Kofi Ahovi

By Kofi AHOVI, back from London British Airways (BA), one of the trusted names in the global airline industry, hopes to break even on its revenue for the 2010 fiscal year. It recorded consistent losses for the last two years. The trend in BA’s passage and cargo traffic continues to be positive with yields up and costs down, which has led to a reduced operating loss for the first half of the year. Speaking to the Chief Finance Officer, Keith Williams, in a round table interview at BA’s headquarters in Waterside-London, he assured that the company is on track in achieving this goal. He added that the BA’s focus is on cost control, as the airline grows and continues its quest for permanent structural change across the business. “Both the airline’s cash and debt position remained strong in the first half year,” he stated. BA’s cost performance continues to follow last year’s trend with total costs for the second quarter of 2010 reducing by 3.3%. Total revenue in the period was down 2.3% fr...

Ghana has retained the same ranking on this year’s Global Competitiveness Index as it did last year. TOMA IMIRHE examines how competitive Ghana’s economy is against the rest of the world. Just as the controversy generated by the Standard and Poors’ ill-judged downgrading of Ghana’s sovereign credit risk assessment was beginning to fade away, another assessment of Ghana by an international institution – this time the World Economic Forum – is in the news. The forum’s latest edition of its Global Competitiveness Report series ranks Ghana as the 114th most internationally competitive country out of 139 economies assessed. For a country with aspirations to be a major emerging market economy, in the emergent globalised environment, the latest ranking is not exactly flattering; it means Ghana only did better than 25 countries out of the 139 assessed. Just as importantly, since Ghana’s 114th position for 2010/11 is the same as its ranking for the previous edition, it implies the country has f...

By Kofi AHOVI The United Nations Development Programme (UNDP) and the Institute for Democratic Governance (IDEG) have started processes to develop the 2010 National Human Development Report (NHDR) for Ghana. The report, with the general theme: "Democratic Political Transition and Human Development," will focus on seven main thematic clusters. These are state machinery, governance institutions and security establishment, the economy, social development and national cohesion, public and private corporate sector, general human development and theoretical and analytical framework. The report would seek to give expression to concerns about the impact of democratic political transition on contemporary human development programmes and bring to the fore the need for radical changes for institutionalization of structures to handle the problem adequately. It would also serve as the final input to the Constitution Review Committee. Speaking at the project launch and met...

By Kofi AHOVI The government has reconsidered its decision to transform the Export Development and Investment Fund (EDIF) into a non-bank financial institution. According to the government, the current operations of EDIF bar any unnecessary government or political interference and thereby giving it the free hand to operate. The Minister of Trade and Industry, Hannah Tetteh, explained to BusinessWeek during the meet-the-press session last week, that considering the fallouts from the Micro-finance and Small Loan Centre (MASLOC) where issues of political meddling were raised and the huge record of non- payment of loans, the government decided to maintain the status quo of EDIF The previous government, under President John Agyekum Kufuor, was considering the restructuring of EDIF as a non-bank financial institution to enable it to operate efficiently. This was because exporters were complaining about their inability to access the fund through the designated commercial banks. EDIF funds we...

By Kofi AHOVI The Ghana Free Zones Board (GFZB) has approved a total of 13 out of 23 applications received from investors for the first half of 2010. Interestingly, the Board received a total of 13 applications for the first half of this year, but there was a backlog of 10 applications from 2009 for consideration. The 13 approved companies were made up of two each in the service sector and commercial sector and nine in the manufacturing sector. The total capital invested by the enterprises for the first half of this year is estimated at US$122 million. The value of production by the enterprises for the same period is US$431 million, while the value of export is US$691 million. Employment figure recorded for the same period is 30,969 comprising 50,006 Ghanaians and 963 expatriates. Total duties paid on sales into the local market as at the end of the first half year of 2010 is estimated at US$1.10 million, while an estimated amount of US$641.939 was spent on training Ghanaian employe...

