Kofi Ahovi

By Kofi Ahovi Ghana Commercial Bank (GCB) has posted a commensurate growth in its operations during the 2008 financial year. The bank recorded profit before tax of GH¢49.71 million in 2008 compared to GH¢46.96 million in 2007 representing a growth of 5.8%. Profit after tax was GH¢37.59 million in 2008 compared to GH¢32.87 million in 2007 representing 14.5%. Earning per share was GH¢0.142 compared to GH¢0.124 in the previous year. Shareholders’ fund of the group also stood at GH¢207,749,124 at end of 2008 as against GH¢176,865,915 the previous year. The shareholders’ fund for the bank also increased from GH¢173,691,280 in 2007 to GH¢203,863,665 in 2008. Shareholders of the bank have approved the payment of GH¢0.06 per share totaling GH¢15,900,000 as dividend for the year end 2008. The amount represents a pay-out ratio of 42%. The approval was made the bank’s 15th annual general meeting for its shareholders in Accra last week. The bank also passed special resolutions to amend regulation...

By Kofi Ahovi Mushroom growers who have been facing marketing challenges in respect to selling their produce have been advised to consider supplying to the school feeding programme (SFP). Upon advice by BusinessWeek, representatives of the Mushroom Growers and Exporters Association of Ghana (MUGREAG) contacted the offices of SFP to know the processes involved in supplying their produce to the programme. The coordinator of the school feeding program, Kenneth Nsowah, advised the growers to talk to the caterers of the various schools for assistance. The president of the MUGREAG, Theophilus Quartey, welcomed the suggestion and promised to follow it up with his members. Expressing his dissatisfaction at the level of mushroom consumption, the president announced the association’s intention to embark on an awareness drive on the nutritional value of mushrooms, which are very rich in protein and other medicinal properties. Though very nutritious, mushroom consumption has not been very encourag...

By Kofi Ahovi The Community Water and Sanitation Agency (CWSA) will soon come up with a strategic investment plan that would enable the government to provide up to 30% while developing partners provide 70% of total fund for its activities. The measure became necessary due to the dwindling of funds from donors mainly due to the financial global crisis and the unwillingness of donors to provide higher portion of the agency’s budget while government provides just a token. Currently government provides only 5-10% of the agency’s budget, while the rest is catered for by donors. The agency has also called for an increment in its administrative budget. It however received GH¢30 million for its investment programmes for this year. The CWSA last year out-performed its targets of providing and rehabilitating boreholes in communities across the country. Out of the establishment of 1,270 targeted boreholes, CWSA built 1,784 boreholes and rehabilitated 302, albeit the 140 targeted. The chief execut...

By Elorm DESEWU About a month from now BPI Bank, which is now 51% owned by UT Holdings which is also the majority shareholder of UT Financial Services will be rebranded as UT Bank. This is a major step in the transformation of the bank by its new majority shareholders from a hitherto underperforming bank into one which is expected to compete with the leaders in Ghana’s banking industry, in terms of product quality, customer care, excellence and strong financial performance. The bank is also set to roll out new products as well as extend its branch network in the country. UT Holdings purchased its majority equity stake in BPI Bank from Hopeco Ventures, a part of Business Focus, a huge Malaysian conglomerate which was hitherto the majority shareholder in the bank. Hopeco’s equity stake in BPI Bank has now been whittled down to 42%. The other 7% is owned by the Social Security and National Insurance Trust (SSNIT) and some other Ghanaian shareholders. Although SSNIT and those other Ghanaia...

…..but Participants call for more publicity By Kofi Ahovi Participants at the just ended Water Africa and West African Building & Construction exhibition and seminar 2009 have called for adequate publicity of future fairs to attract more customers. According to the participants that Business week spoke to they were of the view that the organizers of the fair should intensify their publicity campaign in future to deepen customers’ appetite in both the building and construction and the water sectors. The managing director of Edidor Ltd, Charles Quist, in expressing his view of the fair, said he had hoped that more players in the water industry would have turned up at the fair but that was not the case, attributing it to low publicity. He however added that his company was yet to evaluate the success of the fair based on the feedback from potential clients, saying “it is too early to determine the success of the fair but we are optimistic of expanding our clientele base from this fai...

