Former Ghana Airways workers to receive $2.5m arrears

Former staff of Ghana Airways, now Ghana International Airline (GIA), would from the beginning of next year (2009) receive an amount of $2.25million, being arrears owed them by Ghana Airways, the Official Liquidator airline firm.
The amount is expected to be paid to the former employees within the 2008 national budged cycle. When the amount is paid, it would thus close the dispute chapter between the OL and the former workers.
This was contained in the sixth edition of the progress report prepared by PricewaterhouseCoopers and released in Accra over the weekend.
“As indicated in the fifth creditors report, with the support of the Government of Ghana (GoG), the OL negotiated and agreed severance payments of about US$6.5million with former Ghana Airways employees, excluding pilots and flight engineers, who initiated legal action against Ghana Airways and GoG at the High Court in Tema for their severance claims”, stated the report.
From the report, in partial fulfillment of its severance obligations to the former workers, $4.25million has already been paid in two installments, following the out of Court settlement with the OL.
The remaining arrears ($2.25) exclude severance payments due to former pilots and flight engineers amounting to about US$1.3million, which was settled in December 2006.

Ghana Airways realizes $3m asset

The Liquidated Ghana Airways has achieved an additional asset realization of approximately US$3million, according to a sixth progress report prepared by PricewaterhouseCoopers.
This amount was realized from the $25.4million reported in its fifth creditors report, due mainly to interest earned from treasury management as well as proceeds from commercial agreements.
This new development has thus enhanced the OL’s asset to approximately $29million.
“We have achieved additional asset realization of approximately $3million from the about $25.4million reported in the fifth creditors report, bringing the total to approximately $29million”, the report indicated.
The amount realized has ignited the hope of the OL, which it believes could realize more assets by the close of the liquidation. “We expect to realize a total of about US$33million by the close of liquidation”, the report stressed.
According to the report, the OL has also been able to resolve its disputes over two properties, which were the subject of ownership claims by third parties.
Among the resolved disputes are those between the OL and the Adum Stool Land, which was a subject of an ownership dispute between the two parties.
The second one was between the OL and the Ministry of Water Resources, Works and Housing (MWWH) over the ownership of three Ghana Airways Castle Road flats, which the OL sold to the office of the Administrator of stool lands in 2007.
From the report, the dispute between the OL and the Adum Land was settled amicably following the latter’s intention to repossess the property unless the OL agreed to pay them greater portion of realizations to be derived from the sale of the property as assessed by Assenta Property Consulting, a local company in February 2005.
The report said series of meetings were held between the two parties (OL and Adum Stool Land), with OL agreeing to assign its interest in the land to the Adum Stool.
The OL thus received an amount of US$30,000 from the stool as consideration for the assignment of its interest in the land.
“The property, which was subject of an ownership between Ghana Airways and the Adum Stool Land was valued by Assenta (in February 2005) for about US$60,000.
Based on this valuation, the OL agreed to assign its interest in the land to the Adum Stool Land for US$30,000”, the report indicated.
The dispute between the OL and MWWH was also solved amicably.
Based on a meeting the two parties had in April 2008, MWWH agreed to give vacant possession to the three Ghana Airways’ Road flats to the OL at the end of the month (June 30, 2008).
This agreement by MWWH would enable Ghana Airways to do same to the Administrator of Stool Lands, according to the report.

RedBack mining company cries foul over increase in electricity tariffs

RedBack Mining Incorporated, operating in Ghana as Chirano Gold Mine, has expressed dismay about government’s increase of electricity tariffs without engaging the mining industry.
The President and Chief Executive Officer of RedBack Mining Incorporated, Richard Clark, on the company’s website said "The recent announcement in Ghana regarding proposed increases in power costs for bulk users is unfortunate, as the decision appears to have been made without any formal discussions with the mining industry. We appreciate the situation which Ghana faces, regarding the escalating oil prices and we remain ready to work with the government towards adjusting to this reality,” he said.
“Through the Chamber of Mines we look forward to reaching an acceptable compromise which takes into account Ghana's requirements and also recognizes the cost challenges to the gold mining industry and the interests of our shareholders," Mr. Clark observed.
Though the company believes that the government’s policy of increase in electricity tariffs for mining companies, steel mills and other high voltage consumers to about 100%, as a result of higher world oil prices, is in the right direction, much could have been achieved if the government had engaged them in discussions about its intentions.
According to a release on the company’s website, “Red Back has not been party to any formal discussions or negotiations with the ECG or any other government body, and therefore any increase to this point has been determined without consultation with Industry.”
The release further states “We have joined with the Ghana Chamber of Mines and other mining companies in commencing discussions with the relevant governmental agencies, regarding the size of this increase and the apparent focus of this increase on the mining sector.”
According to the statement, even though the company is aware that the cost of power from the national grid in the country (Ghana) will take effect from today, July 1st 2008, it has not received any official notification from the Electricity Company of Ghana (ECG).
To the company’s understanding, the cost of power could increase from the current level of approximately $0.10 per kilowatt an hour (kWh) up to approximately $0.22per kWh.
The statement, however, indicated that the situation would greatly affect the company’s operations if the cost of power reaches $0.22per kWh.
“At $0.22 per kWh power cost would affect Chirano cash costs by approximately $40-$50 per ounce. On a Life of Mine basis (using $0.22 per kWh for power), estimated cash costs are projected to be approximately $430 per ounce, still at the lower end of the cost curve for gold mining companies”, the statement added.
It would be recalled that government last week announced a ‘Bulk Generation Tariff’ of Gp16.91 per kilowatt an hour for mining firms, steel mills and other high voltage consumers. This translates into an ‘End User Tariff of Gp 22.31per kilowatt per hour.
This announcement has raised eyebrows in the mining Industry, of which the Chamber of Mines yesterday met with stakeholders in the industry to take a decision on the announcement.

