Kofi Ahovi

HFC Investments manages four collective investment schemes, all of which are licensed schemes by SEC (Securities and Exchange Commission). Kofi Ahovi takes a look at the performance of these funds over the last three years. 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 Investments, HFC Realty, HFC Brokerage Services and Boafo Microfinance. These are wholly owned by HFC Bank except Boafo Microfinance in which it has 51% shareholding. The wholly owned subsidiary of HFC Bank, HFC Investments, has proved to be one of Ghana’s most professional investment banking institutions with an outstanding track record in asset management, where aside from managing collective investment schemes, it also provides prudent fund management, individual client investment service, fund management for groups and institutions, as well as endowment fund

What does corporate governance entail? Corporate governance involves established internal control systems for identifying, managing and monitoring risk. Corporate governance is a system by which companies are directed and controlled. Corporate governance can also mean a set of arrangements in place to make a company accountable to its stakeholders. In the current dispensation, good corporate governance is not only a statutory requirement but a necessity to attract investors. It needs to be in place to assure investors that potential risks facing the company are under control. Departments like internal audit control are located in the company to check compliance with internal standards and standards set by regulatory bodies. I believe most listed companies have these units but how autonomous is that function? Who do they report to? What happens to their findings? Are there personnel in this function with the requisite skills to detect such fraudulent activities? This article seeks to

By Charlotte Yayra ADZANU A cleansed body is a clean blood and a healthy life but accumulation of waste in the body, pollutes the mind, the blood and even the soul and spirit. Staying days without visiting the washroom can result in constipation which is the root of many sicknesses today. Anyone who doesn’t take juice lemon is at higher risk of having constipation. Just as old Ghanaian ladies knew lemon only for polishing buckets and cooking utensils, so today many are using it to cleanse and polish their bodies. There are many valuable nutrients in lemon, including vitamin A, C and D. Calcium, phosphorus, sulphur and iron are also found in lemon. Lemon is a wonderful stimulant to the liver and is a dissolvent of uric acid and other poisons, liquefies the bile, and is very good in cases of malaria. It cleanses the body, provides it with a swealth of vitamins, minerals, and improves its acid alkali pH balance. Drinking lemon juice nourishes the brain and nerve cells, buildin

With interest rates declining, a more liquid environment and a macroeconomic stability, mortgage financing is expected to see an ease of credit. And Ghana Home Loans being a leader in this industry is expected to lead the way. Ghana Home Loans (GHL), a leader in home mortgage, continues to be the frontier in fulfilling dreams of many Ghanaians in homeownership. Since starting business in 2006, it has also provided many existing homeowners with Equity Release mortgages to support their businesses, pay educational fees, improve their properties, or simply pursue other personal hobbies and interests. Ghana Home Loans is a mortgage finance institution which operates under Bank of Ghana’s supervision as a non-bank financial institution. At present, the Company remains the only such institution that focuses exclusively on the provision of mortgage product. Through the Home Completion mortgage and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applican

Engen Ghana Ltd (EGL) was established in 1998, with its first service stations opening in Tema and Accra in 1999. Its operations have grown substantially since then, and EGL currently operates 21 service stations across Ghana with four under construction. Some of its outlets provide convenience (shop/food) services. Engen is an Africa-based energy company focusing on the downstream refined petroleum products market and related businesses. The company’s core functions are the refining of crude oil, the marketing of its primary refined petroleum products and the provision of convenience services via its extensive retail network. Engen is recognised as an industry leader, not just in business success but in ethics, justice, corporate citizenship and equality for all. Engen reflects these principles in its personality and diversity. As a global energy company, Engen produces and markets fuels and oils for all industrial and automotive applications. All are formulated to deliver per

Bank of Baroda, arguably one of the underdogs in the Ghanaian banking industry, is well known and established in India. With just one branch in the country the bank multiplied its profit margin five folds by the end of last year. Having fulfilled the new minimum capital requirement of the Bank of Ghana, Bank of Baroda plans opening new branch networks in Tema in April, 2012 and another in Kumasi in the course of this year. The bank is further considering opening other branches at Spintex road and Takoradi in the near future. The branch expansion drive will further consolidate the banks efforts at serving its corporate clients without losing focus on retail banking. The bank prides itself in being efficient and maintains high standards in banking. The bank was the second runner up for best corporate banking in the 2010 Ghana banking Awards. Parent bank of the subsidiary, Bank of Baroda, was voted as India’s best bank in 2010 and was also adjudged as the Best Large Bank- 2011 in Ind