… Are workers enthused? By Bernard Ato ARTHUR After exhaustive consultations for over the past four weeks, the National Tripartite Committee (NTC) has agreed on an increase on the 2008 National Daily Minimum Wage, which stood at Gh¢2.25 with effect from April 1, this year. The committee, which started a series of meetings late February this year, concluded its negotiations on the 2009 daily minimum wage last Friday, April 3. Kofi Asamoah, the secretary-general of the Ghana Trades Union Congress (TUC) disclosed that there was serious agitation at certain points of negotiations because government had budgeted for a 12.5% increase and argued that if it is pushed further it will affect government’s expenditure for the year. He also blamed the delay in determining the new minimum wage largely on the political transition process. The sub-technical committee also works out modalities to restore the face value lost as a result of inflation, among other things. In a communiqué issued and signe...

By Elorm DESEWU & Kofi AHOVI The Bank of Ghana, the statutory regulator of the banking industry, is preparing to establish a financial intelligence centre aimed at cutting down the rate of money laundering activities in the country. The centre, which will be overseen by the National Security Council, is expected to receive and analyse financial information, as well as disseminate information packages to the law enforcement agencies for investigation. The centre will also exchange information with similar bodies in other countries as regards money laundering activities and similar offences, as well as make information available to investigating authorities – that is the intelligence agencies – and revenue agencies to facilitate the administration and enforcement of the laws. The governing body of the centre includes representatives from the Ministry of Finance and Economic Planning (MOFEP), the national security apparatus, Bank of Ghana and Ministry of Interior, among others. The es...

By Kofi AHOVI Universal banks in the country have met the stipulated deadline for adopting the International Financial Reporting Standards (IFRS), as directed by the Bank of Ghana (BoG). Information available to BusinessWeek indicates that the banks beat the Bank of Ghana’s deadline of December 2008. The deadline, which was originally slated for December 2007, was extended to the end of December, last year to enable the banks to gradually progress through the process. The purpose of the directive is to ensure that banks operating in the country meet international best practices with regards to financial reporting. IFRS is a set of accounting standards, developed by the International Accounting Standards Board (IASB), that is becoming the global standard for the preparation of public company financial statements. The IASB is an independent accounting standard-setting body, based in London. It consists of 14 members from nine countries, including the United States. The IASB began oper...

By Jeorge Wilson KINGSON The Ministry of Communications (MoC) will this year present 12 new information and communication technology (ICT) bills to Parliament for consideration. The bills, if and when finally passed, will foster competition by promoting investment, enhancing ICT provision and providing affordable consumption so as to enhance ICT utilization in the country. BusinessWeek learnt that the process to draft the bills has long commenced and is mostly near completion. The first batch of ICT bills will be presented to Parliament at its next meeting scheduled for May 22, this year. The expected bills address data protection/privacy legislation, intellectual property legislation, public record management legislation, document and archival systems and security guidelines for the certification authority. The rest address national digital content management, promotion of digitization of administrative work for e-governance, electronic transaction (certification authority) regulation...

By Kofi Ahovi CAL Brokers a subsidiary of CAL Bank Ltd has introduced onto the capital market the first internet trading and tracking platform, i-Broker. The i-Broker is a complete trading system which gives investors the best available online trading tools and information to help them quickly enter orders, as well as spot and track potential opportunities in real time. The system helps investors trade and monitor their securities on the Ghana Stock Exchange (GSE). i-Broker has two functions; i-trade and i-track. The i-trade gives direct access to the GSE to place, buy and sell orders online as well as view the entire market trading activity through various screens and graphs that aid in decision making. The i-trade on the other hand, monitors portfolios in real time and access various reports to keep track of investments. In order to purchase shares, clients must fund their accounts with cash, and to place a sell order, clients must fund their account with shares. However, the shares...

