Ghana could generate additional income from
processing cocoa
Financial services firm promises assistance to local businesses
Ghana could generate additional income from
processing cocoa
Accra (Greater Accra) 01 Aug. 2001
Ghana could generate between a third and half more income from cocoa if every bean produced is processed, Dr Owusu Afriyie Akoto, a Commodity Expert said on Tuesday.
Dr Akoto, who said his assertion was based on estimates from each tonne of cocoa beans used in manufacturing semi-processed products in 1999/2000, added that as much as 1.26 million cedis was generated as gross income per tonne when value was added to the raw beans.
Further processing into confectionery products, he said, increased the gross income to 1.73 million cedis per tonne.
Dr Akoto was speaking on, "Adding Value To Agricultural Products -The Case Of Cocoa In Ghana," at a lecture organised by the Busia Foundation.
He said when all the factors of production (beans, labour, capital) were taken into account the net income of semi-processed products was about 760,000 cedis per tonne or 21.2 per cent value added. The equivalent for confectionery products was about 901,000 cedis per tonne.
Dr Akoto said benefits that could accrue from processing cocoa could go well beyond the estimates if better quality grains were processed and more of the semi-processed products were turned into confectionery, the more lucrative end of the market.
He said apart from the additional income that would accrue to the economy from the processing of the beans there were other indirect benefits, such as employment generation, improvement in skills of the labour force through training and the generation of additional business in packaging, advertising and others.
Dr Akoto said to reap the full economic benefits of cocoa processing investment in that capacity was required.
It is estimated that more than 160 million dollars would be needed in capital investments to add 200,000 metric tones more to the existing capacity.
Currently, the West African Mills Company (WAMCO) owned by Hosta Group of Companies and Cocoa Processing Company process only 105,000 metric tonnes out of an annual production of about 400,000 metric tonnes of cocoa.
There are plans to increase the installed capacity to about 190,000 metric tonnes if Barry Callebaut of Colima Holdings comes on line later this year and CPC doubles its current production capacity of 25,000 tonnes.
Dr Akoto said a special targeted government incentive would be required to attract the needed level of investment, adding that such an additional venture would earn the country about 56 million dollars annually.
Dr Akoto said CPC should be encouraged to list on the Ghana Stock Exchange to enable it to tap funds for expansion to meet the current shortfall in processing capacity.
GRi../
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Accra (Greater Accra) 01 Aug 2001
Dr Owusu Afriyie Akoto, a commodity consultant on Tuesday urged the Ghana Cocoa Board (COCOBOD) to monitor the prices at which wholly owned subsidiaries of large multinational companies operating in the country exclusively produce and supply semi-processed cocoa products to their sister companies abroad.
He said such supply arrangements are open to abuse and may engender conflict of interest in the export pricing of the products.
"Since these supplies go to their sister companies abroad, it is important that the determination of their export prices is made as transparent as possible," he said.
Dr Akoto was speaking at a public lecture organised by the Busia Foundation in Accra. He spoke on the topic: "Adding value to Agricultural Products-The Case of Cocoa in Ghana."
He said it is important that COCOBOD monitors the process if the country is to enjoy the maximum foreign exchange accruing from such exports and to also ensure that these products are supplied at the ruling world market prices.
Dr Akoto stressed the need for government to enter into some understanding with foreign companies for commitments to invest in the manufacture of confectionery, which is more lucrative, than the current practice where they restrict themselves to semi-processed products.
He suggested to the government to offer more incentive packages to attract investors into that domain.
Dr Kofi Konadu Apraku, the Trade and Industry Minister said it was the government's vision to transform the economy to an agro-based industrial one by the year 2010.
He asked the public to make suggestions that would enable the government to formulate appropriate policies to stimulate the process.
GRi../
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Accra (Greater Accra) 01 Aug. 2001
Mr Joseph Abraham, the outgoing Managing Director of the Standard Chartered Bank (SCB) is to take up another post in London this week.
An announcement by the bank said on Wednesday that he is to be replaced by Mr Ebenezer Essoka, former Chief Executive of SCB Cote d'Ivoire who has already taken up the position.
Mr Essoka, a Cameroonian has had a vast experience in the bank in both Anglophone and Francophone African countries.
GRi../
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Accra (Greater Accra) 01 August 2001
Currency Buying Selling
US Dollar 6,992.00 7,228.00
Pound Sterling 10,006.95 10,349.05
French Franc 938.90 970.09
Swiss Franc 4,072.34 4,207.62
Deutsche Mark 3,147.93 3,254.52
Canadian Dollar 4,555.45 4,706.47
Japanese Yen 56.04 57.92
Dutch Guilder 2,794.77 2,887.65
S/African Rand 847.14 875.00
Euro 6,158.12 6,363.16
CFA Franc 9.39 9.70
Naira 64.53 66.70
Ecowas/WAUA 8,829.58 --------
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Accra (Greater Accra) 01 August 2001
Westminster Mortgage Finance Limited on Wednesday declared its intention to provide loans of between 300,000 dollars and 10 million dollars to local businesses for the purchase of non-military equipment from the United States.
Speaking at a breakfast meeting at the Labadi Beach Hotel, Felix Kwame Semavor, Chairman of the company, told the 40 invited businessmen and journalists that its goal is to assist local companies in gaining medium to long-term financing to be able to expand production and improve efficiency.
"We are committed to this cause and see ourselves playing a pivotal role in improving the competitiveness of our local companies," said Mr Semavor.
Westminster Finance offers its clients equipment buyer credit loans to purchase non-military equipment used in manufacturing, transportation, medical and mining projects, of not less than 85 percent.
It operates on the basis that prospective clients would have to provide a 15 per cent down payment in cash or in physical assets that may be used as collateral.
The company supports clients of its inventory buyer credit loans to secure short-term loans guaranteed by Ex-Im Bank for the purchase of raw materials, spare parts and components, medical supplies and agricultural products.
The Sub-Saharan representative of Webster Bank in the United States works with the Westminster Finance to advise clients on preparing project documents and business plans.
Loan repayment period ranges from two to seven years at variable interest rates determined by the world markets' performances.
"With our banking people [in the US], we know how to handle the challenges, as long as you provide us the right information," said Mr Walter Mather, Vice-President of HSBC Equator, a banking company.
Also present at the meeting was the United States Embassy's Commercial Specialist Ms Karen Burress-Floyd, who provided information on the Africa Growth and Opportunities Act (AGOA).
She said Africans now have the opportunity to tap into the almost 10 trillion dollar US market.
"For those of you engaged in import financing, I encourage you to support the efforts of solid businesspersons in their efforts to expand their operations to enable them to satisfy bigger clients, to attract bigger orders, to earn bigger dollars."
GRi../
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