Editorial “BoG on money laundering” The banking and financial system plays a key role in the mobilization and deployment of resources for the development of the economy. It is partly because of this that in the last decade or so attention has focused on building inclusive financial systems that ensure increasing access to financial services. With growing financial intermediation and access, there has also been an escalation in the abuse of the financial system by criminal elements. This has led to increased attempts by Governments, Monetary Authorities and International Agencies to combat money laundering and terrorist financing (AML/CFT). It is therefore in the right direction that the Bank of Ghana (BoG), last week, launched the Anti-Money Laundering and the Combating of the Financing of Terrorism guidelines (AML/CFT) for the banking industry. Not too long ago, similar guidelines for the capital market operators was also made public by the Securities and Exchange Commissio

By Alhassan Atta-Quayson, Third World Network Africa Source: NCOM Newsletter Volume 1.2 Ghana’s 2012 national budget statement and economic policy proposes to reintroduce the following fiscal initiatives into the mining sector: increase corporate tax rate from 25% to 35%; install a windfall tax of 10%; and implement a uniform regime for capital allowance of 20% for five years. The budget also seeks to review the principle of ring-fencing to prevent companies from tax evasion. Civil Society Organizations such as the National Coalition on Mining and the Ghana Mineworkers Union commended the government for the initiatives and called for additional measures to improve the contribution of the sector to the economy of Ghana. Many Ghanaians, at home and abroad, have also expressed appreciation to the authorities for these measures which are long overdue and called on them to ensure their successful implementation. Their relevance for socio-economic development is obvious. However, as a

The merger of Iberia and British Airways continues to deliver new advantages to the customers of both airlines. Starting on March 25, Iberia passengers will depart and arrive at Heathrow’s acclaimed Terminal 5. The move will substantially improve connections between both airlines’ flight networks. The minimum connection time between Terminal 5 and Terminal 3, currently used by Iberia, is 90 minutes. After the move, it will drop to 60 minutes. Since the merger between Iberia and British Airways, and the launch of their transatlantic joint business with American Airlines, the Spanish and British airlines have operated many flights under a code share agreement. The move to Terminal 5 will strengthen these arrangements. Iberia customers will be able to enjoy Terminal 5’s world class facilities, including over 110 shops and restaurants. Iberia's business class passengers as well as Iberia Plus Gold and Platinum cardholders will also have access to the award –winning lounges comple

By Ebenezer SABUTEY and JAMES DEKU Officials from the Millennium Challenge Cooperation, MCC of the United States including Daniel Yohannes, its Chief Executive Officer last week at a courtesy call on the President in the castle has declared Ghana’s eligibility for a submission of proposal for a second compact of the Millennium Challenge Development Project. Ghana currently has ended its five year implementation of a US$547 million project which commenced in 2007 signed by the former president of the republic, Agyekum kuffuor and the former president of the United States George Bush. Ghana’s first funding tranche, worth $547 million, ended this week with the inauguration of a 14-kilometer (8.7 miles) high way in the city by president John Atta Mills. The funds were also used for other infrastructure and agriculture projects in the world’s second biggest cocoa producer. Most of the projects were completed and handled over to the government last week. The officials said the MCC boa

Increasing competition is making domestic air travel cheaper and more flier-friendly in Ghana, reports TOMA IMIRHE. Over the past six months, airfares charged domestic flights within Ghana have plummeted dramatically, giving some respite to air travelers who have long complained that the cost of ticketing by air, not just within Ghana, but between the country and other parts of the world too, are far too expensive. Thank Starbow, one of the latest Ghanaian airlines flying locally, domestic route prices. The airline, which is owned by shareholders who are all domiciled in Ghana, commenced operations in October last year, flying between Accra and the three other largest cities of Kumasi, Tamale and Takoradi; at what were, at that time, cut-price fares. Ever following a slight increase in fares early this year, in response to a rise in fuel prices and the depreciation of the cedi, Starbow, still offers one way fares between Accra and Kumasi for as low as GH¢110, between Accra and T

The National Communications Authority (NCA) has set a new call and SMS termination rate among the country’s telecoms operators for the period 2012 – 2014. The new rate, which takes effect from January 1, 2012, replaced the old one set in 2008 and expired December 31, 2011. Until the new one was set, telecom operators paid each other 5Gp per minute of every call that originate from one network and terminate on another network. So for instance, if a Tigo customer makes a call to MTN, and Tigo charges 8.4Gp per minute, Tigo will pay MTN 5Gp from that money, because the call terminated on MTN, and vice versa. But a statement on the NCA’s website said for the rest of 2012 the call termination rate will remain 5Gp then reduce to 4.50Gp in 2013 and finally reduce to 4Gp in 2014 before the NCA will decide on another possible review. “The interconnect termination rate for SMS on all mobile networks in Ghana shall (also) be at the cost of 0.7 Gp for the year 2012, and glide to 0.60 Gp

