GRi Business, Economics & Finance 18 – 10 - 2002

Ghana targets 1,000 dollars per capita by 2010

Three banks launch joint debit card

Horticulture exports records increase in earnings

 

 

Ghana targets 1,000 dollars per capita by 2010

 

Ho (Volta Region) 18 October 2002 - Dr Paa Kwesi Ndoum, Minister of Economic Planning and Regional Cooperation, on Thursday said the 1,000 dollar per capita income a year target set for 2010 was achievable and not over ambitious.

 

He was speaking at a national durbar at Ho to mark the United Nations International Day for the Eradication of Poverty under the theme "Promoting a Culture of Long term Savings, Social Security and Insurance."

 

A scheme with the objective of promoting savings, social security and insurance was also launched at the durbar. Dr Nduom said the government would, therefore, create the atmosphere for the private sector to grow rapidly to contribute to attaining the target.

 

He regretted that Ghana that was richer at independence than now had been overtaken by countries that had the same growth figures about 40 years ago. Dr Nduom said, for example, Ghana's per capita income is one 15th of that of South Korea, which had the same economic conditions as Ghana at independence.

 

He regretted that more than 90 per cent of Ghanaians still survive on less than one dollar a day. The Minister said the government's programme to tackle poverty recognises growth as a necessary requirement for sustained poverty reduction.

 

He listed priority areas as infrastructure development, rural development based on modernising agriculture, enhanced social services focusing on education and health, good governance and private sector development.

 

Dr Nduom said there was the need to promote and mobilise domestic savings for investment in addition to developing innovative forms of social protection.  "This is the best way to create a pool of investment capital for our enterprises.  We cannot continue to think that some foreigners will bring their capital to develop Ghana", he stated.

 

Dr Nduom said the Scheme devised by the Council of Indigenous Business Association (CIBA) would be a significant boost to the government's policy of promoting and mobilising domestic savings for investment and social protection.

 

He said only 800,000 workers, mainly from the formal sector were covered by Social Security and National Insurance Trust (SSNIT) while workers in the informal sector, who formed about 70 per cent of the workforce in the country were left out in the scheme.

 

Ralph Ameyaw, Executive Secretary of CIBA said the Scheme, which would be operational next year, would cover health needs and insurance against old age for its members from about 20 associations.

 

The associations include, dressmakers, garage owners and staff, hairdressers, jewellers, caterers and exporters. Ameyaw said projected contributions of 2,500 cedis a day, 12,000 cedis a week or 50,000 cedis a week would be disbursed to the various component facilities under the scheme.

 

He said managers of the scheme would be guided by controls to ensure accountability. Ms Gifty Antekyi Area Coordinator of SNNIT in Accra said the Trust was carrying out a study on the informal sector and on the submission of a report it would devise means to rope in many workers in that sector in its schemes.

GRi…/

 

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Three banks launch joint debit card

 

Accra (Greater Accra) 18 October 2002 - Three major banks on Thursday launched a joint electronic debit card to add up to the growing list of electronic payment cards to ease banking and financial transactions in the country.

 

The e-Card as it is called, operated by ECOBANK, CAL Merchant Bank, The Trust Bank and Dart Communications, a private communications company, is the first in Ghana and West Africa.

 

The system operates on two dedicated wireless data networks, the card system with one on an inter-bank network linking the banks mentioned and the Bank of Ghana to the switch on one hand while the other network links point of sale terminals in retail outlets to the TMS switch.

 

The e-card is utilised as a rival form of payment to cheques and cash and has advantages of freeing the user from the danger of carrying huge sums of cash, cheque books, travellers cheques from one point to the other.

 

To perform a transaction, you simply swipe your card at a sales terminal; enter your amount of purchase and then your secret PIN number. The system then sends this message to the bank, it checks to see if you have sufficient funds, and authenticates the transaction if you do. Subsequently, your account is debited and simultaneously the account of the merchant is credited.

 

The Minister of Communications and Technology Felix Owusu-Agyepong who launched the product commended the consortium for this innovation, and said it will add value to banking and promote the development of value added technological service in banking.

 

He said Ghana is in the process of bringing into a single entity all relevant telecom infrastructure backbone in the state sector with a view to opening up accessibility to the development of information communication technology.