By Kofi AHOVI The Mandated Lead Arrangers (MLAs) of the Ghana Cocoa Board (COCOBOD) has presented a cheque for GHc25, 000 to the Tetteh Quarshie Memorial Hospital at Mampong in the Eastern Region. Standard Bank, International Commercial Bank of China (ICBC), Credit Agricole CIB, Ghana International Bank and Denton Wilde Sapte contributed GHc 5,000 each. In addition to the cheque, the banks also provided two mechanized boreholes at the cost of GHc21,000 for the hospital. The five lead financiers were also expected to present anaesthetic machines and patient monitors to the hospital but the machines, valued at 35, 000 Euros, arrived behind schedule at the sea port and were yet to be cleared. Explaining the objective behind the gesture, the Managing Director of Stanbic Bank, Alhassan Andani, said. “ Every year after signing these loan syndications, we receive a plaque from COCOBOD, we decided to be at the giving end this time around, by giving out these monies as a form of our social resp...

By Kofi AHOVI The government, through the Ministry of Trade and Industry (MOTI), has begun measures to ensure that the Rural Enterprises Project (REP) goes nationwide to facilitate efforts being made to develop those areas. Based on the evidence of the impact that the project was making in the areas of skills development, micro enterprise establishment and employment creation in the rural areas, the government has requested the International Fund for Agricultural Development (IFAD) to scale-up the project into a national programme that will cover the remaining rural districts and municipalities of the country. Currently the project is undertaken in only 66 out of the 170 districts in the country. The request received a very positive consideration by IFAD and an interim evaluation mission was fielded in July, this year, to assess the performance of the project. The findings of the interim evaluation mission were highly satisfactory to both IFAD and the government and, on that basis, an ...

By Kofi AHOVI The Trades Union Congress (TUC) wants government to focus especially on job creation in its budget for 2011 fiscal year. According to the TUC, the umbrella organization for labor in Ghana, government would have to move away from its inflation targeting policy to an employment targeting strategy in the next year budget, which would be presented by the Minister of Finance and Economic Planning to Parliament next month. The TUC made these suggestions in proposals to be submitted to the Finance Minister as part of inputs for next year’s budget. In the document, dubbed “It’s time to create decent jobs for Ghanaians,” the Congress wants clear, measurable targets for employment creation on a region by region and district by district basis. According to the TUC, government must assess its performance mainly on the number of jobs created during the year and refrain from using inflation as the main indicator of its performance. It argues that the unemployment challenge facing the c...

Countries across the world are recouping huge interest from Intellectual Property Rights (IPR). Kofi Ahovi examines Ghana’s efforts in doing same to maximize wealth. Ghana has the potential to create more wealth from Intellectual Property Rights (IPR) if only efforts being made to establish and strengthen it are adhered to and executed accordingly. Presently, the country is struggling to protect its industries, particularly the textile industry, because the designs and cloths used are imitated outside and brought in cheaply to compete with what is produced in the country. Today, out of more than 20 textile industries in Ghana since independence, only five are managing to keep their heads above water. The US Department of Commerce has also estimated that counterfeit goods, including music, movies, electronic goods, food stuffs, automotive parts and pharmaceuticals, among many other things, account for seven percent of all global trade. This equated to almost US$350 billion in lost reve...

By Kofi Ahovi Members of the Private Enterprise Foundation (PEF) will soon have the opportunity to meet with the Presidency twice yearly to discuss issues relating to the development of the economy. The first of such meetings was held with the Vice-President, John Dramani Mahama, last week. The owners of private businesses are also expected to engage President John Evans Atta Mills with their concerns and challenges. According to PEF, they are hoping to use such encounters to advance the cause of the private sector. PEF believes that the Presidency stands the chance of benefiting directly from the experiences of business managers in the country which can foster policy formulation in the private sector. PEF expects to use the next meeting, which is yet to be scheduled, to discuss in detail issues relating to the implementation of both the Industrial Policy and the Private Sector Development Strategy II, which were both okayed by cabinet last month. The PSDS II sets out a course for gove...

