By Samuel Boadi
AT THIS time and age where most countries in the world are inculcating several forms of modernity into their infrastructural development, especially in their mining areas, the same can still not be said of Ghana and one wonders why Government is just insensitive. Samuel Boadi delves into the issue.
NEWMONT GHANA started operations at its Ahafo Mine in January 2006, went into processing in June of that year and had its first gold pour on July 18, 2006. According to the company, it has made capital investments of up to $1 billion as at end of 2009 and paid royalties totaling $42.3 million as at end of the last quarter of 2009.
This is welcome news particularly considering the quantum of investment involved and the chain of employment it has created in addition to the compact benefits that have accrued to persons affected by the company’s operations.
Newmont’s Ahafo mine boasts of two primary ore zones - North and South, separated by the Bosumkese Forest Reserve. These entail 11 deposits over a 40-kilometer trend. As at 2008, its Ahafo south site had reserves of 5.9 million ounces while its north site had 3.2 million ounces.
Resettling Affected Farmers
In its quest to extract ore from certain locations in its concession, Newmont Ahafo embarked on a land access programme. This involved the resettlement as well as the livelihood re-establishment programmes.
Under the former, over 1,700 households were affected. These entailed some $17 million, while $16 million was spent on crop compensations and $22.3 million on the livelihood re-establishment. The latter encompassed the agriculture improvement and land access programme (AILAP), the vulnerable programme targeted at resettled households in Newmont’s two resettlement communities (OLA and Ntotoroso), skills development for income improvement (SDIIP), Ahafo Linkages Programme (ALP) and the Ahafo Agribusiness Growth Initiative (AAGI).
The affected communities thus established a Resettlement Negotiation Committee (RNC) composed of community representatives and traditional authorities who are independently nominated and validated to represent the people living in the area.
The RNC, which negotiated with Newmont on resettlement and crop compensation, comprised a former Inspector-General of Police, the District Chief Executive, the District Development Planning Officer, the traditional council, the Land Valuation Board and the Environmental Protection Agency, among others.
Newmont says it spent $14 million to construct the two sites. The Ntotoroso Resettlement Village is located immediately south of the existing community of Ntotoroso and spans 398 acres (161 hectares) while the OLA Resettlement Village covers 126 acres (51 hectares) just west of the existing community.
For the first time, the homes and residential plots came with a legal title (99-year leases). Prior to Newmont's resettlement, residents held no titles to the lands they occupied because these were owned by the traditional families and landowners. The legal title has created “pride of ownership” among resettled residents because they now know the land they live on is their own. Residents who lost their residential land received a replacement plot in a resettlement village and farmers received monetary compensation for displaced crops.
Beneficiaries’ Reaction
In the case of Newmont Ghana, it says it acted on the recommendations of the RNC. But given the high status of the different personalities and government agencies that constituted the RNC on one hand, and the type of structures that have been put up in the villages – OLA and Ntotoroso, on the other, one would wonder whether the committee really did a satisfactory work.
Some beneficiaries of the resettlement programme who were interviewed by CITY & BUSINESS GUIDE at Ntotoroso recently on anonymity expressed dissatisfaction at the 10 ×12 dimension rooms that have been built for them.
The beneficiaries maintain the relatively short height of the buildings (without electricity yet), makes living in it slightly uncomfortable. It ranges from one bedroom to five bedroom houses. Each compound has a toilet very detached from the main building.
“We feel hot inside these structures. We were expecting that the structures would have some tint of modernity but since we had no choice, we had to accept these ones. After all, we could not have afforded them,” one wishing only to be known as Kofi told this reporter.
But Kofi Antwi Boasiako, Land Access Manager at Newmont Ahafo, stated in a telephone interview that Newmont played to the dictates of building standards of the Ghana.
“All of the previous structures owned by the affected farmers were farmsteads and these were in dimensions of 5 ×6, 5×7 and 5×8 huts. Also, all the structures have been approved by the Department of Town & Country Planning to conform to government’s development plan,” Mr Boasiako mentioned.
Yaw Antwi Dadzie, External Affairs Manager, Newmont Ghana, adds that Newmont Ghana has decided to improve the second phase of the resettlement project on its own by providing ample space within the new structures under construction and further initiate and compact other relevant facilities.
Newmont’s Ahafo and Akyem projects together have approximately 17.4 million equity ounces of proven and probable gold reserves, representing about 20 percent of Newmont’s global equity gold reserves (86.53 million ounces) as at end of 2008.
The Ahafo mine produces about 500,000 ounces of gold per annum from three pits while the Akyem project is in a feasibility phase.
Newmont is focused on sustainability and environmental best practices and is listed on the Dow Jones sustainability index world. It was recently certified under the International Cyanide Management Code.
Monday, April 26, 2010
Tuesday, March 23, 2010
E-Book On 2-Week Trial In Ghana
By Samuel Boadi
AMAZONKINDLE, an electronic book capable of holding as many as 1,500 books was on Friday introduced to Class 6 students of OrphanAid Africa Community Centre School at Ahienyah, near Dodowa in the Greater Accra Region.
Worldreader.org, the non-governmental organisation from the United States of America, whose brainchild is the programme, told DAILY GUIDE that it chose the village for the trial in order to acquaint itself with problems that might arise from the use of the books particularly among pupils in order to effect an appropriate updating.
“Ghana is the first country in the world to benefit from such a technology. It uses very little electricity. The battery could last for 2 weeks after charging it for an hour,” project co-founders - Mike Sundermeyer and David Risher have said.
After some short tutorials by the project co-founders, the children were seen easily operating the device with little supervision, accessing and reading several downloaded books. The kindle also has a dictionary and audio reader in addition to a selection of optional text sizes.
Worldreader.org is a foundation which aims at providing library books to children in the remotest parts of the globe.
“Education and literacy are key drivers to economic stability and growth. We need to embrace and develop these tools to ginger wider reading at little or no cost”. Mr Sundermeyer said the NGO will contact telecommunications companies in Ghana and for that matter the whole of Africa, to collaborate with Worldreader.org so as for their customers to access e-books via their mobile phones.
Already, the project co-founders have been in consultation with the Ministry of Education as well as the telecommunications networks to see how best the project could be channeled effectively to all schools in the country.
“This is just the beginning. We will in the near future download books on all the professional courses as well as academic materials onto it. With the kindle, a student at whatever level of education could access a horde of books, read extensively and research well.”
“E-readers can dramatically improve people’s access to books, and we’re proud of our ability to work swiftly to bring this new technology to the Ghanaian people”, Mr Risher indicated to this paper.
Selling at $250 in the US and other parts of Europe, the kindle would be highly subsidised and in most cases supplied freely to schools in Africa.
“Imagine carrying a lot of books in one single device. This is the beauty of the kindle. More important is its ability to design and download all syllabi and courses of study in Ghanaian schools at all levels. Again, it doesn’t need any bulky paper, ink and hard covers. This is paper-free and wholly digitalised.”
AMAZONKINDLE, an electronic book capable of holding as many as 1,500 books was on Friday introduced to Class 6 students of OrphanAid Africa Community Centre School at Ahienyah, near Dodowa in the Greater Accra Region.
Worldreader.org, the non-governmental organisation from the United States of America, whose brainchild is the programme, told DAILY GUIDE that it chose the village for the trial in order to acquaint itself with problems that might arise from the use of the books particularly among pupils in order to effect an appropriate updating.
“Ghana is the first country in the world to benefit from such a technology. It uses very little electricity. The battery could last for 2 weeks after charging it for an hour,” project co-founders - Mike Sundermeyer and David Risher have said.
After some short tutorials by the project co-founders, the children were seen easily operating the device with little supervision, accessing and reading several downloaded books. The kindle also has a dictionary and audio reader in addition to a selection of optional text sizes.
Worldreader.org is a foundation which aims at providing library books to children in the remotest parts of the globe.
“Education and literacy are key drivers to economic stability and growth. We need to embrace and develop these tools to ginger wider reading at little or no cost”. Mr Sundermeyer said the NGO will contact telecommunications companies in Ghana and for that matter the whole of Africa, to collaborate with Worldreader.org so as for their customers to access e-books via their mobile phones.
Already, the project co-founders have been in consultation with the Ministry of Education as well as the telecommunications networks to see how best the project could be channeled effectively to all schools in the country.
“This is just the beginning. We will in the near future download books on all the professional courses as well as academic materials onto it. With the kindle, a student at whatever level of education could access a horde of books, read extensively and research well.”
“E-readers can dramatically improve people’s access to books, and we’re proud of our ability to work swiftly to bring this new technology to the Ghanaian people”, Mr Risher indicated to this paper.
Selling at $250 in the US and other parts of Europe, the kindle would be highly subsidised and in most cases supplied freely to schools in Africa.
“Imagine carrying a lot of books in one single device. This is the beauty of the kindle. More important is its ability to design and download all syllabi and courses of study in Ghanaian schools at all levels. Again, it doesn’t need any bulky paper, ink and hard covers. This is paper-free and wholly digitalised.”
Wednesday, March 17, 2010
Aluworks Floats 75m Ordinary Shares
By Samuel Boadi
ALUWORKS is offering 75,000,000 ordinary shares of no par value at GH¢0.40 per share to current and prospective shareholders to raise GH¢30,000 to recapitalize its operations.
The offer is in the ratio of 9 new shares for every 5 existing shares, representing a 9 percent discount off the current market price of GH¢0. 44 per share as at Friday, March 12, 2010.
A.W.B. Barnor, Managing Director of the company, disclosed this on Monday in Accra at a meeting with the press.
According to him, the offer would initially be opened to shareholders.
“In the first instance, current shareholders are allowed 9 shares for every 5 that they already own. They may apply for more than their normal allotment if they so wish. Any shareholder who decides not to partake in the offer must fill an appropriate form to declare so, and must understand that such shares would be allocated to other interested parties,” he added.
Open to both resident and non-resident Ghanaians as well as foreigners, the offer, which began yesterday, ends at 5 pm on Friday, April 16, 2010 while trading in the rights, which also started yesterday, ends on April 9, 2010.
“The GSE has approved the listing of the 75,000,000 new shares to be issued on the first official list and as such trading in these shares would commence on May 12, 2010. Shareholders who wish to exercise their rights and renounces should contact NTHC Securities Limited, Adabraka, the manager and sponsoring broker of the ALW Rights Issue for assistance and direction,” he emphasized.
Explaining further, Mr Barnor said the performance of Aluworks on the GSE shows a creditable price trend since the listing of the company.
“From a listing price of GH¢0.1350 per share in November 1996, the equity grew gradually to hit an all-time high of GH¢1.25 on April 14, 2004.
“As at Friday, March 12, 2010, Aluworks traded at GH¢0.44, signifying a total growth of more than 225 percent over its listing price.
“In addition, the equity has been one of the most actively traded stocks on the exchange over the years,” Mr Barnor reiterated.
The MD added that the dividend history of Aluworks suggest that until 2007, the company had one of the best dividend payment records in the country, explaining that “it paid dividends each year until 2007. The average dividend pay-out was 68 percent.”
W.E. Inkumsah, Board Chairman of Aluworks, in a speech, said the company, which was set up in the late 1970s, started with one 15,000 tonne caster and a 30,000 tone cold mill, noting that “slowly it has increased to three casters of 15,000 tonnes each.”
He stated that there has not been an increase in cold mill capacity since that time, but the 30,000 tonne cold mill has served the company very well over the years because of the very high level of regular maintenance.
“The current cold mill capacity simply needs to be increased to meet the increasing demand that the company expects over the next few years.
“Half of the proceeds of the rights issue will be used to procure a brand new cold mill. The current cold mill will also undergo refurbishment. When that is finished and commissioned, we boast of a 50,000 tonne capacity that will be sufficient to meet the needs of West Africa and beyond.”
In 2006, when the country experienced deep energy crisis, which led to an increased disruption of supply from our traditional local supplier of ingots, the company had to import ingots with an attendant 33 percent increase in cost, which reduced the company’s profit margin.
ALUWORKS is offering 75,000,000 ordinary shares of no par value at GH¢0.40 per share to current and prospective shareholders to raise GH¢30,000 to recapitalize its operations.
The offer is in the ratio of 9 new shares for every 5 existing shares, representing a 9 percent discount off the current market price of GH¢0. 44 per share as at Friday, March 12, 2010.
A.W.B. Barnor, Managing Director of the company, disclosed this on Monday in Accra at a meeting with the press.
According to him, the offer would initially be opened to shareholders.
“In the first instance, current shareholders are allowed 9 shares for every 5 that they already own. They may apply for more than their normal allotment if they so wish. Any shareholder who decides not to partake in the offer must fill an appropriate form to declare so, and must understand that such shares would be allocated to other interested parties,” he added.
Open to both resident and non-resident Ghanaians as well as foreigners, the offer, which began yesterday, ends at 5 pm on Friday, April 16, 2010 while trading in the rights, which also started yesterday, ends on April 9, 2010.
“The GSE has approved the listing of the 75,000,000 new shares to be issued on the first official list and as such trading in these shares would commence on May 12, 2010. Shareholders who wish to exercise their rights and renounces should contact NTHC Securities Limited, Adabraka, the manager and sponsoring broker of the ALW Rights Issue for assistance and direction,” he emphasized.
Explaining further, Mr Barnor said the performance of Aluworks on the GSE shows a creditable price trend since the listing of the company.
“From a listing price of GH¢0.1350 per share in November 1996, the equity grew gradually to hit an all-time high of GH¢1.25 on April 14, 2004.
“As at Friday, March 12, 2010, Aluworks traded at GH¢0.44, signifying a total growth of more than 225 percent over its listing price.
“In addition, the equity has been one of the most actively traded stocks on the exchange over the years,” Mr Barnor reiterated.
The MD added that the dividend history of Aluworks suggest that until 2007, the company had one of the best dividend payment records in the country, explaining that “it paid dividends each year until 2007. The average dividend pay-out was 68 percent.”
W.E. Inkumsah, Board Chairman of Aluworks, in a speech, said the company, which was set up in the late 1970s, started with one 15,000 tonne caster and a 30,000 tone cold mill, noting that “slowly it has increased to three casters of 15,000 tonnes each.”
He stated that there has not been an increase in cold mill capacity since that time, but the 30,000 tonne cold mill has served the company very well over the years because of the very high level of regular maintenance.
“The current cold mill capacity simply needs to be increased to meet the increasing demand that the company expects over the next few years.
“Half of the proceeds of the rights issue will be used to procure a brand new cold mill. The current cold mill will also undergo refurbishment. When that is finished and commissioned, we boast of a 50,000 tonne capacity that will be sufficient to meet the needs of West Africa and beyond.”
In 2006, when the country experienced deep energy crisis, which led to an increased disruption of supply from our traditional local supplier of ingots, the company had to import ingots with an attendant 33 percent increase in cost, which reduced the company’s profit margin.
Afriqiyah Awards Travel Agents
By Samuel Boadi
AFRIQIYAH AIRLINES, a Libyan carrier, on Monday honoured working travel agents who have supported its operations in Ghana with mouth-watering awards.
Ibrahim Hafida, Afriqiyah’s country manager for Ghana, who presented the awards on behalf of his outfit to representatives of the agencies, at the short but splendid ceremony, heaped praises on Seasons Travels, Kessben Travels, Kumasi Travels, Euro Tours, Satguru, Doscar Travels and also Nasa Travels for their immeasurable contribution to Afriqiyah’s success in 2009.
Other awardees included Escaville Travels and Logic Tours.
Mr Hafida appealed to the agencies to continue their good relationship with Afriqiyah adding the airline had more appreciation packages in the pipeline for them.
He also urged them to woo more customers aboard the airline this year so they could enjoy the exceptional fares, unrivalled services and cozy atmosphere.
AFRIQIYAH AIRLINES, a Libyan carrier, on Monday honoured working travel agents who have supported its operations in Ghana with mouth-watering awards.
