Kofi Ahovi

There is a sustained high demand for housing in Ghana, particularly in Accra as evidence by the speed with which new housing unit projects are being developed in new residential areas. Kofi Ahovi takes a look at how HFC REALTY is helping to bridge the housing gap. Ghana has a large stock of unmet demand for housing, especially in Accra and the other major cities. The huge gap between the growing demand and much slower growing supply offers good prospects for investors in the housing sector. The prospect for the sector largely derives from the improved macro-economic climate in Ghana that has transformed the country into an investment hub in the sub-region. Demand for decent housing remains vibrant and provides significant impetus for investors in the housing industry. Ghana has an accumulated residential housing backlog of about 700,000 units. The current annual demand of about 140,000 housing units and the accumulated backlog of 700,000 indicate that over 60% of national housing requi...

By Kofi Ahovi Ghana last week held the eighth West African Mining and Power Conference and Exhibition (WAMPOC). The two-day event which was under the theme "Promoting Sustainable Development through Mineral Resource Development" Alhaji Collins Dauda, Minister of Lands and Natural Resources, speaking at the opening of the WAMPOC, tasked stakeholders in the mining sector to collaborate with government to achieve sustainable development through mining. He said while government would play the lead role to achieve the desired goal of using mineral resources to foster sustainable development, stakeholders should put their hands on deck. Alhaji Dauda . Duada assured of government’s continuous support in improving its facilitation role while working with all other stakeholders towards achieving sustainability. He also urged mining companies and other mining industry operators to cooperate with government to improve the local content in their operations by adhering to succession plans...

By Kofi Ahovi A renowned economist, Kwame Pianim, has called for the scaling up of the minimum capital requirement of universal banks up further from the GH¢60 million set by the Bank of Ghana. Pianim proposes that the minimum requirement should be set at GH¢200 million to enable the banks to effectively undertake projects that would facilitate the growth of the economy bringing it a par with developed nations. Speaking to BusinessWeek, he explained that the current GH¢60 million though significant than the previous amount does not encourage the banks to single handedly take up huge projects. He suggested that the banks should be encouraged to consider mergers and acquisitions within the next five years which would make them more formidable in the years to come. “To make meaningful investment in the oil and gas industry as well as the mining industry, the banks needs to have substantial capital base to support investment in the two sectors, other than that the companies would have to l...

By Kofi Ahovi The Centre for Policy Analysis (CEPA) has called for effective management of the country’s exchange rate to ensure that it avoids the Dutch Disease. At the launched of a document, last week, titled “The Year 2010: From a Cocoa Economy to an Oil Economy,” CEPA observed that the Ghanaian economy appears set to move from what may be called a cocoa economy to an oil economy. “Effective management of the exchange rate will therefore be critical, if oil is to enhance our growth prospects and if Ghana is to avoid the ills of the Dutch Disease,” the executive secretary of CEPA Dr. Joe Abbey cautioned. According to CEPA, Anecdotal evidence has it that some Ghanaians desire that the exchange rate of the cedi reverts to parity with the US dollar, which it believes would be the onset of the Dutch Disease. The Dutch disease is a concept that purportedly explains the apparent relationship between the increase in exploitation of natural resources and a decline in the non oil sectors. Th...

New guidelines for the erection of telecommunications masts imposes stiff penalties on telecom operators. Telecom operators could be made to pay as much as $30,000 in fines if they flout the new guidelines on the erection of mobile phone masts. The introduction of the guidelines also marks the lifting of the freeze on the siting of masts. Deputy Environment, Science and Technology Minister Dr. Omane Boamah has said that the operators under the new guidelines, are expected to share masts in what is known as collocation. He says the stiff penalties for breaches should be enough deterrent considering the pro-profit outlook of the telecom companies. Glo Mobile should be most excited about the lifting of the ban as they cited it as one of the major frustrations to rolling out their network. The Communications Minister whilst reacting to their threats to pull out, hinted that the ban was to be lifted within days. Meanwhile, Communication Minister Haruna Iddrissu says the government expects...

By Kofi Ahovi The Public Utility Regulatory Commission (PURC) is considering the re-introduction of the Automatic Adjustment Formula (AAF) to address any adverse movement of external factors that affect tariffs. The mechanism allows the tariff to be adjusted periodically taking into account the foreign exchange rate and other factors that affect tariff adjustments. AAF would reduce the financial burden on consumers associated with one-time tariff adjustments whilst at the same time ensuring the financial viability of the utilities. The executive secretary of PURC, Steven Adu, told BusinessWeek that, the mechanism would be introduced in the course of this year or early next year after the commission has finished reviewing the formula. The mechanism was used in the country between 2002 and 2006. According to Adu, even though the mechanism proved useful it was put on hold. PURC last week approved an average increase of 89% in electricity and water tariffs, first time in three years. Accor...