United Bank for Africa partners Gateway Broadcasting Services

The United Bank for Africa Ghana Limited (UBA) and Gateway
Broadcasting Services (GBS), on Wednesday entered into a strategic
alliance to provide efficient services for Ghanaians who have subscribed
onto the services of GBS.
This initiative by the bank (UBA) falls in line with its commitment to ensure comfortable, secured banking and payment services to its clientele
nationwide.
“In line and consistent with our mission to democratize banking in Ghana, we have therefore been working towards maximising customer satisfaction by engaging in some key strategic alliances”, noted Nnanmdi Okonkwo, Managing Director (MD) and Chief Executive Officer (CEO) of UBA
Ghana, at a joint press briefing with GBS in Accra.
A Memorandum of Understanding (MoU) was signed between the two
corporate entities to that effect.
Under the alliance, existing subscribers of GBS can conveniently pay their subscription bills at any UBA branch location nationwide. The alliance also sees UBA Ghana partnering GBS for its consumer promotions, which offer
special prices on their installation and bouquet.
The agreement affords UBA to use its Information Technology (IT)
infrastructure which is devoid of manual manipulation to offer convenient
and safest platform for payment of GBS subscription bills. The platform,
which is highly automated with efficient transaction solutions provides a
cost-free service to clients on GBS subscription.
According to the CEO of UBA, his outfit entered into the strategic alliance with GBS because “GBS shares the aspirations of UBA which is to offer widely accessible products via their pay-TV service at affordable prices to Africans irrespective of their geographic location and or socio-economic status”.
He also disclosed that his outfit was attracted to deal with GBS because of its ever-increasing clientele base, which has hit about 23,000 subscribers within a period of one year of its operations in the country.
“At UBA, we believe that the best companies are the best collaborators and as Africa’s global bank, we want to partner with brands that support
innovative and enterprising initiatives. Our partnership with GBS will lead to a new era of best-in class payment services for subscribers and the rest of Ghana using the channels earlier highlighted”, said Mr. Okonkwo.
Under the partnership, consumer promotions would be held periodically to
offer prospective clients the opportunity to own a full GBS package for free
or at special offer prices.
The General Manager of GBS, Michael Yamson expressed his profound gratitude for the alliance saying “this is one of the most exciting partnerships that GBS has entered into, following the very successful partnership with the Ghana Football Association that makes GBS media rights owner to the
Ghanaian Premiere league for the next three years”.

Ghana to lose GH¢92.47

Ghana is to lose GH¢92.47million as a result of the temporal measures taken by government on the removal of tariffs to cushion the economy. This was made known by the Minister of State at the Ministry of Finance and Economic Planning (MOFEP), Anthony Akoto Osei at a press briefing in Accra.
The government, as part of measures to mitigate the rising cost of crude oil and food on the global market announced the immediate implementation of the removal of import duties on rice, wheat, yellow corn and vegetable oil. Government also announced the removal of excise duty and debt recovery levy on premix oil, a reduction in the excise duty and debt recovery levy on gas oil, kerosene and marine gas oil.
Increase in government support for the production cost of electricity to bring relief to domestic consumers and the subsidization of the cost of fertilizers to farmers to ensure good harvest.
Importation and stock pilling of additional supplies of rice and wheat to enhance food security and increased supply of tractors at subsidised rates to farmers were also announced, in order to bring reprieve to farmers and consumers in general.
Among the measures taken by the government, food imports would lose a total of GH¢43.07 to the state, which include; rice (GH¢33.72), wheat (GH¢5.38), yellow corn (GH¢0.04) and vegetable oil (GH¢3.39).
On petroleum products, the country would lose a total of GH¢49.4, that also includes; excise duty (GH¢23.9) and debt recovery levy (GH¢25.5).
Subsidies for the supply of fertilizer is also expected to cost about GH¢11million, according to the Minister. According to Hon. Akoto Osei, subsidies for tractors that were included in the relief measures may not be quantified immediately

Mining companies to pay higher tariffs

Mining companies in the country would from the beginning of next month (July 1st, 2008) pay higher tariffs on energy (electricity) consumed for their operations.
Steel mills and other high voltage consumers of electricity would also be affected.
This move by the government falls in line with its measures to help resource the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG).
The mining companies, together with other high voltage consumers would pay a ‘Bulk Generation Tariff’ of Gp16.91 per kilowatt an hour. This translates into an ‘End User Tariff’ of Gp 22.31 per kilowatt per hour.
Other category of consumers would remain at their current tariff levels, according to the Minister of State at the Ministry of Finance and Economic Planning (MOFEP), Anthony Akoto Osei. He said this at press briefing in Accra on the state of the economy. “The tariffs will help improve VRAs finances,” he said.
He, however, urged consumers who were not affected by the tariff increment to conserve energy appropriately.
The use of hydro component for generation would also be increased in addition to increase in tariffs for the high voltage users, while the emergency power plants would be shut down.
Hon. Akoto Osei averred that some free flow of gas from the West Africa Gas Pipeline has already started and supply is expected to be accelerated soon.
These measures taken by government stemmed from the fact that the nations crude oil import bill has risen from US$5OOmillion in 2005 to US$2.1billion as at the end of 2007. A report from the MOFEP indicates that the trend has not reduced but has kept on moving to US$2.5billion for the same quantity of oil.
“This is the result of the escalating crude oil prices at the world market, a phenomenon which threatens to throw the budget out of gear, reducing the country’s foreign exchange reserves and inflaming inflationary pressures. A combination of measures is being pursued to ensure that these developments are mitigated,” noted the Minister.
According to Akoto Osei, the measures taken by the government is expected to cushion the economy, thereby providing a reprieve to consumers in the country.
“These measures are expected to result in a significant reduction in crude oil imports and would lead to enough savings to help the fiscal position and conserve foreign exchange”, noted Akoto Osei.

