Kofi Ahovi

By Kofi Ahovi The new insurance premiums agreed between the insurance companies and the National Insurance Commission (NIA) has been postponed again. This is because the transport owners have asked for extension of the implementation date to enable the completion of ongoing discussions. The new premiums were supposed to have come into effect on July 1, 2010, but the Minister of Transportation, Mike Hammah, called for the suspension of its implementation following an outcry from commercial transport owners. The transport owners are in talks with the insurance companies to find amicable solution to the new fixtures arguing that the prices are too much. The transport owners are asking for a gradual increase of the premiums. Under the new tariffs approved by NIC on April 23, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners would pay a 200% increase, while private vehicle owners will pay 150% incre...

By Kofi Ahovi Ghana's post harvest losses has hit GH¢700,000 annually due to inadequate post harvest management particularly of perishable produce. Data from the Ministry of Food and Agriculture (MOFA) has shown that Ghana losses about 20 to 50% of its fruits, vegetables, roots and tubers and about 20 to 30% of cereals and legumes annually, whiles it produces only 51% of its cereal needs, 60% of fish requirements, 50% of meat and less than 30% of raw materials needed for the agro-based. This development has resulted in the country experiencing food insecurity. In order to reduce the losses, the Food Research Institute (FRI) has developed mechanical and solar dryers to facilitate drying of agricultural produce to extend their shelf lives. It has also developed food processing technologies and a number of shelf stable products from highly perishable produce such as cassava, fruits and vegetables. In a related development, Ghana hosted the African Union Day of Scientific Renaissan...

British Airways has launched a new global charity partnership with Comic Relief UK, ‘Flying Start’. The campaign aims to raise up to £8 million by 2013 for vulnerable and disadvantaged children in the UK and around the world. An aircraft with ‘Flying Start’ emblazoned on its fuselage was unveiled to mark the beginning of this exciting fund-raising venture. Actors Bill Nighy and Nick Frost flew to Kenya to visit some projects that Comic Relief UK supports. They visited KICOSHEP - a community self-help project supporting orphaned children affected by HIV and AIDS, Pendekezo Letu - an organisation that assists street children escape poverty, and Pamoja Trust - which helps poor urban slum dwellers in Kenya. Bill Nighy said “Meeting some of the most impoverished and vulnerable children in the world have been a humbling experience. Yet, despite the adversity these children face, optimism and hope is strong. Just seeing how Comic Relief UK has already made a difference has been incredibly ins...

HFC group is celebrating its 20th anniversary. Kofi Ahovi takes a look at the performance of its investment services subsidiary. HFC Group, one of the most versatile financial institutions in the country, has chalked 20 years. Starting as Home Finance Company providing mortgage finance for home acquisition, it has now grown into a fully fledged financial service group providing all manner of financial solutions to its clients. However, mortgage finance remains one of the bank’s core business activities in addition to commercial and investment banking services. HFC Bank Ghana limited, as a Universal Banking institution, was licensed in November 2003 to provide banking services to the banking public. The group comprises itself and four subsidiaries which are HFC Investment Services Limited (HFC-ISL), HFC Realty, HFC Brokerage Service and Boafo Microfinance. These are wholly owned by HFC Bank except Boafo Microfinance in which it has 51% shareholding. The jewel in the crown with regards t...

By Kofi Ahovi The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) would from today begin meeting to review the health of the economy. It is expected to announce a new policy rate this Friday which would serve as the benchmark for universal banks in the country in setting their respective base lending rates. The policy rate is the rate at which the central bank does overnight lending to universal banks in the country. It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers. BoG cut its policy rate by 100 basis points from 16% to15% in April this year but base lending rates for banks are still high at about 29%, and banks are insisting on wide spreads between their base rates and their actual lending rates to compensate for perceived high credit risk in the face of rising loan repayment defaults. The BoG governor, Kwesi Amissah-Arthur, who would present the committee’s report, is expected to give compr...