Ibrahim Hafida, Afriqiyah’s country manager for Ghana, who presented the awards on behalf of his outfit to representatives of the agencies, at the short but splendid ceremony, heaped praises on Seasons Travels, Kessben Travels, Kumasi Travels, Euro Tours, Satguru, Doscar Travels and also Nasa Travels for their immeasurable contribution to Afriqiyah’s success in 2009.
Other awardees included Escaville Travels and Logic Tours.
Mr Hafida appealed to the agencies to continue their good relationship with Afriqiyah adding the airline had more appreciation packages in the pipeline for them.
He also urged them to woo more customers aboard the airline this year so they could enjoy the exceptional fares, unrivalled services and cozy atmosphere.
Victory Bible Church Chalks 25 • Sets Up Mutual Fund, Others
By Samuel Boadi
THE LAUNCH of Victory Bible Church International’s 25th anniversary made history at the La Palm Royal Beach Hotel in Accra at the weekend when its founder and Presiding Bishop, Rev. Nii Apiakai Tackie-Yarboi, dedicated the ceremony to the birthing of a mutual fund that will take care of members’ financial needs.
“The church has started a mutual fund called Victory Gold Club. This club is to make available financial resources to church members to run their businesses and meet other needs,” Rev Tackie-Yarboi emphasised.
According to him, the church which has in the last 25 years planted over 75 local and twenty-five foreign churches in addition to establishing a scholarship scheme to take care of its members’ educational needs, is bent on setting up a university college that will train cutting edge leaders who will contribute to the growth and development of Ghana and the rest of the world.
Additionally, Rev Tackie-Yarboi comments: “The church also, has a scheme that is taking care of widows and orphans. The victory care, which operates from the UK donated to the Tsunami and recently Haiti victims and have programmes for prison inmates in various correctional centres in the boroughs we find our churches.”
The church founder continued that the church will continue to share the good news and spread to other continents of the world.
“We will want the church to be more visible and relevant particularly in identifying projects that we can undertake to help make greater impact on the lives of people.”
On June 2, 1985, the church began as a small group known as Jesus People Outreach Centre at Kokomlemle with 62 people, 4 founding pastors and seven founding deacons. The pastors included the founder, Clement Amankwa Asihene, Elijah Patrick Saforo and Emmanuel Ackun.
Rev John Adotey, president of the Apostolic Church of Ghana and chairman of the Ghana Pentecostal Council (GPC), in a goodwill message, expressed gratitude to God for raising people for His Kingdom through Victory Bible Church International and its able leaders.
Advising church leaders to demonstrate exemplary leadership qualities and shun retreating into the trenches of evil, Rev Adotey also urged Christians to apply the teachings of the Bible in their encounter with people in their communities, workplaces and also in the nuclear family setting.
He appealed to them to allow Christ to be known through good acts instead of immoral ones.
Other ministers of the gospel who graced the occasion were Rev Charles Agyin-Asare of the Word Miracle Church International and Rev Joyce Aryee of Salt and Light Ministries.
THE LAUNCH of Victory Bible Church International’s 25th anniversary made history at the La Palm Royal Beach Hotel in Accra at the weekend when its founder and Presiding Bishop, Rev. Nii Apiakai Tackie-Yarboi, dedicated the ceremony to the birthing of a mutual fund that will take care of members’ financial needs.
“The church has started a mutual fund called Victory Gold Club. This club is to make available financial resources to church members to run their businesses and meet other needs,” Rev Tackie-Yarboi emphasised.
According to him, the church which has in the last 25 years planted over 75 local and twenty-five foreign churches in addition to establishing a scholarship scheme to take care of its members’ educational needs, is bent on setting up a university college that will train cutting edge leaders who will contribute to the growth and development of Ghana and the rest of the world.
Additionally, Rev Tackie-Yarboi comments: “The church also, has a scheme that is taking care of widows and orphans. The victory care, which operates from the UK donated to the Tsunami and recently Haiti victims and have programmes for prison inmates in various correctional centres in the boroughs we find our churches.”
The church founder continued that the church will continue to share the good news and spread to other continents of the world.
“We will want the church to be more visible and relevant particularly in identifying projects that we can undertake to help make greater impact on the lives of people.”
On June 2, 1985, the church began as a small group known as Jesus People Outreach Centre at Kokomlemle with 62 people, 4 founding pastors and seven founding deacons. The pastors included the founder, Clement Amankwa Asihene, Elijah Patrick Saforo and Emmanuel Ackun.
Rev John Adotey, president of the Apostolic Church of Ghana and chairman of the Ghana Pentecostal Council (GPC), in a goodwill message, expressed gratitude to God for raising people for His Kingdom through Victory Bible Church International and its able leaders.
Advising church leaders to demonstrate exemplary leadership qualities and shun retreating into the trenches of evil, Rev Adotey also urged Christians to apply the teachings of the Bible in their encounter with people in their communities, workplaces and also in the nuclear family setting.
He appealed to them to allow Christ to be known through good acts instead of immoral ones.
Other ministers of the gospel who graced the occasion were Rev Charles Agyin-Asare of the Word Miracle Church International and Rev Joyce Aryee of Salt and Light Ministries.
Viasat 1 Targets # 1 Position
By Samuel Boadi
RUNE SKOGENG, CEO of Viasat 1 Broadcasting Ghana Limited, says the company is working seriously to emerge number one on the broadcast telecommunications landscape in Ghana.
At a short interaction Friday with marketing executives in Accra on the company’s strategies, Mr Skogeng said Viasat 1, which is part of the international broadcasting media group Modern Times Group MTG AB, will employ local content structures to overcome market leaders.
“We are prepared to introduce globally acclaimed programmes that are targeted at the youth aged between 15 and 45. In doing so we would ensure that good morals are not sacrificed among our child viewers particularly.”
Some of Viasat 1’s television shows include America’s Next Top Model, the Bernie MacShow, Baldwin Hills, Emcee Africa, Kassai and Leuk, Transformers, Generations, the Cosby Show, Studio 53, the Orprah Winfrey Show, Bones, Urbo, etc.
The station also shows the European Premier League.
As a leading international broadcasting group with the second largest geographical broadcast footprint in Europe, MTG’s Viasat Broadcasting is the largest free-TV and satellite premium pay-TV operator in Scandinavia and the Baltics.
It additionally operates free-TV channels in the Czech Republic, Hungary, Slovenia, Bulgaria, Macedonia and Ghana, pay-TV channels throughout Central & Eastern Europe and in the United States and a satellite premium pay-TV platform in Ukraine.
MTG’s TV assets are broadcast in a total of 30 countries and have 125 million viewers. MTG is also the major shareholder in Russia’s largest independent television broadcaster (CTC Media - Nasdaq: CTCM), and the number one commercial radio operator in the Nordic and Baltic regions.
RUNE SKOGENG, CEO of Viasat 1 Broadcasting Ghana Limited, says the company is working seriously to emerge number one on the broadcast telecommunications landscape in Ghana.
At a short interaction Friday with marketing executives in Accra on the company’s strategies, Mr Skogeng said Viasat 1, which is part of the international broadcasting media group Modern Times Group MTG AB, will employ local content structures to overcome market leaders.
“We are prepared to introduce globally acclaimed programmes that are targeted at the youth aged between 15 and 45. In doing so we would ensure that good morals are not sacrificed among our child viewers particularly.”
Some of Viasat 1’s television shows include America’s Next Top Model, the Bernie MacShow, Baldwin Hills, Emcee Africa, Kassai and Leuk, Transformers, Generations, the Cosby Show, Studio 53, the Orprah Winfrey Show, Bones, Urbo, etc.
The station also shows the European Premier League.
As a leading international broadcasting group with the second largest geographical broadcast footprint in Europe, MTG’s Viasat Broadcasting is the largest free-TV and satellite premium pay-TV operator in Scandinavia and the Baltics.
It additionally operates free-TV channels in the Czech Republic, Hungary, Slovenia, Bulgaria, Macedonia and Ghana, pay-TV channels throughout Central & Eastern Europe and in the United States and a satellite premium pay-TV platform in Ukraine.
MTG’s TV assets are broadcast in a total of 30 countries and have 125 million viewers. MTG is also the major shareholder in Russia’s largest independent television broadcaster (CTC Media - Nasdaq: CTCM), and the number one commercial radio operator in the Nordic and Baltic regions.
Monday, March 15, 2010
Maritime Trade Records Deficit
By Samuel Boadi
GHANA RECORDED a maritime trade deficit of 1,437,688 metric tons in the third quarter of 2009, a recent Ghana Shippers Authority quarterly journal has revealed.
While maritime export and import trades accounted for 755,264 and 2,192,952 metric tons respectively for the period, the export volume recorded, however, showed an 8.0 percent increase over the 2008 figure which stood at 697,967 metric tons for the same period.
Total transit import for the period July to September 2009 was 88,046 metric tons, while the transit export was 3,638 metric tons.
The journal stated that a greater share of the national maritime trade involving cargo trade was handled by the Tema Port which loaded and discharged over two million metric tons representing over 71 percent of total maritime trade.
The Takoradi Port, on the other hand, handled 869,631 metric tons, representing 29 percent of national maritime trade. It continued that 280,850 metric tons, representing 37 percent of total export trade for the period, constituted liner exports.
Out of the total liner exports, the Tema Port recorded a decrease as it handled 186,496 metric tons in 2009, compared with 233,270 metric tons that passed through it in 2008.
The Takoradi Port accounted for 94,354 metric tons of the total liner exports for 2009, as against the 97,730 metric tons in the third quarter of 2008, showing a slight decrease.
471,421 metric tons of the export trade representing 62 percent of total export trade was registered. The Takoradi Port recorded the largest export tonnage of 467,467 metric tons of dry bulk exports, as against the 3,945 metric tons handled by the Tema Port in the third quarter of 2009.
Liquid bulk exports accounted for only 1 per cent of total export trade in the third quarter of 2009, compared with the 24 percent it recorded in the same period in 2008. And, the liquid bulk exports involved the transportation of crude oil, oil products, and liquid chemicals, such as caustic soda, vegetable oils and wine.
On the maritime import side, a total of 2,192,952 metric tons was recorded representing 74 percent, as against the 3,155,169 metric tons for 2008.
The Tema Port recorded a slight drop in tonnage with 1,885,151 metric tons it handled during the period, as against the 1,990,709 metric tons it recorded in 2008.
Takoradi Port also posted a lower figure of 307,801 metric tons of total imports for the third quarter of 2009, compared with the 1,124,460 metric tons in 2008 - GNA
GHANA RECORDED a maritime trade deficit of 1,437,688 metric tons in the third quarter of 2009, a recent Ghana Shippers Authority quarterly journal has revealed.
While maritime export and import trades accounted for 755,264 and 2,192,952 metric tons respectively for the period, the export volume recorded, however, showed an 8.0 percent increase over the 2008 figure which stood at 697,967 metric tons for the same period.
Total transit import for the period July to September 2009 was 88,046 metric tons, while the transit export was 3,638 metric tons.
The journal stated that a greater share of the national maritime trade involving cargo trade was handled by the Tema Port which loaded and discharged over two million metric tons representing over 71 percent of total maritime trade.
The Takoradi Port, on the other hand, handled 869,631 metric tons, representing 29 percent of national maritime trade. It continued that 280,850 metric tons, representing 37 percent of total export trade for the period, constituted liner exports.
Out of the total liner exports, the Tema Port recorded a decrease as it handled 186,496 metric tons in 2009, compared with 233,270 metric tons that passed through it in 2008.
The Takoradi Port accounted for 94,354 metric tons of the total liner exports for 2009, as against the 97,730 metric tons in the third quarter of 2008, showing a slight decrease.
471,421 metric tons of the export trade representing 62 percent of total export trade was registered. The Takoradi Port recorded the largest export tonnage of 467,467 metric tons of dry bulk exports, as against the 3,945 metric tons handled by the Tema Port in the third quarter of 2009.
Liquid bulk exports accounted for only 1 per cent of total export trade in the third quarter of 2009, compared with the 24 percent it recorded in the same period in 2008. And, the liquid bulk exports involved the transportation of crude oil, oil products, and liquid chemicals, such as caustic soda, vegetable oils and wine.
On the maritime import side, a total of 2,192,952 metric tons was recorded representing 74 percent, as against the 3,155,169 metric tons for 2008.
The Tema Port recorded a slight drop in tonnage with 1,885,151 metric tons it handled during the period, as against the 1,990,709 metric tons it recorded in 2008.
Takoradi Port also posted a lower figure of 307,801 metric tons of total imports for the third quarter of 2009, compared with the 1,124,460 metric tons in 2008 - GNA
Kosmos Withholds Jubilee Sale • Goes Into Drilling
By Samuel Boadi
FOR THE first time Kosmos Energy is venturing into the drilling of oil after so many years of exclusively exploring the commodity, sources close to the company have disclosed to BUSINESS GUIDE.
This has been accentuated by the company’s agreement which ended in January 2010 without a substantive buyer. Kosmos Energy had wanted to sell off its 30 percent stake in the Jubilee Oilfield off West Cape Three Points to ExxonMobil for an amount of $4 million but Government intervened with objections describing the development as illegal.
Government on the other hand, wanted the concession to go to China National Offshore Oil Company (CNOOC). This led to a misunderstanding between it and Kosmos.
Indications therefore are that Kosmos Energy is streamlining its arrangements with Tullow Oil over its new ambitions in order to engender a smooth drilling operation.
In January, this year, the Financial Times (FT) reported that the Texas-based oil and gas exploration company was being investigated for corruption by US and Ghanaian officials.
According to the report, the authorities were looking into allegations of a relationship involving Kosmos and its local partner EO, that helped the US oil company to secure control of the Jubilee oil field. EO is supposedly a company owned by two political allies of former President John Agyekum Kufuor.
The FT continued that the case risked complicating efforts by Kosmos Energy to sell its stake in the Jubilee oil field to another Texas-based US oil company, ExxonMobil, in a deal valued at $4 billion. But Kosmos denied any wrongdoing.
Though FT said Ghana was preparing to file criminal charges against EO, nothing has ever since been heard about it.
A privately-held international oil exploration and production company focused on emerging and frontier basins offshore West Africa, Kosmos is led by a seasoned management and technical team formerly with Triton Energy - Jim Musselman and Brian Maxted.
The team has a proven track record of discovering and developing significant oil and gas reserves offshore West Africa and in other international basins. Warburg Pincus led the company’s initial $300 million equity financing in 2004, and also led a $500 million follow-on equity financing in 2008.
Since formation, Kosmos has experienced significant exploration success with two sizable oil discoveries that include Jubilee Field, the first commercial discovery in Ghana and the second largest discovery worldwide in 2007. Kosmos is currently working with its industry partners to plan for the development of Jubilee Field and also continues to evaluate its large acreage blocks in other countries in West Africa.
FOR THE first time Kosmos Energy is venturing into the drilling of oil after so many years of exclusively exploring the commodity, sources close to the company have disclosed to BUSINESS GUIDE.
This has been accentuated by the company’s agreement which ended in January 2010 without a substantive buyer. Kosmos Energy had wanted to sell off its 30 percent stake in the Jubilee Oilfield off West Cape Three Points to ExxonMobil for an amount of $4 million but Government intervened with objections describing the development as illegal.
Government on the other hand, wanted the concession to go to China National Offshore Oil Company (CNOOC). This led to a misunderstanding between it and Kosmos.
Indications therefore are that Kosmos Energy is streamlining its arrangements with Tullow Oil over its new ambitions in order to engender a smooth drilling operation.
In January, this year, the Financial Times (FT) reported that the Texas-based oil and gas exploration company was being investigated for corruption by US and Ghanaian officials.
According to the report, the authorities were looking into allegations of a relationship involving Kosmos and its local partner EO, that helped the US oil company to secure control of the Jubilee oil field. EO is supposedly a company owned by two political allies of former President John Agyekum Kufuor.