FAO calls for more funds to fight against illegal fishing

The Food and Agriculture Organization (FAO) on Tuesday, in Rome, called for more funds to help it fight against illegal fishing in developing countries.
The FAO has thus appealed to its donor countries for US$1million to support its project that has been designed to help deny port access to boats involved in Illegal, Unreported and Unregulated (IUU) fishing.
“In the developing world, fishing plays a crucial role in reinforcing household food security, improving nutrition, and providing income. In light of rising world food prices and growing concern over the wellbeing of some wild fish stocks, we can afford less than ever to allow IUU fishing to impact these communities,” said FAO Assistant-Director General for Fisheries, Ichiro Nomura at a briefing session with donor countries.Report from the organization’s websites indicates that the funds would be used to finance an ongoing FAO project launched in 2005 when the UN agency developed a Model Scheme for stronger “port state measures” that could be adopted by countries in order to combat IUU fishing.
The Port State measures include activities such as undertaking inspections of
documentation, catches and equipment when boats land to take on fuel and supplies or
offload fish or requiring vessels to make activity reports before entering port.
Vessels found to be involved in IUU fishing can be denied docking rights, causing considerable financial losses to their owners. Such measures are among the most-effective means of preventing the import, transshipment or laundering of illegally caught fish. IUU fishing is particularly problematic in the developing world, where limited funds and expertise mean that oversight of fishing activities in coastal waters is often lax and port controls are weak. IUU fishers target developing countries because they provide
convenient entry points for illegal catches.
"These countries need exposure to state-of-the art practices, training for their line officials, and to establish better lines of communication at the regional level to share
information on offenders and harmonize actions,” said Mr. Nomura.
To meet these needs, FAO initiated a series of regional workshops in order to assess the status of port state measures in different parts of the world, identify ways regions might incorporate components from FAO’s Model Scheme, and promote greater harmonization of port state measures. The workshops are targeted to port inspectors, fisheries
authorities, legal experts, foreign affairs officials and customs officers.
Nomura added that momentum is building towards the adoption in the near future of a legally binding international agreement on port state measures based on the FAO Model Scheme, lending additional urgency to the need to build national capacities for
implementing effective port state measures.
“The workshops will allow countries to hit the ground running when the international agreement comes into force,” he said.

Government bullish of bringing down inflation

The government of Ghana is confident of bringing down the ever-increasing rate of
inflation in the country. According to the Minister of State at the Ministry of Finance and Economic Planning (MOFEP), Dr. Anthony Akoto Osei, at a press briefing in Accra, he said as part of government’s measures to mitigate the crisis situation, it has set up a
number of fiscal policies including the recently announced removal of tariffs to cushion the economy, including the increase in prime rate by the Central Bank.
According to the Minister, inspite of the numerous economic hardships that have
bedeviled the country as a result of the rapid increase of crude oil and food prices on the global market, government is still optimistic about bringing the situation under control.
“The continuous rise of inflation is as a result of the escalating crude oil and food prices on the global market, but with the measures taken by government, the situation would be brought to a halt by the end of the year”, noted Dr. Akoto Osei.
Inspite of the Minister’s confidence in the control of inflation, he also ruled out the possibility of the country attaining single digit inflation by the end of the year.
Inflation recorded last year (June, 2007) was 10.7%, but has risen drastically to 16.88%, according to statistics produced by the Statistical Department of Ghana.
There is fear that the trend would continue amidst rising prices in crude oil on the world market, which many have attributed to continuous tension in the Middle East and
Nigeria.
A research conducted by Databank Financial Services concluded that June inflation is expected to reach 18.4%, about 1.5percent increase in the previous one.
Crude oil is now trading at $136.69 after hitting an earlier high of $140. But Akoto Osei inspite of the numerous challenges the country is facing was optimistic that government would still scale through to bring the situation to a control by the end of the year.

Robbers attack Ecobank

The branch oulet of Ecobank Ghana Limited at Madina, was on Monday attacked by four armed robbers who succeeded in making with GH¢60,000. The armed-robbers ostensibly followed the bank officials carrying the money that had just been offloaded from the bullion van into the banking hall, and ordered the two accompanying policemen to surrender their guns. In their ensuing scuffle, one of the policemen was shot at, and the robbers bolted away with their two AK47 riffles in addition to the money. According to Joy news report, the four heavily armed-robbers, who were reported to have trailed the bullion van when it arrived at the bank, were said to have followed the bank officials carrying the trunk containing the money to the counter upstairs. They reportedly instructed the policeman escorting the money to surrender his AK47 riffle and he complied, but another officer on duty at the bank refused adn they shot him. He died on his arrival at the hospital.

