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anextranews — Fri, 18 Dec 2009 09:55:32 CST

UNEASY FEELINGS AMONG MAERSK WORKERS LIKELY TO EXPLODE SOON
December 18, 2009
Accra

Workers of Maersk Ghana Limited are getting impatient with the Management of the company and are therefore preparing themselves for a head on collision with management next week.

The likely collision follows the sudden turn around by the Managing Director of the company, Mr Jeff Garciniak not to give the green light to the Chief Labour Officer for the issuance of a Collective Bargaining Certificate (CBC) to the Union of Industry, Commerce and Finance Workers (UNICOF), when all due process had been followed.

The workers have therefore given themselves up to Monday December 21, 2009 for management to come out with a more positive response or they would advise themselves accordingly as they see this as infringement on their constitutional rights of freedom of association and to join the union of their choice.

In a tip-off, company insiders intimated that the workers were getting irritated with the MD’s sudden renege on an almost concluded unionization of workers and that they could not agree to the Mr Garciniak’s utterance that the union would have the CBC over his “dead body”. In that line, the MD was alleged to be meeting various sections of the workers to convince them not to unionize, but the workers have refused to back down.

The inside source hinted that some management members were against the MD’s action, particularly regarding the clear implications of such an action, especially in this yuletide.

Industry watchers said the attitude of the Mr Garciniak was worrisome considering the fact that even a few hours of work interruption by workers of the company would cause a big blow to the shipping industry particularly for importers bringing goods into the country for the yuletide season. Already a few importers who have heard of this are lamenting the effect of any strike will have on their businesses.

Meanwhile UNICOF sources say the union is also bewildered by the attitude of the MD and that they expect more of him as the country top man of such an immense international company. The Deputy General Secretary, UNICOF, Mr John Esiape confirmed the story but said the union was working for a peaceful resolution of the problem but would not rule out any option including strike action.

He disclosed that the union was closely watching whether the Chief Labour Officer would act with dispatch to uphold the fundamental human rights of the workers as enshrined in the constitution or look on as Mr Garciniak and his management team thwart the unionization of workers of the company.
The world’s largest container shipping line, Maersk, has three country offices in Ghana, namely Tema, Kumasi and Takoradi with employing approximately 300 highly skilled professionals. The Danish company, with headquarters in Copenhagen, Denmark started operations in the country in 1991 though it got involved in the Ghanaian shipping sector in the 1950s. The company’s activities in Ghana are centered mainly on shipping, trucking, terminal operations as well as providing total logistics services. Globally, the Maersk Line fleet comprises more than 500 vessels and a number of containers corresponding to more than 1,900,000 Twenty foot long containers, which makes it number one in the world. END

credit: Anextra Agency news

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		SOLIDARITY LETTERS POUR IN FROM UNICOF LOCAL UNIONS OCTOBER 30, 2008: Twenty solidarity letters have poured in from nationwide local union branches of the Union ofIndustry, Commerce and Finance workers (UNICOF of GTUC). This is the beginning of the show of solidarity to come from the over 70 branch membership. The union’s members in the sectors of banking, petroleum, hospitality, insurance, manufacturing, aviation, automobile, food and beverage, indicated in their letters that they are ready to fully support whatever form of strike action that the National Executive Council (NEC) – the union’ Board, would be decided on. In their solidarity letters, the locals said they have followed over the last few months the issue of the termination of Bro. Isaac Dekayie, the Vice Chairman of the ProCredit Local Union, and are convinced that a good case has been made to deserve their solidarity, particularly the bad faith exhibited by the Management of ProCredit at the latest attempt to deal with the matter. A release from the union stated that the members were alarmed at the twist that Employers have placed on the High Court decision in the Ghana Telecom case, which has empowered employers to indiscriminately terminate employees, especially those unionized, without any justifiable cause or reason whatsoever; adding that this is a precedence that poses a fundamental threat to the livelihoods of all workers. The local unions also affirmed that they were ever ready to participate in the intended strike action if Management of ProCredit fail to let reason prevail and reinstate Bro. Isaac Dekayie, immediately. Some local branches that have indicated their solidarity are from Agricultural Development Bank, Honda Place, Latex Foam, Japan Motor, NCR, La Beach Hotel, All Terrain Service, GAFCO, Wahome Steel, Paloma Hotel, Oman Forfo, Interplast Ghana Limited, Aviation Handling Service, Shoprite, Gemini Life Insurance, Ghacem, Dutchotel Nshonaa, Nestle Ghana Limited, CFAO Ghana Limited, and Eastern Region UNICOF Branch. More solidarity letters are expected to come in next week from the rest of the over 70 members comprising over 12,000 individual membership strength.

SOLIDARITY LETTERS POUR IN FROM UNICOF LOCAL UNIONS

OCTOBER 30, 2008:

Twenty solidarity letters have poured in from nationwide local union branches of the Union ofIndustry, Commerce and Finance workers (UNICOF of GTUC). This is the beginning of the show of solidarity to come from the over 70 branch membership.

