Newmont’s AILAP Project Supports Ghana's Agric Production

Samuel Boadi The 26 per cent contribution of Ghana’s agricultural sector to the Gross Domestic Product (GDP) of Ghana, according to some critics, is not enough, especially looking at the strategic importance of agriculture in terms of employment, poverty reduction and food security in the country. The 2012 Report on the State of Food Insecurity in the world estimates that about 870 million people, representing 12.5 per cent of the global population, were undernourished in the period 2010-12. Sub-Saharan Africa alone accounted for about 234 million of the undernourished. And in almost all developing countries, it is the rapid growth in agriculture which holds the key to reducing undernourishment and speeding up the pace of economic development. Records at the Ghana Statistical Service (GSS) indicate that about 14 million people, representing 60 per cent of Ghana’s current total workforce, are engaged in agriculture, which still remains the backbone of the economy and contributes 26 per cent to the gross domestic product (GDP). Government’s Quota In its 2012 Budget, government spelt out what it has done. These included the offloading of over 10,000 metric tonnes of maize from the National Buffer Stock Company (NBSC) to the market to stabilize maize prices. Also it utilised a total of GH¢23.950 million under the Fertilizer Subsidy Programme to supply 55,000 metric tonnes of chemical fertilizers to farmers. 315 hectares of irrigated land was rehabilitated for tomato cultivation to feed the Northern Star Tomato Factory at Pwalugu. Additionally, under the Phase II of the rehabilitation/extension works at the Tono Irrigation Project, two reservoirs and night pump houses have been completed with the provision of electricity and water pumps. Furthermore, 52 per cent of rehabilitation works on flood damaged dams in the Northern, Upper East and Upper West regions were completed. Gobind Nankani, a former economic advisor to the late Professor John Mills, in his book entitled, ‘The challenges of agriculture in Ghana,’ notes that the data on yield gaps between Ghanaian productivity levels for crops, compared to achievable yields, shows gaps in the range of 20 percent for oil palm, to 40 percent for maize and rice, to 60 percent for cocoa. On the way forward, he said“Ghana can make a break with the past, if each of us plays our part. Part of that break will make possible a frontal assault on the challenge of agriculture in Ghana.” He added that it will help unleash a stronger and more sustainable growth path; move almost a million more people above the poverty line by 2015, improve the lot of rural Ghanaians by a quantum leap and finally make a real dent in the incidence of poverty in the North.” Newmont’s Dream It’s against the foregoing background that Newmont Ghana’s contribution to agriculture comes into focus. In its quest to empower the people in its catchment area economically, Newmont Ghana introduced its Agricultural Improvement and Land Access Programme (AILAP), a post-resettlement mitigation package to assist the farmers who are directly affected by the development of the Ahafo Mine to re-establish their agricultural livelihoods. The programme was first introduced in 2006 to assist farmers who had lost their lands, with training in alternative livelihoods. They are provided with lands outside the catchment area, free farm inputs and improved extension services. “Since our operations in Ahafo, Newmont has invested more than 10 million dollars under the Agricultural Improvement and Land Access and other Livelihood Re-establishment programmes, the Skill Development for Income Improvement and the Vulnerable Peoples’ Programme,” Agbeko Azumah, Communications Manager of the Newmont’s Ahafo mine disclosed. With the AILAP, the farmers are registered and taken through Business Plan Training (BPT), as well as assessment of beneficiaries’ lands and subsequent allocation by the Land Allocation Review Committee (LARC). Their claims to farms are subsequently verified, after which they receive their first cash assistance for land acquisition, clearance and maintenance. Farming inputs are also distributed to them while technical assistance is provided by the Ministry of Food and Agriculture (MoFA) and OICI Extension Officers. A second tranche is paid them for the control of weeds on the farms based on the recommendations of Extension Officers after monitoring. Farm inputs are also distributed to them. What the farmers are doing The farmers are also encouraged to cultivate yams, cassava, cocoyam, maize, groundnuts, cowpea, soya bean, sorghum, okro, and pepper, as well as garden eggs, tomato, mango, cocoa, oil palm, and plantain, among others. The AILAP is being executed in phases. AILAP 1 started from 2006 to 2008. AILAP 2 began from 2009 and 2011 and covered farmers affected by the expansion of Amoma and Subika East and the mapping of the site for K1 resettlement. AILAP 3 took off in August 2011 and expected to end in July 2013. It covers farmers from Gyakakrom/ECD4, the construction of a Water Storage Facility (WSF) and expansion of the Tailings Storage facility. A personal testimony A beneficiary and the 2011 Best National Plantain Farmer, who was sponsored by Newmont to attend this year’s Farmers Day celebration at Abokobi confessed proudly “I am glad to be a beneficiary of the AILAP; I was working for nothing until I joined the programme. “I won the Best National Plantain Farmer award last year because of the extension services and inputs received from Newmont and the Ministry of Agriculture.” “I am not the only beneficiary; over 5,000 other farmers have chalked various degrees of success, due to the intervention of Newmont. We now adopt good agronomic practices, to improve our yields, Mr. Asamoah had earlier been crowned the best AILAP farmer by Newmont. Mr. Asamoah says he now owns a four-bedroom house and educates his children. “With my association with Newmont, I can now boast of a 31-acre cocoa farm, banana and oil palm plantations and a poultry farm. Aside these, I have ventured into aquaculture and piggery, to supplement my income,” he stressed. “Some of us have been lucky because Newmont has invested so much in us, which is aiding us in our profession. What about the farmer who is not receiving any assistance in terms of financial support, and agric inputs, among others?” he asked. Despite all these, Mr. Asamoah is faced with such challenges as bad roads, and unavailability of ready markets, among others. The way forward Akoto-Nimoh Frederick of Newmont Ghana stated that “an erratic rainfall pattern made planning and execution, very difficult, especially the distribution of inputs. Bad roads to and from farm gates, and farmers having to travel longer distances to access their farms have all been a bother, and also hampered the work of the MOFA extension officers.” Despite its challenges, Newmont Ghana’s AILAP programme can be said to be making a great difference in the lives of farmers, their families and catchment communities. In the wider context, it is contributing meaningfully to the socio-economic development of Ghana.