The outlet has subsequently been closed down and all other shops in the vicinity have also been shut.

Meanwhile, information gathered indicates that no arrest has been made so far, but the Police service is vigorously searching for the culprits.

The Gambia Killings; We Can't Attack Jammeh - Kwamena Bartels

THE MINISTER of Interior, Hon. Kwamena Bartels and MP of Ablekuma North has urged Ghanaians to remain calm as the government is using diplomacy to approach the genocide that happened in The Gambia in which 44 Ghanaian immigrants lost their lives.
"Not that the Government is quiet but we have to get some hard facts before we proceed and that is why we are using diplomacy to approach the case", he said.
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Speaking to The Chronicle in an interview over the weekend, Hon. Bartels said a government delegation had been to The Gambia three times, Senegal two times and were currently in The Gambia.
He said they had not laid hands on any evidence just yet and that what an eyewitness was saying over here in Ghana was different from the position of the Gambians.
He continued that since the government had no evidence, there was no way they could attack a President of a sovereign country. "You can't take any action when you don't have your facts", he stressed.
The MP for Ablekuma North said the government did not even know the actual number of people who had died and their real identities since there were no records to prove that.
He further indicated that whether those killed were legal or illegal Ghanaian immigrants was another question.
On what Ghanaians should expect if the evidence gathered go against President Yahya Jammeh, Hon. Bartels said to him the best thing would be for President Jammeh to compensate the families of the victims.
The former Minister of Information and National Orientation concluded, "This is a very complicated issue that must be approached with caution".
It would be recalled that forty-four Ghanaian immigrants were killed in The Gambia on Friday, July 22, 2005. President Yahya Jammeh is accused of being the brain behind the killings.

Globacom Berths in Ghana

Globacom Berths In Ghana
… set to roll out $2b investment
By Stephen Odoi-Larbi

Globacom Mobile Ghana Limited (Glo) has confirmed its acquisition of a telecom license from the National Communication Authority (NCA), becoming the sixth player in the telecom Industry after Kasapa, Mobile Telecommunications Network (MTN), One Touch, Tigo and Western Telecommunications Limited (Westel), to begin operations in the country.
The announcement by the company (Globacom) has brought to an end the brouhaha surrounding which company has won the license, after intense scrutiny of eleven applicants that tendered in their bid to the NCA to operate in the country.
The NCA for the past two weeks has been tight-lipped over announcing the winner of the bid, but has released a statement confirming Glo Mobile Ghana Limited as victor.
The license which cost the company US$50.1million, has been fully paid and Glo Mobile Ghana Limited would soon begin its operations nationwide, operating on a third generation network (3G).
Announcing its license acquisition to a group of media practitioners in Accra, Head of New Market and Special Projects, Mr. Yinka Olafimihah noted, “we are pleased and indeed challenged by the confidence that the NCA and the general public have imposed on us”.
He noted that his outfit’s acquisition of the license was the realization of the dream of the African Union and was a symbol of good things to happen on the continent.
Mr. Olafimihah promised the country quality service from his outfit in order to capture the market.
“Given our antecedent and reputation, the government and people of Ghana can only expect the very best in telephony from Globacom. We will ensure that the trust reposed in us by the people is not misplaced”, he noted.
He averred that their entrance on the Ghanaian terrain may look very difficult, but was quick to add that with their experience on the Nigerian market, they will sail through smoothly.
Recently on the Nigerian market, the National Communication Council of Nigeria (NCC) took punitive action against mobile telephony operators for poor services but excluded Globacom because of its excellent service. A similar exercise was taken in Ghana by NCA recently.
It is believed that Globacom’s presence in the country would send a very strong signal to its competitors to improve upon their services to enable Ghanaians enjoy a stress-free service.
According to Mr. Olafimihah, his outfit (Globacom) would not rush into doing things as it has a strategy of rolling out on the entire country at a go.
A US$2billion investment package plan has been earmarked for its 3G operations in the country as determined by the NCA.
Information gathered by the paper indicated that the license to offer cellular mobile services in Ghana by Globacom was paid on Wednesday, June 18th, 2008, ahead of the deadline given for the payment by the Ghanaian regulatory authority, the NCA.
Mr. Olafimihah expressed his appreciation to the Government of Ghana and the NCA for the confidence reposed in Globacom.
"As we berth in Ghana, we are encouraged by the warmth and love extended to us by the government and good people of this peace-loving, dynamic and resourceful country. We are indeed grateful to the government for providing the enabling environment that encouraged us to venture here. The task ahead may look tough, we wish to assure you that we will meet and surely surpass your expectations," Olafimihah stated."As a corporate citizen of Ghana, Glo Mobile Ghana is therefore your Brand, literally and metaphorically. You can always identify with and rely on our Glo green as symbolic of hope and the true spirit of brotherliness among Africans," he added.