The union’s members in the sectors of banking, petroleum, hospitality, insurance, manufacturing, aviation, automobile, food and beverage, indicated in their letters that they are ready to fully support whatever form of strike action that the National Executive Council (NEC) – the union’ Board, would be decided on.

In their solidarity letters, the locals said they have followed over the last few months the issue of the termination of Bro. Isaac Dekayie, the Vice Chairman of the ProCredit Local Union, and are convinced that a good case has been made to deserve their solidarity, particularly the bad faith exhibited by the Management of ProCredit at the latest attempt to deal with the matter.

A release from the union stated that the members were alarmed at the twist that Employers have placed on the High Court decision in the Ghana Telecom case, which has empowered employers to indiscriminately terminate employees, especially those unionized, without any justifiable cause or reason whatsoever; adding that this is a precedence that poses a fundamental threat to the livelihoods of all workers.

The local unions also affirmed that they were ever ready to participate in the intended strike action if Management of ProCredit fail to let reason prevail and reinstate Bro. Isaac Dekayie, immediately.

Some local branches that have indicated their solidarity are from Agricultural Development Bank, Honda Place, Latex Foam, Japan Motor, NCR, La Beach Hotel, All Terrain Service, GAFCO, Wahome Steel, Paloma Hotel, Oman Forfo, Interplast Ghana Limited, Aviation Handling Service, Shoprite, Gemini Life Insurance, Ghacem, Dutchotel Nshonaa, Nestle Ghana Limited, CFAO Ghana Limited, and Eastern Region UNICOF Branch.

More solidarity letters are expected to come in next week from the rest of the over 70 members comprising over 12,000 individual membership strength.

BANK OF GHANA : PRESS RELEASE

GOVERNOR, DR PAUL A. ACQUAH WINS CENTRAL BANK GOVERNOR OF THE YEAR AWARD

October 30, 2008

Governor of the Bank of Ghana, Dr Paul A. Acquah, has been awarded Central Bank Governor of the Year at the prestigious African Banker Awards 2008. A citation written by Omar Ben Yedder, Chairman of the organizing committee of the African Banker Awards and Associate Group Publisher of IC Publications and read in honour of the Governor at the awards ceremony states:

“Dr Acquah was born in Juabo, a village in the Western Region of Ghana. A graduate of the University of Ghana and Yale University in Economics, Governor Acquah obtained a Ph. D at the University of Pennsylvania, USA, and joined the IMF as a young economist. Rising through the ranks, he eventually became deputy director for the Africa Department in 1998.

The Banking system in Ghana is undergoing rapid change and much of this is attributable to Dr Paul Acquah and his technocratic team at the Bank. They have successfully re-denominated their currency. They have successfully issued their first Eurobond, sub Sahara’s first outside of South Africa, and he has pushed a consolidation of the banking sector in Ghana with some great success.

The independence and competence of the country’s banking system has also been key to his policy. Dr Acquah has overseen the stabilisation of the sector, based around institutions with a significant capital base. He believes a strong and independent banking system should be at the ‘heart of the government’s growth strategy’.

For the first time in 35 years, the Cedi has actually appreciated with respect to the dollar. In November 2003 when this writer was in Ghana the cedi was ¢9,500 to $1. Today it is around ¢9009 to $1. This is definitely an achievement worth praising.

Ghana's economy has been transformed by dint of the efforts of Paul Acquah, the Governor of the central bank. When he took over six years ago, the country was on the brink of disaster”.

UNICOF STRIKE TO COME ON
October 28, 2008

The Union of Industry, Commerce and Finance Workers (UNICOF) has said the ultimatum it issued to embark on strike action is impending unless ProCredit re-instates Mr. Isaac Dekayie into the company’s employment.

Latest information from the union said a series of steps have been scheduled towards the final strike action, including high-powered meetings involving the National Executive Council (NEC) – The Union’s Board, comprising its over 70 members across the country to endorse the intended action.

Also, the Tema District Council of Labour (TDCL) is expected to meet on the crisis and decide on how the various district councils of labour should mobilize for the strike.

The TDCL in August issued its ultimatum for a strike action unless steps were taken to smoothen the imbalances in the labour sector including the reinstatement of Isaac Dekayie. The TDCL had said then that it was surprised that such acts of impunity could happen when Ghana has a National Labour Commission (NLC) responsible for dealing with such deviant behavior and therefore called on the Commission to stamp its authority before the situation got out of control.

A fortnight ago the union issued a letter to the NLC complaining on the unfair termination of Bro. Isaac Dekayie and a notice to embark on a strike action.

The union is protesting the unfair termination of Mr Dekayie, who was allegedly terminated without reason in this year because management said he solicited for members for UNICOF during working hours. Employed in August 2005, he was the Vice-Chairman of the ProCredit local union of UNICOF of GTUC, and worked at the company’s headquarters at Airport, Accra.
UNICOF began moves to unionise workers of ProCredit way back in 2005, and finally got its bargaining certificate in agreement with management. Surprisingly, management began to shuffle its feet when the union called for collective bargaining negotiations upon the formation of the Joint Standing Negotiating Committee.