Minimum Pension Now GH¢100

By Samuel Boadi New pensioners will be entitled to a minimum monthly pension of GH¢100.00 with effect from January 2013, the Social Security & National Insurance Trust (SSNIT) has recently stated in a media release issued in Accra. Signed by Evangeline Amegashie, Corporate Affairs Manager of SSNIT, the release noted that SSNIT increased (indexed) pensions-in-payment for this year in accordance with Section 80 of the National Pensions Act, 2008 (Act 766). “As a result, all pensions-in-payment as at December 31, 2012, has been increased by a rate of 12.0 percent and a flat amount of GH¢21.36 per pensioner. This gives an overall indexation rate of 22.6 percent for the year 2013.” It stated that all pensioners receiving monthly pension of less than GH¢100.00 will be placed on a pension of GH¢100.00 per month. Over the years, concerns have been raised by public servants over inadequacies of the level of pensions to sustain a respectable life for retired public servants. Of particular concern to most workers’ groups has been the low pensions under the Social Security and National Insurance Trust (SSNIT) Pension Scheme compared to those still under Chapter 30 of the 1950 British Colonial Ordinances (Pension Ordinance No. 42), popularly known as CAP 30. In addition, pension schemes that have been operated in Ghana so far have, beside their limitations, also failed to consider the plight of workers in the informal sector, who constitute the bulk (about 85 percent) of the working population in Ghana. Workers’ organizations agitated for the restoration of public service pensions to the level of the provisions available to some public officers under CAP 30, in place of the SSNIT system that was introduced in 1972, as the mandatory and universal pension scheme for all employees. It was as a result of this that a new pension law, the National Pensions Act, 2008(Act 766) was enacted on December 12, 2008. The National Pensions Act caters for the establishment of a new contributory three-tier pension scheme with a National Pension Regulatory Authority to oversee the efficient administration of the composite pension scheme. SSNIT, it would be recalled, called on all pensioners who are 72 years or above to complete life certificates twice a year. Consequently, for year 2013, such pensioners were advised to visit the nearest SSNIT branch at the beginning of February as well as the beginning of August to complete their life certificates. “Those who, for one reason or another, cannot go to any SSNIT branch should contact the Benefits Customer Service on Telephone Number 030 7011365 for assistance.”