Coca-Cola rescues Achimota School

The Coca-Cola Bottling Company of Ghana Limited (TCCBGL) has adopted one of the classroom blocks of the Achimota Senior High School to refurbish it.
The eight-classroom block is christened “Coca-Cola Block”. It was formerly called the form three Arts block, which was meant for Vocational and Arts students of the Institute.
The block has been in existence since the establishment of the school in 1927.
This initiative by the company forms part of its corporate social responsibility of giving back to the communities within which it operates.
The school has for the past 6years been of tremendous help for TCCBCGL, providing assistance for it in the running of the “Coca-Cola National Essay Writing Competition”, which is currently ongoing.
The initiative is a joint venture between TCCBCGL and the Coca-Cola Foundation.
Funding of the block runs into thousands of new Ghana cedis and will continue for the
next 5years.
The first phase of the project, which involved painting, providing beams and the
installation of electrical wires has already been completed waiting for the second and
final phase in the next few months.
The Managing Director (MD) of TCCBCGL, Shegun Ogunsanya in a handing over ceremony in Accra expressed joy about the move taken by the two institutions saying,
“I’m happy that at long last a good school is partnering a good brand”.
He advised the students to take their lessons serious in order to achieve high academic excellence.
The Headmistress of Achimota, Mrs. Beatrice Tsotso Adom, thanked management of
TCCBCGL for its immense contribution towards development projects in the country.
“This is the first time a corporate entity has adopted a school block to refurbish it yearly, and we are grateful for it”, she noted.
Mrs. Adom therefore urged other corporate bodies in the country to emulate the footsteps of the Coca-Cola Bottling Company of Ghana Limited.

Ghana Commercial Bank rescues SMEs

GCB rescues SMEs
By Stephen Odoi-Larb i& Masawudu Kunateh

Ghana Commercial Bank (GCB) has re-launched its ‘Kudi Nkosuo’ for Small and Medium Enterprises (SMEs) in the country. Kudi Nkosuo is the Bank’s savings and credit product designed to grow businesses in the informal sector of the economy.
Speaking at the launch, the Managing Director of the Bank, Lawrence Adu-Mante intimated that the main idea behind the re-launch of the micro finance scheme was to extend a helping hand to traders, market women, artisans, hawkers, shoe-makers and other small-scale operators to develop and expand their businesses to enable them contribute to the socio-economic development of their communities.
He added, “another motive for the re-launch of Kudi Nkosuo is in our determination to help create more employment opportunities, reduce poverty and help solve problems of unemployment.”
He further noted that the product would enable beneficiaries to acquire the necessary technologies, equipment and machineries for their operations. He stressed that “this would enhance their productivity, increase their rate of output, competitiveness and profitability.”
Consequently, Mr. Adu-Mante indicated that beneficiaries would repay their loans, expand operations, employ more resources and thereby apply for bigger loans. This process, he said, would create more businesses as they expand their loan portfolio and enable them to render other ancillary services more profitably.
The MD disclosed that 60 energetic, smart and young men and women have been trained to attend and nurture the scheme’s businesses, saying “savings earn a customer a benefit and qualify him or her for a loan after contributing consistently for six months”.
Meanwhile, the processes for accessing funds under the Kudi Nkosuo have been streamlined. Under the current circumstance the value of the credit has been reviewed whilst strong communication and promotional strategies have been adapted to suit customers’ expectation.
The Deputy Minister of Finance and Economic Planning, Prof. George Gyan-Baffour, who performed the re-launch commended the bank for the introduction of the product since it identifies the potential of the Ghanaian, no matter his/her status in the society.
He thus advised Ghanaians who would be benefiting from the Kudi Nkosuo to go into agriculture (food crop production or animal husbandry) in order to help address the current food crisis that has hit the globe.
Prof. Gyan-Baffour asked Ghanaians to take advantage of the structures laid down by the government in order to lift themselves from economic hardships that have bedeviled the country.

Ecobank Group partners with Computershare

Ecobank Group joins force with Computershare
…to offer investor services across the continent

eProcess International, from South Africa, and member of Ecobank Group has entered into a joint venture agreement with Computershare Limited to provide shareholder registry and custody services to its clientele across the African continent.
A Memorandum of Understanding (MOU) was signed on Tuesday in Accra to signify the pact.
This initiative would reduce the difficulties that investors go through in the process of buying shares on the stock market.
The two corporate bodies seek to initially offer registry services in three markets where Ecobank is listed on the respective Stock Exchanges (Ghana, Nigeria and Cote d’Ivoire), with a view to expand across the entire continent.
Business Development Consultant for Computershare, Africa; Kojo Adomakoh told this paper that the decision to partner Ecobank stemmed from the fact that the bank has an in-house registry business which they want to improve upon.
Under the agreement, clients of Ecobank would enjoy a specialised value-added Investor Service that include custody service which is aimed at facilitating investors in the continent’s increasingly vibrant capital market.
On his part, Group Executive Director of Operations in charge of Technology/Transaction Bank and Retail Bank at Ecobank, Patrick Akinwuntan said it took the initiative on grounds of providing convenient, accessible and reliable banking services for its clientele across the continent.
“The setting up of a joint venture company to deliver cross-border registry and custody and settlement system will leverage on our knowledge and experience of the African market as well as our unique technology and shared services platform”, he said.
Under the joint venture company, anyone who wants to buy shares in any company listed on the stock exchange of the countries mentioned above would have to get an account with Ecobank, and then give an instruction of which company he/she wants to invest in.
The bank then processes it under the joint venture agreement, with Computershare ensuring that the registration of the shares is properly done. The Bank then provides the response back to the client after the successful completion of the transaction.
Commenting on the joint venture, Stan Lorge, Chief Executive Officer of Computershare Limited, South Africa, noted that“we are delighted to have found a partner like Ecobank with whom we can now truly realise our African strategy. Looking at the focus of the joint venture, we could not get a better partner. Ecobank brings unrivalled market access across Africa, whilst Computershare adds technology, product knowledge and expertise developed across the world over the last thirty years”.
According to Arnold Ekpe, Chief Executive Officer of Ecobank Group, the joint venture further demonstrates the commitment of his outfit to leveraging strategic global alliances to provide convenient, accessible and reliable services to its clientele who will then derive immense value from the registry and custodial services of the joint venture company.