By Kofi Ahovi The Securities and Exchange Commission (SEC) has revoked the licence of Quad Investment Limited with effect from February 23. In a statement issued by SEC, regulators of the capital market said its action was because the company failed to comply with conditions attached to the licence issued under the Securities Industry Act, 1993, PNDCL 333. “The Company is thus not allowed to carry on any business for which the licence was issued. However, securities transactions that were entered into before February 23, 2009 by Quad Investment Limited should be settled,” the statement said. According to the statement, the company is being directed to forthwith return funds belonging to all clients and submit a report to the commission by Wednesday, March 4. SEC also cautioned the investor public that Quad Investment Limited no longer held a valid securities industry licence from the commission. “The commission wishes to assure the public that it will vigorously enforce the securities ...

By Kofi Ahovi and Jeorge Wilson Kingson Cement block manufacturers in the Dome Kwabenya constituency in the Greater Accra Region have for some time now complained about accessible water supply. The manufacturers particularly those in Agbogba and its surroundings have been working for along time without regular water supply. They therefore have to buy water in tankers which is very expensive. When the tankers are unavailable they have to search for water in long distance making their work very difficult. The irregularity of the water supply is currently collapsing the block making industry as well as other small business that depend on water. It has also resulted in the high price of cement blocks in the community. Through interactions with the manufacturers, the journalists advised them to officially inform the Member of Parliament (MP) for intervention and support. The MP for the constituency Professor Mike Oquaye was subsequently informed of the situation and he drew the attention of...

For the second time in less than a decade, the cedi has entered into free-fall. Over the past three months or so, the value of the national currency against that of the US dollar has depreciated by some 40% and this has virtually nothing to do with any strengthening of the dollar around the world. What is happening is simply the result of the cedi’s fall, not the dollar’s rise. Curiously, Ghanaians, caught up in the throes of political change, are basically ignoring all this. Issues such as the controversial end of service benefits approved for ex-government functionaries, and the vetting of potential new ones, have consigned the cedi’s travails to the back burner. Besides, the cedi had been relatively stable for about six years before the ongoing sharp depreciation set in, so Ghanaians seem to have forgotten just how debilitating a steep fall in the local currency’s external value can be with regard to living standards and the general well-being of the economy. None of which removes t...

By Kofi Ahovi Non-Traditional Exports (NTEs) have shown strong performance over recent years, reaching US$1,023,181,491 representing 25.77% for the third quarter of 2008 compared to US$813,549,084 for the same period in 2007. Agriculture contributed US$150,239,732 as against US$134,301,863 in 2007 and US$125,154,718 in 2006 for the period under review. While manufacturing contributed US$870,301,832 in 2008, compared to US$675,775,630 in 2007 and US$477,245,697 a year before. Though export for handicraft rose from US$2,881,814 in 2006 to US$3, 4714,591 in 2007, it fell to US$2,693,927 in 2008. This was because major buyers of Ghanaian crafts in the United States of America (USA) turned to the Far-East, especially Indonesia, India and China for handicraft supplies with relatively good finishing and functionality. NTEs exports increased from $460 million in 2001 to $1,164 million in 2007, showing a growth rate of over 150 per cent. On annual basis, the growth translates into a 20.7 per ce...

By Kofi Ahovi Non-Traditional Exports (NTEs) have shown strong performance over recent years, reaching US$1,023,181,491 representing 25.77% for the third quarter of 2008 compared to US$813,549,084 for the same period in 2007. Agriculture contributed US$150,239,732 as against US$134,301,863 in 2007 and US$125,154,718 in 2006 for the period under review. While manufacturing contributed US$870,301,832 in 2008, compared to US$675,775,630 in 2007 and US$477,245,697 a year before. Though export for handicraft rose from US$2,881,814 in 2006 to US$3, 4714,591 in 2007, it fell to US$2,693,927 in 2008. This was because major buyers of Ghanaian crafts in the United States of America (USA) turned to the Far-East, especially Indonesia, India and China for handicraft supplies with relatively good finishing and functionality. NTEs exports increased from $460 million in 2001 to $1,164 million in 2007, showing a growth rate of over 150 per cent. On annual basis, the growth translates into a 20.7 per ce...