By Kofi Ahovi A National Intellectual Property Policy Committee (NIPPC) and Technical Coordination Group charged with the mandate to establish national Intellectual Property Policy development have been inaugurated. The committees are to enable formal exchange of information on annual basis, provide strategic guidance to ensure that Intellectual Property Rights (IPR) operate in line with the country's development trend. They are also to ensure the provision of transfer of technology among key stakeholders on operations of IPR, create avenue for innovation to enhance productivity and facilitate trade and industrial competitiveness. The committees under the supervision of Ministry of Trade (MOTI) and the Ministry of Justice and Attorney General's Department, were initiated through the Government's Trade Sector Support Programme. According to the Minister of Trade, Hannah Tetteh, who inaugurated the committees, the move is to ensure that the practice conforms to i...

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 could be around US$700 million. If government goes ahead with this it would be the second time in three years that Ghana would seek financing through a sovereign bond issue on the international capital market. Ghana went to the international market in September 2007, for the first time, to raise funds through a sovereign bond issue. The US$750 million bond issue was oversubscribed by over 400%, amounting to US$3.7 billion. About 40% of the bond was placed with US investors, 36% with UK investors, with the remaining going to the rest of Europe. Altogether, 158 interested parties bought into the 10-year dollar bonds that yielded 8.5% at par. Euro bond coupo...

By Kofi Ahovi The National Petroleum Authority (NPA) may have to release new petroleum prices by next week following a court ruling last week. The new prices would reflect a reduction in petroleum product prices. An Accra High Court ruled that the ‘ex-refinery differentials’ imposed on petroleum product by NPA is illegal. Development Data, a policy research and advocacy think-tank, filed the suit against the NPA and Tema Oil Refinery (TOR), seeking a declaration that the ‘ex-refinery differentials’ imposed by the defendants since June 5, 2009, is illegal. According to the plaintiffs, the ‘ex-refinery differentials’ after ex- refinery and ex-pump prices is an extraneous element introduced by the National Democratic Congress (NDC) government, which usage was not made known. They claim that contrary to NPA Act 2005, Act 691, the NPA failed to gazette the import parity price of refined petroleum products as at June 5, 2010. They also sought an order for TOR to cease the collection of the i...

World Bank Group has approved an additional amount of US$70 million for the Electricity Company of Ghana (ECG) under the Ghana Energy Development and Access Project (GEDAP). The project is to help ECG to further overhaul overage substations and supply lines with the aim to reduce technical losses, improve supply quality to clients, connect more customers, and increase revenue collection in the project areas. The first GEDAP was approved in 2007 to improve the operational efficiency of the electricity distribution system and increase the population access to power and to help transition Ghana to a low-carbon economy through the reduction of green house gas emissions. It has three main components: (a) Sector and Institutional Development; (b) Electricity Distribution Improvement; and (c) Electricity Access and Renewable Energy. The current additional financing is in response to a request to assist with expansion in ongoing activities to scale up project impact and effectiveness. The bu...

By Elorm DESEWU Last week, UT Financial Services (UTFSL) listed 91 million shares to acquire UT Bank, after it had received regulatory approvals from the Bank of Ghana (BoG), Securities and Exchange Commission (SEC) and the Ghana Stock Exchange (GSE), thus changing its name on the GSE to UT Bank Limited. This means that all shares previously traded under UT Financial Services will now be traded under the new entity – UT Bank. This was made possible after the shareholders of UT Financial Services passed a special resolution during its Annual General Meeting to acquire UT Bank and merged the operations of the two institutions and operate as a universal bank. UT Holdings who are majority owners of UT Financial Services and UT Bank would own 70% stake in the merged entity. According to the crowned Prince Kofi Amoabeng, this would pave the way for the bank to do a right issue to raise additional money to meet the central bank’s minimum capital requirement of GH¢60 million in 2012. He said,...

