesday.

 

It was organised in honour of President Agyekum Kufuor to climax his three-day working visit to the Upper West Region. Mr Baah-Wiredu reminded beneficiaries of the various loan facilities given out by the district assemblies that they were not gifts and should be repaid.

 

He said district assemblies had started instituting legal actions to recover loans given out before the NPP assumed office. Dr Richard Anane, Minister of Roads and Transport, said 35 new steel bridges would be constructed throughout the region next year.

 

He assured the people that all on-going road projects in the district would be completed and new ones added. "The NPP government would develop the roads in the region to enhance economic activities so that the people can feel they belong to Ghana,'' he said.

 

Mr Clement Eledi, Deputy Minister of Mines, called on the people to allow peace to prevail in the region so that they could enjoy the benefits of positive change. He regretted that the government was spending millions of cedis on peacekeeping troops at Wa, Bawku and Yendi.

 

Mr Eledi appealed to chiefs, elders and opinion leaders to evolve suitable conflict resolution mechanisms to resolve these disputes. Mr Sylvanus Ganfaa, the District Chief Executive, said the assembly planned to develop the Black Volta River as a source of water for dry season gardening.

 

He therefore, appealed for funds to acquire pumping machines, pipes and fencing material. Mr Ganfaa said the assembly had so far given 397 million cedis as loans to groups and individuals.

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UNCTAD calls for actions to restore investor confidence

 

Accra (Greater Accra) 11 October 2002- The Unite Nations (UN) Conference on Trade and Development (UNCTAD) said on Thursday that Ghana could once again become an attractive destination for Foreign Direct Investment (FDI) in Africa if several actions were taken to restore investor confidence.

 

These include restoration of macro-economic stability, strengthening infrastructure, increasing productivity and securing local business partners. It also called for a sustained sterling economic performance and removal of causes of the prolonged economic crisis of the past to enable the nation to recover lost grounds in FDI.

 

These were the main conclusions of the United Nations Conference on Trade and Development Report on Ghana's Investment Policy Review, which is being examined at a day's investment forum in Accra on Thursday.

 

Various stakeholders are looking at the Review to enable them to formulate programmes that would enhance investment flow into the country. The UNCTAD Investment Policy Reviews are intended to help countries improve their investment policies and to familiarise governments and the international private sector with the investment environment in those countries.

 

The Investment Policy Review on Ghana was initiated at the request of Ghana Investment and Promotion Centre (GIPC) and the Ministry of Foreign Affairs. According to the Report, although the investment framework was generally sound and non-discriminatory to investors, some of the provisions crafted in the last 10 years were no longer relevant to new investment concerns.

 

It, therefore, recommended a review of some of the provisions of the Investment code, with the view to easing restrictions on establishment and ownership of companies. The report said there was the need to place the tax system on an equal footing with international standards, particularly withholding tax, tax auditing and tax administration.

 

It advocated for the establishment of a task force to reform land laws and establishment of land banks to facilitate foreign and domestic freehold or leasehold ownership.

 

The report also recommended the launch of a booster programme to revive investment by domestic and established foreign investors to encourage expansion of existing businesses and re-investment by investors in new projects.

 

"The booster programme should address issues that can be reviewed and implemented within six months to one year, with concrete results envisaged over a three-year time frame," the Report said.

 

It recommended that a task force should be established to review the tariff structure and remove inconsistencies, especially in the structure of import duty that discriminated against local assemblers and manufacturers.

 

"Encourage existing manufacturers to expand and diversify," the report said, adding, "All new investments in production capacity could get accelerated depreciation allowance that allows write-off within three years."

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Political instability derailed Ghana's economy progress - Ndoum

 

Accra (Greater Accra) 11 October 2002- Political instability and a weak cultural mindset have been identified as drawbacks to Ghana's advance into becoming an economic giant on the continent.

 

Making reference to what political stability could do to a country, Dr Kwesi Ndoum, Minister of Economic Planning and Regional Integration, said it was a sure way of boosting economic activity, increasing investor confidence and moving the nation forward on several fronts.

 

Dr Ndoum said at a day's workshop to review Ghana's Investment Policy in Accra on Thursday that Ghana would be a better place to live in if the nation did away with political upheavals and changed its poor cultural mentality to a productive lifestyle.

 

"Abrupt ends to governments have since the 1960s resulted in the abandonment of viable and constructive development projects which usually are not continued by those who take power. After 45 years we are poorer today than at independence."