Eunice Darko Young President Organization, (YPO), an international business organization, has announced its intentions to launch a chapter in Ghana by the end of this year. The Ghana chapter will be chaired by Mr. Ashok Mohinani (CEO, MOHINANI GROUP). The organization provides an opportunity to network with business leaders, already has 17 chapters constituting 450 members in Africa. Releasing the Global Pulse Index for the last quarter of 2011 in Accra last week, Khusto Mampeule, member of YPO Johannesburg Chapter and the chair of YPO Africa region, said despite challenges in the Eurozone and parts of Asia, economic confidence amongst African CEO’s remains robust. After declining for three straight quarters, the YPO Global Confidence Index rebounded in the fourth quarter of 2011, climbing 3.2 points to 61.2. According to the repor,t confidence was up in every region except in the Middle East/North Africa, non-EU Europe and Asia. “It was buoyed by the Americas, where confiden

By Fred SARPONG The Great Consolidated Diamond Limited (GCDL), a subsidiary of Zoomlion Ghana Limited (ZGL), has started preparing the Akwatia diamond site for full-scale operation soon. Sources at Zoomlion told BusinessWeek that a lot, including putting up new structures, painting and constructing new roads, is being done at the site before operation starts. The GCDL made an amount of US$80 million offer to acquire the Ghana Consolidated Diamonds (GCD) Limited at Akwatia in the Eastern Region. The GCDL was shortlisted by the Government of Ghana through the Divestiture Implementation Committee (DIC), alongside two other firms, Jowac Company Limited and Balaji Company Limited, for possible takeover of the mine. GCDL tabled US$80 million as the investment capital for Akwatia Diamond, while the other two firms proposed between US$50 million and US$70 million. The Vice President, John Dramani Mahama, officially handed over the GCD to the GCDL at Akwatia last year and promised the p

…as the search still continues By Ebenezer SABUTEY More oil firms including Afren Energy Plc, ENI Oil &Gas, among others have showed interest in partnering with the nation’s oil exploration dealer, Ghana National Petroleum Cooperation, GNPC in the search for crude oil in commercial quantities at the Voltaic Basin, Keta block offshore and some parts of the Coast along the Gulf of Guinea. Information gathered indicates that, so far prospectors are having positive results of reaching the “Black gold” in a year to come, making Ghana one of the major oil producing countries including Nigeria and Venezuela among others in the world. The UK based oil explorer, Afren Energy which is leading in the search according to sources close to the field revealed that, it started some years back with its obligatory exploration well, following the exit of Devon Energy which was basically contracted by the GNPC to partner in the search. GNPC renegotiate its petroleum agreement terms with the oil

By Ebenezer SABUTEY The Kofi Annan International Peacekeeping Training Center, KAIPTC, is poised to commence the proposed election management course that is scheduled to run later this year in the quest to prepare for the 2012 elections in Ghana and other countries on the continent. This was contained in a speech read by the Commandant of the centre, Air Vice Marshall Christian K. Dovlo to officially open the ECOWAS/KAIPTC Election Observation Training course at the center in Accra last week. He said the year 2012 is of particular interest to the center with regard to the election observation course as well as the proposed pilot course in election management. According to the Commandant, this is the year in which Ghana, Mali, Senegal, Sierra Leone, Guinea, Guinea-Bissau, the Gambia among others go to the polls to elect various levels of their national leaders. Air Vice Marshall Dovlo hinted that if 2011 was the year of the “Arab Spring’, here in West Africa would dare to believe

By Ebenezer SABUTEY Partners in Ghana's Jubilee offshore oilfield, majority operated by Tullow Oil, have finally bought the Floating Production Storage and Offloading FPSO Kwame Nkrumah vessel from Tokyo-listed Modec, a reliable source from Ghana's state oil company GNPC revealed. Sources close to the deal said the "Kwame Nkrumah" vessel, which was leased to the Jubilee partners for its first year of operation was valued at $750 million. The agreement covering the FPSO, which can process 120,000 barrels of oil per day and has storage capacity of 1.6 million barrels, was concluded last December, Ghana National Petroleum Corporation source disclosed. "It was a collective decision that we should acquire it after successfully running it for one year," the source stated, adding that Tullow executed the purchase agreement on behalf of the partners. The information said each of the partners contributed proportionally to the purchase. "The contribution