By Kofi AHOVI British Airways recently sponsored some journalists from selected media houses in Ghana to the United Kingdom for a short visit ranging from three to 10 days. The trip was to enable the journalists to acquire firsthand knowledge about British Airways’ (BA) Terminal 5 which was established in 2008. The journalists were treated to the best of BA from the beginning to the end of the trip. First, the journalists, numbering five, were treated to business class services, Club World. Club World has a 25% wider, more comfortable seat that reclines to a fully flat bed adapting to one’s need and giving flexibility whether working, sleeping, eating or relaxing. The in-seat power combined with comfortable design makes working onboard much easier. Club World longhaul business class is designed around the passenger. From the moment passenger arrives at the airport to the moment he/she leaves, BA’s Club World ensures that everything is just as the passenger had wished. The latest Club ...

By Kofi AHOVI The Ghana Shippers’ Authority (GSA) has held its sixth maritime law seminar for justices of the superior courts of judicature in Ghana. The seminar was to abreast the judges on recent developments with respect to maritime laws both locally and internationally. It also offered opportunity for the exchange of ideas and information for the enrichment of maritime law practice in Ghana. Some of the areas covered during the seminar include international law of marine collisions, adopting the Alternative Dispute Resolution in the settlement of international maritime trade and transport disputes, the law of towage and pilotage and the Rotterdam rule- a new international conversion. The Minister of Transport, Hon. Mike Hammah, during the opening ceremony, called on the judiciary to work in harmony to ensure that Ghana maintains a competitive position in the West Africa sub-region with regard to international trade. “Ghana must also develop a strong and knowledgeable judiciary th...

By Kofi AHOVI Ghana scored 54 points out of a total budget transparency rating score on a 100-point scale in the 2010 Open Budget Survey (OBS), earning the country a grade "C" criteria, the highest ranking in West Africa. The OBS, which is an initiative of the International Budget Partnership (IBP) and produced bi-annually, uses internationally recognized criteria to give each country a transparency score on a 100-point scale called the Open Budget Index (OBI). The survey report, which is also being launched in 94 countries worldwide, indicates that on the global front, 74 out of 94 countries assessed failed to meet basic standards of transparency and accountability when it comes to their national budgets, with the worst performers, including China, Saudi Arabia, Equatorial Guinea, Senegal and newly democratic Iraq, a situation which is found to be in sharp contrast in respect to their national incomes. Dr. Yakubu Zachariah, Programme Director of the Integrated So...

By Kofi AHOVI Comet Properties, a real estate developer, has received approval to list on the Ghana Stock Exchange (GSE). The approval, from the Securities and Exchange Commission (SEC), regulators of the capital, would enable Comet Properties to raise about GH¢62 million from institutions, as well as the general public. The company plans to launch the Initial Public Offer (IPO) in November, this year. Comet Properties, which got its provisional listing on the GSE late last year, would be the first estate developer to list on the bourse if the IPO is successful. Provisional listing was introduced to the Ghanaian stock market a couple of years ago to help small and medium companies list on the exchange. Companies have to complete all processes to get fully listed on the exchange within 18 months after provisionally listing on the exchange. The company, which started operations in 2002, is ranked as the 47th company in the Ghana Club 100 magazine. Since its inception, the company has bui...

By Kofi AHOVI The Centre for Policy Analysis (CEPA) has cautioned that government’s continuous obsession to strengthen the cedi will in the long run hurt the agricultural and manufacturing sectors. It further added that government’s concentration on strengthening the cedi may push the country towards the Dutch disease phenomenon. The Executive Director of CEPA, Dr. Joe Abbey, who made the call at the launch of its 2010 mid-term report on the economy, observed that over strengthening of the cedi may eventually kill the manufacturing industry. The Dutch disease phenomenon occurs when the discovery of a natural resource raises the value of that nation's currency, making manufactured goods less competitive with other nations. It also leads to the increase in imports and a subsequent decrease in exports. The cedi, though gaining grounds slowly, analysts say will gain some more credit against the dollar and the pound. “The cedi is getting stronger and stronger. From the consumer perspec...

