GRi Business, Economics & Finance 19 – 19 - 2002

Ghana decides on partnership for national carrier

Aliu calls on Banking Community to assist small-scale businesses

SSB introduces new service to customers

Market index records only 0.04 per cent change despite six gains

 

 

Ghana decides on partnership for national carrier

 

Accra (Greater Accra) 19 September 2002 - The government has finally decided to enter into joint partnership with a viable company to help profitably run the distressed national airline, Ghana Airways. The decision which is one of the three options chosen by the Ghanaian government, after a diagnostic audit of the airline, is to enable the airline maintain its national identity.

 

Presently, the government is in serious negotiations with Nationwide Airlines of South Africa for a possible deal for a joint venture in the running of the airline, which is indebted to the tune of about $170 million.

 

Ministry of Roads and Highways sources are reported to have told the state-owned Daily Graphic that the government zeroed in on Nationwide Airlines because out of the about eight companies which showed interest in Ghana Airways, it was only Nationwide Airlines that met the government's criteria.

 

Under the criteria, the partner is required to have or must be able to access aircraft of acceptable standards, provide acceptable under-wing and over-wing service (full maintenance) and also have the capacity to train staff, particularly cockpit and cabin crew to acceptable international standards.

 

The partner is also expected to also have a reputable customer-service orientation and most of all, be traceable. It must also accept to assist in making Ghana the sub-regional hub among others. Nationwide has an annual turnover of between $50 million and $60 million and an average annual passenger growth of 20 per cent.

 

It has also a Boeing approved maintenance facility that can maintain aircraft from A-D checks and has a licensed training facility of international standards for in-flight operations and indeed, currently trains staff for other airlines.

 

Interestingly, Nationwide will also build a workshop in the country to maintain its aircraft ands also that of other airlines, thereby creating job opportunities for Ghanaians. The airline has a fleet of 22 aircraft having acquired two in 2001 and another four this year.

 

Should the deal go through, Nationwide Airlines would immediately bring in two Boeing 737 aircraft to augment the sub-regional operations, two Boeing 767 for its European and American routes and one Boeing 757 for operations in countries within Africa but outside the sub-region such as South Africa. The company depending on the needs would increase the number of aircrafts.

 

Nationwide travels with at least 70 per cent of its seats filled and has links with reputable airlines such as KLM, Singapore Airlines, Virgin Airlines, American Northwest among others, to ease the hustle of passengers who wish to connect flight to various countries or states in the US.

 

The government according to the sector ministry sources has taken the decision in the best interest of the nation, taking into consideration various views expressed on the Ghana Airways saga.

 

However, none of the companies is interested in taking up the huge debt of Ghana Airways but suggested that it should rather be what they called "ring-fenced". The Ghanaian Government would accordingly, under the circumstances, ring-fence the debt, but reports say looking at the potentials of the airline, the debt will be rescheduled after negotiations with creditors.

GRi…/

 

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Aliu calls on Banking Community to assist small-scale businesses

    

Accra (Greater Accra) 19 September 2002 -Vice President Aliu Mahama on Wednesday urged International Banks and Financial Institutions to secure funds with favourable terms for the benefit of small-scale businesses and non-traditional exporters.

 

Addressing a delegation of top executives of financial institutions both local and international, which called on him at the Castle, Osu, Vice President Mahama expressed concern about the difficulties faced by Ghanaian business community in obtaining funds for expansion and financing their exports, saying, the financial institutions were better positioned to assist.

 

"We, as a government, are doing our best to promote socio-economic growth, good governance and the rule of law, but we need your partnership to bring in external sources to make our achievements meaningful and sustainable," he said.

 

Members of the delegation, led by Mr Nout Wellink, President of the Central Bank of the Netherlands, are participants of a three-day international conference on the West and Central African Financial Sector.

 

More than 180 participants from all over the world are in Accra to devise strategies that would enhance the development of the capital market, financing of small and medium enterprises, the correlation between the economy and good governance and the financing of housing programmes.

 

Vice President Mahama underscored the need to support agro-businesses to improve the quality of life in the rural areas and appealed to Mr Wellink to encourage Dutch investors to explore the opportunities in the sector.