UT Bank has donated an amount of GH¢100,000 to Enablis Entrepreneurial Network, as a support package to assist the organization infrastructure and ensuring that Enablis member businesses have a higher survival and growth rate. Presenting the cheque to the organization, the Chief Executive Officer (CEO) UT Bank, Prince Kofi Amoabeng said the bank is a firm believer in Enablis’ model of leveraging and supporting entrepreneurial talent in Africa. According to him their partnership with Enablis allows the bank deliver small business focused solutions fostering local entrepreneurship, and enabling job creation and social-economic opportunities. Tony Oteng-Gyasi, Enablis Ghana Chairman indicated that the promotion of entrepreneurs into the mainstream economy and the creation of more small to medium businesses will accelerate the economic development of Ghana. The Enablis formula was tested at the end of 2009 by an independent research company, Research in Action. In the East African operatio...

By Fred SARPONG The over US$2 million rail line which stretches from Accra to Tema is expected to be commissioned in August this year. Work on the 7.8 kilometer rail line is currently in progress and will be completed on schedules. After the completion, the railway system is expected to improve transportation between the Accra and Tema corridor and also facilitate intra Africa trade. The Board Chairman of the Ghana Railways Development Authority (GRDA), Dan Markin, who made this known during an inspection, indicated that the rail sector plays an important role by linking many sectors of the economy. The railway sector has assisted in moving goods like diamond and cocoa and other commodities from the western part of the country in large quantities. When the Accra-Tema corridor railway is in operation it will facilitate the transportation of low cost items, especially food stuff, as a result of cheap transportation fare. The government has procured two new diesel multi-unit trains to be...

United Bank for Africa (UBA) Ghana has opened its new branch at the North Industrial Area in Accra, bringing its total branches network to 26. It would among other things offer short, medium and long term credit facilities, letters of credit and foreign currency accounts. The MD/CEO, Gabriel Edgal, said this was a proof of the bank's determination to bring quality services to the door steps of the people to help stimulate the country's economic growth. He urged the institutions and people in the area to take advantage of the bank and save with it. Commissioning the branch, the board chairman of the bank, Kwame Pianim, said they were determined to become a reliable ally of the private sector in particular to expand their businesses. Individual businesses and organizations in the area would find the bank as a vital partner, he added.

By Kofi AHOVI Available statistics from the Ghana Tourist Board (GTB) indicates that the tourism sector has generated a total of US$1.62 million in 2009, compared to US$1.4 million recorded in 2008. A total of 802,779 tourists visited the country during the same period, compared to 698,069 in 2008. The number of tourists visiting the country for business in 2009 stood at 184,639, representing 23%. Out of this number, 72,250 representing 9% attended conferences and meetings; 160,556 tourists representing 19% came mainly for holidays, while 80,278 representing 10% were in transit. These statistics point to a steady increase in the number of foreigners who visit Ghana and the growing significance of the tourism industry to the national economy. In this regard, the Ministry of Tourism, in partnership with the Ghana Investment Promotion Centre (GIPC) launched the International Tourism Investment Forum last month with the aim of boosting domestic and international tourism in the ...

By Fred SARPONG Total Petroleum Ghana Limited, one of the leading petroleum companies in the country, recorded a 112% increase in profit for last year, by generating GH¢13.166 million, as against GH¢6.22 million in 2008. According to the company, the profit was due to an improvement in its working capital position, decrease in financial costs, overall improvement in margins through cost efficiencies and innovation, as well as an improvement in network sales of 9% against the 2008 performance. The chairman of Total Ghana Limited, Stanislas Mittelman, who made this known at the company’s Annual General Meeting in Accra, said the board increased the investment budget of the company from GH¢4.402 million in 2008 to a new level of GH¢ 8.405 million in 2009. “The 2009 investment in our retail network is the first year of a three –year investment programme to improve the image and services we are offering at our service stations. Margins on fuels were not adjusted for all of 2009, with the la...