Ghana has scored 49% in Open Budget Index 2008 according to a release by the World Bank. Ghana’s score on the Open Budget Index shows that the government provides the public with some information on the central government’s budget and financial activities during the course of the budget year. This makes it difficult for citizens to hold government accountable for its management of the public’s money. The Open Budget Index 2008 evaluates the quantity and type of information that governments make available to their publics in the seven key budget documents that should be issued during the budget year. One of the most important documents is the executive’s budget proposal. It contains the executive’s plans for the upcoming year along with the cost of the proposed activities. The proposal should be available to the public and to the legislature prior to being finalized, at least three months before the start of the budget year to allow for sufficient review and public debate. In Ghana, t...

By Kofi Ahovi and Fred Sarpong The Ghana Investment Promotion Centre (GIPC) has recorded over GH¢1.38 billion of Foreign Direct Investment for the third quarter of 2008. An increase of over 680% from GH¢175m recorded for the same period last year. The estimated value of projects being financed by this figure is GH¢1.58bn. The amount comprises GH¢407.41m worth of reinvestments (capital goods imported) and GH¢972.10m equity transfers for new projects registered during this quarter and existing investments. During the same period a total of 82 new projects were recorded, 51 representing over 60%, are new wholly owned foreign enterprises with the remaining 31 projects being joint ventures between Ghanaians and other foreign partners. The joint venture projects are valued at GH¢914.36m, whilst the 100% foreign owned enterprises are valued at GH¢280.94m. For the corresponding quarter in 2007, the total new investments were GH¢851m with 80 projects registered, an increase of over 60%. Accordi...

Elikem Mensah Ghana’s Gross Domestic Product (GDP) performance for 2009 will be seriously affected by the global financial turmoil. According to Bank of Ghana’s econometric model, Ghana’s GDP growth is expected to be cut down further by 0.3% to settle at 6.3% at the end of 2009. Already BoG has projected GDP growth of 6.6% for 2008 lower than the 7% that government had estimated to achieve in the 2008, as stated in the 2008 budget statement. Additionally the model reveals an end of year inflation to peak at 17%, a figure far higher than the single digit forecast for the year. Financial experts have predicted that the global turmoil is most likely to end by August 2009. It is being anticipated that the global turmoil will affect Ghana’s inward remittances. Private inward transfers from non-governmental organization (NGOs), embassies, service providers as well as individuals through the banks in the first nine months of 2008 amounted to US$6.5 billion, which represents a 35.6% increas...

By Kofi Ahovi The World Bank Group has announced the creation of a $ 2 billion fast-track facility to speed up grants and long-term, interest-free loans to help the world’s poorest countries cope with the impact of the global financial crisis. The International Development Association (IDA) Financial Crisis Response Fast-Track Facility will allow the Bank Group to provide rapid funding for social safety nets, infrastructure, education, and health. According to a release from the World Bank office in Accra, the facility would fast-track an initial $2bn of the $42bn of IDA15 resources available to 78 of the world’s poorest countries over the coming three years. The release quoted the Bank’s Group President, Robert B. Zoellick, as saying “The poorest people will be hit the hardest by the crisis that is likely to get worse next year. Our Global Economic Prospects report projects developing country growth will be 4.5% next year, down from 7.9% in 2007. We want to help countries manage ...

By Kofi Ahovi Economic analyst in the country have predicted slower pace of activities on the Ghanaian bourse for this month compared to the same period last year. This, according to them who wished to remain anonymous, is due to the political atmosphere which will further extend into the Christmas festivities. Ghanaians went to the polls on December 7 this year to elect a new president to govern the nation, however no clear cut winner emerged as no candidate was able to secure the 50% plus one vote needed as stipulated in the 1992 constitution, thereby pushing the elections into a run-off which would be held on December 28 this year. Analysts say investors are a bit skeptical in committing themselves in the activities on the capital market thereby has adopted the ‘wait and see’ attitude. They were quick to add that this did not imply that investors do not believe in the country but rather want to examine the trend “which is normal in investment.” one of them stressed. “All over the wo...