Ghana loses number one position in internet connectivity

Ghana loses number one spot in internet connectivity

Ghana has lost its number one position in internet connectivity in the sub-region.
A research report commissioned by the Ghana Internet Services Providers Association (GISPA) with support from the United States Agency for International Development (USAID) dubbed ‘Communication Policy and Research/Advocacy Report’ places Ghana at the third position.
The survey which was carried out from January, 2006 to March 2008 showed that the country was trailing behind Nigeria and Senegal.
Despite being the first country to be issued an Internet Service Providers (ISPs) license in the sub-region (West Africa), the report indicated that Ghana’s internet connectivity was gradually fading out, a situation which experts in the industry have called for a review of policies guiding Information and Communication Technology (ICT).
“This development needs to be viewed with concern since it is an indication of the existence of constraints to access to communications services in Ghana”, said Mr. Gilbert Adenuga, who presented the research report to report to a group of journalists in Accra.
According to the report, the country’s growth in ICT penetration is fifty percent behind Nigeria but is closer to that of Senegal.
The report identified the ICT industry’s constraints as lack of consistent and sustained effort in the implementation of the national ICT strategy arising from impediments relation to the ICT policy framework, regulatory environment, inadequate communications infrastructure, limited available local content as well as relatively high cost of access to and low quality of communications services.
In the area of ICT policy framework, the report concluded that the industry’s failure were partly due to its unclear role for the private sector regarding Information Technology (IT) policy implementation, Government of Ghana’s (GoG) involvement in private sector activities resulting in ownership of Ghana Telecom (GT) and Western Telecommunications (Westel) and lack of ICT policy unit at the Ministry of Communications.
On regulatory environment, the report noted that the ICT industry was seriously affected because of frequent change of Ministers (four) at the Ministry of Communications within six years and the long delay in appointing a Board and Director General for the National Communications Authority (NCA). Another issue the report touched on was the continuous delay in the issuance of operator licenses coupled with delays in responding to ISP complaints and Ghana Telecom and Westel shareholder disagreements.
Touching on the industry’s failure in communication infrastructure, the report revealed that it was partly due to inadequate resources for fixed network expansion and limited capacity for relatively cheaper DSL broadband internet connectivity.
The report also touched on high cost of communication services especially access to internet, which it said was having negative impact on penetration.
“High cost due to expensive bandwidth, foreign sourcing of supplies and professional support for internet service as well as dependence on foreign content is affecting internet penetration in the country”, stated the report.
It further revealed that Ghana was charging exorbitant fees on internet tariffs as compared to the Organization for Economic Cooperation and Development (OECD) countries.
It however cautioned the country to be up and doing if it wanted to retain its lost glory by formulating proper policies that would guide ICT penetration, availability of quality telecommunications infrastructure facilitating access to low cost and reliable telecommunications services including fixed and mobile telephony and the internet coupled with availability of human capital well equipped with ICT skills.

World Bank lauds Ghana government

World Bank lauds Ghana gov’t
…for level of progress made in Gateway Project

The World Bank is happy with the level of development that has taken place in Ghana.
It has however urged government to do more to bridge the gap between the rich and the poor.
This came to light on Monday, when officials of the Bank including its Chief Financial Officer, Mr. Vicenzio La Via inspected a number of development projects being undertaken by the Gateway Project under a Government of Ghana programme to support its frontline agencies in the promotion of trade and investments in the country.
The Manager of the Gateway Project, Mr. Kwaku Duah, led a group of inspectors from the Bank to inspect the projects.
Mr. Vicenzio La Via expressed joy at the level of development made by the Gateway Project in transforming the economy into what he described as vibrant one.
He therefore urged the Government of Ghana not to loose focus but to concentrate on doing its good works towards a more vibrant economy.
Vincenzo La Via, World Bank Group Chief Financial Officer, together with Minister of Ports, Harbours and Railways, Professor Christopher Ameyaw Ekumfi, and other dignitaries inspected the projects (some of which are currently ongoing) at the Tema port and its environs.
A three kilometre road with two bridges currently under construction was inspected at the port. Several manufacturing industries located inside the Free Zones Enclave, now called the Multi-Purpose Industrial Park (MPIP) were also inspected (Red Sea manufacturing Industry and Commodities Processing Industry).
The Gateway Project is an initiative by the Government of Ghana to develop an industrial estate close to the Tema port to provide convenient environment for manufacturing industries listed under the Free Zones enclave. It is also meant to attract Foreign Direct Investment (FDI) to reduce the cost of doing business in the country.
Part of the money earmarked for the Gateway Project has been used in supporting the Customs, Excise and Preventive Services (CEPS) in setting up the Ghana Community Network (GCNet) project. Part has also been invested in infrastructural development at the port to provide convenient services for the public in the clearance of goods.
Thirty-five manufacturing companies are currently operating under the MPIP with an additional fifty-five manufacturing companies expected to start operations soon. About $15million has been spent so far on the project currently ongoing.
Currently, about eighty percent of major manufacturing industries are located in Accra and Tema; a trend Prof. Ekumfi believes must change to benefit all parts of the country.
"There is the need to secure funds for the development of industrial estates in other parts of the country in order to spread development through out the country and also correct the current situation where about eighty percent of major manufacturing industries are located in the Accra-Tema area", he noted.
According to him, the development of industrial estates in Takoradi and Kumasi, the Boankra Inland port and the modernisation and expansion of the railway system would optimise the benefits to be derived from the Gateway Project.He therefore called on the World Bank representative to assist the country in obtaining International Bank for Reconstruction and Development (IBRD) loans for development