By Fred SARPONG Available information reaching BusinessWeek indicates that timber export from Ghana recorded €39,525,381 for the first three months of 2010, as compared to €30,078,571 recorded for the same period in 2009. During the month of March, timber export from Ghana recorded €13, 098,563 from the export of 39,249 cubic metres of wood products for the first three months of 2010. The corresponding figures for the same period in 2009 were €9,898,795 and 31,040 cubic metres, showing an increase of 32.32% in value and 26.45% in volume respectively. The increase was largely due to a recovery from the global economic downturn, which generally affected the cash flow of most buyers of wood products. During the three months period, primary products (Poles and Billet) accounted for €2,035,178 in 2010, as compared to €3,862,718 in 2009. Tertiary products registered €2,355,210 at the end of March 2010 and €1,902,590 in March 2009. Secondary products fetched a total of €27,230,839 from Januar...

By Fred SARPONG The management of the City and Guilds, one of the world’s leading vocational and technical certificate awarding bodies in the country, has appealed to the government to institute Technical and Vocational Education (TVE) levy to support the sector. According to them, the levy should be channeled into the development of technical and vocational education in the country. In an interview with the City & Guilds regional representative for West Africa, Kingsley Koranteng Asiedu, told BusinessWeek that it will be in the right direction if the government will allow the industries in the country to pay a levy to support the TVE sector. He proposed that at least 1% or 2% of profit from the industry in Ghana should be channeled into the TVE sector. He indicated that among the challenges they face is the lack of recognition from employers and some educational institutions. “The sad aspect is that some employers discriminate against TVE graduates when it comes to job placement ...

By Kofi AHOVI The Communication Service Tax (CST) has so far accrued GH¢26 million for the first quarter of this year. The figure is 19% higher than the GH¢22 million collected for the same period last year, but lower than the projected GH¢27 million target. The Value Added Tax (VAT) Service responsible for the collection of the tax has targeted GH¢132 million for the end of the year against the GH¢100 million targeted for last year, despite its failure to meet that target. According to VAT service, this was due to lack of equipment to monitor the traffic of telecom companies. This challenge would be resolved with the new monitoring system, Intelligence Signal Management System, being introduced by the National Communications Authority (NCA). CST is a tax levied on charges for the use of communications service that are provided by communications operators. It started in June 2008 to boost revenue mobilization from the fast growing communications service sector. The tax is paid by cons...

By Elorm DESEWU Standard & Poors, one of the world’s rating agencies, has cut Ghana’s outlook to negative, based on a deteriorating macro-economic environment. According to S&P, “the negative outlook reflects the likelihood of a downgrade if the planned fiscal correction is not fully implemented or debt financing challenges intensify in the context of shallow domestic market and we can global risk appetite.” S&P rates Ghana as B+ on its long term and B on its short-term rating and had previously had the country on a stable outlook. According to S&P, the rating was still supported by the prospect of significant oil production by the last quarter of this year. Recently, the International Monetary Fund (IMF) staff mission to Ghana endorsed the government’s macro-economic targets. The IMF estimates that the economy expanded by 3 – 4 percent in 2009, notwithstanding the global crisis, as cocoa and gold exports remained strong. This is down from 7.3% in 2008 a year of highly...

By Kofi AHOVI Standard Chartered Bank (SCB) plans to introduce a new form of visa card in Ghana by next month. The card will also be introduced in seven other African markets where the bank operates. The Visa Infinite Card is the most prestigious premium debit card currently being offered by Visa International. Stanchart is the only bank in Ghana to offer this card. The card offers unparalleled features and benefits, including much higher spending limits and the widest acceptability of all visa debit cards, provides access to a wide range of lifestyle, travel, shopping and entertainment benefits, as well as provides access to a concierge service which allows the holder to outsource a wide range of otherwise time consuming tasks great and small from airline bookings to restaurant reservations. Currently, the card is being offered exclusively by invitation only to Stanchart’s priority banking customers. A customer needs to have a minimum balance of GH¢75,000 in order to sign for this car...