EU Alerts Ghana

- Less Aid In Future By Samuel Boadi Ghana should be preparing to single-handedly champion her development projects in the near future. This is because the level of development assistance it enjoys from European Union (EU) countries will soon begin to dwindle, the head of the EU Delegation to Ghana, Claude Maerten, has said. In an interview with BUSINESS GUIDE recently in Accra, Mr Maerten asserted that “the level of external assistance will decrease because the crisis is not one which affects just Europe but one that affects the growth rates of all countries of the world - the USA, South East Asia and all countries.” In order to counteract the effects of the current economic crisis unfolding in Europe, the head of delegation said Ghana should pursue more investment and trade. “Ghana’s growth rate projected for this year, compared with the growth rates of some countries in Europe, is very high. In some EU states, there is no growth rate at all while in some countries, there is a decline of the GDP. A few countries in Europe had positive GDP.” He revealed that EU countries have an agreement with the Government of Ghana that stipulates that from 2020, Ghana will be less aid dependent. “We know that Ghana has a lot of natural resources, mines and also oil, which will flow more and more. There is also the gas infrastructure which will develop the energy sector and bring jobs to the youth. “Ghana is very positive. So it is so clear that when we look at such situation in the world, we have to put in place a system of assistance for countries which badly need support. This being said, the relationship with Ghana will be quite high because Ghana is the most politically democratic country in the sub-region.” The foregoing not withstanding, Europe still remains a major trading partner of Ghana. But Ghana could also look at trading with countries in South-East Asia and Latin America. “It will affect external trade and exports but at the same time Ghana exports more raw materials with gold and aluminium. These products are in high demand and also the price of the products will be high in future. Ghana has been so much resilient in the competitiveness of these prices.” Additionally, Mr Maerten said there might also be an impact on the level of remittances because if there are less jobs in Europe or any part of the world where the Ghanaian reside, then it will be difficult for them to send money home. “That might also affect balance of payment of Ghana.” Asked when the crisis would end, he said: “Nobody knows how long it will take. Recently the economic and financial ministers met and launched the European Stability Mechanism to lend support to affected countries. This comes with an amount of 500 billion Euros seed money. Ghana-EU partnership has existed for about 35 years ago and has witnessed the investment of about GH¢3 billion in Ghana. Between 2008 and 2015, the EU has earmarked GH¢1.2 billion for development in Ghana. So far, 40 percent has been spent.