By Kofi Ahovi IC Securities Ltd, an emerging market investment banking, asset management, securities dealing, and private equity firm, has begun the initial public offer (IPO) of its capital growth fund. The IPO, which started on January 27, this year, is expected to end on February 16, this year. The capital growth fund is an un-incorporated open-ended unit trust governed by the laws of Ghana. The fund was however established in 2007. The fund seeks long-term growth of capital via a diversified portfolio that invests primarily in the listed shares of companies that are selected for their long-term growth potential. The fund, which is growth-oriented, provides instant diversification by adopting a bottom-up stock selection style - that is looking at the investment performance of individual stocks before considering the impact of general or industry trends. The initial offer of the fund of no par value is perched at 10Gp per unit and the minimum subscription is GH¢10 (100 units) and the...

By Kofi Ahovi Prudential Bank Ltd has launched its Short Messaging Services (SMS) Banking, textWise and Website, in a bid to increase delivery channels and to provide customers with easy access to banking information. The new services will complement the traditional banking services that the bank has over the years offered to its numerous customers. textWise will give customers convenient access to their account information and other banking needs. Customers will be able, through the service, to make balance enquiries in real time, account transfers, get mini bank statement and also block their ATM cards when lost. Head of e-Banking, Frank Afari Ankamah, said the textWise service was employing advanced push and pull messaging technology to enable the processing of messages, bank transactions and notifications accurately and without delay. He explained that the ‘push’ services allow customers to be informed automatically on credits to and payments from their accounts, while the pull ser...

By Kofi Ahovi Databank Financial Services has projected that year-on-year inflation will fall marginally to about 17.5% by the end of 2009 from 18.13% recorded for by the end of 2008. According to an analyst from Databank research, Sampson Akligoh, the end year inflation projection has been based on a projection that crude oil on the international market on the average would be sold at around US$55 per barrel. Currently crude oil is being sold around US$40 per barrel. Akligoh said that though single digit inflation would elude the nation once more, higher inflation, on the other hand, could be curtailed due to the stability of food production, which is also expected to improve within the period. The investment banking firm has also projected 17.9% inflation for the month of January, this year. The projection is 0.23 percentage points lower than the 18.13% inflation recorded for December 2008. Akligoh further explained that expected marginal decline was due to the fact that the end of y...

By Kofi Ahovi Aluworks Ltd is planning to raise an amount of GH¢30 million through a rights issue of up to 58,000,000 ordinary shares of no par value to shareholders in proportion as nearly as may be to their respective holdings in issued capital of the company. However, any shares that are not taken up in pursuance of the rights issue would be offered to the general public as the directors of the company may determine. The company is expected to hold an extraordinary general meeting (EGM) on February 25, this year to deliberate on the matter. The EGM is also to approve an increase in the authorized number of shares of the company from 50,000,000 ordinary shares of no par value to 100,000,000 ordinary shares of no par value and also amend regulation 7 of the company’s regulations. Aluworks was founded in 1978 and was subsequently listed on the Ghana stock exchange in 1996. It currently has issued shares of 50,000,000 and a stated capital of about US$50,024,000,000. Aluworks is a reliab...

By Fred SARPONG The Producer Price Index (PPI) for Ghana, which measures the average change over time in the prices received by domestic producers for the production of their goods and services for the one year up to February 2009, increased to 12.27% from the January 2009 figure of 11.19%. This implies that ex-factory prices for all industry, which includes manufacturing, mining and quarrying and utilities sub-sectors were on average 12.27% higher in February 2009 than they were in February 2008. According to figures released by the Ghana Statistical Service (GSS) last week, this represents an increase of 1.08 percentage points in producer price inflation over that of January 2009. The rates of inflation for the three sub-sectors were: mining and quarrying, 37.48%; manufacturing, 10.39%; and utilities, 1.49%. The rate of producer prices producer price inflation in February 2009 compared to February 2008 for mining and quarrying, manufacturing and utilities sub-sectors increased 7.0, 0...

