No Show At Minimum Wage Negotiation

PARTIES THAT were expected to meet yesterday to negotiate the national minimum wage failed to do so because of a lot of challenges. While Government is insisting that it will not go beyond the 15 percent increment over last year’s wage amount of GH¢4.48, organised labour was looking for something better than that. Organised labour has therefore resolved to go to the meeting today and thrash out the issues. Workers have expressed the hope that a new minimum wage could be announced by the close of today even though there are still a lot of issues that all the parties need to work out at. Comprising government representatives, employers and organized labour, the tripartite committee has been meeting in recent times in an attempt to adjust the new daily minimum wage. Organized labour is proposing a 15.2 percent increase, which will translate into GH¢5.16, while Government wants to settle for a 15 percent increase to enable it manage the increasing wage bill, as well as the huge arrears it owes. Employers on the other hand are considering an increment that will not exceed the 9 percent inflation figure projected for 2013. Since the year began, five labour groups have embarked on strikes. They include the Christian Health Association of Ghana (CHAG), which suspended medical services to National Health Insurance Scheme (NHIS) cardholders. Members of the National Association of Graduate Teachers (NAGRAT), Ghana National Association of Teachers (GNAT), Concerned Teachers Association (CCT), the Teachers and Educational Workers’ Union and UTAG are calling for an upward adjustment of the daily wage. Meanwhile, economists have advised Government to be wary how much it raises wages in order to throw the economy out of gear.

Interbank ATM Patronage High

Statistics released by the Ghana Interbank Payments & Settlements Systems (GhIPSS) indicate that a lot of bank customers are using the interbank ATMs introduced by GH-Link in November, last year. Patronage of the product increased by 183 percent from over 7,300 users in January to over 20,000 transactions in March this year. This is indicated in the significant increase in the number of interbank ATM transactions recorded over the first quarter of this year. According to GhIPSS, a comparable increase in the value of transactions was recorded over the same period from a little over GH¢800,000 to GH¢2.3 million. Between 1,500 and 1,700 people are using ATMs of other banks every week, data available from GhIPSS states. In 2012, GhIPSS introduced the GH-Link Interbank ATM transaction switch, which enables ATMs of some 20 banks to accept all local ATM cards regardless of which banks issued them. GhIPSS began discussions with savings and loans companies, which operate ATM cards to enable them connect to the platform so their customers could also access ATMs of commercial banks. On a pilot basis, a minimum charge of GH¢0.40 has been set per transaction, but that is still being reviewed. Some banks that have been hooked onto the system include Ghana Commercial Bank (GCB), Standard Chartered Bank, Agricultural Development Bank (ADB), Zenith Bank, HFC Bank, UBA, UT Bank, Prudential Bank, and the Bank of Africa. Others are Unibank, Guaranty Trust Bank, Stanbic Bank, Access Bank and Ecobank. The Bank of Ghana has hailed the system, noting that it would help meet the long-term objective of financial inclusion and make the country a cashless society. GhIPSS has been working since the last four years at reforming the country’s payment systems to encourage more Ghanaians to embrace banking services. Explaining further, Archie Hesse, General Manager in charge of Project and Business Development at GhIPPS, noted: “If I need money, and I am with one bank, I do not have to go round looking for my bank’s ATM machine. I can redraw money from any ATM available. This will help increase accessibility and create a more convenient way of banking.”

Gov’t Under Pressure - To Stop Subsidising Petrol Prices

The International Monetary Fund (IMF) is mounting pressure on Government to make consumers pay full cost for utility services they enjoy. According to IMF, government’s intervention through subsidies for utility services offered to consumers people does not augur well for service providers since Government has not been able to honour its commitments to them sometimes. Government presently bears part of the production costs of utility companies to prevent consumers from paying for the full cost of utility services. Christina Daseking, Head of the Africa Department of the IMF, who confirmed the stance of her outfit on the issue to journalists in Accra, said it will be unwise for government to continue to subsidise utility costs of consumers with its present financial situation. Describing the move as tantamount to undermining the viability of public companies in the energy sector, Ms Daseking stated that such a situation kept private investors out of the market and also contributed to under-investment in the energy sector. Noting that such a proposal to Government was intended for the good of the economy, she called on government to completely remove subsidies on the prices of petroleum products. Ms Daseking further explained: “These subsidies go disproportionately to people who consume a lot of fuel and these people are those who are at the higher income level. We have said this in the past and we will continue to say that fuel subsidies should be removed and replaced by targeted spending to those people who need support.” Energy & Petroleum Minister, Emmanuel Armah Kofi Buah, noted that Government was working to ensure that consumers pay realistic utility tariffs to attract more private sector power producers into the energy sector. Meanwhile, the Public Utilities Regulatory Commission (PURC) has reiterated that it would only endorse the request by power producers to increase tariffs if producers offer quality services.