Swiss to support Allanblackia project with $1m

Swiss to support Allanblackia project with $1m
By Stephen Odoi-Larbi

The Swiss government has earmarked an amount of US$ 1million to support the promotion of Allanblackia seeds in the country. The promotion, which seeks to provide the use of Allanblackia seeds as an alternative to palm oil for commercial use in products is been supported by the Swiss government through the Dutch firm IUCN in the country, with the view to ensure a sustainable oil chain.In an interview with the Swiss Ambassador to Ghana at his residence in Accra, His Excellency Nicholas Lang told the paper that his government became more concerned about the project to improve the living conditions of the population and to reduce disparities amongst all countries.According to the Ambassador, Switzerland focuses its economic development cooperation on the promotion of sustainable economic growth based on a market economy and on the integration of partner countries into the world economy.He noted that Ghana is the only country in Sub-Saharan Africa amongst seven countries worldwide in which his government concentrates its bilateral economic development cooperation.The Forestry Research Institute of Ghana, Institute of Cultural Affairs, Technoserve and Unilever Ghana are the main partners of the project.Emeafa Hardcastle, Economic and Trade Officer at the Swiss Embassy explained that the sustainable harvesting of the Allanblackia seed can act as an important incentive for local communities to maintain and enhance the integrity of their resource, since Unilever Ghana, the buyer, demands that good practices be followed.According to her, the seeds could be used to produce edible oil that can serve as a substitute for palm oil in the manufacturing of soaps and margarine.“There is the need to ensure the sustainability of Allanblackia seeds because the revenue generated from it would improve living standards in the country”, she noted.It would be recalled that in 2004, the Anglo-Dutch international producer of consumer goods, IUCN, joined forces with three leading capacity development and conservation organisations to form a partnership project to extract for the first time on a commercial scale, edible oil from the seeds of the Allanblackia tree, an indigenous tree to West Africa.The Allanblackia tree is commonly found in parts of West, Central and East Africa (from Sierra Leone to Tanzania). It grows primarily in tropical rainforests, but can also be found on cultivated farmland areas. The oil obtained from the seeds is already used by the local population but, until now, the extracted seed-oil has never been used on a commercial scale.There are 9 published species of Allanblackia, mostly very similar to each other, but with a particular range within tropical Africa. Most attention is currently focused on A. parviflora (which lives in Upper Guinea, from Ghana westwards); A. floribunda (from Nigeria to DR Congo and Angola) is very similar to A.parviflora, and has frequently been confused in the past; and A. stuhlmannii and A. ulugurensis which occur in East Africa, in the Eastern arc mountains of Tanzania. These species all occur in moist lowland or upland rain forests.

Ghanaians Happy With New Minimum Wage

A cross-section of Ghanaian public servants that the Chronicle Business news spoke to in Accra, after the daily minimum wage was increased have expressed satisfaction with the National Tripartite Committee for the increase.
They said this increment would help to boost their purchasing power.
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One civil servant, Kwodwo Odametey was, however, quick to add that traders should not take advantage of this to increase prices of items.
"The last time the minimum wage was increased, traders also increased the prices of their items and we don't want this, this time," he said.
The National Tripartite Committee announced on Wednesday that the daily minimum wage of Ghana has gone up by 18.42 per cent. The committee pegged the new wage at 2.25 Ghana cedis, up from 1.9 Ghana cedis.
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Presenting the communiqué to the press, Nana Akomea, Minister of Manpower, Youth and Employment said the effective date for the implementation of the new wage was March 1, 2008.
He advised all Institutions, Organizations and Establishments that currently pay below the new minimum wage to adjust their wages accordingly.
The communiqué, signed by Nana Akomea, Mrs. Rose Karikari Anang, Executive Director of Ghana Employers' Association and Mr. Kofi Asamoah, Acting Secretary-General of the Trades Union Congress, reiterated the commitment of the social partners to the determination of a living wage that would take into account productivity at all levels.

Expert calls for ban on porn and scam websites

Expert calls for ban on porn and scam websites
By Stephen Odoi-Larbi

The Director General of the Advanced Information Technology Institute (AITI) at the Ghana-India Kofi Annan Centre of Excellence in Information and Communication Technology (ICT), Mrs. Dorothy K. Gordon has called for a ban on the use of certain websites on the internet in Ghana.
These websites include those with pornographic materials and cyber scams.
She believes the continued use of these websites is gradually affecting the country and its moral fibre, hence the need to put a ban on them.
Mrs. Gordon made this known at the official launch of the “Communication Policy Research and Advocacy report,” in Accra.
According to her, the use of illicit websites has gained interest among many internet users who patronise pornographic sites whilst others use it for cyber crimes.
To this end, Mrs. Dorothy Gordon implored the Ghana Internet Service Providers Association (GISPA) to define what needs to be done to implement measures that would arrest the situation.
“Government can't go round all the internet cafes to check the menace but can only do so if the Internet Service Providers (ISPs) are vigilant", she emphasised.
Further, she said "GISPA needs to ensure that access to these websites are prohibited."
She has thus warned internet users against visiting certain websites.
According to her, the situation has compelled some parents to stop their wards from programmes in ICT.
She noted that this was gradually hampering the development of ICT in the country and therefore called for a concerted effort to bring the situation under control.
"At the moment, some parents don't want their children to undertake ICT programmes in the country because of the existence of the bad websites", she bemoaned.
Meanwhile, a Deputy Director at the Ministry of Communication, Mr. Desmond Boateng has indicated that government was keenly considering the proposal for a ban of such websites.
He noted that the Ministry of Communications has submitted a draft bill to Cabinet to ban the use of these websites.
When approved, he noted that the bill would be sent to Parliament for consideration and ratification.
According to Mr. Boateng, government’s sole aim towards this move was to improve upon internet access in the country, which he said would make ICT to drive the economy.