The FT continued that the case risked complicating efforts by Kosmos Energy to sell its stake in the Jubilee oil field to another Texas-based US oil company, ExxonMobil, in a deal valued at $4 billion. But Kosmos denied any wrongdoing.
Though FT said Ghana was preparing to file criminal charges against EO, nothing has ever since been heard about it.
A privately-held international oil exploration and production company focused on emerging and frontier basins offshore West Africa, Kosmos is led by a seasoned management and technical team formerly with Triton Energy - Jim Musselman and Brian Maxted.
The team has a proven track record of discovering and developing significant oil and gas reserves offshore West Africa and in other international basins. Warburg Pincus led the company’s initial $300 million equity financing in 2004, and also led a $500 million follow-on equity financing in 2008.
Since formation, Kosmos has experienced significant exploration success with two sizable oil discoveries that include Jubilee Field, the first commercial discovery in Ghana and the second largest discovery worldwide in 2007. Kosmos is currently working with its industry partners to plan for the development of Jubilee Field and also continues to evaluate its large acreage blocks in other countries in West Africa.
e-Ghana Creates 3,000 Jobs By June
By Samuel Boadi
MORE THAN 6 business outsourcing organisations have expressed their readiness to relocate to Ghana by the end of this month.
This is expected to result in the creation of some 3,000 jobs through business process outsourcing (BPO) in the ICT sector by the middle of this year, officials of Ghana’s IT Enabled Services (ITES) have noted.
Umar Alhassan, Director of ITES, who stated this at a media sensitisation workshop Thursday in Accra, said the companies’ appetite for investing in Ghana was whetted by Ghana’s impressive showing at this year’s Global Outsourcing Summit in Orlando, USA, which was organised by the International Association of Outsourcing Professionals (IAOP).
Mentioning some of the investors as Aegis, APAC, Teletech, Procter & Gamble and also ACE – many of whom are American companies, he said their services will include customer services, call centre operations, software development, insurance and data entry among others.
The eGhana project, launched in April 2006, aims at leveraging ICT and public-private ownerships to among other things contribute to improved efficiency and transparency of government functions through e-government applications.
Veronica Boateng, Director of Application Systems Department of GICTeD, in a presentation, said based on the positive progression of the e-Ghana project, the Ghana Information and Communication Technology Directorate (GICTeD) has completed processing tender documents for the procurement of facilities for the establishment of a government information portal for all government agencies.
The tender documents, she confirmed, have been submitted to the World Bank for approval to cover the procurement of equipment and software for the project and this formed part of e-Ghana’s objective of enhancing the use of the internet to enhance information delivery among the various government agencies.
She further mentioned that initially some four e-services would be piloted. These include a content management system for managing hosted content on the portal; a payment gateway to allow portal applications to receive payment from patrons; e-forms application as well as a document management system.
Furthermore, Mrs Boateng said the project would greatly support an effective, efficient and increased domestic revenue mobilisation to grow the economy and stimulate development. the automation of Ghana’s revenue agencies under the Ghana Revenue Authority (GRA).
From November 2006 spanning a period of five years, the project has been funded with a $40 million International Development Assistance (IDA) credit and a $2 million support from the Ghana Government, Nelson O. Osae, Coordinator of e-Ghana has revealed.
Beneficiaries cover government machinery, the business sector through increased investment opportunities and reduced transactions costs as well as the general public through better government services, increased technical capacity and opportunities for employment.
MORE THAN 6 business outsourcing organisations have expressed their readiness to relocate to Ghana by the end of this month.
This is expected to result in the creation of some 3,000 jobs through business process outsourcing (BPO) in the ICT sector by the middle of this year, officials of Ghana’s IT Enabled Services (ITES) have noted.
Umar Alhassan, Director of ITES, who stated this at a media sensitisation workshop Thursday in Accra, said the companies’ appetite for investing in Ghana was whetted by Ghana’s impressive showing at this year’s Global Outsourcing Summit in Orlando, USA, which was organised by the International Association of Outsourcing Professionals (IAOP).
Mentioning some of the investors as Aegis, APAC, Teletech, Procter & Gamble and also ACE – many of whom are American companies, he said their services will include customer services, call centre operations, software development, insurance and data entry among others.
The eGhana project, launched in April 2006, aims at leveraging ICT and public-private ownerships to among other things contribute to improved efficiency and transparency of government functions through e-government applications.
Veronica Boateng, Director of Application Systems Department of GICTeD, in a presentation, said based on the positive progression of the e-Ghana project, the Ghana Information and Communication Technology Directorate (GICTeD) has completed processing tender documents for the procurement of facilities for the establishment of a government information portal for all government agencies.
The tender documents, she confirmed, have been submitted to the World Bank for approval to cover the procurement of equipment and software for the project and this formed part of e-Ghana’s objective of enhancing the use of the internet to enhance information delivery among the various government agencies.
She further mentioned that initially some four e-services would be piloted. These include a content management system for managing hosted content on the portal; a payment gateway to allow portal applications to receive payment from patrons; e-forms application as well as a document management system.
Furthermore, Mrs Boateng said the project would greatly support an effective, efficient and increased domestic revenue mobilisation to grow the economy and stimulate development. the automation of Ghana’s revenue agencies under the Ghana Revenue Authority (GRA).
From November 2006 spanning a period of five years, the project has been funded with a $40 million International Development Assistance (IDA) credit and a $2 million support from the Ghana Government, Nelson O. Osae, Coordinator of e-Ghana has revealed.
Beneficiaries cover government machinery, the business sector through increased investment opportunities and reduced transactions costs as well as the general public through better government services, increased technical capacity and opportunities for employment.
NYEP Sacks 43,300
By Samuel Boadi
OVER 23,000 teaching assistants, 13,000 health assistants, 4,500 interns and 2,800 community protection assistants have been asked to vacate their posts under the National Youth Employment Programme (NYEP) to pave way for other applicants to also benefit.
Abuga Pele, former MP for Chiana Paga and CEO of NYEP, disclosed this to the media Wednesday in Accra, stated that the measure has become necessary in order to de-clog the programme.
“It is not in the interest of the youth who join the programme to stay in it perpetually since it is not a formal job and does not provide a lifetime job such as social security, pensions, etc. The government therefore does not want to consign the youth to a situation where they have to live on stipends for life. I must emphasise that it is a stop-gap measure designed to prepare them for the job market and permanent job placements.”
Noting that the programme had so far registered nearly one million youth, Mr Pele indicated that the programme has given room for those who want to re-apply to do so for a second consideration but only if the need and opportunity arose.
According to him, the second opportunity was created because there was no immediate exit plan prepared for these youth by the previous administration.
“What was not though of by the previous administration was an exit plan for these youth who have served the two-year tenure. So the questions agitating the minds of the public relate to the fate of those youth who exit again into the unemployed situation where they emerged from.”
It is against this backdrop that the CEO mentioned the NYEP had developed and was implementing exit plans in collaboration with the relevant ministries and agencies, as well as professionals in the field, to enable the exit of the current beneficiaries and potential beneficiaries, in a structured way and into a more meaning life.
Currently, NYEP owes exiting interns 2 months salary while in the case of community protection assistants they are being owed 4 months salary. And the programme needs GH¢4.4 million monthly to offset these debts.
Touching on the exit plan for health extension workers, he said his outfit and the Ministry of Health as well as its agencies had had thorough discussions on the health extension workers for which reason 30 percent of the beneficiaries would be absorbed into diploma and certificate courses to upgrade them. Out of this number, those who have the requisite qualifications would be admitted into a diploma course while those who do not have the qualification but have exhibited competence would be admitted into certificate courses.
Fifty percent of the beneficiaries would be absorbed directly into the Ghana health Services as ward assistants while 10 percent would be absorbed by private health institutions through memoranda of understanding. The last 10 percent would be given priority in the trades and vocation module of NYEP. Additionally, some countries have also approached the programme to outsource the beneficiaries to them and discussion is ongoing to explore its feasibility in Botswana among others.
In the case of community education and teaching assistants, Mr Pele said the Ministry of Education would absorb them in colleges of education, untrained teacher diploma in basic education (with sponsorship), pupil teacher recruitment, technical and vocational institutions for apprenticeship and recruitment by private institutions. Those who have not been absorbed by the Ministry of Education would be given priority under the trades and vocation module of NYEP.
A number of youth in the community protection assistants who have exhibited good character and have minimum qualification, have been screened and selected for subsequent enlistment into the police service. The rest are to be absorbed into private security services across the country.
“All youth under the interns’ module who have had the two year tenure have been exited as at the end of January 2010. Many have been absorbed by their respective organisations while the rest are encouraged to re-apply for consideration,” the NYEP boss revealed.
Saluting the exitees for their outstanding contributions to the country, he said a bill - NYEP Bill, would soon be placed in Parliament to really give meaning to youth employment in Ghana.
OVER 23,000 teaching assistants, 13,000 health assistants, 4,500 interns and 2,800 community protection assistants have been asked to vacate their posts under the National Youth Employment Programme (NYEP) to pave way for other applicants to also benefit.
Abuga Pele, former MP for Chiana Paga and CEO of NYEP, disclosed this to the media Wednesday in Accra, stated that the measure has become necessary in order to de-clog the programme.
“It is not in the interest of the youth who join the programme to stay in it perpetually since it is not a formal job and does not provide a lifetime job such as social security, pensions, etc. The government therefore does not want to consign the youth to a situation where they have to live on stipends for life. I must emphasise that it is a stop-gap measure designed to prepare them for the job market and permanent job placements.”
Noting that the programme had so far registered nearly one million youth, Mr Pele indicated that the programme has given room for those who want to re-apply to do so for a second consideration but only if the need and opportunity arose.
According to him, the second opportunity was created because there was no immediate exit plan prepared for these youth by the previous administration.
“What was not though of by the previous administration was an exit plan for these youth who have served the two-year tenure. So the questions agitating the minds of the public relate to the fate of those youth who exit again into the unemployed situation where they emerged from.”
It is against this backdrop that the CEO mentioned the NYEP had developed and was implementing exit plans in collaboration with the relevant ministries and agencies, as well as professionals in the field, to enable the exit of the current beneficiaries and potential beneficiaries, in a structured way and into a more meaning life.
Currently, NYEP owes exiting interns 2 months salary while in the case of community protection assistants they are being owed 4 months salary. And the programme needs GH¢4.4 million monthly to offset these debts.
Touching on the exit plan for health extension workers, he said his outfit and the Ministry of Health as well as its agencies had had thorough discussions on the health extension workers for which reason 30 percent of the beneficiaries would be absorbed into diploma and certificate courses to upgrade them. Out of this number, those who have the requisite qualifications would be admitted into a diploma course while those who do not have the qualification but have exhibited competence would be admitted into certificate courses.
Fifty percent of the beneficiaries would be absorbed directly into the Ghana health Services as ward assistants while 10 percent would be absorbed by private health institutions through memoranda of understanding. The last 10 percent would be given priority in the trades and vocation module of NYEP. Additionally, some countries have also approached the programme to outsource the beneficiaries to them and discussion is ongoing to explore its feasibility in Botswana among others.
In the case of community education and teaching assistants, Mr Pele said the Ministry of Education would absorb them in colleges of education, untrained teacher diploma in basic education (with sponsorship), pupil teacher recruitment, technical and vocational institutions for apprenticeship and recruitment by private institutions. Those who have not been absorbed by the Ministry of Education would be given priority under the trades and vocation module of NYEP.
A number of youth in the community protection assistants who have exhibited good character and have minimum qualification, have been screened and selected for subsequent enlistment into the police service. The rest are to be absorbed into private security services across the country.
“All youth under the interns’ module who have had the two year tenure have been exited as at the end of January 2010. Many have been absorbed by their respective organisations while the rest are encouraged to re-apply for consideration,” the NYEP boss revealed.
Saluting the exitees for their outstanding contributions to the country, he said a bill - NYEP Bill, would soon be placed in Parliament to really give meaning to youth employment in Ghana.
Ga Dzase Clashes With Ga Mantse
By Samuel Boadi
THE OFFICE of the Ga Paramount Stool Dzase yesterday vented its spleen on Nii Tackie Tawiah III, Ga Mantse, for what it described as the unguarded utterances and insinuations of the latter to the Presidency recently.
Led by Nii Yaote Oto-Ga, Ga Paramount Stool Dzasetse, members of the Ga Dzase, entirely clad in red and chanting war songs, registered their displeasure to the media and rendered an apology to President John Evans Atta Mills on behalf of all people of Ga “for the unwarranted effusions against the highest office of the country.”
“We wish to state categorically that the Ga paramount Stool Dzase, the only legitimate and customarily mandated and recognized body of king-makers of the Paramount Stool have not at any time installed anyone as Ga Mantse since the demise of our illustrious Boni Nii Amugi II, for the Ga State.”
“Therefore anyone parading himself as ‘Ga Mantse’ is illegitimate and does not have the authority and mandate of the Paramount Stool Dzase. We wish to advise the general public and all state institutions that presently there is no accredited Ga Mantse on the Royal Stool. Any reference or attribution to the position presently to any person is wrong and flies in the face of the sensibilities of Ga peoples and all references to a ‘Ga Mantse’ must cease forthwith.”
Further underlining their position on this matter, the Ga Dzase said “the installation of a Ga Mantse without our initiation, direction, participation and approval, is null and void ab-initio and of no consequence.”
According to Nii Oto-Ga, the present public outcry against the actions and unguarded utterances of Nii Tackie Tawiah clearly vindicated the Dzatse’s position that is pertinent to undergo appropriate traditional rites and education, which included grooming, public speaking, comportment, right behaviours and attitudes for the occupant of the stool.
“Due to the falsehood and clandestine haste that characterized the purported enstoolment of the false claimant, these were blatantly ignored…We condemn in no uncertain terms his posturing for recognition that he does not deserve. He is so persuaded by his inordinate and vain ambition such that he is totally unaware that he is betraying his utter frustration and fatal desperation.”
THE OFFICE of the Ga Paramount Stool Dzase yesterday vented its spleen on Nii Tackie Tawiah III, Ga Mantse, for what it described as the unguarded utterances and insinuations of the latter to the Presidency recently.
Led by Nii Yaote Oto-Ga, Ga Paramount Stool Dzasetse, members of the Ga Dzase, entirely clad in red and chanting war songs, registered their displeasure to the media and rendered an apology to President John Evans Atta Mills on behalf of all people of Ga “for the unwarranted effusions against the highest office of the country.”
“We wish to state categorically that the Ga paramount Stool Dzase, the only legitimate and customarily mandated and recognized body of king-makers of the Paramount Stool have not at any time installed anyone as Ga Mantse since the demise of our illustrious Boni Nii Amugi II, for the Ga State.”
“Therefore anyone parading himself as ‘Ga Mantse’ is illegitimate and does not have the authority and mandate of the Paramount Stool Dzase. We wish to advise the general public and all state institutions that presently there is no accredited Ga Mantse on the Royal Stool. Any reference or attribution to the position presently to any person is wrong and flies in the face of the sensibilities of Ga peoples and all references to a ‘Ga Mantse’ must cease forthwith.”
Further underlining their position on this matter, the Ga Dzase said “the installation of a Ga Mantse without our initiation, direction, participation and approval, is null and void ab-initio and of no consequence.”
According to Nii Oto-Ga, the present public outcry against the actions and unguarded utterances of Nii Tackie Tawiah clearly vindicated the Dzatse’s position that is pertinent to undergo appropriate traditional rites and education, which included grooming, public speaking, comportment, right behaviours and attitudes for the occupant of the stool.
“Due to the falsehood and clandestine haste that characterized the purported enstoolment of the false claimant, these were blatantly ignored…We condemn in no uncertain terms his posturing for recognition that he does not deserve. He is so persuaded by his inordinate and vain ambition such that he is totally unaware that he is betraying his utter frustration and fatal desperation.”