British Airways has announced the launch of a new initiative, On Business, to stimulate Ghanaian business and forge long-term relationships with important business customers. On Business, the airline’s new loyalty programme, provides rewards for small-to-medium size companies for their business travel. Companies registering for On Business will earn points on every British Airways flight, which can be turned into reward flights and upgrades. Paul Dhami, British Airways’ Ghana Commercial Manager, explained that On Business is free to join, and a company only needs two or more travelling employees to qualify. “Companies joining the programme will earn triple On Business points on their first six flights taken with British Airways”. Dhami added that those companies already enjoying corporate incentive deals would not be eligible for On Business. Dhami said that the programme has been made available online, in line with the airline’s initiative of enabling ease and convenience for customer...

Members of the Private Enterprise Foundation (PEF) would soon have the opportunity to meet with the presidency twice yearly to discuss issues relating to the development of the economy. The first of such meetings was held with the Vice-President, John Dramani Mahama, last week. The owners of private businesses are also expected to engage President John Atta-Mills with their concerns and challenges. According to PEF they are hoping to use such encounters to advance the cause of the private sector. PEF believes that the presidency stands the chance of benefiting directly from the experiences of business managers in the country which can foster policy formulation in the private sector. PEF expects to use the next meeting which is yet to be scheduled discuss in detail issues relating to the implementation of both the Industrial Policy and the Private Sector Development Strategy II which were both okayed by cabinet last month. PSDS II The strategy sets out a course for government to facilit...

United Bank for Africa (UBA) has introduced two new products, Africash and Afritrade, into the African market. Africash is the bank’s platform that enables payment and receipt of funds across Africa in real time. “It is Africa's premiere instant money transfer service designed to facilitate the movement of funds across Africa to named beneficiaries,” the MD/CEO, Gabriel Edgal, stated at the launch of the products. The product is targeted at businessmen, parents, students, tourists, individuals as wells professionals across the region. Afritrade, so far, is the only 24 hour intra-African trade processing and payments service that facilitates prompt and low-cost processing of trade and payments within Africa. It facilitates the payment and receipt of funds across Africa for the purpose of paying for goods and services and is mainly targeted at export and import companies and traders that do businesses across Africa. According to the CEO, these products do not only reinforce the bank’...

By Kofi Ahovi The Trade Union Congress (TUC) wants government to focus especially on job creation in its budget for 2011 fiscal year. According to TUC, the umbrella organization for labor in Ghana, government would have to move away from its inflation targeting policy to an employment targeting strategy in the next year budget, which would be presented by the Minister of Finance and Economic Planning to Parliament next month. TUC made these suggestions in proposals to be submitted to the Finance Minister as part of inputs for next year’s budget. In the document dubbed “It’s time to create decent jobs for Ghanaians” the congress wants clear, measurable targets for employment creation on a region by region and district by district basis. According to the TUC, government must assess its performance mainly on the number of jobs created during the year and refrain from using inflation as the main indicator of its performance. It argues that the unemployment challenge facing the country requ...

Aidez Small Project International (ASPI), a non-governmental organization, has held a grand durbar in the Agbozume in the Ketu South District in the Volta Region to drive home the need for malaria prevention and treatment. In his welcome address, Torgbui Hor II Makorsor of Somey Traditional Area in the Volta Region, said it was a welcome news for ASPI to have found it appropriate to visit the region to help in the prevention of malaria infections, describing it as a diving intervention and “ A sure sign that greater things would follow” he added. Togbui Hor II was very optimistic that the activities of ASPI would help greatly in reducing mosquito bites thereby reducing malaria considerably. The CEO of ASPI, Moses Owharo, observed that despite the fact that malaria is preventable and treatable, it continues to be a major source of concern to all Ghanaians as a result of its negative impact on health, economy and the human wellbeing especially among pregnant women. He explained that the ...

