GRi Business, Economics & Finance 23 – 10 - 2002

Sierra Leone cries to Ghana for investment

Ghana, European Union sign ¢2.5 trillion agreement

Togolese government procures cocoa drink for pupils

 

 

Sierra Leone cries to Ghana for investment

 

Christian Agubretu, GNA Correspondent- Freetown

 

Freetown (Sierra Leone) 23 October 2002- Sierra Leone on Monday formally invited Ghana to invest in all sectors of her economy, which suffered 10 years battering of rebel war.

 

There were special appeals to those engaged in agro-processing industry and Unilever Ghana Limited to establish industries in the country. Dr. Kadi Sesay, Sierra Leonean Minister of Trade told an investment forum at the first Ghana-Sierra Leone Week in Freetown aimed at promoting cultural and trade relations between the two countries that private investment must begin with South-South economic co-operation.

 

"Africa's share of the total world capital is insignificant - less than one per cent, although Africa accounts for 12 per cent of the world population.  The importance of trading and learning from each other within the sub-region as the first building block in our globalisation efforts is therefore obvious."

 

Dr Sesay said, "The government of Sierra Leone is inviting all well meaning, honest Ghanaians and other companies to invest in Sierra Leone, particularly by opening industries in Sierra Leone, either through partnership or joint ventures or 100 per cent foreign-owned ventures."

 

She said the Sierra Leone government was working hard "to create the necessary enabling environment for investment.  Many of the factors that have often deterred investment capital flow to Sierra Leone are being address.

 

Sierra Leone is now a peaceful country, having emerged from a 10 years of turmoil. "Sierra Leone is making moves to deter and detect corruption through its anti-corruption commission activities," she told the forum.

 

Ghana's President John Agyekum Kufuor and his Sierra Leonean counterpart Alhaji Ahmed Tijan Kabah initiated the week during the former's visit to Sierra Leone early this year.

 

Alhaji Kabah was said to have requested that, now that Ghanaian troops had helped to bring peace in his country, Ghana should as well help in the rebuilding of the country. Dr Sesay, in her keynote address said: "Sierra Leone, is redoubling its efforts in trying to address concerns of poorly maintained infrastructure."

 

She said, "But in spite of just coming out of a war Sierra Leone has achieved macro-economic stability, characterised by single digit annual inflation rate and stable exchange rate.

 

"The economy is fully liberalised and open to foreign investment with no restriction on remittance of dividends" Dr Sesay said, "this one week trade fair has demonstrated the comparative advantage Ghana has in the manufacturing sector.

 

"The important expected output is to see a motivated Sierra Leone manufacturing sector sitting with their Ghanaian counterparts, establishment partnership, making arrangements from investment.

 

Dr Sesay called on GRATIS Foundation of Ghana to train Sierra Leoneans in the appropriate technology of food processing, bee-keeping, weaving industry and packaging materials since there was "clearly a weak link in the production chain in Sierra-Leone."

 

Asking Unilever to establish an industry in Ghana, Dr. Sesay said: "The popularity of Unilever products (washing powder, and soaps) to the Sierra Leone public during this week's fair has reinforce my belief that this will be a worthwhile venture for our countries.

 

"Sierra Leone has available the necessary raw materials like palm oil, palm kernel, cocoa and coffee, which could be used for that industry." She described the first Ghana-Sierra Leone week as "a great success" and said it must continue.

 

Mr Abubakar Saddique Boniface, Deputy Minister of Trade and Industry said Ghana has accepted Sierra Leone offer and it would focus on those in the private sector with the government providing the enabling environment.

 

He said the government would explore all possibilities "to help our Sierra Leone brothers and sisters." Mr Boniface said business thrived well in a peaceful and stable environment and that it was in that light that the effort of Sierra Leone government in restoring confidence of investors was appreciable.