By Jeorge Wilson KINGSON The government has entered into a credit agreement with the United Kingdom branch of BNP Paribas for an amount of €17,687,058.51 for the purchasing of equipment for the effective monitoring of Ghana’s territorial waters. The purpose of the agreement is to obtain funds for the acquisition, installation and operation of a Vessel Traffic Management Information System (VTMIS) for both electronic and physical coastal surveillance and monitoring in Ghana, in the wake of the expected oil boom. The agreement is currently before parliament for consideration and approval. The credit facility is free of any interest charge. It however has a two and a half year grace period, 14 years maturity period, 0.25% commitment fee, 0.50% arrangement fee, 36.29% grant element and repayable in 12 years. The project consist of the installation of eight remote sensor sites along the coastline and three manned monitoring and control centers known as Area Control Centers (ACCs) to be loca...

By Fred SARPONG Figures released by the Ghana Statistical Service (GSS) indicate that ex-factory prices of goods measured by the Producer Price Index (PPI) for May 2010 declined slightly by 0.76% to 16.14% from 16.90% recorded in April, this year. This implies that ex-factory prices for the all industries, which include manufacturing, mining and quarrying and utilities sub-sectors, were an average of 16.14% higher in May 2010 than the figure recorded in May 2009. The rates of producer price inflation for these sub-sectors were mining and quarrying, 22.98%; manufacturing, 18.39% while utilities was flat. The rate of producer price inflation in May 2010 dropped for manufacturing and the utilities by 2.88% and 0.09% respectively, while mining and quarrying also went down by 1.18% points. The mining and quarrying sector exhibited the highest rate of inflation of 22.98%. Substantially, the price of gold on the international market has the major influence on the mining and quarrying sector,...

By Kofi AHOVI The Public Account Committee (PAC) of Parliament has recommended the strengthening of Bank of Ghana’s (BoG) internal and supervisory controls over the preparation of statements of foreign exchange receipts and payments. In the committee’s report on the Auditor-General on the statement of foreign exchange receipts and payments of BoG for the second half of 2008, the PAC said the recommendation is to help the central bank to eliminate errors and omissions, which occur during the preparation of such receipts. “BoG must note that a public document of this nature should not countenance such mistakes,” the report stated. Total cocoa proceeds received by BoG were erroneously captured as US$946,412,132 due to an omission of cocoa receipt amounting to US$436,283.60. The error was however attributed to misclassification. Also, as a result of wrong conversion in the use of currency and reversal of entry, total student transfers of US$3.1 million for the same period was understated b...

by Solace DORNO The National Youth Employment Programme (NYEP) has successfully launched a new programme, known as the Youth-in-Mining module. The new programme would focus on creating jobs, mostly in the small-scale ventures, for the youth in the mining communities. It would also train the beneficiaries in best mining practices and environmental conservation, as well as the necessary equipment in mining. Launching the programme at Akwatia in the Eastern Region, the National Coordinator of the NYEP, Abuga Pele, said the new programme would elevate small-scale mining, give skills training in mining, impart managerial know-how and promote modern agriculture. They would also be encouraged to undertake environmental conservation. He said a NYEP Bill would soon be passed by Parliament and the programme would be given sufficient funding to operate without the present challenges facing it. The Deputy Minister of Youth and Sports, Nii Nortey Dua, appealed to all Ghanaians, especially the youth...

Nokia Global Group, the manufacturers of Nokia mobile phones, has introduced a new alternative charging solution for Nokia mobile phones users especially to those in the rural areas, where there are no electricity. The new charging solution was officially launched in Nairobi, Kenya. This new product provides free and environmentally friendly electricity for mobile phone users. The Nokia Bicycle Charger Kit consists of a charger and dynamo, as well as a holder to secure the phone to any bike. When the kit is installed, the dynamo, a small electrical generator uses the movement of the wheels to charge the handset through the standard 2mm charging jack used in most Nokia mobile phones. Now, with the Nokia innovative bike charger, people get even more freedom to use their Nokia without worrying about battery life. Brad Brockhaug, the head of Nokia Africa, said bicycles are the most widespread means of transport in many markets around the world, so this is just one more benefit to be gained...