 

Dr Kofi Konadu Apraku, Minister of Trade and Industry, told the delegation about the Ghana Investment Fund (GIF), the Venture Capital Fund and the Export Development Investment Fund that had been established to support the private sector to propel economic growth.

 

Nevertheless, Dr Apraku said trade financing remained a challenge for small-scale businesses, adding that, because of the situation exporters were unable to take advantage of a 100-million-dollar export agreement, under which they could sell their goods to Libya.

 

Mr Edward Effah, Managing Director of Fidelity Group, announced that his Company with five other fund managers would launch a 50 million-dollar Pan African Investment Fund early next year. The fund would assist African businesses, particularly those in the agro -processing sector, which have the potential to prosper.

 

Other members of the delegation were Mr Jean-Marie Marquebreucq, Managing Director of Trust Bank, Mr Daniel Cuylits, Chief Executive of Dutch Belgolaise Bank, which is a majority share-holder of the Trust Bank and Mr Michael Barth, Chief Executive of FMO, a Dutch Development Finance Company, also a share holder in Trust Bank.

GRi…/

 

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SSB introduces new service to customers

 

Accra (Greater Accra) 19 September 2002 - Mrs. Emilia Nortey, Head of Information Technology (IT) of Social Security Bank (SSB) Limited, has said the mission of the bank is to be ahead of other commercial banks in the country.

 

This she believes would come through the highly motivated, committed, and professional individuals and teams, as well as the provision of superior customer service, while offering innovative and attractive products.

  

She was speaking in Accra on Tuesday at the launch of 'SSB SIKATEL' also termed the SSB Call Centre, the first '24-hour' a day and 'seven-day' a week Call Centre in the country. With the introduction of this new service to customers, the service is expected to eradicate the present system of queuing for information at the bank.

 

Mrs. Nortey said, the service allows loyal customers and potential customers to seek and have information about their accounts. She said the service also offers customers the opportunity to ascertain credible information about the bank's products, their needs, and their problems.

  

"It is aimed at preparing our customers and potential customers towards a more sophisticated technology and valued added products,” she said. She mentioned some of the functions of the Call Centre as statement and cheque-book requests, any other type of account inquiry and customer complaint.

 

The Head of the IT assured all customers that the bank has procured additional spares and back-up equipment in the event of link failure.

GRi…/

 

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Market index records only 0.04 per cent change despite six gains

 

Accra (Greater Accra) 19 September 2002 - Six equities, led by Mobil Oil Ghana Limited

(MOGL) registered gains at the close of Wednesday's trading on the stock market but the All-Share Index recorded an upward shift of only 0.38 points or 0.04 per cent.

 

The market indicator closed mid-week trading up at 1,305.58 points compared to 1,305.20 points.

This brought the change in the year to date up at 36.57 per cent by 0.04 per cent from 36.53 per cent. Shares traded of nine equities closed higher at 23,400 from a mere 9,800 sold on Monday.

 

The market capitalisation went up to 4,851.24 billion cedis from 4,850.50 billion cedis. In the broader market, there were six price changes, all positive. MOBIL gained 10 cedis to close at 19,710 cedis followed by Ghana Commercial Bank (GCB), which earned three cedis to finish trading at 3,343 cedis.

 

CFAO Limited, Standard Chartered Bank (SCB), SSB Bank (SSB) and Unilever Ghana Limited (UNIL) all gained one cedi each to close trading at 67 cedis, 26,021 cedis, 3,876 cedis and 4,218 cedis in that order.

 

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

ABL                     380

AGC                 18,805

ALW                 4,000

BAT                           952

CFAO                 67               +1

EIC                    4,510

FML                  1,627

GBL                           900

GCB                  3,343             +3

GGL                          912

HFC                          955

MGL                          254

MLC                          261

MOGL              19,720                        +10

PAF                           750

PBC                     400

PZ                     1,850

SCB                  26,021                        +1

SPPC                         387

SSB                   3,876             +1

SWL                          285

UNIL                 4,218             +1

CMLT                       460

 

GRi…/

 

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