FDB Boss Must Go – PNF
By Samuel Boadi
A PRESSURE group, Progressive Nationalist Forum (PNF), has petitioned President Mills to remove Seth Opuni, CEO of the Food & Drugs Board (FDB) from office as soon as practicable due to his extravagant lifestyle which is believed to have cost the board huge sums of money.
According to the group, Dr Opuni’s alleged renting of a residential accommodation in Accra (near Kanda) for US$84,000 (US$3,500 per month for 24 months) flouted Government’s policy on rent.
“The deeds of the FDB boss in renting a house at such an outrageous price in a location like the Kanda Highway and further going into negotiations to increase the rent of FDB offices in Accra to nearly 100 percent without recourse to proper procedures flouted the general laid down regulations of a quasi-governmental organisation like FDB. It is highly ridiculous that a huge amount is spent on rent for a CEO just for his comfort.”
PNF further stated that the CEO’s wastefulness is premised on the fact that the current governing board of the organisation has been rendered non-functional as a result of the interdiction of some of its members.
The petition, dated March 9, 2010 and signed by Richard Kwesi Nyamah, spokesperson for PNF, expressed suspicion: “We have cause to believe that since our petition to CHRAJ on the above subject matter, there have been attempts by the CEO of FDB to doctor the evidence by backdating them to make right the wrongs committed.”
“We pray you to impress upon Dr Opuni to resign from his office to enable investigations to go on without undue pressure from his person and or his office. If he fails to resign, he should be dismissed.”
PNF additionally appealed to government to carry out its own investigations into the allegations, independent of the CHRAJ investigations and also dissolve the current board as well as reconstitute it per the constitution to enable FDB function properly.
“Last but not the least, that the discretionary powers of heads of government organisations, agencies and boards should be reviewed, especially with regards to expending powers of CEOs. Most heads of state agencies are spending more than GH¢5,000 without recourse to their boards as per the Financial Administrations Act.”
It additionally indicated that Dr Opuni’s wastefulness “is a cause for concern as it makes room for abuse of office, conflict of interest, corruption and underhand dealings at the expense of the state.”
In an earlier letter to CHRAJ on the same subject matter, PNF emphasised “It is worthy of note that under the Rents Act, a government institution particularly does not need to pay up for rent covering more than three (3) months on tenancy. In the case of the FDB, they paid two years rent advance.”
It concluded that such a habit constituted a gross misapplication of official authority to squander the poor taxpayer’s money. “Such a thing taking place without recourse to the governing board of FDB smacks of irregularities and raises many questions of under dealings and misappropriation of government funds.”
A PRESSURE group, Progressive Nationalist Forum (PNF), has petitioned President Mills to remove Seth Opuni, CEO of the Food & Drugs Board (FDB) from office as soon as practicable due to his extravagant lifestyle which is believed to have cost the board huge sums of money.
According to the group, Dr Opuni’s alleged renting of a residential accommodation in Accra (near Kanda) for US$84,000 (US$3,500 per month for 24 months) flouted Government’s policy on rent.
“The deeds of the FDB boss in renting a house at such an outrageous price in a location like the Kanda Highway and further going into negotiations to increase the rent of FDB offices in Accra to nearly 100 percent without recourse to proper procedures flouted the general laid down regulations of a quasi-governmental organisation like FDB. It is highly ridiculous that a huge amount is spent on rent for a CEO just for his comfort.”
PNF further stated that the CEO’s wastefulness is premised on the fact that the current governing board of the organisation has been rendered non-functional as a result of the interdiction of some of its members.
The petition, dated March 9, 2010 and signed by Richard Kwesi Nyamah, spokesperson for PNF, expressed suspicion: “We have cause to believe that since our petition to CHRAJ on the above subject matter, there have been attempts by the CEO of FDB to doctor the evidence by backdating them to make right the wrongs committed.”
“We pray you to impress upon Dr Opuni to resign from his office to enable investigations to go on without undue pressure from his person and or his office. If he fails to resign, he should be dismissed.”
PNF additionally appealed to government to carry out its own investigations into the allegations, independent of the CHRAJ investigations and also dissolve the current board as well as reconstitute it per the constitution to enable FDB function properly.
“Last but not the least, that the discretionary powers of heads of government organisations, agencies and boards should be reviewed, especially with regards to expending powers of CEOs. Most heads of state agencies are spending more than GH¢5,000 without recourse to their boards as per the Financial Administrations Act.”
It additionally indicated that Dr Opuni’s wastefulness “is a cause for concern as it makes room for abuse of office, conflict of interest, corruption and underhand dealings at the expense of the state.”
In an earlier letter to CHRAJ on the same subject matter, PNF emphasised “It is worthy of note that under the Rents Act, a government institution particularly does not need to pay up for rent covering more than three (3) months on tenancy. In the case of the FDB, they paid two years rent advance.”
It concluded that such a habit constituted a gross misapplication of official authority to squander the poor taxpayer’s money. “Such a thing taking place without recourse to the governing board of FDB smacks of irregularities and raises many questions of under dealings and misappropriation of government funds.”
Salaries C’ssion Re-Evaluates Jobs
By Samuel Boadi
ABOUT 150 jobs are expected to be re-evaluated this year for their inclusion on the Single Spine Pay Policy (SSPP), George Smith-Graham, Chief Executive of the Fair Wages & Salaries Commission (FWSC) has noted.
The exercise, which could cost between $20,000 and $30,000, has become necessary following negotiations between some worker organisations and FWSC in order to fine-tune their collective bargaining agreements (CBAs) in tandem with the SSPP.
Mr Smith-Graham stated that the current pay policy, which already covers some 1,806 jobs, does not recognise the educational background and work experience of workers, adding that it rather focuses on 13 factors captioned under knowledge and skill; responsibility; work conditions and environment and efforts of employees.
Also, he said his outfit would very soon negotiate base pay and its relativities, standardize and harmonize allowances and also develop public service-wide performance management systems.
The 5-year implementation programme of the SSPP, which started from September 2009, is expected to be completed by September 2014.
On allowances, he said those under category 1 have already been consolidated into the evaluation of civil servants, stressing that “they would not be paid separately again.”
“Category 2 deals with special conditions that require compensation including acting, inducements, height and tools allowances. Category 3, which covers staff welfare such as funeral and medical grants, night subsistence and transfer allowance, are yet to be standardized.
“Government has not taken any decision yet on category 4, which covers housing, utility, houseboys, maid servants and car maintenance,” he said.
A survey by CoEN Consulting Limited, a consultancy firm that helped to draft SSPP, revealed that the health service personnel were well paid than those in the judiciary service.
The 25-level grading and salary structure is aimed at creating one vertical structure for all public servants to ensure that jobs with same ob value range are entitled to same pay range to allow government to manage wage bill effectively to link pay to productivity.
Unlike the Ghana Universal Salary Structure (GUSS), which had no legal structure, the SSPP was established through the promulgation of FWSC Act, 2007 (Act 737).
“No institution can opt out of SSPP,” J.Y. Amankrah, Director of Pay Policy, Analysis and Research at FWSC emphasized during a presentation.
Currently, about 453,000 people constitute the workforce of the civil service.
Organised labour, he hinted, proposed a salary increment prior to the implementation of SSPP by July this year.
“It is being discussed with the Ministry of Finance & Economic Planning (MOFEP), but if the proposals are likely to disrupt the micro-economic stability, then the increment would not take place,” he added.
Also, FWSC would determine the contribution of the public sector to the Gross Domestic Product (GDP) of the country.
Mr. Amankrah therefore called on organizations, which are considering restructuring, to contact FWSC to determine new salary structures of any new portfolios to be created.
ABOUT 150 jobs are expected to be re-evaluated this year for their inclusion on the Single Spine Pay Policy (SSPP), George Smith-Graham, Chief Executive of the Fair Wages & Salaries Commission (FWSC) has noted.
The exercise, which could cost between $20,000 and $30,000, has become necessary following negotiations between some worker organisations and FWSC in order to fine-tune their collective bargaining agreements (CBAs) in tandem with the SSPP.
Mr Smith-Graham stated that the current pay policy, which already covers some 1,806 jobs, does not recognise the educational background and work experience of workers, adding that it rather focuses on 13 factors captioned under knowledge and skill; responsibility; work conditions and environment and efforts of employees.
Also, he said his outfit would very soon negotiate base pay and its relativities, standardize and harmonize allowances and also develop public service-wide performance management systems.
The 5-year implementation programme of the SSPP, which started from September 2009, is expected to be completed by September 2014.
On allowances, he said those under category 1 have already been consolidated into the evaluation of civil servants, stressing that “they would not be paid separately again.”
“Category 2 deals with special conditions that require compensation including acting, inducements, height and tools allowances. Category 3, which covers staff welfare such as funeral and medical grants, night subsistence and transfer allowance, are yet to be standardized.
“Government has not taken any decision yet on category 4, which covers housing, utility, houseboys, maid servants and car maintenance,” he said.
A survey by CoEN Consulting Limited, a consultancy firm that helped to draft SSPP, revealed that the health service personnel were well paid than those in the judiciary service.
The 25-level grading and salary structure is aimed at creating one vertical structure for all public servants to ensure that jobs with same ob value range are entitled to same pay range to allow government to manage wage bill effectively to link pay to productivity.
Unlike the Ghana Universal Salary Structure (GUSS), which had no legal structure, the SSPP was established through the promulgation of FWSC Act, 2007 (Act 737).
“No institution can opt out of SSPP,” J.Y. Amankrah, Director of Pay Policy, Analysis and Research at FWSC emphasized during a presentation.
Currently, about 453,000 people constitute the workforce of the civil service.
Organised labour, he hinted, proposed a salary increment prior to the implementation of SSPP by July this year.
“It is being discussed with the Ministry of Finance & Economic Planning (MOFEP), but if the proposals are likely to disrupt the micro-economic stability, then the increment would not take place,” he added.
Also, FWSC would determine the contribution of the public sector to the Gross Domestic Product (GDP) of the country.
Mr. Amankrah therefore called on organizations, which are considering restructuring, to contact FWSC to determine new salary structures of any new portfolios to be created.
Air Namibia Celebrates 100 Days In Ghana
By Samuel Boadi
AFTER JUST 100 days of operating in Ghana, Air Namibia, has indicated it is aiming at linking West and Southern African sub-regions in trade, tourism and business.
The airline, which started operations in Ghana from November 20, 2009, has been offering direct flights to Johannesburg, South Africa from Accra then onwards to Windhoek 5 times a week.
Air Namibia boasts of highly competitive fares with 24 business class seats and 120 seats in the economy class on our Boeing 737-800.
With the airline, baggage is not an issue, as unlike most airlines. Passengers are assured of 40kg (business class) or 30kg (economy class) of free baggage allowance.
Although not entirely new to Ghana, Air Namibia has been in existence for 63 years and is proud of its excellent customer service standards, on ground and in-flight as well as opportunity for online reservations and bookings. Additionally, online ticketing and check in are available.
“We have won the Feather Awards as Best Regional airline for excellent customer service for airlines operating into and from Johannesburg International Airport 5 times even though it has been organised for six times,” a statement from the company stated.
With its offices located on the 1st floor of Silver Star Tower, Airport City, Accra, the airline’s offices are equipped with customer friendly and hard working staff that cater to every need of clients. ‘With Air Namibia, GMT is more than just normal time.’
Its on-time departures and arrivals which are free of hassle not only making it easy for one to make connecting flights but also endear one to become a part of its generous frequent flyer program called rewards, which ensures great savings for regular customers.
“Indeed, Air Namibia’s first 100 days in Ghana are but a glimpse into the future of a dynamic airline that is here to stay and offer the best services to the people of Ghana and West Africa as a whole,” the statement added.
(Pix saved as Air Namibia in bus)
AFTER JUST 100 days of operating in Ghana, Air Namibia, has indicated it is aiming at linking West and Southern African sub-regions in trade, tourism and business.
The airline, which started operations in Ghana from November 20, 2009, has been offering direct flights to Johannesburg, South Africa from Accra then onwards to Windhoek 5 times a week.
Air Namibia boasts of highly competitive fares with 24 business class seats and 120 seats in the economy class on our Boeing 737-800.
With the airline, baggage is not an issue, as unlike most airlines. Passengers are assured of 40kg (business class) or 30kg (economy class) of free baggage allowance.
Although not entirely new to Ghana, Air Namibia has been in existence for 63 years and is proud of its excellent customer service standards, on ground and in-flight as well as opportunity for online reservations and bookings. Additionally, online ticketing and check in are available.
“We have won the Feather Awards as Best Regional airline for excellent customer service for airlines operating into and from Johannesburg International Airport 5 times even though it has been organised for six times,” a statement from the company stated.
With its offices located on the 1st floor of Silver Star Tower, Airport City, Accra, the airline’s offices are equipped with customer friendly and hard working staff that cater to every need of clients. ‘With Air Namibia, GMT is more than just normal time.’
Its on-time departures and arrivals which are free of hassle not only making it easy for one to make connecting flights but also endear one to become a part of its generous frequent flyer program called rewards, which ensures great savings for regular customers.
“Indeed, Air Namibia’s first 100 days in Ghana are but a glimpse into the future of a dynamic airline that is here to stay and offer the best services to the people of Ghana and West Africa as a whole,” the statement added.
(Pix saved as Air Namibia in bus)
EDIF Focuses On Agric Sector
By Samuel Boadi
IN ORDER to give attention to the agricultural sector in its activities henceforth, the Export Development & Investment Fund (EDIF) has been renamed the Export Development and Agricultural Investment Fund (EDAIF).
Minister of Trade & Industry, Hannah Tetteh, who disclosed this Friday in Accra, said the move would enable the agricultural sector to access funds from EDAIF to expand production and agro-processing.
In furtherance of the EDIF Law (Act 582), passed on October 4, 2000 to provide financial resources for the development and promotion of Ghana’s export trade,
EDAIF’s main policy now concentrates on supporting exporters including those in the agricultural sector with funds at concessionary rates to make Ghana’s exports competitive on the international market.
Ms Tetteh therefore called on financial institutions to provide funding for industry players, since Government alone could not shoulder the needs of industry.
“Even though the country has recorded an increase in the number of financial institutions in recent years, the provision of credit to the productive sectors of the economy remains a challenge and it appears that our banks are mainly interested in providing credit to importers and large multinational business enterprises,” she added.
She indicated that her outfit would facilitate dialogue among banks, government and the private sector, especially the Small and Medium-scale Enterprises (SMEs) in order to access funds, especially medium-term financing facilities.”
“Diversifying and expanding Ghana’s export base through the promotion of non-traditional exports is critical to achieving middle income status. There is the need for Ghana to be more aggressive in its export development activities, Ms. Tetteh emphasized.
This, she explained, was due to the fact that the Economic Community of West African States (ECOWAS) and African markets offer huge opportunities for Ghanaian producers, hence the need “to work hard to increase our share of exports to this market.”
Government, she noted, will collaborate with countries in the sub-region to remove the barriers that are militating against the export of Ghanaian products to the ECOWAS market.
IN ORDER to give attention to the agricultural sector in its activities henceforth, the Export Development & Investment Fund (EDIF) has been renamed the Export Development and Agricultural Investment Fund (EDAIF).
Minister of Trade & Industry, Hannah Tetteh, who disclosed this Friday in Accra, said the move would enable the agricultural sector to access funds from EDAIF to expand production and agro-processing.
In furtherance of the EDIF Law (Act 582), passed on October 4, 2000 to provide financial resources for the development and promotion of Ghana’s export trade,
EDAIF’s main policy now concentrates on supporting exporters including those in the agricultural sector with funds at concessionary rates to make Ghana’s exports competitive on the international market.
Ms Tetteh therefore called on financial institutions to provide funding for industry players, since Government alone could not shoulder the needs of industry.
“Even though the country has recorded an increase in the number of financial institutions in recent years, the provision of credit to the productive sectors of the economy remains a challenge and it appears that our banks are mainly interested in providing credit to importers and large multinational business enterprises,” she added.