By Jeorge Wilson KINGSON Three indigenous companies listed for divestiture by the government close to 10 years are yet to attract private investors. The companies, which were placed on divestiture for capital injection to make them operational, include the Aboso Glass Factory, Bonsa Tyre Company and the Subri Industrial Plantation Limited. The Minister for Trade and Industry, Hannah Tetteh, told parliament last week that though the initiative was to obtain a potential joint venture partnership for each of them, the myriad of challenges associated with their operations has made them unattractive to investors. “In view of the identified challenges that strategic investors are likely to face the Ministry of Trade and Industry will collaborate with the Divestiture Implementation Committee (DIC) to find partners that will either be in position to revamp the operations of the company or implement a new project that will ensure that their existing assets are efficiently utilized,” Tetteh stat...

By Kofi AHOVI Centuries International Cocoa-Chocolate Festival Organization (CICCFO) has introduced an initiative to promote cocoa consumption in schools, hospitals, and corporate entities, which is estimated to provide employment for about 3,000 youth. The Chief Executive Officer of CICCFO, Ben Amponsah-Fordjour, at a press conference in Accra last week, said the company, with approval from the Ghana Education Service (GES), would promote the national cocoa powder beverage (Royale) with cocoa bread rolls to mainly schools, as a starter, to be taken prior to meals served under the School Feeding Programme to school children. The programme, which would be started in phases, would eventually be rolled out throughout the country, and, thus, personnel would be employed throughout the country for distribution purpose, among others. The first phase of the programme would be concentrated in Accra and Tema, and later extended to 20 districts each, in all the 10 regions. Lamenting over the low ...

By Jeorge Wilson KINGSON Parliament has begun intensive consideration of the Mutual Legal Assistance Bill, which was laid before it and read for the first time in October, 2009. The bill seeks to establish a comprehensive legal framework for the implementation of agreements on mutual legal assistance to facilitate the prosecution of transnational crimes and the administration of criminal justice across jurisdictions and related matters. It provides for the establishment of a one stop-shop legal framework between Ghana and foreign states for the implementation of agreements for mutual legal assistance in the combating of crimes across different jurisdictions. The report of the Committee on Constitutional Legal and Parliamentary Affairs on the bill observed that if the bill is passed Ghana will not only be discharging its international obligations but will also be enhancing the viability of its legal regimes towards a more effective and efficient combat of transnational crimes. “The c...

By Solace DORNO The Millennium Development Authority, (MiDA) would soon review its operations to ensure that beneficiaries comply with the conditions for their assistance. According to MIDA, the authority has given out an amount of GH¢20 million to 30,000 small-holder farmers to improve upon their production levels. However, the authority feared the project could collapse if the farmers refused to pay back the loans received hence the need for serious efforts to retrieve all the money. For almost three years, MiDA has been executing a number of poverty reduction projects under the Millennium Challenge Compact, signed between the government of Ghana and the US Millennium Development Corporation. The Chief Operations Officer of the Authority, Mathew Amoah, noted that the support given to farmers is not a grant and has cautioned the beneficiary farmers. He said the beneficiary farmers located within the three intervention zones, made up of the Northern, Afram Plains and Southern area, wit...

Lufthansa and Swiss International Airlines, as well as their respective hub airports in Munich, Germany and Zurich, Switzerland, were voted best across several categories by passengers from over 100 countries. The award is World Airline Awards and it is instituted by Skytrax. Lufthansa was awarded Best Airline in Europe, taking over the prize from family member SWISS, which won the title last year. SWISS in return ranked number one in the category, Staff Service Excellence, followed by Austrian Airlines, another member of the Lufthansa Group. Lufthansa, SWISS, Austrian Airlines and British carrier BMI, another Lufthansa subsidiary, jointly serve 15 destinations across the Middle East from their respective hubs in Frankfurt, Munich, Zurich, Vienna and London-Heathrow. Not only in the air, but also on the ground, Lufthansa and SWISS are offering award winning services. Lufthansa’s First Class facilities are among the sixth best worldwide, according to the survey. Earlier this year, Lufth...