 

He said he was hopeful that investment flow between the two countries should engage serious attention of the leadership of the countries. Those presents included Mr Joe Aggrey and Madam Theresa Togoe, Deputy Ministers of Youth and Sports and Works and Housing respectively.

 

Papers were presented by Gratis, Ghana Export Investment Centre, Ghana Architectural Engineering Services Limited (AESL), Association of Building Civil Contractors of Ghana and Sierra Leonean Development and Investment Corporation (SLEDIC).

GRi…/

 

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Ghana, European Union sign ¢2.5 trillion agreement

 

Accra (Greater Accra) 23 October 2002- Ghana and the European Union (EU) on Tuesday signed a five-year Country Strategic Paper (CSP) and Indicative Programme under which the EU is providing a grant of about 2.5 trillion cedis (311 million Euro) to address various projects.

 

The document provides a comprehensive and coherent framework for EU-Ghana cooperation for 2002-2007. It was signed by Mr Yaw Osafo-Maafo, Minister of Finance and Mr Stefan Frowein, Head of the European Commission's Delegation in Ghana.

 

It is divided into categories with the first category of 231 million Euro and the second of 80 million Euro. Under the first category, 35 percent of the amount goes into rural development, 30 percent into road transport, 26 percent to support macro-economic and nine percent for other programmes such as capacity building.

 

The 80 million Euro in the second category is earmarked for unforeseen needs such as emergency assistance and support to mitigate adverse effects of instability in support earnings. Forty million Euro would be used to finance the mining sector development project.

 

Mr Osafo-Maafo said the CSP document is a comprehensive development framework established under the Cotonou Agreement signed in June 2000 to help address the multi-dimensional nature of poverty.

 

He said the key objectives of the CSP are to help achieve accelerated poverty reduction, equitable growth and ensure the integration of the Ghanaian economy into the global economy, based on conclusions of the Ghana Poverty Reduction Strategy.

 

Mr Osafo-Maafo said to date the total of EU assistance since Ghana joined the African-Caribbean-pacific (ACP) group in 1975 is about 1.1 billion Euro. He said over the years arrangements of that nature had been on relatively narrow levels known as the National Indicative Programme (NIP) with lower levels of resources.

 

He said the current CSP and indicative programme, however, provide a higher allocation of funds in real terms than the NIP. Mr Osafo-Maafo said in addition to the amount, funds from the European Investment Bank, would also be available on a long-term basis and accessible to the private sector. He said it would operate as a revolving fund aimed at financial self-sustainability.

 

He said other areas such as small and medium enterprises, infrastructure and direct funding to large projects in key sectors of the economy such as agro-industry, mining and tourism, would benefit.

 

Mr Frowein said the document was developed in Ghana as a joint programme and the work would be monitored and evaluated.

GRi…/

 

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Togolese government procures cocoa drink for pupils

 

Tema (Greater Accra) 23 October 2002- The Togolese government's policy that school pupils should be served with cocoa drink instead of other soft drinks has made the Cocoa Processing Company (CPC) to increase its export in the sub-region.

 

Currently, CPC supplies about 12,000 tonnes of cocoa powder to Togo a month to earn between 50 and 60 million CFA, approximately, 49,672,165 cedis. Dr Paul Awuah, CPC Managing Director, said this when Mr Ishmael Ashietey, Minister of State in-charge of Fisheries, visited the factory located in the Tema East constituency.

 

''Togo's consumption of cocoa products is more than that of Ghana", Dr Awuah said. He said CPC would by December next year, increase cocoa processing when expansion works at the factory are completed.

 

''This will help the company to add value to about 60 percent of Ghana's cocoa. At present we add value to 25 percent of our cocoa.'' Dr Awuah appealed to the government to sell cocoa beans to the company at the price that prevails at the international commodity market.

 

He said CPC buys cocoa beans for processing far above the prevailing world market price. ''This is not good enough and can be frustrating. This will not encourage investors to come into the country to help add value to our raw cocoa.''

GRi…/

 

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