Tullow Oil Plc, the U.K. explorer with projects in Africa, has found more oil in a deeper section of its Tweneboa-1 exploration well offshore Ghana. Tullow has deepened its Tweneboa-1 well to 3,938 meters (12,920 feet) and found four meters of highly-pressured oil- bearing sands, the company said in a statement. The discovery is separate from the shallow well accumulation announced previously. “Near the total depth of the well, an over-pressured zone was encountered which limited further progress,” Tullow said. “Further exploration drilling will now be required to test the extent of these deeper levels as well as the shallower accumulation where seismic indicates sands thicken away from the well location.” London-based Tullow is focusing on developing its projects in Ghana and Uganda and plans to produce oil from both ventures in 2010. The field development in Uganda became feasible after the company found more resources in Lake Albert, with crude exports expected to start through Keny...

By Kofi Ahovi Overall net demand for loans by enterprises declined in the fourth quarter of 2008 by 28.21% compared with 35.56% in the third quarter, Business week has gathered. According to Bank of Ghana’s financial stability report, the changes in financing needs for property plant and equipment, inventories and working capital and debt restructuring were the key factors contributing to the decline in net loan demand. In terms of borrower size, net loan demand from small and medium-sized enterprises moderated while large enterprises loan demand went up. Net demand was positive across the maturity spectrum, with demand for short-term loans being higher than that for long-term loans. Households net demand for consumer credit and other lending declined from 55.49% as of October 2008 to 44.21% in the December 2008. Net demand for loans by households for house purchase remained negative in the last quarter of 2008 (from 24.89% in the previous quarter to 24.37%). This essentially reflecte...

By Kofi Ahovi A research conducted by the World Bank has shown that developing countries face a financing shortfall of $270-700 billion this year. This is as a result of private sector creditors shunning emerging markets due to the global financial crisis, and only one quarter of the most vulnerable countries have the resources to prevent a rise in poverty. According to the World Bank, international financial institutions cannot by themselves currently cover the shortfall, which include public and private debt and trade deficits, for these 129 countries, even at the lower end of the range. In a paper for next Saturday’s meeting of the Group of 20 finance ministers and central bank governors, the Bank observes that a solution will require governments, multilateral institutions, and the private sector, adding that only one quarter of vulnerable developing countries have the ability to finance measures to blunt the economic downturn, such as job-creation or safety net programs. The global...

By Elorm DESEWU Universal Banks in the country are currently trading controversially with regard to giving out credit facilities to their customers. According to bank chieftains, most banks have held up the granting of credit facilities to customers for the fear of likely rising loan default rate. This is due to the fact that, as interest in the country continue to rise, borrowers find it harder to pay back the loan facilities acquired from banks. Additionally, the central bank’s monetary policy is being tightened which means less liquidity in the country which translates into less cash flow as well as constraints in the obligation to service loans. Indeed, banks are also trying to learn lessons of the global credit crunch which subprime mortgage lending. The subprime mortgage crisis which is an ongoing financial crisis was triggered by a dramatic rise in mortgage delinquencies and foreclosures in the United States, with major adverse consequences for banks and financial markets around...

By Jeorge Wilson KINGSON Parliament on Friday passed the 2009 appropriation bill under the certificate of urgency. The bill will enable government withdraw a maximum amount of Gh¢9,793,131,406.30 from the consolidated fund and other public funds during the 2009 fiscal year for the purposes of meeting government expenditure. This is in line with Article 179 of the 1992 Constitution which provides for the house to approve and authorize the withdrawal of monies from the consolidated fund and the withdrawal from other funds for the running of the state during a financial year. Report of the Appointment Committee which considered the bill and recommended its passage stated that an amount of Gh¢131,788 of HIPC allocation to be utilized during the financial year in question is included in bill. It also observed that ministries, departments and agencies (MDAs) have been permitted to retain and use a total amount of Gh¢386,886,310 being part of their internally generated funds (IGF) during the...