Kingdom Books and Stationery, distributors of stationery and office equipment, has commissioned its new corporate office in Accra. The office complex is part of effort being made by the company to provide one-stop shop service to the public. The managing director of Kingdom Books and Stationery, Alfred Jackson, speaking at the opening ceremony held in Accra last week, attributed the fortunes of the company to selflessness and hard working staff and dedicated customers. He recounted the challenges that the company had experienced in the past 40 years, when it was situated at Tema Community One. The MD assured of continuous provision of quality but affordable office stationery and equipment in the country and within the sub-region. “It is these quality products and services that we offer which has merited our place in the Ghana Club 100 rankings,” he noted. “It’s our plan to extend our quality services from Accra, Kumasi to Takoradi and the Northern Region in Tamale,” Jackson hinted. Th...

By Kofi AHOVI The Executive Board of the International Monetary Fund (IMF) has approved US$119 million to support Ghana's development processes. The approval brings total disbursements of IMF to Ghana to US$218 million under the Extended Credit Facility (ECF) arrangement. In a statement issued by IMF, Ghana was given the nod after the board completed the first and second reviews of Ghana’s economic performance under the ECF arrangement, originally known as the Poverty Reduction and Growth Facility. In completing the reviews, the Board granted waivers for the nonobservance of the continuous quantitative performance criterion on the contracting or guaranteeing of non-concessional external debt and the nonobservance of the September 30, 2009 quantitative performance criterion on the overall budget deficit. The release quoted the Deputy Managing Director and Acting Chair of the board, Murilo Portugal, as saying “The Ghanaian authorities have achieved progress in 2009 in reducing inflat...

By Kofi AHOVI The International Financial Corporation (IFC), a member of the World Bank Group, has met with stakeholders from West Africa to discuss ways to strengthen its standards on environment and social sustainability. The discussion, which took place in Accra, focused on ways to better address emerging issues that have reshaped the operating environment, such as the climate change. The consultation was part of a series of global consultations with academics, civil society groups, financial institutions, government, private sector representatives, and other resource persons to discuss ways to improve IFC’s standards on sustainability. Greg Radford, IFC Director for Environment and Social Development, explained that collecting views from a wide range of stakeholders was important because the changes to IFC’s standards are expected to have widespread d impact on the global financial community. About 70 major financial institutions from around the world, including eight African banks...

By Kofi AHOVI The Executive Vice President and CEO of International Finance Corporation (IFC), Lars Thunell, has assured IFC’s commitment to increasing its activities to support Ghana's sustainable economic growth. IFC plans to work more closely with the World Bank, the government and the private sector to create more opportunities for entrepreneurs and business in the country. Thunell made the assurance during an interaction with the media and a section of IFC’s local partners during a visit to Ghana last week. “IFC will support Ghana’s commitment to rapid development with robust private sector investments,” said Thunell. He added that, to have the largest impact, IFC has worked closely with the World Bank to develop new initiatives that leverage its strengths and improve the lives of the Ghanaians. He explained that the IFC is collaborating with government of Ghana and the World Bank’s International Development Association to provide credit and advisory services to micro, small ...

The World Cup fever that has gripped the country and the rest of the world has indeed affected both individuals and organizations. Not to be left out is Intercontinental Bank Ghana who have joined the support of the Black Stars World Cup campaign and also galvanized support for the rest of the participating African teams. Launching the special initiative dubbed, “The IBG Support the Black Stars and Africa Campaign,” the head of Corporate Communications, Kenneth Awuku, explained that the rationale behind this internal campaign initiative was to primarily respond to the national call for all to support our Black Stars. He further explained that the support being mobilized among the staff of the bank is also for all participating African teams, saying “after all the World Cup is being hosted for the first time on African soil.” Noted as a praying bank, “the IBG Support the Black Stars and Africa Campaign” encourages all staff and customers of the bank to pray for the African representati...