More Firms Go Into Housing

By Samuel Boadi An explosion is about to hit the country’s housing sector if some 90 companies which have applied to the Ministry of Water Resources, Works & Housing to build mortgage houses across the country are given the green light to do so. So far, four out of the 90 companies have been granted permission to do so and these include Ital Construct, which is expected to build 4,000 housing units, American Capital, which has partnered local companies to build 5,000 units, the Tema Development Corporation (TDC) and the Commonwealth Business Council. Their applications were approved in April, this year. Enoch Teye Mensah, Minister of Water Resources, Works & Housing, disclosed this to the media in Accra at the weekend. He added that the units would be completed before the conventional periods for building in Ghana since the companies would be employing new building technology. A seven-member committee, set up by the ministry, is investigating the backgrounds of the applicants to determine whether they have the means and integrity to execute their jobs. Others that are waiting to be approved include Amandy Company and a company from Brazil which has entered into agreement with Ghana Home Loans, among others. Also, SSNIT and Regimanuel Grey Limited are collaborating to build some 700 housing units at Klagon, near Nungua in Greater Accra. The minister noted that such housing units are specifically targeted at Ghanaians who are unable to own houses, adding that the houses would be affordable. Currently, Ghana’s housing deficit stands at 1,700,000 units per annum. Generally, a lot of people in Ghana, including workers, cannot feed themselves effectively a day, let alone save some money towards the construction of a house. To further dash their hopes of ever owning houses, their SSNIT contributions are being allegedly mismanaged and enjoyed by employees of entities that manage such funds. Ghana recently joined Shelter-Afrique, a pan-African financial institution to enable real estate developers gain access to funds at moderate interest rates to assist the provision of more housing units for Ghanaians. Ghana was admitted as the 43rd member of Shelter –Afrique, a company, headquartered in Nairobi Kenya in 2011. Habitat Ghana, a subsidiary of Habitat for Humanity (HFH), wants to build about 20,000 housing units for Ghana’s poor. Should all the applicant companies be offered permission to build houses, there would be more mortgage houses for grabs but an aspect to contend with is the affordability of such houses. South Africa’s foremost financial services company, FirstRand Limited has disclosed plans to invest proceeds of its $250 million fund raising exercise across major West and Southern African real estate markets, particularly Nigeria, Ghana and Angola.

VRA Guns For Shiroro Dam

By Samuel Boadi The Volta River Authority (VRA) would soon be operating Shiroro, one of Nigeria’s biggest dams with power generation capacity of 600 megawatts. This is expected to enhance VRA’s expansion drive since Nigeria was currently embarking on a massive privatization of its energy generation companies. The VRA, which has been invited to bid, has had to lose $50 million every month as a result of the lifting of crude oil from Nigeria to carry out its operations. This follows the shutdown of the West Africa Gas Pipeline since August, this year which has negatively impacted its operations. Kweku Awotwi, Chief Executive Officer (CEO) of VRA, who made this known, was delivering a speech at the biennial national congress of the VRA Senior Staff Association at Akosombo at the weekend. According to him, Ghana’s crude oil was not up to the specification needed by VRA in its operation. He added that despite the gas pipeline problem that had affected the VRA, it still made profits in 2011. The CEO said VRA posted a profit of about GH¢40 million in 2011, noting that it was an attainment which had not been recorded in many years. In order to bridge the power gap in the country’s energy supply due to the shutdown of the West Africa Gas Pipeline Company (WAGPCo), his outfit and the Social Security & National Insurance Trust (SSNIT) are collaborating to execute a project that will generate 300 megawatts of power by the end of 2012. He said despite the challenges, VRA was making strides to cooperate with its staff, indicating that his outfit would ensure that immediate measures were put in place to contain the situation.

EU Eyes Migration Pact With Ghana

By Samuel Boadi The European Union (EU) says it wants to establish a migration and stability programme with Ghana that will culminate in the development of Ghana and lead to higher growth in Europe. Claude Maerten, Head of Delegation of the European Union to Ghana, disclosed this in an interview with CITY & BUSINESS GUIDE Tuesday in Accra. “In Europe, we have situations in some economic sectors where we do not have enough manpower. We foresee that with the aging population in Europe, there would be the need to have manpower coming from other countries of the world. And so, we have considered some of this for Ghana. “It is very important that trained people living in Europe or the US, will have the opportunity to come back to Ghana if they want to work in Ghana or if they want to be part of the working force to make Ghana a middle-income country and society, be able to do that to save the lower end of the middle income. And I know that there are many Ghanaians there who might want to come. Migration is a tool for Europe and Ghana to share the benefits of mobility.” Commenting on Ghanaians who were not skilled but live in the Diaspora illegally, he noted: “People who are faced with illegal migration and travel to different parts of the world should not be treated with contempt. Maltreating them is against international human rights.” He noted: “On the relation between Europe and Africa, it is clearly one of the priorities of the EU to come up with a strong foreign policy. We have with Ghana and the rest of West Africa, a long standing relationship which is being governed by the Cotonou convention. We have for instance with Ghana a long-standing relationship that is multi-faceted. “We also have the EPA since 2007, more dialogue on migration and a new one which is being proposed by Europe which is called agenda on mobility and migration. We should soon start a working group to see what the working interests for Ghana and Europe are.” He said Ghana has been selected to continue enjoying external assistance from the EU between 2014 and 2020. He added that even though Ghana was working towards becoming a middle-income country, there would still be some sectors that need external assistance and therefore the reduction in development assistance will not register any significant difference. He said that investors in EU could nonetheless come over to Ghana to invest since foreign direct investment (FDI) was a private sector decision “so we have nothing to say to that. It is better to invest in any country of their choice.” The current situation in Europe will be the subject of a meeting among European leaders on 18th and 19th October, this year. It will start with the economic union compact for growth and job creation more importantly.