She indicated that her outfit would facilitate dialogue among banks, government and the private sector, especially the Small and Medium-scale Enterprises (SMEs) in order to access funds, especially medium-term financing facilities.”
“Diversifying and expanding Ghana’s export base through the promotion of non-traditional exports is critical to achieving middle income status. There is the need for Ghana to be more aggressive in its export development activities, Ms. Tetteh emphasized.
This, she explained, was due to the fact that the Economic Community of West African States (ECOWAS) and African markets offer huge opportunities for Ghanaian producers, hence the need “to work hard to increase our share of exports to this market.”
Government, she noted, will collaborate with countries in the sub-region to remove the barriers that are militating against the export of Ghanaian products to the ECOWAS market.
Monday, February 22, 2010
David Venn Shepherds Vodafone On
By Samuel Boadi
IN 2008, when Government decided to sell the then Ghana Telecommunications (GT) Company Limited to Vodafone UK, many stakeholders in the industry were those who agitated against the move. This led to a misunderstanding between the majority and minority in Parliament to the extent that the latter called for the discontinuation of the deal.
But critics of the deal can now bear testimony to the fact that it was not for nothing that in October 2008, the company made an announcement on the appointment of David Venn as its new chief executive officer. He took over from Dickson Oduro-Nyaning who had worked with the company for 35 years.
Citing reasons why it wanted to sell GT, Government said there was the need to inject private sector capital into the company, preserve it and ensure that it grew to restore its leadership role on the market. Also, it said the competitive market forces at play then in the country, as well as the negative balance sheet status of GT, made it unlikely for it to remain competitive over any appreciable length of time, hence the decision. “It will also allow the company to upgrade its technologies to compete in the rapidly changing telecom sector. It could also not prepare itself for listing on the Ghana Stock Exchange (GSE) in 2010 to enable Ghanaians to participate in the ownership of the company,” the then Minister of Communications explained.
However, the acquisition of 70 percent shares in Ghana Telecommunications Company (GT) for $900 million dollars by Vodafone International Plc on July 23, 2008 eventually got sealed.
Today, one cannot deny the fact that Vodafone Ghana is exhibiting an impressive and sterling performance. Such achievements can only be attributed to the exceptional leadership skills of David Venn, the company’s chief executive officer.
On his appointment, Mr Venn was mentioned to have spent 25 years in the telecommunications industry and also worked in a number of telecommunications enterprises in the USA and the UK as well as held managerial positions in Pakistan, Indonesia, Malaysia, Hong Kong, Australia and other parts of Europe. This probably could be the secret for his appointment to the high position of Managing Director.
“He has also spent the last five years in Zambia, gaining good knowledge and special insights into the African telecommunications market,” the company said of him.
Indeed, describing him “as an innovative and respected business leader with proven experience in driving growth and implementing business strategy,” has amply been demonstrated to the admiration of all.
Vodafone Ghana thus has justified its addition by the Vodafone Group Plc., the world’s leading mobile telecommunications company to its fold.
The Vodafone Group has more than 315 million customers, excluding paging customers, calculated on a proportionate basis in accordance with its percentage interest in numerous ventures. It is operational in 31 countries and has a unique portfolio of products and services including providing customers with high speed access to the internet, mobile services and fixed lines.
In Ghana, it is the market leader in providing broadband services.
“The company applies the latest industry technology and is keen on building the most versatile network. We go the extra mile to ensure that services on your mobile handset enable you to go out and conduct your business or have fun in the most enjoyable and relaxing manner,” Mr Venn has stated.
On social responsibility, Vodafone Ghana has contributed close to GH¢30,000 to a number of educational funds of traditional councils across Ghana within a short time. These include Asogli State, Ga Traditional Council, Essikado Traditional Council, New Juaben Traditional Area, Otumfuo Educational Fund, Dakpema Educational Fund and Bolga Traditional Council among others.
Again under Mr Venn, four public universities have received multi-purpose industrial printers, each valued at GH¢300,000 to enable them better resource reprographic centres.
Soon, the company intends to launch a foundation - Vodafone Foundation. This will enable it develop programmes of social impact mitigation, utilizing mobile communications technology.
It also aims at networking with relevant NGOs and support activities that are aimed at protecting the natural environment; developing and implementing social investment plans including creating opportunities for employment and training, business development partnership for community development.
In October last year, Vodafone gave out a full- furnished apartment at Trasacco and a 4x4 vehicle plus thousands of other exciting prizes while it flew 20 of its customers to Angola to watch the AFCON finals in January this year.
Next month, Vodafone, together with Laureus, could be flying loyal customers to Abu Dhabi, to attend the prestigious Laureus World Sports Awards.
Laureus and Vodafone are long term partners and celebrate sport at the elite level through the Laureus Sports Awards particularly at the grassroots level through the Laureus Sport for Good Foundation, which supports over 70 projects worldwide.
Vodafone became a Laureus partner in 2008 and is proud to be associated with the prestigious Laureus World Sports Awards.
The company additionally awarded GH¢5,000 to the winner of its Predict & Win Promotion held alongside the African Cup of Nations recently.
Its massive investment in the Nkuntunse Earth Station is just the tip of the iceberg. The company is really going all lengths to invest hugely in its equipment and Mr Venn has asked Ghanaians to patronise Vodafone’s products and unrivalled services particularly its low call rates and continuing promotions.
“We have more surprises for our customers and we pledge to satisfy them to the full this year and beyond,” Mr Venn has assured.
IN 2008, when Government decided to sell the then Ghana Telecommunications (GT) Company Limited to Vodafone UK, many stakeholders in the industry were those who agitated against the move. This led to a misunderstanding between the majority and minority in Parliament to the extent that the latter called for the discontinuation of the deal.
But critics of the deal can now bear testimony to the fact that it was not for nothing that in October 2008, the company made an announcement on the appointment of David Venn as its new chief executive officer. He took over from Dickson Oduro-Nyaning who had worked with the company for 35 years.
Citing reasons why it wanted to sell GT, Government said there was the need to inject private sector capital into the company, preserve it and ensure that it grew to restore its leadership role on the market. Also, it said the competitive market forces at play then in the country, as well as the negative balance sheet status of GT, made it unlikely for it to remain competitive over any appreciable length of time, hence the decision. “It will also allow the company to upgrade its technologies to compete in the rapidly changing telecom sector. It could also not prepare itself for listing on the Ghana Stock Exchange (GSE) in 2010 to enable Ghanaians to participate in the ownership of the company,” the then Minister of Communications explained.
However, the acquisition of 70 percent shares in Ghana Telecommunications Company (GT) for $900 million dollars by Vodafone International Plc on July 23, 2008 eventually got sealed.
Today, one cannot deny the fact that Vodafone Ghana is exhibiting an impressive and sterling performance. Such achievements can only be attributed to the exceptional leadership skills of David Venn, the company’s chief executive officer.
On his appointment, Mr Venn was mentioned to have spent 25 years in the telecommunications industry and also worked in a number of telecommunications enterprises in the USA and the UK as well as held managerial positions in Pakistan, Indonesia, Malaysia, Hong Kong, Australia and other parts of Europe. This probably could be the secret for his appointment to the high position of Managing Director.
“He has also spent the last five years in Zambia, gaining good knowledge and special insights into the African telecommunications market,” the company said of him.
Indeed, describing him “as an innovative and respected business leader with proven experience in driving growth and implementing business strategy,” has amply been demonstrated to the admiration of all.
Vodafone Ghana thus has justified its addition by the Vodafone Group Plc., the world’s leading mobile telecommunications company to its fold.
The Vodafone Group has more than 315 million customers, excluding paging customers, calculated on a proportionate basis in accordance with its percentage interest in numerous ventures. It is operational in 31 countries and has a unique portfolio of products and services including providing customers with high speed access to the internet, mobile services and fixed lines.
In Ghana, it is the market leader in providing broadband services.
“The company applies the latest industry technology and is keen on building the most versatile network. We go the extra mile to ensure that services on your mobile handset enable you to go out and conduct your business or have fun in the most enjoyable and relaxing manner,” Mr Venn has stated.
On social responsibility, Vodafone Ghana has contributed close to GH¢30,000 to a number of educational funds of traditional councils across Ghana within a short time. These include Asogli State, Ga Traditional Council, Essikado Traditional Council, New Juaben Traditional Area, Otumfuo Educational Fund, Dakpema Educational Fund and Bolga Traditional Council among others.
Again under Mr Venn, four public universities have received multi-purpose industrial printers, each valued at GH¢300,000 to enable them better resource reprographic centres.
Soon, the company intends to launch a foundation - Vodafone Foundation. This will enable it develop programmes of social impact mitigation, utilizing mobile communications technology.
It also aims at networking with relevant NGOs and support activities that are aimed at protecting the natural environment; developing and implementing social investment plans including creating opportunities for employment and training, business development partnership for community development.
In October last year, Vodafone gave out a full- furnished apartment at Trasacco and a 4x4 vehicle plus thousands of other exciting prizes while it flew 20 of its customers to Angola to watch the AFCON finals in January this year.
Next month, Vodafone, together with Laureus, could be flying loyal customers to Abu Dhabi, to attend the prestigious Laureus World Sports Awards.
Laureus and Vodafone are long term partners and celebrate sport at the elite level through the Laureus Sports Awards particularly at the grassroots level through the Laureus Sport for Good Foundation, which supports over 70 projects worldwide.
Vodafone became a Laureus partner in 2008 and is proud to be associated with the prestigious Laureus World Sports Awards.
The company additionally awarded GH¢5,000 to the winner of its Predict & Win Promotion held alongside the African Cup of Nations recently.
Its massive investment in the Nkuntunse Earth Station is just the tip of the iceberg. The company is really going all lengths to invest hugely in its equipment and Mr Venn has asked Ghanaians to patronise Vodafone’s products and unrivalled services particularly its low call rates and continuing promotions.
“We have more surprises for our customers and we pledge to satisfy them to the full this year and beyond,” Mr Venn has assured.
Food Security Under Threat
By Samuel Boadi
A NEW science paper that was published on Thursday has warned that billions of dollars promised to fund programmes to boost small-scale agriculture in developing countries are unlikely to succeed.
This is due to increasing populations and changing environments, but also because of little “intellectual commitment” to ubiquitous small-scale and “mixed” farmers who raise both crops and animals.
The scientists were from the International Livestock Research Institute (ILRI), the International Food Policy Research Institute (IFPRI) and the International Water Management Institute (IWMI) of the Consultative Group on International Agricultural Research (CGIAR).
The World Bank urged wealthy countries, which pledged US$20 billion to developing countries at the G8 summit in Italy last year, to look beyond “business as usual” investments.
“In most regions of the world, farming systems are under intense pressure, but the problems are not the same everywhere.
“In the past, farmers have developed the ability to adapt to small changes in terms of weather patterns and access to fertile land and water. But the rapid rates of change seen in many developing countries today outstrip the capacity of many to adapt,” said Mario Herrero, ILRI Senior scientist and the paper’s lead author.
Smallholder farmers, particularly in Africa and Asia, have been overlooked by donors and policymakers because they typically cultivate small plots of land, where they grow modest amounts of staple crops such as rice and maize while also tending a few cows, goats or chickens.
Yet, collectively these farmers are feeding most of the world’s one billion poor people and they are the key to any efforts to intensify production in the developing world, according to the paper.
The paper revealed that small farms combine crop and livestock production and supply much of the staples of developing countries, which includes 41 percent of maize, 86 percent of rice and 74 percent of millet and most of the meat and dairy products consumed in these regions as well.
These so-called “mixed systems” can be models of efficient farming, with livestock providing the draft power to till the land.
Moreover, eggs, milk and meat from livestock routinely serve as important sources of regular household income and a source of high-quality protein as well as a buffer against failed harvests.
Herrero and his colleagues believe this mixed or integrated approach to farming offers many opportunities to increase food production sustainably in the developing world where agricultural systems would face several problems in the next few years.
But the authors also cautioned that realizing the potential of the crop-livestock approach would require reorienting agricultural policies to support smallholder farmers who face an array of challenges.
These challenges include climate change, which will alter growing conditions among other factors and an explosion in demand for livestock products, particularly in Asia and competition for finite natural resources, including water, arable land and fossil fuels.
Perhaps most alarming is the fact that in many regions, various pressures are creating a situation in which most lands in the high-potential regions are “tapped out” or close to their capacity for production.
A NEW science paper that was published on Thursday has warned that billions of dollars promised to fund programmes to boost small-scale agriculture in developing countries are unlikely to succeed.
This is due to increasing populations and changing environments, but also because of little “intellectual commitment” to ubiquitous small-scale and “mixed” farmers who raise both crops and animals.
The scientists were from the International Livestock Research Institute (ILRI), the International Food Policy Research Institute (IFPRI) and the International Water Management Institute (IWMI) of the Consultative Group on International Agricultural Research (CGIAR).
The World Bank urged wealthy countries, which pledged US$20 billion to developing countries at the G8 summit in Italy last year, to look beyond “business as usual” investments.
“In most regions of the world, farming systems are under intense pressure, but the problems are not the same everywhere.
“In the past, farmers have developed the ability to adapt to small changes in terms of weather patterns and access to fertile land and water. But the rapid rates of change seen in many developing countries today outstrip the capacity of many to adapt,” said Mario Herrero, ILRI Senior scientist and the paper’s lead author.
Smallholder farmers, particularly in Africa and Asia, have been overlooked by donors and policymakers because they typically cultivate small plots of land, where they grow modest amounts of staple crops such as rice and maize while also tending a few cows, goats or chickens.
Yet, collectively these farmers are feeding most of the world’s one billion poor people and they are the key to any efforts to intensify production in the developing world, according to the paper.
The paper revealed that small farms combine crop and livestock production and supply much of the staples of developing countries, which includes 41 percent of maize, 86 percent of rice and 74 percent of millet and most of the meat and dairy products consumed in these regions as well.
These so-called “mixed systems” can be models of efficient farming, with livestock providing the draft power to till the land.
Moreover, eggs, milk and meat from livestock routinely serve as important sources of regular household income and a source of high-quality protein as well as a buffer against failed harvests.
Herrero and his colleagues believe this mixed or integrated approach to farming offers many opportunities to increase food production sustainably in the developing world where agricultural systems would face several problems in the next few years.
But the authors also cautioned that realizing the potential of the crop-livestock approach would require reorienting agricultural policies to support smallholder farmers who face an array of challenges.
These challenges include climate change, which will alter growing conditions among other factors and an explosion in demand for livestock products, particularly in Asia and competition for finite natural resources, including water, arable land and fossil fuels.
Perhaps most alarming is the fact that in many regions, various pressures are creating a situation in which most lands in the high-potential regions are “tapped out” or close to their capacity for production.
MiDA Turns Peasant Farmers Into Businessmen
By Samuel Boadi
EFFORTS BY the Government of the United States of America (USA) to assist poor people in third world countries through its Millennium Challenge Compact (MCC) has started producing results in Ghana.
Under its agricultural production and value-added development project, MCC Ghana has been able to affect the lives of 52,000 smallholder farmers out of a target of 60,000. “Since March 2008, over 47,000 farmers have received free technical and skills training by specialist technical training service providers drawn from private sector institutions.
Each farmer has received and worked with $230 worth of inputs as starter pack,” Martin Esson-Benjamin, Chief Executive Officer of MiDA told journalists in Accra Thursday.
MiDA has at the end of 2009, committed 67 percent of compact funds and re-disbursed 23 percent through the Bank of Ghana. This represents $367 million and $127 million respectively.
MiDA is in its third year and is on course to fully exhaust the entire programme budget within 5 years.
According to Mr Esson-Benjamin, the compact has undertaken 10 major irrigation projects spread across certain parts of the country to irrigate some 5,000 hectares of land for an all-round farming. This is expected to facilitate new investments into large-scale rice and vegetable production in the Northern and Eastern regions.