The HFC Bank Ghana Limited has opened its 23rd branch at Agona Swedru in the Central Region, with a call on the private sector to fully embrace the modern banking practices and business culture existing in the competitive international business environment. "Small and Medium scale Enterprises (SMEs) have not realized their full potential because there is still a de-linkage from the banking community," Charles Ofori-Acquah, General Manager, Business Development, noted in his inaugural address. He said the major barrier to rapid development of the SME sector, was not a shortage of the bank’s support but rather a limitation on the part of enterprises to fully embrace modern banking practices and business culture. The Swedru branch of HFC Bank is the second, after the Kasoa branch, in the Central Region and follows on the heels of the Tarkwa-Maakro branch, which was inaugurated last week in the Kumasi metropolis. Ofori-Acquah spoke about the difficulties that SM...

By Fred SARPONG The Ghana Revenue Authority (GRA), mandated to regulate the activities of all revenue agencies and also supervise the revenue mobilization in the country, has outdoored its official logo, indicating the vision of the authority. The authority is a modern tax administration with visionary leadership that ensures fair and adequate revenue mobilization. With the passage of the GRA Act 2009, Act 791 in December 2009, the authority came into existence to replace the three revenue agencies, which are Customs Excise and Preventive Service (CEPS), Internal Revenue Service (IRS), Value Added Tax (VAT) Services, as well as the law of Revenue Agency Governing Board (RAGB). The logo is made up of golden eagles, cowry, scale and colours of blue, yellow and green on the banner. The golden eagles represent a strong and visionary leadership with relentless determination to optimize tax revenue, while keeping a watchful eye on non-compliant taxpayers. The cowry represents national revenu...

By Jeorge Wilson KINGSON The government has announced a three-way area plan to assist the timber industry in getting raw materials, especially in the wake of the alarming depletion of the country’s natural forest reserve, BusinessWeek has gathered. The plans have been grouped into three categories, namely short-term, medium term and long term strategies. Revealing this in parliament last week, the Minister of Lands and Natural Resources, Alhaji Collins Dauda, said the government is concerned about the depletion of the country’s forest reserves and will therefore do everything possible to protect it. According to him, the short term plans include waiver of import levy on imported logs to enable competitive companies to import logs into the country. The Annual Allowable Cuts (AAC) has also been raised from one million cubic meters to two million cubic meters so as to make more wood available to the timber firms, as well as salvage the trees from destruction by farmers and illegal harves...

By Fred SARPONG The government, led by Prof. John Evans Atta Mills, has taken a bold step to reduce the support from its donor partners by at least 50% from the beginning of 2012. This in anticipation that by the beginning of 2012, the revenue agencies would have been fully integrated, making the nation’s dependence on donor support inconsiderable. The Deputy Minister of Finance and Economic Planning, Fiifi Kwetey, confirmed this to Business Week after the official launch of the Ghana Revenue Authority (GRA) logo in Accra. According to him, this will place the government in a strong position to pursue its ‘Better Ghana’ agenda. “It is a long time this nation has consistently depended on donor support, for several developmental projects in the country. As a country, we need to seek other avenue to generate revenue in order to reduce support from our foreign partners,” said Kwetey. The government is integrating the three revenue agencies, namely Customs and Excise Preventive Service (CEP...

Kofi Ahovi Ghana National Petroleum Corporation (GNPC) has signed a petroleum agreement with three institutions for oil exploration in offshore Accra-Keta basin. The institutions are the Australian firm, Tap Oil Limited, Challenger Minerals Incorporated and Afex Oil Ghana, an affiliate of Afex International based in the US. Tap Oil Limited would control 36% stake in the joint venture, while the GNPC would control 10%, and both US firms involved in the deal would control 27% each. During the exploration, the partners are expected to re-process 600 kilometres of 3D seismic data, acquire 850km of 2D seismic data and drill a single exploration well over the next two and a half years. The exploration programme would cover an area of 2,000 square kilometres in deep and shallow water. Deputy Minister of Energy, Armah Kofi Buah, said the government would ensure that companies operating in the oil and gas sector adhered fully to environmental laws governing the sector. He added that the oil spi...