‘Pay Chirano Farmers, Sefwi Residents’ By Samuel Boadi Mike Hammah, Minister of Lands & Natural Resources, has given the Lands Valuation Board a two-week ultimatum to resolve issues regarding the payment of full compensation to some aggrieved farmers at Chirano and concerned citizens of Sefwi in the Western region. Mr. Hammah gave the directive yesterday in Accra when a group calling itself ‘Concerned Citizens of Sefwi’ and some affected farmers in the Chirano Gold Mines operational area, presented a protest note to him. Prince Eric Amoako Atta, spokesperson for the group, indicated that “the protest has become necessary because the frustration of farmers currently has reached bursting point.” According to him, the leadership of the affected farmers has come under immense pressure as a result of the long delay in getting the compensation paid. “The continuous building of the pressure threatens the existing process that aims at solving this impasse amicably with unpredictable but certainly disruptive consequences for the operations of the mining company.” The gold mines, Mr Amoako Atta noted, risks losing lands it took from farmers if the payment is not effected immediately in accordance with the recommendation of the Lands Valuation Division. On April 3, 2004, government granted Chirano Gold Mines Company Limited a mining lease after which it started gold production in 2005. Between 2004 and 2006, Chirano Gold Mines paid compensation to some farmers based on GH¢2.50 per matured cocoa tree after falsely presenting to the farmers who were mostly illiterate, a Government of Ghana approved compensation rate of GH¢2.30 per matured cocoa tree. But Government, in 2003, acting through the Lands Valuation Board, had approved a crop compensation rate of GH¢5.22. “We therefore took the matter which borders on fraudulent and deceitful actions by the company to the Sefwi Wiawso High Court in 2006. The company, knowing that it will lose the case requested for an out-of-court settlement. We peacefully agreed to the company’s request. “Unfortunately for us, the company did not stick to the process and deployed some delay mechanisms just to drag the process,” Mr Amoako Atta stated. In 2007, he said they had to send the issue to the Fast Track High Court in Accra. The case was pending before court in 2009 when the then Minister of Lands & Natural Resources intervened in the matter and initiated a process to get the matter settled out of court. The minister, in a letter dated May 17, 2012, advised Chirano Gold Mines to immediately pay all compensation assessed as provided in a payroll produced by the Lands Valuation Division taking due cognizance of earlier payments made in relation to the compensation claim. “But this advice has not been heeded by the company. Instead, it has, once more, reverted to its delay tactics and has been dragging its feet since then.” “We wrote the current minister on August 23, 2012 and urged him to take necessary actions which could include the withdrawal of the company’s licence to ensure immediate payment of the compensation-in- arrears. The situation has not changed much as our compensation-in-arrears continue to be in arrears while the company keeps digging gold.” The compensation-in-arrears seekers omitted 2010 because the company in September 2010 changed ownership from Red Back Mining Inc. to Kinross Gold Corporation, making data gathering from these companies extremely difficult.