The National Health Insurance Authority has started training it staff on the new software on financial reporting in the various municipal and district health schemes. The training is targeted at train Scheme Managers, Accountants, Claims Officers and Information Systems Officers of the various schemes. The project is to ensure improvement in financial discipline at the schemes and to ensure timely release of accurate data by the schemes to the authority for efficient planning. It is also to ensure quick processing and payment of claims to service providers, effective planning and decision making. The schemes are now required to electronically submit monthly financial reports and data to the Authority. The reports must cover reimbursement status which will be determined by total amount of claims submitted by service providers, deductions for rejected claims, claims payments received from NHIA head office and outstanding balances, if any. The schemes are to indicate their monthly revenu...

By Kofi Ahovi Government has begun negotiations for the extension of Land Administration Project (LAP) for three more years. Under phase two of the project, government would prepare base maps covering Greater Accra, Ashanti and the Western Regions. Mapping of other regions such as the Northern and Volta Regions would be undertaken under different projects. The rest of the projects include mapping the whole country at a scale of 1:50,000, mapping of seashore across the coastal line; railway network corridor; the Volta River Authority (VRA) and Ghana Grid Company (GRIDCO) networks across the country and provision of large scale mapping at 1:2500. Other projects earmarked are boundary demarcation for customary owners and street addressing and house numbering for the Accra Metropolitan Assembly. These projects would ensure an up-to-date spatial data, which would be made available for sustainable development. The last time Ghana was mapped was in 1974. Government plans to also develop a map...

By Kofi AHOVI The Securities and Exchange Commission of Ghana (SEC), the statutory regulator of the capital market is expected to complete the regulatory framework for the establishment of the commodities exchange and a warehouse receipts system in Ghana by the end of September 2010. The legal and regulatory framework, which would regulate the modality in which commodities exchanges may be established, organized and operate, is to ensure that all those in the supply and value chain in agriculture benefit from their involvement. The framework would consist of Dealing and settlement rules, Warehouse minimum standards/requirement, Warehouse receipts- minimum contents format implications, Commodity backed warrants-defined minimum requirements, Insurance coverage and Arbitration rules. SEC in collaboration with the Natural Resources Institute UK organized three different workshops last year for stakeholder to make input into the modalities for the establishment of a commodities exchange and...

By Kofi Ahovi The 2011 national budget and economic policy statement of the government would primarily focus on the oil and gas sector to facilitate infrastructural development in the sector to ensure the smooth execution of oil related projects Business Week has gathered. Budget, which would be read in November this year by the minister of Finance and Economic Planning, Dr. Kwabena Duffuor, would also focus on water provision for deprived areas, education which involves the removal of schools under trees and the completion of selected ongoing projects in the road and mining sectors . The 2011 budget plans to facilitate the establishment of gas gathering and processing infrastructure to ensure optimization of natural gas resources not only from the Jubilee field but also from other fields in the Tano/Cape Three Points Basin; Establishment of a framework for ensuring transparency and accountability in relation to oil and gas revenues and compliance with the Extractive Industry Transpare...

The Valuation and Estate Surveyors (VES) Division of the Ghana Institution of Surveyors has held its annual Seminar in Accra. The seminar was themed “Enhancing Mortgage Administration for Efficient Housing Delivery.” The seminar was aimed at providing Surveyors and banking institutions with meaningful answers to problems to provision of housing which is affordable either by direct ability through personal savings or through mortgage finance administration and to also provide an insight into the importance of mortgage financing in housing delivery. In an open address read on his behalf of the Minister for Lands and Natural Resources, Alhaji Collins Dauda made a humble call on financial institutions to seriously consider matching long-term capital, instead of short-term capital, to mortgage financing. “Insurance companies that undertake long-term investments, such as life insurance, to consider housing finance as one of their areas of investment.” Outlining some works by his ministry on ...