Management in total disregard for the Labour Act 2003 and the 1992 constitution, have consequently victimized UNICOF Local union members despite efforts by the NLC to resolve the glitch. The final straw was the unfair termination of Bro. Isaac Dekayie, which UNICOF is determined to fight to the tooth.

Interestingly, management supports a ProCredit Workers Council (PWC), (an in-house association). Instead of negotiating with the duly authorized Union, it is alleged that management has been meeting with the PWC on the benefits of the workers. If proven, this would be a grievous offence and an affront to the laws regulating industrial relations in Ghana.

Inside information from ProCredit indicate that the workers were fed up with management tactics and were becoming disillusioned about the company’s prospects. The workers said these are issues that the Ghana Employers Association (GEA) should deal with in order to avert the intended strike action.

Last week, the Executive Director of GEA, Rose Karikari Annan described UNICOF’s intended action as sympathy strike that was against the Law, as such strikes affected unrelated organizations and total productivity, therefore workers and the union should be patient as the tripartite committee was taking steps to intervene in the impasse.

Labour analysts spoken to said GEA claims that sympathy strikes are baseless are untrue as there was nothing like that in the labour law. Moreover, UNICOF’s intended strike action would be very legal because the union has followed all the processes to have arrived at the point of going on strike.

According to these analysts, it was time for the shareholders to check the goings-on in ProCredit Ghana to protect their investment interests, which they can do by acting through their embassies. ProCredit has 11 global shareholders from seven countries, namely Belgium, Dutch, Netherlands, Salvador, Germany, Switzerland, United States as well as the World Bank Group.

A source said the chairperson of the ProCredit Holding Supervisory Board, Dr C. P. Zeitinger is alleged to be behind the untoward behavior of ProCredit in Ghana as he is alleged to have told a workers meeting that he would go to all extents including expending millions of dollars to ensure that the company’s workers do not get unionized.

CREDIT: ANEXTRA AGENCY

PRESS RELEASE OF THE MONETARY POLICY COMMITTEE OF THE BANK OF GHANA
October 28 2008

1. You are most welcome to this press briefing. I should say that this meeting is taking place at a critical time when the global economy is facing arguably its worst crisis since the great depression. The MPC has reviewed the implications for the economy, which I will share with you in this MPC round.

2. Ladies and Gentlemen, latest information point to continued momentum in economic activity over the year. The Bank’s Composite Index of Economic Activity (CIEA) continues to show strong growth into the third quarter of 2008, recording an increase of 6.8 percent. This represents an expansion by 25.4 percent in year on year terms, and was above trend for the last years. The increase in the index was broad-based and reflected growth in all the major sub-components.

3. The latest consumer price inflation numbers released by the Ghana Statistical Service (GSS) showed that headline inflation which rose steadily to 18.4 percent at the end of June 2008, fell in three consecutive months to 17.9 percent in September. Food inflation fell from 17.7 percent at the end of June 2008 to 17.0 percent in September and non-food inflation fell from 18.9 percent to 18.5 percent during the same period.

4. The Bank’s measure of core inflation (defined to exclude energy and utility) which was 12.8 percent at the end of June 2008 has declined steadily to 11.6 percent at the end of September 2008.
5. Both the Bank’s business and consumer confidence surveys show improved indicators and a rebound of both business and consumer confidence after the softening observed in the past successive surveys. Overall assessment of economic prospects was generally quite positive.

6. Evidence from other real sector indicators also point to increased pace in economic activity. Cement production for the first eight months of the year amounted to 1,649,190 metric tons, a growth of 17.1 percent over the level of 1,408,083 metric tons for the same period in 2007. Benchmark retail sales recorded a growth of 40.3 percent compared with sales for the same period in 2007. Labour market statistics showed relatively strong demand for labour with a total of 9,498 jobs advertised, compared with 5,980 for the same period in 2007.

7. The generally strong performance of the economy reflected in the activities of the non financial corporate sector. Financial data released by listed companies for the period ended September 2008 point to strong turnover and profits by companies in manufacturing, distribution, and agricultural activities, driven mainly by cost control measures and efficiency in operations, and aggregate demand growth.

8. Credit to the private sector and public institutions continued at a rapid pace into the third quarter of 2008. For the 12-month period to August 2008 credit to the private sector and public institutions increased by GH¢1,627.8 million (46.6 percent) compared with GH¢1,368.3 million (64.4 percent) recorded for the same period in 2007. The private sector accounted for GH¢1,572.5 million (96.6 percent) of the total credit flow, and this raised private sector credit outstanding to the equivalent of GH¢4,303.0 million.

· In real terms credit to the private sector grew at an annual rate of 33.4 percent, some easing from 41.8 percent recorded at the end of 2007 and 43.9 percent for the corresponding period in August 2007.

· Distribution of the annual credit flow was somewhat broad-based, with the services sector accounting for 39.9 percent, commerce and finance (16.3 percent), miscellaneous (12.6 percent), manufacturing (7.7 percent), and construction (7.6 percent). All the other sectors recorded increases of between 0.3 per cent and 5.4 per cent, but their relative shares declined.