By Ebenezer SABUTEY The government of India has approved an amount of US$193.73million as lines of credit to Ghana for some infrastructure projects including, rural electrification, supply of railway equipment, agro processing plant, improved fish harvesting and fish processing project, among others, all at various stages of implementation. In addition to lines of credit for projects, India has rendered assistance to Ghana in its human resource development through various bilateral and multilateral programmes under the India Technical and Economic Cooperation, ITEC of the Ministry of External Affairs of India. This was announced by His Excellency Rajinder Bhagat, High Commissioner of the Republic of India to Ghana, at a reception in his residence in Accra last week to mark the 63rd India Republic day celebration. Rajinder said, India-Ghana relations have been enriched by similarities in the world view, and have been strengthened in recent years through enhanced South-South Coopera

By Kofi Ahovi Ghana plans to increase its oil production to about 500,000 barrels per day within the next five years according to Deputy Minister of Finance and Economic Planning Fifi Kwetey. The deputy minister, speaking at the first Euromoney conference in Accra last week, explains that based on more oil discoveries in the Jubilee Field by the Jubilee partners productions is likely to rise to half a million barrels a day. Jubilee field pumped about 85,000 barrels a day at the end of last year, according to Tullow Oil Plc (TLW), the deposit’s developer. Interestingly, Ghana missed its oil production targets last year after Tullow delayed the ramp-up of Jubilee to fix mechanical faults. The company began shipping oil from the field in December 2010 and plans to increase daily production to 120,000 barrels next year from an average 90,000 barrels in 2012. The UK-based oil producer said Jubilee oil field where production actually fell from 80,000 bpd in September to 70,000 bpd,

By Kofi Ahovi & Toma Imirhe As the Ghanaian cedi suffers its worst bout of depreciation since the first half of 2009, having fallen by about 3.31% against the major trading currencies since the beginning of this year the Bank of Ghana is now scrambling to intervene on the foreign exchange market with a view to stabilising the national currency. BoG is looking to overhaul its forex intervention measures used to stabilize the cedi’s value mainly by releasing foreign currencies, particularly the dollar, onto the exchange market. That is, as and when the need arises to among other things meet the foreign currency needs of commercial banks and the country’s oil imports. The central bank now wants to strengthen its interventions by equally matching demand of foreign currency with supply. Indications are that the central bank has set up a committee tasked with the proposition of other measures to support cedi from further decline. The central bank over the past two weeks has more

The Monetary Policy Committee (MPC) of the Bank of Ghana on Wednesday announced a one percentage point increase in the policy rate to 13.5 per cent from 12.5 per cent . It said upside risks to macro-economic stability as a result of the Euro zone debt crisis, fiscal pressures and the volatility in the foreign exchange market had led to the increase. “In assessing the outlook for inflation, the Committee identified three main sources of upside risks to prevailing macro-economic stability. These are possible contagion from the Eurozone debt crisis, fiscal pressures and the unusual upward volatility in the foreign exchange market observed last month,” Kwesi Amissah-Arthur, Governor of Bank of Ghana said at a press conference in Accra. Amissah-Arthur said with respect to developments in the Euro zone, the Committee was of the view that the potential impact of the crisis on the domestic economy could be transmitted through a reduction in trade finance to domestic banks, diminished portf

Editorial It appears interventions by managers of economy to improve access to credit by businesses are just not yielding desired results. Enterprises are still having difficulties with accessing credit from banks, according to the latest Business Barometer Survey conducted by the Association of Ghana Industries (AGI). The periodic opinion survey represents the views of business owners from October to December, last year. It cites low access to credit and high lending rates as the twin factors which are affecting the growth of businesses. This is worrying, especially because of the continuous decline in inflation and Treasury-bill rates. Well, the AGI President, Nana Owusu Afari, believes the banks are just not being innovative in their credit-delivery role. This notwithstanding, there might be more to it. Meanwhile, the November 2011 Credit Conditions Survey of the Bank of Ghana revealed an overall net easing of credit stance for enterprises and households. According to the

By Kofi Ahovi The government out-performed its set macroeconomic target for the fiscal year 2011, data from the 2012 budget statement and economic policy of the government has shown. A real Gross Domestic Product (GDP) growth excluding oil for the 2011 fiscal year was set at 7.0%, while real GDP growth including oil was set at 12.3 %; average inflation was targeted at 8.8%; with an end-period inflation target of 8.5%; fiscal balance of a deficit equivalent to 7.5 %; and gross external reserves equivalent to not less than three months import cover of goods and services. The country recorded a GDP growth of 13.6% compared to a growth target of 14.4% and the actual growth outturn of 7.7% in 2010. The 2011 provisional GDP growth translates into a real GDP of GH¢27.49 billion and a nominal GDP of GH¢56.28 billion; a significant reduction of fiscal deficit from 6.6% of GDP in 2008 on cash basis of 14.5% of GDP – old series to 2.0% of GDP as at September 2011. Inflation which was 18.1%