HP Fights Fake Products

Following a recent upsurge in activities of illicit vendors, HP has introduced an authentication technology that allows customers to tell within seconds if the ink and toner printer cartridges they have purchased are genuine HP products. Speaking at an anti-counterfeit conference in Accra yesterday to demonstrate HP’s latest mobile authentication solutions, Rita Amuchienwa, HP Supplies Country Manager for English West Africa, expressed concern at the impact of counterfeit products on businesses around the world. “Counterfeiting poses a huge challenge to brands and businesses in Ghana and many other countries around the world. Counterfeiters harm manufacturers and customers by consistently undermining business standards and practices. “Counterfeiting is bad news for everyone, as it dishonestly generates billions of dollars and threatens the reputation of global brands such as ours. It also harms consumers by creating low quality products with unknown chemicals which damage printers and could harm the environment.” Ms Amuchienwa stressed that “the war against counterfeiters is constantly evolving and we remain steadfast in our resolve, which is why we always look for new ways to tackle counterfeiting in our various markets across the world.” She therefore advised customers to be vigilant against fake printing supplies. HP, cooperating with local authorities, has in the last four years conducted more than 1,000 investigations, resulting in over 800 enforcement actions in the EMEA region. Nearly, nine million units of counterfeit products and components have been seized so far. Tolulope lawani, PPS Marketing Manager for HP West Africa, explaining a point at the conference, said that the latest sophisticated security technology on HP printer cartridges reiterated the company’s determination to protect consumers against the deceitful and illegal actions of counterfeiters. “Through the anti-counterfeit programme, HP is working hard to protect partners and customers, and ensure they receive only authentic supplies by making it difficult to produce, distribute and sell counterfeits. “HP has been tackling counterfeiting in three main ways: awareness, product packaging and enforcement. As part of this programme, we have introduced HP mobile authentication technology on new original HP print cartridges.” HP original inkjet and laser-jet print cartridges feature sophisticated holographic properties as well as a new quick response code which customers can easily validate using a web-enabled smartphone or online via www.hp.com/go/ok. With HP authentication software, HP offers customers easy to use support to avoid counterfeit laser-jet print cartridges.

Gov’t Must Reduce Holdings - GSE

Managers of the Ghana Stock Exchange (GSE) have called on Government to reduce its holdings in companies which are both listed and unlisted in its bid to increase revenue this year. They also advised Government to allow state-owned enterprises to go onto the capital market to raise funds for their operations. Ekow Afedzie, Deputy Managing Director of the GSE, who made the call when he briefed journalists yesterday on the first quarter performance of the Accra Bourse, also suggested a law on capital market local content. “A policy directing to such a development will enable Ghanaians become part owners of companies and create wealth for them and also help to deepen the depth of capital market. We expect the first quarter momentum to be sustained.” Kofi Yamoah, Managing Director of GSE, in a presentation, revealed that an insurance firm, Agricultural Development Bank (ADB) and a cedi-denominated bond by the International Finance Corporation (IFC) were expected to list on the bourse by September this year. According to him, the IFC had submitted a draft prospectus to both the GSE and the Securities & Exchange Commission (SEC). “We have reviewed and given them our initial assessment. Prior to submitting the prospectus to us, they have secured all the necessary approvals and principles. They have also been granted the needed regulatory approval from the Bank of Ghana. GSE for the first quarter made a return of 44 percent to investors. Total market capitalization was GH¢57.74 billion with the domestic market making GH¢6.67 billion. Volume traded was 68.12 million valued at GH¢71.5 million. GSE has been adjudged as the best performing market in sub-Saharan Africa by Bloomberg. 34 companies are listed on the GSE. With 7,914 transactions and listed government bonds totaling 92, the listed bonds registered a value of GH¢7.07 billion for the first quarter. Out of 34 companies, BOPP led the gainers in the period under review with 132 percent. Seven companies gained 50 percent and above; eleven gained above 10 percent while another eleven maintained their prices. There were only two losers during the period. Its alternative market - GAX - is an innovative market operated by GSE which focuses on small and medium size enterprises with high growth potential. It is expected to accommodate companies at various stages of their development, including start-ups and existing entrepreneurs, both small and medium. Listed companies in the alternate market will enjoy support through the GAX/SME listing support fund which will assist companies to meet the upfront cost of advisors. “The fund has been set up with initial contributions from Africa Development Bank, GSE and VCTF. It has low listing costs and a minimum stated capital of GH¢250,000 is required at time of listing. The objective is to establish a larger market for issuers, brokers, buyers and sellers of securities by harmonization rules and the creation of a common trading platform.