· Enterprises accounted for 73 percent of the increase in credit to the private sector over the 12-month period, and up from 67 percent for the same period in 2007. The share of households eased to 22 percent from 31 percent.

9. The latest credit conditions survey by the Bank of Ghana show a general net tightening of credit conditions for enterprises, with a shift in accommodation from corporates to small and medium scale enterprises (SMEs). Evidence also continues to show that banks increased availability of credit to households but credit for house purchases tightened in the third quarter of 2008, against the background of strong demand for credit by SMEs and households.

10. The banking system continued to show strong asset growth and profitability during the year through September 2008. Total assets of the banking industry stood at GH¢9,676.8 million in September 2008 (a growth of 36.0 percent), compared with GH¢7,114.1 million (56.2 percent) for the same period in 2007. The growth in assets was funded mainly by deposits which amounted to GH¢6,238.6 million (an annual growth of 45.2 percent). This may be compared with a deposit growth of 42.7 percent for the same period in 2007. There was however, an increase in total borrowings (domestic and foreign borrowings) from GH¢1,075.9 million in the year to September 2007 to GH¢1,256.1million in the year to September 2008.

11. All the financial soundness indicators of the banking industry, measured in terms of earnings, portfolio quality, liquidity, and capital adequacy remained strong into the third quarter of 2008. Non-Performing Loans (NPL) ratio and the NPL net of provision both edged down over the quarter from 8.7 percent and 12.7 percent respectively in June 2008 to 7.6 percent and 9.2 percent in September 2008 respectively. Similarly, loan loss provision to gross loans ratio also edged down from 6.2 percent to 5.9 percent over the same period. Banks’ solvency remained robust at 13.9 percent in September 2008, up from the 13.8 percent in June 2008. Generally, all the banks maintained capital adequacy ratios within the prudential limits, (with ratios in the range of 10.1 percent and 19.6 percent).

12. On the execution of the 2008 budget, provisional banking data for the first nine months of 2008 show that revenue growth has been strong and in line with budget forecast and the pace of economic activity.

13. Total revenue and grants for the period January to September 2008 amounted to GH¢3,451.5 million (21.1 percent of GDP) compared with GH¢3,127.3 million (22.4 percent of GDP) for the corresponding period in 2007. Of this amount, grants accounted for GH¢428.4 million (2.6 percent of GDP) compared with the budgetary estimate of GH¢338.5 million and GH¢499.2 million (3.6 percent of GDP) recorded for the same period in 2007.

14. Total expenditure (excluding externally financed capital expenditure) for the period amounted to GH¢4,782.5 million (29.4 percent of GDP) compared with GH¢3,382.0 million (24.2 percent of GDP) in 2007. The Government budget recorded a narrow fiscal deficit (excluding externally financed capital expenditure) of GH¢686.4 million (4.2 percent of GDP) compared with GH¢293.6 million (2.1 percent of GDP) registered for the same period in 2007.

15. The borrowing requirement of the narrow fiscal deficit of GH¢686.4 million, and a net foreign loan repayment of some GH¢278.9 million were mainly financed from the domestic economy to the tune of GH¢547.6 million (3.4 percent of GDP) and GH¢471.8 million of the sovereign bond proceeds mainly to cover investment in energy.

16. The stock of domestic debt (gross) which was GH¢3,708.2 million (26.5 percent of GDP) at the end of 2007 increased to GH¢4,144.8 million (25.4 percent of GDP) in September 2008. External debt stood at US$4,030.0 million (28.1 percent of GDP) at the end of September 2008, up from US$3,590.4 million (24.9 percent of GDP) at the end of December 2007, with most of the increase (US$470.0 million) being on account of multilateral and bilateral creditors. This brings total public debt at the end of September 2008 to US$7,683.4 million (53.5 percent of GDP), up from US$7,411.7 million (51.4 percent of GDP) at end of the 2007.

17. Provisional data available show annual broad money (M2+) growth at the end of August 2008 of 40.7 percent, up from 35.0 percent recorded for the same period in 2007 and 36.3 percent at the end of December 2007.

18. The third quarter of 2008 has seen significant shifts in preferences on the money market away from medium to long term dated instruments, with falling average maturities. This reflects increases in inflation and inflation expectations in the past few months. These shifts have come along with significant re-alignments of interest rates on the money market.

At end of September 2008, the share of the short-dated securities (91 and 182 days instruments) in the outstanding stock of government securities increased by 14.1 percent to 34.6 percent after declining progressively from a high of 56.2 percent in December 2005 to 20.5 percent in December 2007. The other instruments especially the 1-year note and 2-year fixed note shed 10.3 percentage points and 4.1 percentage points of their shares respectively.

The benchmark 91-day treasury bill rate increased to 24.58 percent in the third quarter from 16.32 percent in the second quarter. The 182-day Treasury bill rate similarly rose sharply in the third quarter to 26.04 percent, continuing the uptrend from the first quarter. The 1-year-note and the 2-year fixed rate note followed similar patterns, ending at 20 percent and 21 percent respectively.