Among other things too, the MiDA is at an advanced stage of providing post harvest handling and value-chain infrastructure. “As a first phase, a grant of $2.1 million has already been given to some 7 nucleus farmers under the Sea Freight Pineapple Exporters Group (SPEG) to install on-farm pre-coolers, cold storage and new pack houses to boost pineapple production and exports.
In addition, three communal pack houses in Akorley to serve the mango growing areas of the Eastern Region and in Mariakrom and Otwekrom in the Central Regions to support the pineapple industry, would be constructed for use by the first quarter of 2011.
MiDA is also engaged in the process of constructing at the Kotoka International Airport Perishable Cargo Centre, an international standard packing and cooling facility for the packing and storage of fresh agricultural produce, destined for the competitive export markets. It is funding the construction of 18 private-sector managed agribusiness centres (mainly small-scale grain storage facilities) across some three zones.
MiDA’s agricultural projects are spread over some three intervention zones - Northern Agricultural Zone (which covers certain 5 districts), Afram Basin (which comprises 9 districts) and the Southern Horticultural belt (which involves 16 districts).
Indeed, Ghana’s $547 million compact is already increasing the production and productivity of high-value cash and food staple crops as well as enhancing the competitiveness of Ghana’s agricultural products in regional and global markets.
“Our focus is on the smallholder farmer, whom we intend to transform into a businessman,” Mr Esson-Benjamin emphasised.
In the area of rural services development, MiDA is engaged with the Ministry of Energy to extend an estimated 230 kilometres of power to deserving plants, nucleus farms and agribusiness centres spread across the 3 selected zones aforementioned for domestic and economic use (food processing and irrigation). The programme will further install twelve transformers to boost power supply to deserving communities.
Also, there contract to equip, computerise and automate substantially all the 121 rural banks and their agencies, using a common software platform is going full steam.
“We are ready to award work contracts for 123 small town water systems, 6 pipe extensions, 156 boreholes and the extension of the Tamale Water System from the Dalum Water Works in Tolon Kumbungu, through Savelugu-Nanton to the Tamale Metropolis covering 67 kilometres.”
There are 534 educational facilities ranging from 3-6 classroom blocks, teachers’ accommodation, sanitation facilities which are at various stages of implementation from the MiDA budget. These would be completed before the end of 2011.
With two years left to draw the curtain on the programme, MiDA can boast of having done 80 percent of its job. About $109 million still remains to be utilised by the authority to pursue projects but there could be a second chance for Ghana should MiDA perfectly complete its projects.
EFFORTS BY the Government of the United States of America (USA) to assist poor people in third world countries through its Millennium Challenge Compact (MCC) has started producing results in Ghana.
Under its agricultural production and value-added development project, MCC Ghana has been able to affect the lives of 52,000 smallholder farmers out of a target of 60,000. “Since March 2008, over 47,000 farmers have received free technical and skills training by specialist technical training service providers drawn from private sector institutions.
Each farmer has received and worked with $230 worth of inputs as starter pack,” Martin Esson-Benjamin, Chief Executive Officer of MiDA told journalists in Accra Thursday.
MiDA has at the end of 2009, committed 67 percent of compact funds and re-disbursed 23 percent through the Bank of Ghana. This represents $367 million and $127 million respectively.
MiDA is in its third year and is on course to fully exhaust the entire programme budget within 5 years.
According to Mr Esson-Benjamin, the compact has undertaken 10 major irrigation projects spread across certain parts of the country to irrigate some 5,000 hectares of land for an all-round farming. This is expected to facilitate new investments into large-scale rice and vegetable production in the Northern and Eastern regions.
Among other things too, the MiDA is at an advanced stage of providing post harvest handling and value-chain infrastructure. “As a first phase, a grant of $2.1 million has already been given to some 7 nucleus farmers under the Sea Freight Pineapple Exporters Group (SPEG) to install on-farm pre-coolers, cold storage and new pack houses to boost pineapple production and exports.
In addition, three communal pack houses in Akorley to serve the mango growing areas of the Eastern Region and in Mariakrom and Otwekrom in the Central Regions to support the pineapple industry, would be constructed for use by the first quarter of 2011.
MiDA is also engaged in the process of constructing at the Kotoka International Airport Perishable Cargo Centre, an international standard packing and cooling facility for the packing and storage of fresh agricultural produce, destined for the competitive export markets. It is funding the construction of 18 private-sector managed agribusiness centres (mainly small-scale grain storage facilities) across some three zones.
MiDA’s agricultural projects are spread over some three intervention zones - Northern Agricultural Zone (which covers certain 5 districts), Afram Basin (which comprises 9 districts) and the Southern Horticultural belt (which involves 16 districts).
Indeed, Ghana’s $547 million compact is already increasing the production and productivity of high-value cash and food staple crops as well as enhancing the competitiveness of Ghana’s agricultural products in regional and global markets.
“Our focus is on the smallholder farmer, whom we intend to transform into a businessman,” Mr Esson-Benjamin emphasised.
In the area of rural services development, MiDA is engaged with the Ministry of Energy to extend an estimated 230 kilometres of power to deserving plants, nucleus farms and agribusiness centres spread across the 3 selected zones aforementioned for domestic and economic use (food processing and irrigation). The programme will further install twelve transformers to boost power supply to deserving communities.
Also, there contract to equip, computerise and automate substantially all the 121 rural banks and their agencies, using a common software platform is going full steam.
“We are ready to award work contracts for 123 small town water systems, 6 pipe extensions, 156 boreholes and the extension of the Tamale Water System from the Dalum Water Works in Tolon Kumbungu, through Savelugu-Nanton to the Tamale Metropolis covering 67 kilometres.”
There are 534 educational facilities ranging from 3-6 classroom blocks, teachers’ accommodation, sanitation facilities which are at various stages of implementation from the MiDA budget. These would be completed before the end of 2011.
With two years left to draw the curtain on the programme, MiDA can boast of having done 80 percent of its job. About $109 million still remains to be utilised by the authority to pursue projects but there could be a second chance for Ghana should MiDA perfectly complete its projects.
BUSAC Funds More Projects In March
By Samuel Boadi
THE BUSINESS Sector Advocacy Challenge (BUSAC) is receiving proposals from small, medium and large-scale enterprises that have viable projects but lack the wherewithal and professional guidance to execute them.
This is aimed at paving the way for the Fund to release the second phase of its project funds by the early part of March this year. It will thus close the yawning gap between its phase I and II projects over the next 5 years.
Dale Rachmeler, Manager of BUSAC, who disclosed this recently said beneficiaries would be selected from all sectors of the economy - small, medium and large scale businesses, road construction companies, textile industries, small scale farming associations, mining, petty traders as well as the media.
In Phase I (2004-2009), 362 grants were approved for business associations in all 10 regions of Ghana totalling $8.2 million, Dr Rachmeler stated.
Calling for more multilateral support for the fund, he said BUSAC had created an application system to receive, screen, evaluate, select, approve and verify grant with the help of its professional technical assistance team of long-term and short-term consultants. This is to enable the long term sustainability of the projects.
BUSAC was originally launched by DANIDA as part of the broader Business Sector Programme Support but now attracts support from DFID which is pooling its support through an arrangement with DANIDA and USAID which is willing to support export related advocacy projects. The arrangement to involve DFID and USAID is covered under a Memorandum of Understanding agreed and signed in March 2005.
The fund management has been contracted by DANIDA to COWI who appointed Dr. Dale Rachmeler as the project manager. He is assisted by a team recruited locally.
The fund is accessible through a competitive demand-driven mechanism and transparent selection of the best advocacy actions proposed by associations within Ghana’s private sector.
BUSAC Fund finances, through grants, up to 90 percent of the cost of the advocacy actions that are selected in each “Call for Application.” The actions are then implemented by the grantees with the help of service providers they may have chosen to complement their own.
Speaking at a ceremony to close the first phase Tuesday in Accra, Hannah Tetteh, Minister of Trade and Industry, has expressed government’s impression of the performance of the BUSAC Fund stating it has contributed immensely to growth in the various sectors.
She said the fund had empowered SMEs to sensitize government on the various constraints and challenges that confronted the sector culminating in several changes and amendments to government policies. Noting that the private sector currently was driving government policies and programmes, she expressed the hope that there would be enough funding to support phase II of the project.
Joyce Aryee, Chief Executive Officer of Ghana Chamber of Mines, commended the BUSAC Fund’s contribution particularly to the improvement of the mining sector which has seen the reduction in various constraints that confronted the sector.
Among other things, Dr Aryee said her outfit was advocating for a standardized compensation mechanism to reduce litigation among stakeholders in the industry and further protect BUSAC funded projects in mining communities.
THE BUSINESS Sector Advocacy Challenge (BUSAC) is receiving proposals from small, medium and large-scale enterprises that have viable projects but lack the wherewithal and professional guidance to execute them.
This is aimed at paving the way for the Fund to release the second phase of its project funds by the early part of March this year. It will thus close the yawning gap between its phase I and II projects over the next 5 years.
Dale Rachmeler, Manager of BUSAC, who disclosed this recently said beneficiaries would be selected from all sectors of the economy - small, medium and large scale businesses, road construction companies, textile industries, small scale farming associations, mining, petty traders as well as the media.
In Phase I (2004-2009), 362 grants were approved for business associations in all 10 regions of Ghana totalling $8.2 million, Dr Rachmeler stated.
Calling for more multilateral support for the fund, he said BUSAC had created an application system to receive, screen, evaluate, select, approve and verify grant with the help of its professional technical assistance team of long-term and short-term consultants. This is to enable the long term sustainability of the projects.
BUSAC was originally launched by DANIDA as part of the broader Business Sector Programme Support but now attracts support from DFID which is pooling its support through an arrangement with DANIDA and USAID which is willing to support export related advocacy projects. The arrangement to involve DFID and USAID is covered under a Memorandum of Understanding agreed and signed in March 2005.
The fund management has been contracted by DANIDA to COWI who appointed Dr. Dale Rachmeler as the project manager. He is assisted by a team recruited locally.
The fund is accessible through a competitive demand-driven mechanism and transparent selection of the best advocacy actions proposed by associations within Ghana’s private sector.
BUSAC Fund finances, through grants, up to 90 percent of the cost of the advocacy actions that are selected in each “Call for Application.” The actions are then implemented by the grantees with the help of service providers they may have chosen to complement their own.
Speaking at a ceremony to close the first phase Tuesday in Accra, Hannah Tetteh, Minister of Trade and Industry, has expressed government’s impression of the performance of the BUSAC Fund stating it has contributed immensely to growth in the various sectors.
She said the fund had empowered SMEs to sensitize government on the various constraints and challenges that confronted the sector culminating in several changes and amendments to government policies. Noting that the private sector currently was driving government policies and programmes, she expressed the hope that there would be enough funding to support phase II of the project.
Joyce Aryee, Chief Executive Officer of Ghana Chamber of Mines, commended the BUSAC Fund’s contribution particularly to the improvement of the mining sector which has seen the reduction in various constraints that confronted the sector.
Among other things, Dr Aryee said her outfit was advocating for a standardized compensation mechanism to reduce litigation among stakeholders in the industry and further protect BUSAC funded projects in mining communities.
Romania Seeks Ghanaian Partnerships
By Samuel Boadi
MIRCEA BONCU, Head of Mission at the Romania Embassy in Accra, has indicated his country’s readiness to cooperate with businesses in Ghana’s private sector in areas such as oil and gas industry, road construction and also transportation.
According to him, Romanian companies were looking forward to forming joint ventureships with Ghanaian companies particularly in infrastructure and feeder road construction.
Speaking at a stakeholders’ meeting organised by International Business Event Management (IBEM) Ghana recently in Accra, the Head of Mission said companies in his country were also interested in investing in agriculture especially in vegetable production, food crops, poultry, alcoholic and non-alcoholic beverages.
The meeting was also meant to prepare prospective participants on an impending business conference to be organised by IBEM from March 29 - 31, this year, in Accra. It is themed: “IGB-Ghana 2010 Conference”. It is expected to attract investors and manufacturers from Europe, the United Kingdom, United States and other parts of Africa.
“Romania now manufactures tractors of varied capacities from 60 to 100 horse power”.
Mr Boncu further beckoned interested Ghanaian companies to contact the Romanian Embassy for more education on issues including understanding the country’s tax and insurance laws to secure businesses.
Kelvin Fiifi Ampah, Chief Executive Officer of IBEM, Ghana, said the failure of a lot of foreign companies and investors to succeed in Ghana were traceable to their inability to network and understand the Ghanaian business climate and operations particularly of the securities and regulatory bodies.
“IGB-Ghana 2010 Conference would therefore provide the right opportunity for investors, businesses, and regulatory bodies to brainstorm and clearly understand the challenges and opportunities open to them so that they can make informed decisions.”
Mr Ampah additionally stressed the need for companies and event organisers to modify the packaging of their business information in order to attract more sponsorship.
Participants at the forum expressed the need for the country to reduce the high cost of doing business, review its support system and ensure proper maintenance as well as the provision of accurate information to investors.
Representatives of organisations such as the Ghana National Chamber of Commerce, Registrar General’s Department, Value Added Tax (VAT) Services, Ghana National Fire Service, Ghana Shippers Authority and the private sector complained of a myriad of factors militating against doing and growing business in Ghana.
MIRCEA BONCU, Head of Mission at the Romania Embassy in Accra, has indicated his country’s readiness to cooperate with businesses in Ghana’s private sector in areas such as oil and gas industry, road construction and also transportation.
According to him, Romanian companies were looking forward to forming joint ventureships with Ghanaian companies particularly in infrastructure and feeder road construction.
Speaking at a stakeholders’ meeting organised by International Business Event Management (IBEM) Ghana recently in Accra, the Head of Mission said companies in his country were also interested in investing in agriculture especially in vegetable production, food crops, poultry, alcoholic and non-alcoholic beverages.
The meeting was also meant to prepare prospective participants on an impending business conference to be organised by IBEM from March 29 - 31, this year, in Accra. It is themed: “IGB-Ghana 2010 Conference”. It is expected to attract investors and manufacturers from Europe, the United Kingdom, United States and other parts of Africa.
“Romania now manufactures tractors of varied capacities from 60 to 100 horse power”.
Mr Boncu further beckoned interested Ghanaian companies to contact the Romanian Embassy for more education on issues including understanding the country’s tax and insurance laws to secure businesses.
Kelvin Fiifi Ampah, Chief Executive Officer of IBEM, Ghana, said the failure of a lot of foreign companies and investors to succeed in Ghana were traceable to their inability to network and understand the Ghanaian business climate and operations particularly of the securities and regulatory bodies.
“IGB-Ghana 2010 Conference would therefore provide the right opportunity for investors, businesses, and regulatory bodies to brainstorm and clearly understand the challenges and opportunities open to them so that they can make informed decisions.”
Mr Ampah additionally stressed the need for companies and event organisers to modify the packaging of their business information in order to attract more sponsorship.
Participants at the forum expressed the need for the country to reduce the high cost of doing business, review its support system and ensure proper maintenance as well as the provision of accurate information to investors.
Representatives of organisations such as the Ghana National Chamber of Commerce, Registrar General’s Department, Value Added Tax (VAT) Services, Ghana National Fire Service, Ghana Shippers Authority and the private sector complained of a myriad of factors militating against doing and growing business in Ghana.
Toll booth Collectors Sacked
By Samuel Boadi
UNDER THE pretext of reorganising the revenue collection process at the various toll booths across country, the Ghana Highway Authority (GHA) has dismissed all toll booth collectors effective February 13, 2010.
Information available to DAILY GUIDE from an inside source at GHA said the authority has recruited what it termed a task force made up of supposedly NDC actvists to do the collection henceforth.
“It is only supervisors of the toll booths, who are staff of GHA, that have been asked to remain at post,” the source stated adding “the supervisors have been asked to give adequate training to the new toll collectors.”
But the directive has been met with a stiff protest from the aggrieved collectors since the news got to them.