 

Owusu-Agyepong noted that Ghana by this has positioned herself advantageously in the sub-region if the automated clearing of transactions between banks is effectively networked.

 

The Minister expressed the hope that the remaining 14 banks would soon join the TMS switch to enable Ghanaians enjoy convenient banking, irrespective of which bank holds their accounts.

 

"We are looking forward to the day when one electronic card can be used on all ATMs across the country as the case is in Europe, America and other parts of the world." He promised to convene a meeting of the heads of the other banks to discuss this proposal to meet the objective of achieving e-banking in Ghana within the shortest possible time.

 

Owusu-Agyepong asked the implementers of the new system to protect the cards from forgery and duplication, urging them to continuously develop solutions to protect the confidentiality of user PIN numbers.

 

The e-card according to Frank Adu Jnr, Managing Director of CAL Merchant Bank can be used at 150 merchant points in Accra and Tema. "It does not matter which of the three banks issued the e-card. Thus merchants no longer need to have different sales terminals for different cards on their counters."

 

Explaining how the system works, Adu Jnr said the system provides a secure online settlement at the inter-bank level. "This means that previous inter-bank settlements that took up to 72 hours can now be done in real time."

 

He said a cardholder does not need to pre-load his card while eliminating cash counting errors and delays. "The whole transaction is done in 10 seconds," he said. "To the merchant, it provides effective control and an audit trail, eliminates disputes with customers and bankers and has instant credit."

 

Millecine Narh, Head of Banking, Bank of Ghana, commended the collaboration between the three banks noting that it has been the aim of the central bank to ensure that banks join forces to make their operations less costly and convenient.

 

He said it was in this direction that the central bank has commenced the implementation of a Real Time Gross Settlement (RTSG) system for high value inter-bank domestic payments.

 

The project is an online wholesale electronic payment system, which will form the heart of Ghana's payment systems through which the net clearings from the other retail payment streams will be settled in central bank money.

 

"The RTSG system," he added, "will also enable banks to monitor their account balances with the bank throughout the day and improve their liquidity and exposure management."

GRi…/

 

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Horticulture exports records increase in earnings

 

Fumesua (Ashanti Region) 18 October 2002 - Foreign exchange earnings from Ghana's horticulture exports have increased from $28m in the year 2000 to more than $29m in 2001.

 

Dr Kofi Konadu Apraku, Minister of Trade and Industry, observed that the increase was recorded in the volume of chilli pepper which increased from 1.2 million dollars in 2000 to 1.9 million dollars in the year 2001.

 

Additionally, exports of vegetables, notably to Europe, rose from $10.4m in the year 2000, to $12.1m last year. Dr Apraku said this in an address read for him at a one-day seminar organised by the Ghana Institute of Horticulturists (GIH) for its members and partners at Fumesua near Kumasi on Thursday.

 

The seminar was on the theme: "The role of horticulture in alleviating poverty and improving the quality of life", and attended by about participants made up of researchers, members of the institute and producers of products in the horticulture sector.

 

It was designed to assess performances of the institute over the past year and devise strategies for improving the quality of life of Ghanaians through the use of horticultural practices.

 

Dr Apraku stressed the need for the establishment of industries to process food items for export instead of exporting them in their raw form. "We earned over nine million dollars from an export of 5,000 tonnes of processed fresh fruits and vegetables in the year 2000 as compared to the $13m earned from the exports of almost 40,000 tonnes of fresh pineapples in the year 2001", he said.

 

Dr Apraku said today's international trade demands extra attention in areas of standard and quality, saying "this is not to only meet buyers interest, but largely to help export companies meet competition".

 

C. David Esch, Country Director of Amex International, a USA-based consultancy firm that provides service for exports and production of fruits and vegetables, said the only surest guarantee that could propel Ghana to benefit immensely from the export drive was for the exporters to go into partnership.

 

Esch said just as large quantities of production was important, it should not be at the expense of quality, adding, "the two must go together to make the products acceptable on the international market".

 

Dr Nana Sakyiwa Olympio, chairperson, Middle Zone branch of the Ghana Institute of Horticulturists, appealed to the Food and Drugs Board to give equal attention to checking and ensuring standards of products meant for the local markets just as it does for the export market.

GRi…/

 

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