The overnight interbank rate similarly firmed-up significantly by 504 bps in the third quarter to 19.52 percent.

Average base rate quotations of the banks were revised upward by 337 bps to 25.63 per cent in the third quarter in the range of 19.5 – 27.8 percent, on top of the 258 bps revision in the second quarter of 2008.

Similarly, average lending rates were revised upward by 202 bps in the third quarter to 26.38 percent within the range 15 – 34.0 per cent.

19. External sector developments show some slowdown in the price of the principal export commodities on the international market. The average realized price of cocoa beans exports fell to US$2,671.0 per tonne at the end of September 2008. Average export price of Gold also fell by 2.5 percent to US$889.69 per ounce at the end of September 2008 from US$912.1 at the end of June 2008.

20. The average realized weekly price per barrel of the benchmark Brent crude oil closed September at US$110.7, representing 57 percent increase in year-on-year terms. The price of crude oil has since fallen significantly and was US$61.79 per barrel as at October 27, 2008.

21. The strong pace in economic activity showed in significant growth in both exports and imports through the first nine months of the year.

22. Total merchandise exports at the end of September 2008 stood at US$4,017.5 million, an average annual growth of 30.8 percent.

· Exports of cocoa beans and products amounted to US$1,160.9 million, compared with US$910.8 million for the same period in 2007 (an annual growth of 27.5 percent). Cumulative cocoa purchases for the 2007/2008 season through the end of September 2008 amounted to 758,908 tonnes, against a forecast of 650,000 tonnes for the entire crop season.

· Gold exports for the first nine months amounted to US$1,751.0 million compared with US$1,247.4 million for the same period in 2007.

· Non-traditional exports for the period January to September 2008 amounted to US$716.9 million, compared with US$586.7 million for the same period in 2007.

23. Total merchandise imports for the period amounted to US$7,514.1 million, an annual growth of 31.3 percent.

· Non-oil imports grew by 38.3 percent on year on year basis and amounted to US$5,807.2 million and accounted for 77.3 percent of total imports, compared with 73.4 percent (US$4,198.8 million) for the same period in 2007. Capital and intermediate goods account for close to 70 percent of total non-oil import bill for the period compared with 68 percent for 2007.

· Oil import bill for the period January to September 2008 was US$1,706.8 million, compared with US$1,523.9 million for the same period in 2007.

24. The merchandise trade deficit for the period January to September 2008 is provisionally estimated at US$3,496.5 million, compared with US$2,695.0 million for 2007. The current account is provisionally estimated to have recorded a deficit of US$2,500.9 million, compared with a deficit of US$1,544.9 million for the same period in 2007. Net capital inflows are estimated to be US$2,203.5 billion, (US$901.3 million for 2007) of which some US$1864 million in private capital including FDI flows.

25. The overall balance recorded a deficit of US$716.8 million for the period January to September 2008, compared with a deficit of US$566.9 million for the same period in 2007, and was financed mainly by drawdown of reserves including the balances of sovereign bond proceeds of US$750 million that accrued in the last quarter of 2007. For the year as whole given the trends in current account and capital inflows essentially seasonal credits associated with cocoa exports, the overall balance of payments deficit is projected to narrow to US$490 million compared to a surplus of US$413.1 million in 2007.

26. Gross international reserves position at the end of September 2008 was US$2,270.2 million. This compares with US$1,811.34 million in September 2007 and represents 2.3 months cover of imports of goods and services.

27. There was increased activity on the foreign exchange market as well as re-alignments of exchange rates during the third quarter of 2008. Total purchases and sales in the foreign exchange market by banks and forex bureaux between January and September 2008 amounted to US$6.6 billion (8.2 percent increase over 2007 level). Total purchases over the period showed a 21.4 percent increase, and total sales also increased by 24.5 percent relative to the levels of the preceding year.

28. Private inward transfers – received by NGOs, embassies, service providers, individuals etc. - through the banks in the first nine months of 2008 amounted to US$6.5 billion, which represents 35.6 percent increase over those for the corresponding period of 2007, which were in turn 13.4 percent increase over the transfers through banks for the same period in 2006.

· Of the total transfers, US$1,224.9 million (or 18.9 percent) accrued to individuals, compared with US$1,196.2 million (25.0 percent) in 2007.

29. There was some significant movements in the exchange rate of the cedi to the major international currencies in the third quarter of 2008, following from similar movements in the first half of 2008. Developments in the nominal bilateral exchange rates of the cedi against the three core currencies – the US dollar, the pound sterling and the euro – show that for January-September 2008, the cedi depreciated, cumulatively, against all three core currencies by 15.8, 6.2 and 14.0 percent respectively. This compares with respective depreciations of 5.0, 6.9 and 17.5 percent in the corresponding period in 2007. The result was a real effective depreciation of 6.0 percent in trade-weighted terms with the index at 98.7 (Jan 2002=100).