NGO builds classroom block for deprived school An NGO, Princess Umul Hatiyya Foundation, has built a six classroom school block for Nouri Imam primary school in Tuutingli near Tamale. In addition to the school block a library, staff room and toilet facilities were built for the school. The entire project, which cost GHc120, 000, took seven months to complete. The project was sponsored by Vodafone, Stanbic Bank, GLICO, Mawums Limited, Safety Insurance, Mansell Limited and among others. The Metropolitan Chief Executive, and the chiefs of the area helped us to commission the school. I have enclosed some pictures of the structures. The Chief Executive of Princess Umul Hatiyya Foundation, Princess Umul Hatiyya, during the commissioning of the school block, commended the teachers for their massive contribution to educating the children under the poor structure. She also urged them to instil the importance of reading in the pupils because “readers are leaders”. Last year, the chief executive ...

By Kofi Ahovi The World Bank Group is developing a global strategy in the palm oil sector through an open and participatory discussion with stakeholders to ensure a common approach across the world. The strategy would outline a set of principles to guide the World Bank Group's future engagement in the palm oil sector with the key goal of maximizing development outcome for the communities and minimizing adverse social and environmental impacts of the sector. IFC and the World Bank are of the view that most of the issues affecting the palm oil sector cut across countries therefore the exercise aims to collate as many views as possible through discussions of opportunities and challenges facing the sector. Briefing the media after a two-day consultative meeting on the strategy in Accra last week, Mark Constantine, Principal Strategist, International Finance Corporation (IFC) said the process was aimed at supporting smaller businesses to undertake their activities in an environmentally ...

HFC Bank has donated a number of office chairs and tables to the Ghana Police Service to boost its work. The donation forms part of activities marking the bank’s 20th anniversary celebrations as well as its corporate social responsibility. Presenting the furniture at separate ceremonies to the Cantonments District Police Station and the Ministries Police Station, Charles Martinson, General Manager of Banking Operations, said the donation was aimed at enhancing the operations of the Police Service for the ultimate benefit of the communities they serve. On their part, the District Commander of Cantonments Police Station, DSP Alex Kumantani, and the Commander in Charge of the Ministries Police Station, ASP Albert Fii Ochil thanked HFC Bank for the support and expressed the hope that the relationship between the two institutions will be strengthened. HFC Bank has been making annual donations of office equipment to the Ghana Police. In a separate event, HFC Bank’s football team, Ebankese FC...

By Kofi Ahovi Government is considering a new legislation that would encourage an efficient recycling and re-use of waste water especially by food and beverages industries, which use heavy amounts of water in their operations. The new legislation would ensure that businesses either pay tax on waste water or purify it for re-use. The Minister of Water Resources, Works and Housing, Alban Bagbin, who announced this last week during the Meet-the-press session, said the practice is working in other parts of the world and is reaping enormous benefits in water savings. According to the minister, the new legislation has become necessary in order to saving the fast depleting water in the country. The amount of raw water available to Ghanaians has reduced by a factor of three from 1960 to 2010 and this is expected to reduce further by a factor of six in 2050. This is as a result of population growth, urbanization, wanton destruction of water infrastructure leading to wastage and pollution....

By Kofi Ahovi and Elorm Desewu The credit reference Bureau, the first online credit bureau in the country is currently facing major setbacks hindering its smooth take off. Banks chieftains that BusinessWeek spoke to were of the view that, although the credit reference bureau would check the credit worthiness of customers of banks and non-Bank Financial Institutions (NBFI), the problem now is how customers would be tracked since the house and street naming in the country is poor. This means that banks and NBFIs will find it very difficult to trace their customers who may default on loans, resulting in the rise of bad and doubtful debts. Information gathered by BusinessWeek indicates that all the 26 universal banks and a total of 36 NBFIs have registered with the bureau. One communication operator has also registered with the bureau under the post paid service category. However, out of the 26 banks, only 21have undergone training on how to use the bureau’s data while only 12 NBFIs have a...

The Hitti group of companies has commission a multi-purpose depot in the Tema Industrial Area to serve the people of Tema and beyond. The Hitti group comprises of Ashfoam, Duraplast and Qualiplast. The depot is the first of its kind to be managed by the group; however it brings the total number of Ashfoam depot in Tema to 20. The new depot will serve as both wholesale and retail outlet, thereby providing a one-stop shop for clients. According to the officer in charge of the new depot, Ernest Okoampah, the group plans to establish similar facility in the northern region. The General Manager of Ashfoam, George Missih, at a short ceremony to commission the depot assured that the group will continue to provide best quality and affordable products for the Ghanaian market. He noted that Tema depot would reduce the burden of commuting to Accra to transact business with any of the companies. Currently the depot is stocked with various items worth about GH¢600,000. The items include Ashfoam mat...