“We could not believe our ears when the news was broken to us last week. Most of us have worked at the booths for so many years. What pains us most is that during power outages, we stay at post without any security and collect tolls using our cell phone torches,” a collector who asked to be unspecified told DAILY GUIDE.
The collector recounted how they have had to sleep under trees around the Kasoa tollbooth after they close from work so they could report back to duty in the evening. According to them, some of them stay around Madina, Tema and far away places so if they should go home after work, it would be impossible to return to work on time in the evening.
Asked why they have resisted the take-over by the task force, they indicated that GHA has been indebted to them since April 2009.
“We received our last salary in April 2009. From May 2009 to January 2010, we have not received our salaries. We were just fortunate to receive our August and September salaries in December and since then, no one have told us anything about the remaining payments only to be told last Friday that we are to go home.”
According to them, it had to take the intervention of the Kasoa MCE to cool down tempers of the about 32 collectors at the Kasoa toll booth when they heard about the dismissal.
“We are not vacating our posts till we have been paid all our salaries and other entitlements.”
Asked how much they received as salaries, they said it ranged between GH¢140 and GH¢170. The collectors added that initially when they were been recruited, after they had received a 3 week training, they were told they would be paid GH¢250.
Collectors at Dodowa, Ayi Mensa, Nsawam, Kasoa, Afienya and other regions have therefore asked the GHA to ensure that proper thing was done even it intended to go ahead with its replacement with NDC activists.
“We just want GHA to respect our rights and accord us the necessary entitlements. At least they should honourably send us home. It should not be in such ‘insulting’ manner.”
They have additionally stated they would present the issue to Parliament to look into the issue.
As at the time of going to press, all efforts to get either the public relations officer or acting chief executive of GHA, E. Aboagye, to comment on the issue proved futile.
UNDER THE pretext of reorganising the revenue collection process at the various toll booths across country, the Ghana Highway Authority (GHA) has dismissed all toll booth collectors effective February 13, 2010.
Information available to DAILY GUIDE from an inside source at GHA said the authority has recruited what it termed a task force made up of supposedly NDC actvists to do the collection henceforth.
“It is only supervisors of the toll booths, who are staff of GHA, that have been asked to remain at post,” the source stated adding “the supervisors have been asked to give adequate training to the new toll collectors.”
But the directive has been met with a stiff protest from the aggrieved collectors since the news got to them.
“We could not believe our ears when the news was broken to us last week. Most of us have worked at the booths for so many years. What pains us most is that during power outages, we stay at post without any security and collect tolls using our cell phone torches,” a collector who asked to be unspecified told DAILY GUIDE.
The collector recounted how they have had to sleep under trees around the Kasoa tollbooth after they close from work so they could report back to duty in the evening. According to them, some of them stay around Madina, Tema and far away places so if they should go home after work, it would be impossible to return to work on time in the evening.
Asked why they have resisted the take-over by the task force, they indicated that GHA has been indebted to them since April 2009.
“We received our last salary in April 2009. From May 2009 to January 2010, we have not received our salaries. We were just fortunate to receive our August and September salaries in December and since then, no one have told us anything about the remaining payments only to be told last Friday that we are to go home.”
According to them, it had to take the intervention of the Kasoa MCE to cool down tempers of the about 32 collectors at the Kasoa toll booth when they heard about the dismissal.
“We are not vacating our posts till we have been paid all our salaries and other entitlements.”
Asked how much they received as salaries, they said it ranged between GH¢140 and GH¢170. The collectors added that initially when they were been recruited, after they had received a 3 week training, they were told they would be paid GH¢250.
Collectors at Dodowa, Ayi Mensa, Nsawam, Kasoa, Afienya and other regions have therefore asked the GHA to ensure that proper thing was done even it intended to go ahead with its replacement with NDC activists.
“We just want GHA to respect our rights and accord us the necessary entitlements. At least they should honourably send us home. It should not be in such ‘insulting’ manner.”
They have additionally stated they would present the issue to Parliament to look into the issue.
As at the time of going to press, all efforts to get either the public relations officer or acting chief executive of GHA, E. Aboagye, to comment on the issue proved futile.
Vodafone, AfricXpress Sign Contract
By Samuel Boadi
VODAFONE GHANA has signed an agreement with AfricXpress, which would allow patrons of the txtNpay services to pay their utility bills, top up air-time with convenience and transfer money to relatives across the country.
AfricXpress was connected to Vodafone Ghana through GPRS after the signing, which took place on Tuesday in Accra.
Existing and prospective users of txtNpay – a mobile phone-based secured payment system, would have to text 1075 to Vodafone to be launched onto the AfricXpress’ payment platform.
Nvalaye Kourouma, Chief Executive Officer (CEO) of AfricXpress Services Incorporated, in a pre-signing speech, said his outfit chose Vodafone Ghana due to the convenience of its network.
“Vodafone is encouraging us to bring more innovations into the telecommunications market for the benefit of customers,” he added.
According to him, through Vodafone’s efficient services, AfricXpress was able to effect over half a million transactions last year via its 400 agents across country.
He therefore invited more Ghanaians to patronise txtNpay, particularly people who transact business with banks.
“Just ask your bank customer service to give you a txtNpay wallet and you will never regret patronising our services,” Mr Kourouma emphasized.
Commenting on the agreement, David Venn, CEO of Vodafone Ghana, stated that Vodafone chose AfricXpress because of its unique and innovative platform, stressing that “the platform was highly convenient to many customers despite its introduction last year.”
“We believe there are a lot more innovations to follow this one to provide our customers with satisfaction.
“Vodafone’s Talk ‘n’ Talk promotion has a lot of benefits for customers, including a 75 percent bonus talk time,” Mr. Vein reiterated.
VODAFONE GHANA has signed an agreement with AfricXpress, which would allow patrons of the txtNpay services to pay their utility bills, top up air-time with convenience and transfer money to relatives across the country.
AfricXpress was connected to Vodafone Ghana through GPRS after the signing, which took place on Tuesday in Accra.
Existing and prospective users of txtNpay – a mobile phone-based secured payment system, would have to text 1075 to Vodafone to be launched onto the AfricXpress’ payment platform.
Nvalaye Kourouma, Chief Executive Officer (CEO) of AfricXpress Services Incorporated, in a pre-signing speech, said his outfit chose Vodafone Ghana due to the convenience of its network.
“Vodafone is encouraging us to bring more innovations into the telecommunications market for the benefit of customers,” he added.
According to him, through Vodafone’s efficient services, AfricXpress was able to effect over half a million transactions last year via its 400 agents across country.
He therefore invited more Ghanaians to patronise txtNpay, particularly people who transact business with banks.
“Just ask your bank customer service to give you a txtNpay wallet and you will never regret patronising our services,” Mr Kourouma emphasized.
Commenting on the agreement, David Venn, CEO of Vodafone Ghana, stated that Vodafone chose AfricXpress because of its unique and innovative platform, stressing that “the platform was highly convenient to many customers despite its introduction last year.”
“We believe there are a lot more innovations to follow this one to provide our customers with satisfaction.
“Vodafone’s Talk ‘n’ Talk promotion has a lot of benefits for customers, including a 75 percent bonus talk time,” Mr. Vein reiterated.
Tuesday, February 9, 2010
Ghana Targets 278m Barrels Oil
By Samuel Boadi
GHANA COULD lift some 278 million barrels of oil in the first phase of its commercial oil production billed to start in the 4th quarter of this year, the Ghana National Petroleum Corporation (GNPC) has indicated.
Thomas Manu, Director of Exploration, GNPC, who disclosed this at a press conference Monday in Accra, said the fabrication of all equipment required for the exploration has been completed with most of them assembled in Ghana.
“What is left now is the installation of anchor pipes, hook-up and commissioning.”
Initially, 120,000 barrels of oil and 120,000 cubic feet of gas would be produced on a daily basis. And some $500 million is expected as revenue for the first 3 years from 2011 even though experts have noted it could be 5 times more. “This will double to $1 billion for the subsequent 10 years.”
In all, Mr Manu said 17 wells would be drilled and these would include 9 production wells, 2 gas injection wells as well as 6 water injection wells. Twenty-one vessels would be involved.
He continued that phase II of the oil production, expected to start by 2013, will involve the drilling of 25 wells which will witness the production of 240,000 barrels of oil and also 240,000 cubic feet of gas daily. He continued that GNPC will pipe gas onshore for processing at Bonwire in the Ashanti Region.
By the end of the phase II, over 100 wells would have been drilled around the Jubilee and Deep Tano fields.
Nana Boakye Asafu-Adjaye, CEO of GNPC, in an address said Ghana spent about $2 billion on oil imports from Nigeria and therefore substituting such imports with our own oil will save some foreign exchange. “It will afford us savings in freight costs and cheaper gas for all.”
He added that the Floating, Production, Storage and Offloading (FPSO) vessel is also 80 percent complete and will leave Singapore in May this year for Ghana.
In addition to the feverish preparations to make the start of the oil production a reality, he said oil giants like Chevron, Texaco, Exxon Mobil, among others, have started shifting their attention on Ghana.
Asked how the oil activity will help Ghanaians, he said the development will reduce poverty by 50 percent should an amount of $1.5 billion be invested in addition to $400 million annually.
“Between 2007 and now, Ghana’s investment needs in this area has still not been met.”
Meanwhile, GNPC has declared its readiness to buy out the Jubilee Oilfields. And this will require some $4 million. Already, two oil giants - ExxonMobil of the USA and British Petroleum (BP), reportedly are said to be engaged in a tussle over the field.
Furthermore, GNPC and Kosmos Energy are in discussions to patch up the differences which erupted between them from Kosmos’ disclosure of data on the project to investors.
GHANA COULD lift some 278 million barrels of oil in the first phase of its commercial oil production billed to start in the 4th quarter of this year, the Ghana National Petroleum Corporation (GNPC) has indicated.
Thomas Manu, Director of Exploration, GNPC, who disclosed this at a press conference Monday in Accra, said the fabrication of all equipment required for the exploration has been completed with most of them assembled in Ghana.
“What is left now is the installation of anchor pipes, hook-up and commissioning.”
Initially, 120,000 barrels of oil and 120,000 cubic feet of gas would be produced on a daily basis. And some $500 million is expected as revenue for the first 3 years from 2011 even though experts have noted it could be 5 times more. “This will double to $1 billion for the subsequent 10 years.”
In all, Mr Manu said 17 wells would be drilled and these would include 9 production wells, 2 gas injection wells as well as 6 water injection wells. Twenty-one vessels would be involved.
He continued that phase II of the oil production, expected to start by 2013, will involve the drilling of 25 wells which will witness the production of 240,000 barrels of oil and also 240,000 cubic feet of gas daily. He continued that GNPC will pipe gas onshore for processing at Bonwire in the Ashanti Region.
By the end of the phase II, over 100 wells would have been drilled around the Jubilee and Deep Tano fields.
Nana Boakye Asafu-Adjaye, CEO of GNPC, in an address said Ghana spent about $2 billion on oil imports from Nigeria and therefore substituting such imports with our own oil will save some foreign exchange. “It will afford us savings in freight costs and cheaper gas for all.”
He added that the Floating, Production, Storage and Offloading (FPSO) vessel is also 80 percent complete and will leave Singapore in May this year for Ghana.
In addition to the feverish preparations to make the start of the oil production a reality, he said oil giants like Chevron, Texaco, Exxon Mobil, among others, have started shifting their attention on Ghana.
Asked how the oil activity will help Ghanaians, he said the development will reduce poverty by 50 percent should an amount of $1.5 billion be invested in addition to $400 million annually.
“Between 2007 and now, Ghana’s investment needs in this area has still not been met.”
Meanwhile, GNPC has declared its readiness to buy out the Jubilee Oilfields. And this will require some $4 million. Already, two oil giants - ExxonMobil of the USA and British Petroleum (BP), reportedly are said to be engaged in a tussle over the field.
Furthermore, GNPC and Kosmos Energy are in discussions to patch up the differences which erupted between them from Kosmos’ disclosure of data on the project to investors.
No Regrets For Investors – Mills
By Samuel Boadi
OPENING THE 7th Africa Investment Forum Tuesday in Accra, President John Evans Atta Mills has assured investors both within Africa and without who are desirous of investing in Ghana that they are welcome and would always be protected.
“I want to assure investors that they will have no regrets for investing in Ghana. We want investors especially in agriculture. We do not only need them for food security but to ensure sustainable jobs,” President Mills told participants at the well-patronised forum, organised by the Ghana Investments Promotion Council (GIPC) and co-sponsored by the Commonwealth Business Council (CBC) at the International Conference Centre.
It is themed: “Accelerating Intra African Trade and Investment.”
He indicated that his administration is bent on ensuring a reliable judiciary process, requisite labour laws, reasonable cost of doing business, absence of corruption, proper markets and above all political stability in Ghana.
According to him, he is prepared to pursue this with collaboration from all leaders in the sub-region so Africa could rise up to the challenge of turning the economic woes of its peoples around.
He therefore urged participants and prospective business partners to treat one another with the best of faith and honour. “Now is the time to help lift up our people from economic quagmire. Africa must look out for policies and regulations that will assist her take advantage of opportunities in other parts of the world…. And this must start with intra-African trade.”
President Hifikepunye Pohamba of Namibia, in an earlier address, mentioned that there was the urgent need for African countries to focus on adding value to their local products and establish mutually beneficial trade. Noting that Africa is in dire need of investments in the agriculture, manufacturing, infrastructure and energy sectors, he said the political independence of Africa would be meaningless if it is not accompanied by economic independence.
Though he stated that exports from Africa to Asia have witnessed some 50 percent growth, he said this is healthy since Asia is increasingly becoming a greater trading partner of Africa. He called for the redoubling of efforts to achieve economic integration and the removal of intra-state transportation obstacles and also the cumbersome customs regulations.
Ishmael Yamson, who co-chaired the forum, in a welcome speech, said though the global financial crisis, imported from the West, has disrupted capital inflows, there was still a leeway for African countries to redeem themselves from its shackles.
“Africa must define its developmental agenda.”
According to him, the current price of oil which hovers around $70 was still high adding by 2030; Africa would become populous as China, with reference from a study by the African Development Bank (AfDB).
“Intra-African trade is only 6 percent because all African countries do not look for trading partners,” adding the consequences of fragmentation are what we are paying for currently. “Africa should not be shy to exploit opportunities offered by China and India and our leaders will have to accept the challenge to grow.”
President Faure Gnassingbe of Togo also graced the event with a powerful business delegation as also was Dr Mohan Kaul, Director General of CBC and Dr Pascal Dozie, Chairman, MTN Nigeria.
OPENING THE 7th Africa Investment Forum Tuesday in Accra, President John Evans Atta Mills has assured investors both within Africa and without who are desirous of investing in Ghana that they are welcome and would always be protected.
“I want to assure investors that they will have no regrets for investing in Ghana. We want investors especially in agriculture. We do not only need them for food security but to ensure sustainable jobs,” President Mills told participants at the well-patronised forum, organised by the Ghana Investments Promotion Council (GIPC) and co-sponsored by the Commonwealth Business Council (CBC) at the International Conference Centre.
It is themed: “Accelerating Intra African Trade and Investment.”
He indicated that his administration is bent on ensuring a reliable judiciary process, requisite labour laws, reasonable cost of doing business, absence of corruption, proper markets and above all political stability in Ghana.
According to him, he is prepared to pursue this with collaboration from all leaders in the sub-region so Africa could rise up to the challenge of turning the economic woes of its peoples around.
He therefore urged participants and prospective business partners to treat one another with the best of faith and honour. “Now is the time to help lift up our people from economic quagmire. Africa must look out for policies and regulations that will assist her take advantage of opportunities in other parts of the world…. And this must start with intra-African trade.”
President Hifikepunye Pohamba of Namibia, in an earlier address, mentioned that there was the urgent need for African countries to focus on adding value to their local products and establish mutually beneficial trade. Noting that Africa is in dire need of investments in the agriculture, manufacturing, infrastructure and energy sectors, he said the political independence of Africa would be meaningless if it is not accompanied by economic independence.