30. The GSE All-share index gained 65.0 percent (4,291 points) to end September 2008 at 10,890.8 points. This compares with an increase of 13.4 percent in the first nine month of 2007 and 3.7 percent for the same period in 2006. Total market capitalization increased significantly by 46.5 percent (GH¢5,751.0 million) to GH¢18,120.7 million in the first nine months of 2008, driven mainly by price appreciation and rights issues.

Outlook

31. Ladies and Gentlemen, the past three months of the year has seen extraordinary turmoil in international financial markets, and the onset of recession in industrial countries that is now spreading their effects globally. The crisis has seen the collapse of major financial institutions, highly volatile stock markets, sharp fluctuations in exchange rates, large depreciation of currencies of certain emerging market economies and sharp reversals in capital flows and diminished investor appetite and lost confidence in counterparty trading, for fears of exposure to toxic assets and general contagion. These have spurred Governments and central banks to take extraordinary steps and coordinated policy measures to shore up the financial system. The measures include large injections of liquidity, capitalization and partial nationalization of banks, the provision of government guarantees to assure depositors. There have been coordinated interest rate cuts by major central banks in the industrialized countries (including Bank of England, ECB, the Federal Reserve Bank) to counter global recessionary pressures. And yet there remains great uncertainty with regard to the depth of the financial market crisis, and the possible extent and duration of the recession and its impact on economies generally.

32. A number of emerging market countries in Asia and Latin America, and Eastern Europe and some industrialized countries have so far been affected by the contagion, via the channel of capital flows, and reduction in the funding for the current account deficits, and exposure of their banking systems to globally and internationally active banks.

33. We have reviewed the possible channels of transmission of the crisis to the domestic environment. From our assessment of the recent performance of the economy, the effect of the turmoil has so far been limited.

34. On the financial sector, one possible link is through the banks’ exposure to counterparties in the form of nostro balances and placements (investments) abroad. Our review shows that DMBs nostro balances and placements, by way of exposure, are currently within internationally acceptable prudential limits and are with reputable financial institutions. And, the industry’s low net open position (a measure of foreign exchange risk) indicates that the banking system is not over exposed.

35. Moreover, outstanding external borrowing by banks, as a source of funding their activities, is less than 5 percent of total bank funding requirements, an indication of their predominant reliance on domestic deposits. Also, given the existing levels of outstanding borrowing, only a recall of a significant proportion (in excess of 50 percent) in exceptional circumstances, would have a material impact on the capital adequacy ratios of banks in the industry.

36. Existing credit lines are a possible source of some pressure. Our data shows that banks maintain credit lines with reputable financial institutions that amount to less than 5 percent of existing total trade, which means that a freeze would be a source of some funding pressures.

37. All these mean that the resilience of the economy to the effects of the fallout of the financial market turmoil appears robust, barring major shifts in the dynamics of the markets. The stock market, for example, has continued to deliver a strong performance.

38. With regard to the impact on the macroeconomy over the medium to long term, one powerful channel is through the commodity markets as aggregate demand slows down with the global recession. Assuming cocoa and gold prices were to soften by some 25 percent, and oil prices were to move back to around US$80 per barrel, this would entail an income loss of 2.4 percent of GDP. There could also be some tightening of donor flows and remittances, and more generally reduced appetite for investment in developing countries. And all these would have implication for prices, macroeconomic balances, and prospects for growth.

39. For the year 2008, the current assessment is that economic activity has continued to be at a reasonably fast pace with strong export growth and underpinned by expansion in domestic demand and fiscal stimulus.

40. While credit conditions have tightened somewhat, credit to the private sector and demand for credit by both households and enterprises continue to be strong.

41. Inflation has started to ease back towards the disinflation path, with core inflation easing more rapidly. The year may close with headline inflation at around 17 percent before returning close to 10 percent in the last quarter of 2009. Available information points to the economy recording a real GDP growth rate of about 6.6 percent in 2008, before easing according to forecast to some 6.3 percent in 2009. The reduction in oil prices is stabilizing and re-enforcing diminishing inflation expectations.

42. The uncertainties in the outlook and the experience from the turmoil in the financial markets underscore the continued need for sound fiscal and monetary policies with margin for policy flexibility and measures that would bolster the competitiveness of the economy to secure private investment and donor flows, ensure a robust and well supervised financial sector, reduce vulnerability to shocks, and strengthen the basis for growth in an environment of macroeconomic stability.

43. With recent developments in the market, especially crude oil, the risks to growth and inflation are now more balanced.

44. In the circumstances, the Monetary Policy Committee (MPC) has decided to maintain the Prime Rate at 17.0 percent.

Thank you all for your attention.

UNICOF THREATENS STRIKE ACTION

OCT 14, 2008, ACCRA:

One of the most unpalatable national events is set to hit the country as the Union of Industry, Commerce and Finance Workers (UNICOF) prepares to launch a nationwide membership strike action soon.

The strike is aimed at getting management of ProCredit to reinstate Mr. Isaac Dekayie as an employee of the company.