VRA Begins 150MW Wind Project

The Volta River Authority (VRA) is undertaking a project that will lead to the generation of an additional 150 megawatts of wind energy to the national grid. According to Deputy Chief Executive Officer Kirk Coffie, the project forms part of efforts to boost Ghana’s renewable energy in the coming years. VRA recently signed a contract to begin data-gathering activities along some coastal areas of the country. At a breakfast meeting of the Ghana Employers Association (GEA), Mr Koffie said information was being gathered around towns like Ada, Keta, Cape Coast and Winneba. VRA is undertaking the studies to determine the cost of the project. The Deputy CEO added that data gathering will take 12 months starting from this month after which the wind power will be designed for a year. The project is estimated at GH¢200 million. Further explaining his outfit’s resolve to embark on the project, Mr Coffie indicated that it was prudent for the country to embark on such a project. “Energy from the wind and the sun has never been in in short supply. We are also going to put too much effort in building renewables.” The project will be a joint venture agreement between Ghana and a private firm. Owing to limited installed grid power capacity in Ghana and the lack of significant potential import, electricity consumption is projected at 14,576.3 GWh. The first unit of the Bui power plant is expected to be operational by the end of the first quarter of 2013 but it is unknown what the current situation is.

Cut Down On Importation - Lecturer

Dr Opoku Afriyie, a Senior Economics Lecturer at the Kwame Nkrumah University of Science & Technology, has called for drastic reduction in the importation of foreign goods and services to protect local industries. He bemoaned the rate at which foreign imports dominate local production. At the opening of a two-day interactive session organised by the International Federation of Economic Journalists (IFEJ) for media practitioners in Kumasi on the 2013 Budget, Dr Afriyie reiterated the need for government to focus on building the economy around the private sector, especially local industries and also reduce the importation of some goods and services to enable local entrepreneurs thrive. The event was funded by STAR Ghana, a multi-donor pooled organisation. Dr Afriyie advised Government to take firm decision in promoting the private sector to engineer growth and take the lead in driving the economy. Noting that Government must adopt prudent legitimate, financial and affirmative actions to improve the country’s economy, think-tanks present argued that the days of favouring foreign industries at the expense of local ones due to the fear of World Trade Organisation regulations are over. Chairman of the Association of Ghanaian Industries (AGI), Robert Kwakye Nketia, challenged authors of the 2013 budget over the facts and figures they presented. He said the huge figures in the budget were cooked and did not represent the true picture of the present state of the economy. Mr Nketia said Government’s contention that fuel was subsidized was false because the tax elements charged on petroleum products took care of the so-called subsidy. He said government only paid lip service to agriculture, which engages about 70 per cent of the country’s population. Opening the workshop, President of IFEJ, Lloyd Evans, said the forum was the first of its kind for journalists to re-examine the country’s budget by making the necessary criticisms to inform and educate members of the public on some of the key areas. He noted that it is high time journalists set national agenda on the country’s budget instead of waiting for members of the public to do so. Dr Joseph Kwadwo Asenso, an official of the Ministry of Finance, who gave a brief overview of the 2013 Budget, took participants through the various areas of the budget, explaining the difficulties that were involved. He touched on the quantum of deficits in the budget and explained that failure to make up tax targets, the migration and payment of most public sector employees on the Single Spine Salary Structure and failure of donor agencies to honour their obligation to augment the budget contributed to some deficits experienced in the previous year.