By Kofi Ahovi Ghana’s overall Balance of Payments recorded a surplus of US$546.5 million in 2011, just a third of the GHc1.5 billion recorded in 2010, data from Bank of Ghana has shown. This is primarily because of the widening current account deficit. Total merchandise exports grew by 60.6% in 2011 to US$12.7 billion while total merchandise imports also grew by 46.2% in 2011 to US$15.9 billion resulting in a deficit of US$3.1 billion for 2011. Meanwhile, just as in 2010, the capital and financial account recorded strong surplus, driven by net inflows of private capital investment, which largely negated both the trade and current account deficits. Also total inward transfers helped the balance of payment position too. The growth in total merchandise exports in 2011 was supported by oil exports and favourable commodity prices. The exports of gold amounted to US$4.9 billion while cocoa beans totalled US$2 billion. The value of crude oil exports was US$2.7 billion over the same per

The World Bank Group’s International Finance Corporation (IFC) has indicated that it has obtained approval from Ghana and the eight member countries of the West African Monetary Union to establish local currency bond programmes to strengthen domestic capital markets and support private sector development in the region. The approvals enable IFC to issue over US$1 billion equivalent in bonds in Ghanaian cedis and CFA francs over the next 10 years, said the private arm of the World Bank Group. The bonds will be sold in their respective markets to domestic and foreign institutional investors, it added as “proceeds will fund IFC projects that support private sector development in key areas such as infrastructure and access to finance for small and medium enterprises.” “Deep and liquid local currency bond markets are indispensable in providing diversified long term funding sources for private sector companies, including SMEs. The agreements with the government and regulator of Ghana an

By Charlotte Yayra ADZANU & Ebenezer SABUTEY Minister of communications, Haruna Iddrisu said his ministry on behalf of the government is welcoming technical advice in the fight of online fraud from every ICT firm in the country to make sure that our critical infrastructures, whose failure or damage would lead to sustainable supply bottlenecks, considerable disturbance of public security or other dramatic consequences. The minister has assured The Information Technology of Ghana (ITAG) that his ministry will welcome technical advice and expertise collaborating with Public and Private Sectors to establish Computer Emergency Response Teams (CERTS) and Law Enforcement in addressing the issue of cyber crime and glitches. It would be recalled that early this month, BusinessWeek published a report by a US based “iovation” indicating that Ghana topped the list of online fraud transactions worldwide. The report said, the transactions are said to be in online financial services, retai

British Airways (BA) last year recorded a 30% growth in business, despite the influx of new entrants in market. The growth was driven primarily in premium cabins comprising of 20% increase in direct business – customers booking online and15% increase in business from Trade (Travel agencies). Sharing the highlights of the company’s performance for the year the outgoing Ghana manager of BA, Paul Dhami, explained BA improved capacity in its premium cabins and also upgraded its cabins and in-flight products (New Club World). “Responding to needs of customers call for increased premium capacity, we reintroduced our first class cabin”. BA also introduced the 777 aircraft on Ghana route as well as led local industry to shift to online services; book tickets, manage bookings and flights, check in, boarding pass. “BA was the first local airline to adopt e-zwich payments,” he added. Dhami assured that the company will continue to improve its services adding that a total of £5bn have bee

By Fred Sarpong The 2012 Africa Investment Forum, which provides an unprecedented opportunity for senior policy-makers, corporate executives, investors and investment promotion agencies to meet and interact through a series of sessions, networking and social exchanges, will take place in Accra from the 3rd to 4th April, 2012. The forum will be hosted by the Ghana Investment Promotion Centre (GIPC) in collaboration with the Commonwealth Business Council (CBC) and the ECOWAS Commission. It is under the theme, ‘Partnering with ECOWAS to Accelerate Investment into the Sub-region.’ Briefing the media in Accra last week, the Chief Executive Officer of GIPC, George Aboagye indicated that other important dignitaries expected at the two day event will include some Heads of State from the ECOWAS Sub-region and the Commonwealth Member countries, as well as investors from all over the world. Business Week learnt that there will be four Plenary Sessions. These will be on Regional Trade; Public