According to a correspondence addressed to the National Labour Commission, (NLC) from the union, the only way to avert the impending strike is for the company to recall Bro Dekayie whose employment was terminated by a letter dated 21st July 2008. He was dismissed because the company said as the Vice-Chairman of the ProCredit local union of UNICOF of GTUC,he had flouted the Labour Law 2003 Act 651 by “using office facilities to implore staff members to join the union without management’s consent”.

Brother Dekayie was employed at ProCredit in August 2005 and was Credit Risk Coordinator at, until his dismissal in July this year. The company’s headquarters is situated at Airport, Accra .

The union hinted that it was mobilizing its more than 10,000 members in the areas of preparation for the strike action, including members from the petroleum, the banking and other financial sectors, manufacturing industries, hotels and food sectors of the economy as well as ProCredit. In procedure with the law, the union has accordingly notified the NLC in a letter dated October 8th, 2008.

Apart from the economy that would be most hit by any labour strike at this time, this impending strike would affect Election 2008, customers, families, workers, social lives and above all cripple the company and all its dependants.

The desire of the country to avoid any social and economic obstruction and particularly government’s goal to leave a legacy of industrial harmony would once again be miserably marred when this labour unrest occurs.

It would be a wake up call for the banking sector to respect and uphold workers rights because it is as if the banks have the impunity to abuse workers and go scot-free, to the extent that the Central Bank had no better example to show.

Labour analysts say the strike would have untold consequences as it goes beyond UNICOF into the broader labour movement more so when it is in agreement with an earlier call from the Tema District Council of Labour (TDCL) upon the GTUC to “immediately commence work towards a nationwide action preparatory for the imminent battle to restore the dignity of the Ghanaian worker and that policy on decent work is followed.

The TDCL, in a letter dated 25rd July 2008 and addressed to the Minister of Manpower, Youth & Employment, also called for the restoration of Bro Dekayie’s appointment, noting that his termination was a double jeopardy as he was being punished twice for the same alleged offence.

The history of unionization at ProCredit has been a rough story so far though the company continues to reap high benefits from the toils of employees whilst denying them their right to unionize; The company has opened more than two new branches this year, including one at Kokomlemle in Accra and another at Nkawkaw in the Eastern Region.

However, this time the union and organized labour in general say they would not look unconcerned when the Labour Movement in Ghana was being taken for a Free Ride by companies like ProCredit that do not respect the constitution of Ghana that guarantees freedom of association.

The GTUC at its Quadrennial Delegates Conference in August this year made strong mention of the ProCredit-UNICOF outstanding case as a huge destabilizing event in the operations of organized labour.

Some employees of the company who are members of the UNICOF local union have have noted that it is time for varying stakeholders like the GTUC, Minister of Manpower, Youth & Employment, Chief Labour Officer, the Ghana Employers Asssociation (GEA), judiciary, and the Ghana Association of Bankers to play active roles in diffusing this time bomb at this sensitive time by making sure that workers rights are observed by both foreign and local investors, especially at ProCredit and other companies like Dutchotel.

UNICOF noted in its strike notification letter to the NLC stated that ProCredit has consistently shown bad faith in their dealings and are therefore obliged to embark on a strike action to press home the union’s demand. The union consequently notified the commission that it would go on the strike action if after seven days upon receipt of the letter to the NLC Mr. Isaac Dekayie was not re-instated.

The union however remained tight-lipped regarding further comments on the intended strike action.

Stay tuned for more...

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FOODSPAN CALLS FOR RESPONSIVE ACTION ON FOOD CRISIS
May 28 2008

Statement from the Food and Agriculture ministry that the country is insulated against the effects of global food crunch is far from the reality as the prize of maize has jumped from 35-40 Ghana cedis to 75 Ghana cedis a bag between January and April this year, while a bowl or olonka of local rice has risen from one Ghana cedi 20 pesewas to 2 cedis 50 ghana pesewas for same period.

For maize, this jump represented 114 percent price increase as against a global hike of 31 percent and globally while the percentage increase of price of rice moved up by 74 percent, Ghana recorded 108 percent for local rice and 118 percent shoot for imported rice.

However, Foodspan says these alarming waves on the food front should not induce government to adopt inimical solutions such as to resort to production and consumption of genetic modified food. Miss Anna Antwi is the coordinator of Food Span.

According to her, government’s intervention of removal of food import tariff should not go beyond 3 months otherwise local farmers would suffer and lead to more hunger and malnourishment.

Credit: anextra agency news (AA)

TWO LOCAL COMPANIES WIN WORLDSTAR AWARDS
May 22 2008

Two Ghanaian companies were among 166 organisations that Wednesday received the 2007 WorldStar Awards for excellence in packaging. Polycraft Ghana Limited was awarded for Vitamalt Plus carton while Unilever’s Blue Band Good Start Margarine carton box was also honored.

31 countries worldwide took part in the competitive awards including four African countries namely, South Africa, Ghana, Zimbabwe and Tunisia. The top awards went to Japan and United States winning 14 awards each, followed by 13 awards to Germany, South Africa and Brazil 12 each, and China 11. For the African nations, Tunisia had one prize while Zimbabwe took home two awards.