Though he stated that exports from Africa to Asia have witnessed some 50 percent growth, he said this is healthy since Asia is increasingly becoming a greater trading partner of Africa. He called for the redoubling of efforts to achieve economic integration and the removal of intra-state transportation obstacles and also the cumbersome customs regulations.
Ishmael Yamson, who co-chaired the forum, in a welcome speech, said though the global financial crisis, imported from the West, has disrupted capital inflows, there was still a leeway for African countries to redeem themselves from its shackles.
“Africa must define its developmental agenda.”
According to him, the current price of oil which hovers around $70 was still high adding by 2030; Africa would become populous as China, with reference from a study by the African Development Bank (AfDB).
“Intra-African trade is only 6 percent because all African countries do not look for trading partners,” adding the consequences of fragmentation are what we are paying for currently. “Africa should not be shy to exploit opportunities offered by China and India and our leaders will have to accept the challenge to grow.”
President Faure Gnassingbe of Togo also graced the event with a powerful business delegation as also was Dr Mohan Kaul, Director General of CBC and Dr Pascal Dozie, Chairman, MTN Nigeria.
Monday, February 8, 2010
Row Over Sachet Water Prices
By Samuel Boadi & Charles Nixon Yeboah
THE FRACAS between sachet water producers and Government over the latter’s imposition of a 20 percent ad valorem tax on packaged water transcends into new heights as the Value-Added Tax (VAT) Service has indicated it is bent on collecting the tax willy-nilly.
Some executive members of the Ghana National Association of Sachet Water Producers, whom BUSINESS GUIDE spoke to on the subject, indicated: “Well, if Government is still bent on imposing this hasty decision on us at all costs, we have no option than to pass on the costs to the customer since we cannot afford to lose.”
According to the executives, the increment could have been made gradually instead of the harsh manner in which it is being imposed on producers. They added that the repercussions of such a decision could spell disastrous consequences for both the staff of sachet water producers and consumers.
“If the tax heat becomes so intense for our members to bear, the only way out would be to lay off most of our workers.
“Government should know that it is charting a course that will eventually deprive a greater chunk of our workers jobless. It should not only think about the revenue it will make from the imposition but on the fate of the youth.”
By the foregoing, the retail price of sachet water is expected to witness a 100 percent price hike soon from 5 pesewas to 10 pesewas. Similarly, the price of distilled water used at the hospitals and industries could also go up and affect inflation.
There are about 45,000 sachet water producers in the country, and expressed the worry that getting all the members registered for the consensus before the February ending deadline could be an uphill task for the association.
The announcement of the tax has gone further to affect the price the locally distilled gin ‘akpeteshie’. A jerrican of the gin has hiked up from GH¢90 to between GH¢120 and GH¢130. And seemingly, a bottle of the product has also jumped from GH¢1.40 to GH¢2.40, while a tot has also shot from Gp10 to Gp20.
In the case of bottled water, the 1.5 litre, currently selling at GH¢1.00 will go for GH¢1.10, while the 0.5 litre bottle will move from 50 pesewas to 60 pesewas. The effects of the tax increment is said to affect the price of other brewed lager beers, such as Guinness, Castle Milk Stout, Gulder, Stone, among others. This is so because a 50 percent excise levy on the brewery industry would also affect them and complicate their businesses.
Government announced a 20 percent excise tax for all bottled, sachet, distilled water and alcoholic beverages in the 2010 Budget as part of measures to generate more revenue for the nation.
It is as a result of this misunderstanding that the Ministry of Finance and Economic Planning has mandated a technical committee to reconsider the law that tasks the Value Added Tax (VAT) Service to charge an ad valorem tax on packaged water. This was after the chairman of the committee that drafted the law had complained that his members did not impose the tax on sachet water. As to whether consumers would be made to pay for the price of sachet water will depend on the final verdict to be arrived at by the technical committee.
Meanwhile, a member of the Parliamentary Select Committee on Finance James Avedzi, says the drafters of the law on ad valorem did not include sachet water in the list of items to be taxed. According to him, the committee agreed that sachet water should be excluded during their deliberations.“We have not imposed tax on sachet water; we have imposed tax on bottled water…the law that we passed says packaged bottled water so those that probably you drink – voltic…are those that are going to attract taxes,” he said. But both the VAT Service and the Ministry of Finance have justified the inclusion of sachet water.
The rationale behind the imposition of the ad valorem tax from the majority side in Parliament hinges on the health of consumers hence the outrageous increment while the minority have touted for affordability of its price to enable more people enjoy it.
THE FRACAS between sachet water producers and Government over the latter’s imposition of a 20 percent ad valorem tax on packaged water transcends into new heights as the Value-Added Tax (VAT) Service has indicated it is bent on collecting the tax willy-nilly.
Some executive members of the Ghana National Association of Sachet Water Producers, whom BUSINESS GUIDE spoke to on the subject, indicated: “Well, if Government is still bent on imposing this hasty decision on us at all costs, we have no option than to pass on the costs to the customer since we cannot afford to lose.”
According to the executives, the increment could have been made gradually instead of the harsh manner in which it is being imposed on producers. They added that the repercussions of such a decision could spell disastrous consequences for both the staff of sachet water producers and consumers.
“If the tax heat becomes so intense for our members to bear, the only way out would be to lay off most of our workers.
“Government should know that it is charting a course that will eventually deprive a greater chunk of our workers jobless. It should not only think about the revenue it will make from the imposition but on the fate of the youth.”
By the foregoing, the retail price of sachet water is expected to witness a 100 percent price hike soon from 5 pesewas to 10 pesewas. Similarly, the price of distilled water used at the hospitals and industries could also go up and affect inflation.
There are about 45,000 sachet water producers in the country, and expressed the worry that getting all the members registered for the consensus before the February ending deadline could be an uphill task for the association.
The announcement of the tax has gone further to affect the price the locally distilled gin ‘akpeteshie’. A jerrican of the gin has hiked up from GH¢90 to between GH¢120 and GH¢130. And seemingly, a bottle of the product has also jumped from GH¢1.40 to GH¢2.40, while a tot has also shot from Gp10 to Gp20.
In the case of bottled water, the 1.5 litre, currently selling at GH¢1.00 will go for GH¢1.10, while the 0.5 litre bottle will move from 50 pesewas to 60 pesewas. The effects of the tax increment is said to affect the price of other brewed lager beers, such as Guinness, Castle Milk Stout, Gulder, Stone, among others. This is so because a 50 percent excise levy on the brewery industry would also affect them and complicate their businesses.
Government announced a 20 percent excise tax for all bottled, sachet, distilled water and alcoholic beverages in the 2010 Budget as part of measures to generate more revenue for the nation.
It is as a result of this misunderstanding that the Ministry of Finance and Economic Planning has mandated a technical committee to reconsider the law that tasks the Value Added Tax (VAT) Service to charge an ad valorem tax on packaged water. This was after the chairman of the committee that drafted the law had complained that his members did not impose the tax on sachet water. As to whether consumers would be made to pay for the price of sachet water will depend on the final verdict to be arrived at by the technical committee.
Meanwhile, a member of the Parliamentary Select Committee on Finance James Avedzi, says the drafters of the law on ad valorem did not include sachet water in the list of items to be taxed. According to him, the committee agreed that sachet water should be excluded during their deliberations.“We have not imposed tax on sachet water; we have imposed tax on bottled water…the law that we passed says packaged bottled water so those that probably you drink – voltic…are those that are going to attract taxes,” he said. But both the VAT Service and the Ministry of Finance have justified the inclusion of sachet water.
The rationale behind the imposition of the ad valorem tax from the majority side in Parliament hinges on the health of consumers hence the outrageous increment while the minority have touted for affordability of its price to enable more people enjoy it.
Ghana Hosts 7th Africa Investent Forum
By Samuel Boadi
IN Its quest to strengthen linkages between African economies to underpin new trade and investment, the Ghana Investment Promotion Centre (GIPC) will host the 7th Africa Investment Forum in Accra from February 8 – 10, 2010.
George Aboagye, Chief Executive Officer (CEO) of GIPC, told the media on Wednesday in Accra that the forum, to be co-hosted by the Commonwealth Business Council (CBC), would bring together business and government leaders from Africa, Europe, North America and Asia, including the Presidents of Namibia, Rwanda and Togo among other special guests.
Additionally, there would be a 38-member delegation from Namibia, as well as delegations from Nigeria, Egypt, South Africa and several other countries. Additionally, the Egyptian Minister for investment and the Kenyan Minister of Trade are all expected to attend the meeting.
Mr Aboagye said the forum would further provide a platform for countries to profile investment opportunities in sectors such as energy, agriculture, oil and gas and manufacturing to an international audience of over 500 business leaders and investors.
“Particularly, it will bring investors and projects together to explore public private partnerships and facilitate business partnerships which support the economic growth that is required to enable African countries to realize their aspirations in the global economy of the 21st century.
He noted that it would provide excellent networking opportunities.
In addition to the main plenary sessions, specific investors’ roundtables will be held to discuss public private partnerships to improve infrastructure, trade and the movement of goods and services, the investment climate and access to finance.
“The event is an opportunity for the private sector and we hope all the business associations in the country would encourage their members to participate fully to reap the benefits of such an event.”
Keynote speakers for the forum include Kifikepunye Pohamba, President of Namibia, Aigboje Aig-Imoukhuede, Group Managing Director of Access Bank, Pascal Dozie, Chairman, Commonwealth Business Council/Chairman, MTN Nigeria, Lord Cairns (CVO CBE), Chairman, Zain Africa, Mahmoud Mohieldin among others.
IN Its quest to strengthen linkages between African economies to underpin new trade and investment, the Ghana Investment Promotion Centre (GIPC) will host the 7th Africa Investment Forum in Accra from February 8 – 10, 2010.
George Aboagye, Chief Executive Officer (CEO) of GIPC, told the media on Wednesday in Accra that the forum, to be co-hosted by the Commonwealth Business Council (CBC), would bring together business and government leaders from Africa, Europe, North America and Asia, including the Presidents of Namibia, Rwanda and Togo among other special guests.
Additionally, there would be a 38-member delegation from Namibia, as well as delegations from Nigeria, Egypt, South Africa and several other countries. Additionally, the Egyptian Minister for investment and the Kenyan Minister of Trade are all expected to attend the meeting.
Mr Aboagye said the forum would further provide a platform for countries to profile investment opportunities in sectors such as energy, agriculture, oil and gas and manufacturing to an international audience of over 500 business leaders and investors.
“Particularly, it will bring investors and projects together to explore public private partnerships and facilitate business partnerships which support the economic growth that is required to enable African countries to realize their aspirations in the global economy of the 21st century.
He noted that it would provide excellent networking opportunities.
In addition to the main plenary sessions, specific investors’ roundtables will be held to discuss public private partnerships to improve infrastructure, trade and the movement of goods and services, the investment climate and access to finance.
“The event is an opportunity for the private sector and we hope all the business associations in the country would encourage their members to participate fully to reap the benefits of such an event.”
Keynote speakers for the forum include Kifikepunye Pohamba, President of Namibia, Aigboje Aig-Imoukhuede, Group Managing Director of Access Bank, Pascal Dozie, Chairman, Commonwealth Business Council/Chairman, MTN Nigeria, Lord Cairns (CVO CBE), Chairman, Zain Africa, Mahmoud Mohieldin among others.
'Prime Rate Threatening'
By Samuel Boadi
INDUSTRY CAPTAINS have fingered the Bank of Ghana (BoG)’s prime rate of 18 percent as the basis for high interest rates in the country and the reason for industry’s many woes.
Chief executive officers interviewed by the Association of Ghana Industries (AGI) in its 2009 4th Quarter Business Barometer Survey said despite a decline in BoG’s prime rate from 18.5 percent in September 2009 to 18.0 percent in November 2009, base rates of commercial banks have continued to remain the same.
Touching on challenges that the situation was dealing to industry, the CEOs said in the manufacturing sector, cost of credit rose to 51.16 percent in addition to competition from imported goods which hiked up to 37.2 percent while also high costs of energy and power fluctuation surged to 36.0 percent.
The service sector was also been confronted with inflation in the region of 51.3 percent, high level of taxation around 37.2 percent and high cost of energy and power fluctuations by 37.2 percent.
The agriculture sector is also not left out of the circumstance. It has experienced cost of credit of 54.5 percent, access to credit of 42 percent and cost of raw materials soaring to 39.4 percent.
In the construction sector, cost of credit, access to credit and high level of taxation were ranked first, second and third respectively, as key challenges.
In spite of the afore-mentioned challenges, CEOs of businesses operating in Ghana have expressed optimism that the overall business environment would improve in the next 6 months. Over 80 percent of the CEOs expect the business environment to be favorable.
The 2010 National Budget read in November, 2009 revealed the following growth rates in the key sectors of the economy: agriculture (6.2 percent); service (4.6 percent) and industry (3.8 percent).
However, the latter quarter witnessed a decline in inflation from 18.04 percent in October 2009 to 15.97 percent in December 2009, with exchange rate remaining stable while also the modest macroeconomic stability achieved in the third quarter was sustained in the fourth quarter.
The industry captains also mentioned other challenges that made Ghana’s industry less competitive. These included lack of equipment/technical expertise, lack of ready market and low purchasing power.
However, all the aforesaid challenges declined in the 4th quarter from 54 percent to 50 percent, 47 percent to 38.7 percent and 46.0 percent to 33.0 percent, respectively in terms of percentage points.
Overall, the level of confidence in the business environment declined from 36.6 in the 3rd quarter to 28.8 in the fourth quarter. This implies that the confidence level in the 3rd quarter was higher than in the 4th quarter.
INDUSTRY CAPTAINS have fingered the Bank of Ghana (BoG)’s prime rate of 18 percent as the basis for high interest rates in the country and the reason for industry’s many woes.
Chief executive officers interviewed by the Association of Ghana Industries (AGI) in its 2009 4th Quarter Business Barometer Survey said despite a decline in BoG’s prime rate from 18.5 percent in September 2009 to 18.0 percent in November 2009, base rates of commercial banks have continued to remain the same.
Touching on challenges that the situation was dealing to industry, the CEOs said in the manufacturing sector, cost of credit rose to 51.16 percent in addition to competition from imported goods which hiked up to 37.2 percent while also high costs of energy and power fluctuation surged to 36.0 percent.
The service sector was also been confronted with inflation in the region of 51.3 percent, high level of taxation around 37.2 percent and high cost of energy and power fluctuations by 37.2 percent.
The agriculture sector is also not left out of the circumstance. It has experienced cost of credit of 54.5 percent, access to credit of 42 percent and cost of raw materials soaring to 39.4 percent.
In the construction sector, cost of credit, access to credit and high level of taxation were ranked first, second and third respectively, as key challenges.
In spite of the afore-mentioned challenges, CEOs of businesses operating in Ghana have expressed optimism that the overall business environment would improve in the next 6 months. Over 80 percent of the CEOs expect the business environment to be favorable.
The 2010 National Budget read in November, 2009 revealed the following growth rates in the key sectors of the economy: agriculture (6.2 percent); service (4.6 percent) and industry (3.8 percent).
However, the latter quarter witnessed a decline in inflation from 18.04 percent in October 2009 to 15.97 percent in December 2009, with exchange rate remaining stable while also the modest macroeconomic stability achieved in the third quarter was sustained in the fourth quarter.
The industry captains also mentioned other challenges that made Ghana’s industry less competitive. These included lack of equipment/technical expertise, lack of ready market and low purchasing power.
However, all the aforesaid challenges declined in the 4th quarter from 54 percent to 50 percent, 47 percent to 38.7 percent and 46.0 percent to 33.0 percent, respectively in terms of percentage points.
Overall, the level of confidence in the business environment declined from 36.6 in the 3rd quarter to 28.8 in the fourth quarter. This implies that the confidence level in the 3rd quarter was higher than in the 4th quarter.
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