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.
Monday, February 22, 2010
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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