GRi Business, Economics & Finance 14 – 09 - 2002

Government takes stock of industrial development

Monetary and Fiscal policies on course - Acquah

Ghana Stock Exchange records poor trading as big investors stay away

 

 

Government takes stock of industrial development

 

Kumasi (Ashanti Region) 14 September 2002- Mr Akwasi Osei Adjei, Deputy Minister of Trade and Industry, has said that the government was evaluating the policies, programmes and projects of all key sectors of industrial development with a view to harmonising them.

 

Mr Adjei was addressing the national delegates' congress of the Association of Polytechnic Higher National Diploma Accountancy Students, Ghana (APHAS-GH) in Kumasi on Friday. The theme for the two-day congress was: "Propelling our local industries into competitiveness - A challenge to HND accountancy graduates."

 

"Whilst we are making efforts to build a solid foundation for the take-off of indigenous local industries, we shall continue to attract Foreign Direct Investment to partner local industries in our socio-economic development," he said, adding that foreign direct investments were needed to accelerate the country's development process.

 

"For Ghana not to be marginalised, we need to sharpen our competitive edge and the HND accountancy graduates have a big contribution to make to the process," he said. He noted that the manufacturing sector accounted for about nine per cent of the country's Gross Domestic Product (GDP) between 1996 and 2000.

 

He noted that the sector's contribution had fallen from its mid-1970s level of nearly 15 per cent of GDP to its present level largely because of the sector's weak growth relative to other sectors of the economy.

 

Speaking on: "Propelling our local industries into competitiveness, an alternative through the stock exchange", Mr Ekow Afedzie, Senior Manager, Marketing/Research/Systems of the Ghana Stock Exchange, said it was time local industries explored the stock market as an alternative for raising long term capital for expansion. Mr William Kofi Larbi Appiah, National President of the Association, called on industrial concerns to extend their scholarship packages to the polytechnics.

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Monetary and Fiscal policies on course - Acquah

 

Accra (Greater Accra) 14 September 2002- Dr Paul Acquah, Governor of the Central Bank (BOG) on Friday said the economy was on the path toward sustained disinflation. He said the continuous downward trend of the inflation rate from 13.5 per cent in July to 13.1 per cent at the end of August attested to the fact that monetary and fiscal policies were on course.

 

Dr Acquah was speaking at a press conference to highlight on the work of the Monetary Policy Committee of the Bank. The Committee was inaugurated in Accra recently to formulate monetary policy under the Bank's Act in Accra. He said low and stable inflation was indispensable for creating the macroeconomic environment for economic growth.

 

He said; "monetary policy is most effective in delivering price stability with the co-operation of fiscal policy, sound banking system and other agencies in the economy," adding that there were no dogmatic or one-size-fits-all approach to monetary policy.

 

Different Central Banks, he said, depending on the particular circumstances of their economies used different monetary frameworks in trying to achieve price stability. Dr Acquah emphasized the importance of communication of monetary policy decisions to the public to enable them to have a sound understanding of the system.

 

"The public at large need to understand what we are doing and why we are doing what we are doing to guide inflationary expectations and shape the economic fundamentals," he said. Answering question on 'if the introduction of the new notes would make any impact on inflation," Dr Acquah said the high denomination notes should be seen as a means to bring about efficiency in the payment for goods and services and had nothing to do with inflation.

 

He said the new notes would be introduced during the cocoa season but fell short of mentioning the exact date and stressed the need to educate the public on the security features of the notes.

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Ghana Stock Exchange records poor trading as big investors stay away

 

Accra (Greater Accra) 14 September 2002- The Ghana Stock Exchange (GSE) recorded another poor trading on Friday as big investors continued to stay away from the market. The GSE All-Share Index, the main market gauge, inched up by only 0.25 points as retail investors in seven companies sold only 9,800 shares. The Index ended trading at 1,304.49 points from 1,304.24 points.

 

The change in the year to date was slightly higher at 36.46 per cent from 36.43 per cent on Wednesday while market capitalisation was also higher at 4,849.13 billion cedis from 4,848.15 billion cedis. Shares traded slumped further to 9,800 shares from Wednesday's 21,000 shares.

 

In the broader market, there were four price changes, all positive. Ashanti Goldfields Company (AGC) gained four cedis at 18,805 cedis, Ghana Commercial Bank was two cedis richer at 3,333 cedis, British American Tobacco gained one cedi at 951 cedis and SSB Bank gained one cedi at 3,873 cedis.

 

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

ABL                      380

AGC                18,805       +4

ALW                  4,000

BAT                       951                        +1

CFAO                     66

EIC                     4,510

FML                   1,627

GBL                        900

GCB                    3,333                       +2

GGL                       912

HFC                       955

MGL                        254

MLC                        261

MOGL                 19,710

PAF                          750

PBC                          400

PZ                          1,850

SCB                     26,020

SPPC                        387

SSB                       3,873                     +1

SWL                         285

UNIL                     4,217

CMLT                      460

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