Consumers get reprieve with the establishment of CPA

Consumers get reprieve
…with the establishment of CPA
By Stephen Odoi-Larbi & Charity Addo

Ghanaians would obviously heave a sigh of relief with the coming into being of Consumer Protection Agency (CPA). As a Non Governmental Agency (NGO), CPA has been established to fight and protect consumer rights in the country.
Speaking at the official launch of the organisation in Accra, vice President, Alhaji Aliu Mahama has lauded CPA for taking the initiative to protect the rights of consumers in the country.
He described the establishment of CPA as a step in the right direction since according to him it has created a platform for consumers to channel their complaints about goods and services.
The vice President recounted the days when consumers had to queue for goods and services irrespective of their standard, because there were only a few of the items on the market.
He thus noted that the era where there were shortages of goods and services on the market was over.
This, he said was evident in the fact that consumers now have the power to make choices from different alternatives.
“Today, the era of plenty has come. In an era of plenty, there is choice”, he noted.
Alhaji Aliu Mahama further noted that the conducive environment that exist in the country has created a fair competition among service providers, thereby availing consumers of a wide range of choices on what to buy and what not to buy.
As result, he emphasised that consumers get value for their money on what they buy.
He, however, advised CPA “not to judge but should be impartial and objective.”
Justice Ennin Yeboah, who chaired the occasion, noted that the establishment of CPA would compliment the work of the Food and Drugs Board (FDB), to ensure that the rights of consumers are always protected in the country.
He therefore called on the agency to raise awareness and to educate members of the public on their rights with respect to goods and services purchased.
On his part, the Chief Executive Officer (CEO) of the CPA, Mr. Kofi Owusu-Hene, said the aim for the establishment of the organisation was to help protect the right of consumers.
“Service providers think they are doing consumers a favour but they are always depriving them of the rights” he stressed.
He added that the establishment of the organisation was not to infringe on the rights of service providers but to help them promote customer delight in the business environment.
That notwithstanding, he cautioned service providers to make the customer delight a key factor in their operations since it would help boost their profit.

ECOBANK GROUP UNVEILS VISION FOR AFRICA
…adopts US$3bn as equity capital
By Stephen Odoi-Larbi & Masahudu Ankiilu Kunateh

The Pan African bank, Ecobank with operations in 22 countries across the African continent has announced the adoption and approval of US$3 billion equity capital by its shareholders, making it one of the best banks with increased share capital on the continent.
An amount of US$2.5 billion would be raised out of the US$3 billion through rights issues to afford majority of the citizenry on the continent to be part owners of the bank.
The Group Chief Executive Officer of Ecobank Group, Arnold Ekpe announced this in Accra when the bank took its turn at the ‘facts behind the figures’ forum organized by the Ghana Stock Exchange.
He stated that the purpose of the additional equity is to maximize the opportunity for Africa investments, adding that part of it would be used to invest in technology.
Mr. Ekpe hinted that the Ecobank Group delivered another sterling performance in 2007, after registering double digit growth on almost all fronts.
The group’s ‘Profit Before Tax’ was up by 47% to US$ 191 million, whilst its ‘Profit After Tax was also robust, recording a growth of 61% to US$ 139 million.
Similarly, profit attributable to shareholders rose by 55% to US$107 million, resulting in earning per share growth of 44% to eight cents per share.
Total assets for the group stood at US$6.6 billion in 2007 as against US$3.5 billion in the preceding year (2006), recording a growth of 87%.
The CEO was quick to add that special attention was paid to developing their network including branches, cash points, Western Union sales points and alliance sales points, saying “the number of branches and offices increased to 450 from the previous year’s of 305.”
According to him, the effective utilization of branch network and the direct sales agents across the country resulted in increased customer numbers to 1.2million, representing a growth of 96%.
Customer base also experienced growth with deposits of US$4.7billion compared to US$2.5billion in 2006, registering an 89% growth.
In a related development, the Group Chairman, Mr. Mande Sidibe at the bank’s Annual General Meeting (AGM) held in Accra noted that all proposals made by the bank during the meeting were adopted and approved by the shareholders, thereby given the group a new hope to pursue its expansion drive globally.
“All the proposals were adopted and this AGM is one of the most peaceful one ever held by the group in recent times”, he noted.
He intimated that there was no geographical restrictions on the adopted share capital but wished that the opportunity created by the group would enable all Africans to mobilize themselves to be part owners of the growing bank.
Mr. Sidibe added that the group’s funding of the African airline project was on course and would never shy away from it.
“The funding of the establishment of the airline project is still on course. Ecobank has been participated in the funding project and it is really following its stride”, Mr. Mande Sidibe indicated.