By Kofi Ahovi The Securities and Exchange Commission of Ghana (SEC), the statutory regulator of the capital market, has in collaboration with the Natural Resources Institute UK, has organized a one day workshop for stakeholders to make inputs into the modalities for the establishment of a commodities exchange and a warehouse receipts system in Ghana. The workshop, the third to after earlier ones in Kumasi and Takoradi, was under the theme “Promoting financial deepening in Ghana: the role of a vibrant commodities exchange and warehouse receipt system.” The workshop was to set the right objectives and to examine and approve the right model that will suit Ghana's economy. SEC assured of its intention to provide the necessary legal and regulatory framework to ensure that all those in the supply and value chain in agriculture benefit from their involvement. The director-general of SEC, Dr. Nii Kwaku Sowa, observed that the country’s performance in the cocoa industry indicates that with...

By Elorm DESEWU Ghana’s balance of payments projections for 2009 indicate that total exports are likely to decline by 7.6% to US$4,874.06 million. Ghana’s major export commodities, like cocoa, is expected to decline by 2.8% to US$1,459.58 million, reflecting a price decline of about 9%. Additionally, gold exports receipts are expected to decline by 11.78%. This is due to an expected major decline in gold export prices by 16.0%. Exports of cocoa beans and products recorded an annual growth of 32.6% and amounted to US$1,501.7 million in 2008. Cumulative cocoa purchases for the 2008/2009 main crop season amounted to 507,698 tonnes, against a forecast of 600,000 tonnes for the entire crop season, compared with 663,000 tonnes for the 2007/2008 season. Gold exports, which amounted to US$1,199.2 million at the end of the second quarter, increased to US$2,246.3 million by the end of December 2008. This compares with US$2,246.3 million by the end of December 2007. The overall balance of payment...

By Jeorge Wilson KINGSON Ghana will soon join countries like Australia, New Zealand and some states in the United States of America (USA) which have banned mobile phone usage while driving. This follows the commitment of some Members of Parliaments to spearheaded the passage of legislation to ban the practice and introduce the imposition of spots fines on offenders. A statement made in the House last week by the MP for Ahafo-Ano North, Richard Akuoko Adiyia to this effect was hailed by others members of the House who promised to support the move respectively. “I believe the move could contribute immensely in curbing accidents on our roads. Of course I am aware of the difficulties sponsoring such legislation, left alone its enforcement but I believe there should be a concrete effort to invest in this additional legislation and enforcement of existing legislations and empowering the capacities of related institutions on improving and promoting road safety”, Adiyia stated. According to h...

…Recording 59-month highest since Jan. 2004 By Fred SARPONG The February 2009 inflation, measured by the consumer price index (CPI) and released by the Ghana Statistical Service (GSS), hit 20.34%, being the highest in 59 months, since the January 2004 figure of 22.4%. This is the second time, under the current government, when inflation has increased. The February 2009 inflation of 20.34% from the 19.86% recorded in January 2009, represents an increase of 0.48 percentage points. The government statistician, Dr. Grace Bediako, said the continuing rise of inflation is as a result of the depreciation of the cedi against the major currencies, such as the dollar, despite the price of crude oil on the world market being stable. She said if the trend continued it is likely the rate of inflation will start coming down from this month. The government statistician indicated that it will also depend on the government putting in place good measures to hold back the continuing rise of inflation. Bu...

By Jeorge Wilson KINGSON Government has increased airport tax by 25%., following Parliament’s amendment of the Airport Tax Act, 1963, (Act 209) last week. The objective of the amendment is to raise the airport tax from US$50 to US$75 for passengers departing by aircraft to a destination outside of West Africa. During the presentation of government’s budget and economic policy for this year to Parliament, Minister for Finance, Dr. Kwabena Duffuor, indicated government’s proposal to increase airport tax to help raise the needed revenue to support improvement in basic amenities, which travelers demand and deserve to have. The amendment of the bill is therefore seen as a fulfillment of that promise, which was also captured in the NDC campaign manifesto. ”Comfortable and secured resting places, better environment for those in transit and accessible and decent places of convenience are essential airport facilities, especially as Ghana seeks to become the hub of the sub-region,” Dr. Duffuor...