 

Dr Ndoum noted that the several development plans including the Vision 2020, the blueprint for socio-economic development produced by the National Democratic Congress (NDC), had not worked.

 

He said 1951-1959 development plan "worked to about 70 per cent with the building of the Tema Motorway, Korle Bu Hospital, Tema and Takoradi harbours, and a number of secondary schools in the country, but it was halted.

 

The Minister urged Ghanaians to drop their "weak cultural mindset" and ensure that they become productive, adopt good practices and not fall back to "Ghanaian culture" as excuses for their inability to do things right.

 

"We as a people must adopt a significant shift in national culture and the way we do things to ensure that we are not left behind." Dr Ndoum called for urgent attention to these two areas in discussing the new national vision that begins tomorrow.

 

Mr Kwesi Abeasi, Chief Executive of the Ghana Investment Promotion Centre (GIPC) said the conference falls in line with activities to make the centre achieve its set objectives of a one-stop shop for investment.

 

He expressed regret that direct foreign investment flow has been slow, describing it as "unsatisfactory", especially after the events of 11 September attacks on New York and Washington in the US.

 

"What is refreshing is that it has led to a general slow down in the entire world economy and by this we can reposition ourselves to start things afresh." Dr Khalil Hamdani of UNCTAD attributed Ghana's peculiar situation to an un-sustained inflow of foreign direct investment.

 

He said Ghana has the potential even though it is currently listed as the 20th in Africa in terms of foreign direct investment. Dr Hamdani said Ghana is not tapping enough from its traditional linkages for investment in the world.

 

The conference coordinated by the UN Conference on Trade and Development (UNCTAD) and GIPC, aims at fine-tuning Ghana's Investment Code and maximising foreign direct investment while raising per capita income considerably.

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More than 350 people trained on textiles initiative

 

Accra (Greater Accra) 11 October 2002- Mr Michael Kwashie, Managing Proprietor of Kwashie Tailors, one of 14 garment factories selected to participate in the Presidents’s Special Initiative (PSI) on Textiles, on Thursday said over 350 people have received training and are waiting to begin mass production.

 

In an interview with the Ghana News Agency (GNA), he lauded the initiative but pointed out that the way it is being implemented was not too smooth. He said those trained are currently locked up at the training centre, Volta Garments Limited (VGL) in Accra, producing only a few garments.

 

He said under the PSI scheme, each of the 14 selected garment factories is to train and employ 300 people. The 14 factories were selected after a thorough assessment of their activities by an American consultancy firm, J.T. Penny. The assessment was based on quality of products, management, sales and other criteria.

 

Mr Kwashie said to date each of the 14 factories has since February this year trained at least 25 personnel in various skills such as stitching, cutting and knitting at VGL. "We are of the view that government should have ensured that the establishment of the factory went in tandem with the training of the personnel," he said. "The kind of training we are giving them takes between three to six months to complete."

 

He said normal apprenticeship takes about five years to complete but this one is to enable trainees to perform specific tasks in tailoring. Mr Kwashie said this is the first time any government in Ghana has actively involved the garment industry in the national development process and "we the players in the industry welcome it."

 

"This initiative will not only boost the industry, but also get several young people off the streets into gainful employment. The relatively shorter period of training and the 150,000 cedis government allowance for the trainees is enough motivation for young people to participate," he noted.

 

He said at the moment the trainees have produced shirts and other garments of international quality and standard, which are being marketed locally. He added that there is a big market for the products but not enough hands to meet the demand.

 

"Kwashie Tailors alone currently has an order of 7,000 pairs of trousers by one American customer, but we do not have the hands to meet the demand. If we are able to train more hands we could meet some of these high demands in no time."

 

Mr Kwashie appealed to the government and its development partners to expedite the establishment of a proposed garment factory to ensure speedy training of apprentices. In a related development, Mr Isaac Osei, Ghana's High Commissioner to the United Kingdom, told the GNA that Ghana could carve a niche for itself in that country, if the local garment industry met standards of quality, price and demand.

 

He said the PSI on textiles is laudable, but the players in the industry needed to take advantage of it and make it work for them and for the nation as a whole. "Government has decided not to do business, but rather to create the enabling environment for the private sector to do effective business," he said.

 

"It is up to the players in the garment industry to take advantage of the free zones facility to establish factories to meet the market for their products."

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