Ajax-Agro Company, a giant Russian company in agro technologies, is set to venture into Ghana this year. The company, which plans to expand to other parts of Africa, would provide irrigation systems and technologies, storage facilities for the agric products and importation of farm equipment such as combine harvesters, tractors loaders, plough, and cultivators among others. Apart from selling these machines, the farmers will be given the needed training and after-sales service to ensure full benefit of the equipment thereby improving their standard of living. By the middle of next year, the company would move a step further to establish a tomato processing factory for local consumption and also for export to the international market. The presence of Ajax-Agro in Ghana is expected to boost government’s effort of mechanizing agriculture as well as creating employment opportunities for Ghanaians. According to the country representative of Ajax, Iiya Kukushkin, directors of the company wou...

HFC Bank Ghana Limited has opened a branch at Tarkwa-Maakro in the Kumasi Metropolis as part of the push to establish a firm foothold in the Ashanti region. This brings the number of branches in the region to four and ups the national total to 22. Mr. Charles Martinson, General Manager, Banking Operations, said the inauguration of the branch was a demonstration of the bank’s determination to bring banking services to the door steps of the people. He said HFC Bank was focusing on the development of small and medium enterprises (SMEs) to make them become the catalyst for the nation’s economic growth. HFC Bank offers numerous services including Commercial Banking, Corporate and Mortgage Banking, Investment Services and Asset Management among others. Mr. Martinson asked businesses, mechanics and artisans at the Suame Magazine Industrial Area to take advantage of the bank’s presence to expand their operations. Dr. Joseph K. Adjei, Managing Director of HFC Microfinance Services Limited, in ...

HFC Bank is to build a teachers’ bungalow at Kramokrom, a predominantly cocoa growing community in the Asante-Akim North Municipality in the Ashanti region, to help provide decent accommodation for teachers posted to the area. Already, the Bank has built a three classroom block for the local Junior High School at a cost of GH¢25,000.00. Led by Mercy Araba Kerston, the Operations Officer, staff of the Kumasi branches of the Bank undertook a joint painting and clean-up exercise at the Kramokrom Junior High School over the past weekend. The Kramokrom exercise, which was part of activities to mark the bank’s 20th anniversary celebrations, saw the staff clearing weedy areas of the school, trimming overgrown flowers, removing garbage and de-silting gutters. They also scrubbed the floors and painted the walls. According to Kerston, HFC Bank’s contribution to the provision of education in the country was in line with the Bank’s Corporate Social Responsibility programme. The staff later feted...

By Kofi Ahovi The government is considering sourcing for capital on the international market to finance the country’s fiscal deficits. It is however unclear how much the government would seek on the international market as it is yet to agree on the modalities, but sources at the Ministry of Finance and Economic Planning (MOFEP) say it would be around US$300 million. On a broad coverage basis, data on the 2009 budget indicate that government fiscal operations resulted in a deficit of GH¢2.1 billion 9.9% of Gross Domestic Product (GDP) compared with GH¢2.6 billion 14.5% of GDP for the same period in 2008. For the first three months of this year, government fiscal operations resulted in a narrow deficit of GH¢1.1 billion 4.2% of GDP compared with GH¢100 million 0.6% of GDP for the first quarter of 2009. The fast paced growth of expenditures observed in the first quarter of 2010 was driven mainly by the clearance of road and non-road arrears and part settlement of Tema Oil Refinery’s (TOR)...

By Kofi Ahovi Cabinet is said to decide on the Census Night next week, Businessweek has gathered. The decision would allow the 2010 Population and Housing Census to take off. Historically, the Population and Housing Census is held in March after the declaration of the Census Night, but this year things did not go as planned. The Census Night is usually declared on a Sunday, during which a snapshot of the population within the confines of Ghana is taken to determine where people spent their night on midnight. The following Monday is then declared a public holiday. Government Statistician Dr. Grace Bediako told Joy fm last week that the Statistical Service was waiting on the decision of cabinet in order to start the census. Already the Statistical Service has conducted trial census in five District Assemblies across the country between October and November 2009. The Assemblies include Saboba and Chereponi in the Northern Region, Bia in the Western Region, Sene in the Bono Ahafo Region, ...

By Kofi Ahovi Commercial bank customers are appealing to their respective banks to provide deposit slips that have provision for the GH¢2 currency to facilitate transactions with the banks. The absence of deposit slips that makes room for bank customers to deposit GH¢2 banknote was hindering smooth transactions According to some of the banks, they have requested the printing of new deposit slips to facilitate transactions but they are yet to take delivery. Ghana Commercial Bank (GCB), Barclays Bank, HFC and Agricultural Development Bank (ADB) among others have assured that the new deposit slips would be made available from today. As it stand now, customers who wishes to deposit their moneys that contains the GH¢2 banknote at the bank would not be able to do so. Therefore, until the banks provide deposit slips with provision for the GH¢2 banknote, the currency will continue to circulate outside the banking halls. The GH¢2 bank note was introduced by the Bank of Ghana last week to reduce...