By Kofi Ahovi A draft copy of the bill to amend the operations of Export Development and Investment Fund (EDIF) has been completed by the Ministry of Trade and Industry, in consultation with stakeholders, Business week has gathered. The bill, after scrutiny by Cabinet, would be presented to parliament for consideration. The passage of the bill will offer EDIF, which is seeking to operate as a non bank financial institution (NBFI), the free hand to operate to overcome the difficulties it encounters in funding Ghanaian exporters. After the amendment of the law, a consultant would be appointed to work on the modalities that would enable EDIF function as NBFI. Some consultants have already submitted proposals to the ministry to that effect. The law, when amended, would enable the fund to operate independently in funding and retrieving its monies to exporters without the help of banks and other financial institutions. One of the challenges EDIF faces is the competition that its loans pose t...

By Kofi Ahovi KRIF Ghana Ltd, a leading distributor of money handling equipment, office and school stationery and office equipment, has added a new range of office and home safes, “Diplomat,” to its stocks. The safes and cabinets, which are all fire resistant, are made of 100% top quality steel plate and anti-rust refined durable paint that keep the safes rust free. They also have recessed double curvature frames that provide virtually airtight construction, preventing smoke. The “Diplomat” safes have received global quality certification from Sweden, Korea, USA and Russia. The safes also have different locking devices that offer comfort, convenience and reliability to users. These include the keyless push button electronic digital lock (EDL), key lock plus combination lock, the double key locks and fingerprint lock plus handle (FPL). The fingerprint lock is a kind of bio-lock using a part of the human body like a finger print, thus it does not require any metal key or memory of codes ...

The Value Added Tax (VAT) Service is planning to adopt a new software that would help monitor revenue generated by the Communication Service Tax (CST) popularly known as the “Talk Tax” as it prepares to meet it new target of 855.35 million Ghana cedis . According to Harry Owusu, Executive Secretary of the Revenue Agencies Governing Board ,this will enable the VAT to meet its projected revenue targets of the CST. He said the software would therefore provide VAT service the means to either confirm or debunk any false returns made by their agents during their submissions. Owusu said the CST had bagged 47.03 million Ghana cedis for government since its inception in June last year, despite the figure was 15 per cent below target. He hoped with the software, the Service would be able to fully monitoring its agents and expand operations to cover other service providers who qualified to collect the CST. Anthony Ewereko Minlah, Commissioner of the VAT Service, urged the staff to work hard t...

By Kofi Ahovi Stanbic Bank Ghana has held its first ever banking fair, Stanbic Fest ’09, to showcase its products and services to the general public. The three-day fair, which took place March 19-21, this year, was on the theme: “Money Matters.” The event saw a panoramic presentation of the bank’s products and services, since some customers may not have had full insight or knowledge of all products, services or activities that the bank undertakes. The managing director of Stanbic, Alhassan Andani, speaking at the opening ceremony, pointed out that the fair was a means of ensuring the growth of the bank’s brand in Ghana and across Africa. He added that the event was also to solicit feedback from the bank’s customers which is a vital contributory factor to Stanbic’s growth. The Stanbic boss reiterated the need to quickly rope more people into the formal sector to facilitate growth in the economy. The Deputy Minister of Finance and Economic Planning, Seth Tekper, stressed the need to stre...

By Kofi Ahovi Barclays Bank Ghana and Junior Achievement of Ghana (JA) have entered into a partnership under which the bank will provide financial support of 1.5 million pounds for a three-year period to JA. The fund is to enable JA deliver entrepreneurship and work-readiness education to local young people through the “Barclays/JA world wide you can B initiative.” The fund will support a series of programs, including innovative workshops and the expansion of a worldwide JA company program and JA job shadow, and will reach a projected 8,000 students. The managing director of Barclays Bank Ghana, Benjamin Dabrah, at the signing ceremony of the partnership, was hopeful that the initiative would lower the unemployment rate in Ghana, especially among the youth. He added that the bank was privileged to be part of the initiative because it recognizes the youth as both future clients and employees, thus the need to lend support. The executive director of Junior Achievement of Ghana, Jeff Agba...