The world star award for packaging was instituted by the World packaging organization, WPO, to acknowledge the innovations and contribution of packaging to trade and consumerism.

Speaking at the award ceremony in Accra, the president of the WPO, Mr Keith Pearson said the WorldStar competition is one of the major events of the WPO as an initiative to motivate packagers and packaging converters to improve their productions.

GA MANTSE, NII TACKIE TAWIAH III IN A POSE WITH SOME WORLDSTAR AWARD WINNERS AT THE CEREMONY IN ACCRA

He noted that African packaging industries need to do upscale their packaging industries to enable Africa chalk more revenue in global trade.

The number of African countries at the final awards is a reflection of the continent’s standing in international trade as the volume of manufactured goods constitutes only 20 percent of Africa’s total exports.
At the national level, 21 oragnisations also received the Ghana Star Awards.

Ironically, no government official was at the award ceremony, though the organisers, Institute of Packaging Ghana (IOPG) sent four invitations to the sector Ministry of Trade, Industry, PSI and Private Sector Development.
IOPG top executives, including its President Kofi Essuman expressed unhappiness that no representative of the ministry could attend such an important event though the sector minister, Joe Baidoo-Ansah, delivered the keynote address during the opening of the African Packaging Summit Conference & Exhibition as well as the launch of the 40th anniversary of the WPO. What saddened the IOPG officials the more was that this event would only come again to Ghana after 20 years.

CREDIT: AAN

PACKAGING INDUSTRY TO HELP AFRICA
May 21 2008

Poor packaging is one of the greatest set backs to international trade for Ghana and the rest of Africa as the volume of manufactured goods constitute only 20 percent of the continent’s total exports.

However, packaging experts in Africa and the world over think that this sorry state of affairs can be reversed and are therefore holding an African Packaging Summit Conference & Exhibition in Accra.

The event, being attended by over 30 global packagers, is organized by the Institute of Packaging Ghana and the World Packaging Organisation, WPO. The summit seeks to raise awareness on changing global trends in the packaging industry, and to provide solutions to the major constraints hindering effective development of the packaging sector in Africa.

The president of the Institute of Packaging Ghana, Mr Kofi Essuman observed that unless the Ghanaian packaging industry builds and consolidates its capacity to become cost competitive it may lose its market to other countries. In that direction, Mr Essuman advocates that the first point of change should be in the chocolate sector.

He said the country has competitive advantage in the chocolate industry however, effective packaging is required to bring in the needed returns, which would be far more profitable than the export of cocoa beans.

For his part, the Minister for Trade and Industry, PSI and Private Sector Development, Joe Baidoo-Ansah said government would take advantage of the summit to strengthen the local packaging industry.

He noted that the success stories of the countries of the Far East and South Africa have been due to not only to the application of scientific and technological research but also to superb packaging that enhances the product appeal as well as shelf life.

The minister also lamented that losses arising from poor packaging are too colossal and the country cannot continue to suffer this situation.

He said it is as result of this that government would complement the efforts of the Danish Technical Institute and DANIDA in establishing packaging and Distribution Resource Centre in the country which would be a regional centre of excellence to provide packaging design and development, services, training and research to packaging converters in Ghana and West Africa.

He appealed to IOPG to use its influence and connections as a private sector-led body to galvanise packaging manufacturers, user industries, designers, packaging materials suppliers, academicians and regulatory agencies to facilitate the growth of the packaging industry in Ghana.

CREDIT: AAN

MONETARY POLICY COMMITTEE OF BANK OF GHANA_PRESS RELEASE
May 20 2008

1. Good Morning Ladies and Gentlemen, and welcome to this MPC press briefing.

2. We are meeting here today at a time when on the global scene primary commodity prices remain quite firm providing impetus to growth in developing countries but record high and rising crude oil prices and a surge in food inflation are posing a threat of resurgence of global inflation with inflation rising above targets in most economies. And, there are still lingering effects of the credit crunch and sub-prime problem and turmoil in the financial markets, which has led most developed economies to revise downwards growth projections for 2008, and continuing re-alignment of the major currencies.

3. Available information on the economy show a fairly resilient and robust economic performance with regard to output and demand growth and external trade and payments position in the face of shocks in the policy environment based on strong economic fundamentals.

4. Latest data indicate that the level of economic activity continued to be strong into the first quarter of 2008. The Bank’s Composite Index of Economic Activity rose by 3.0 percent, some easing in the growth rate but at 28.5 percent in year-on-year terms, is above the trend growth of 21.3 percent at the end of March 2008. This compares with 21.4 percent recorded in the same period of 2007. All the major sub-components showed strong growth.

5. Additional information for tracking real sector performance, such as social security payments, job vacancies, and retail sales also point to robust economic activity. Registered number of firms on the SSNIT scheme increased by 20.8 percent over the 17,684 registered firms recorded in the first quarter of 2007. For the first quarter of 2008, total social security contributions increased by 10.4 to GH¢19.3 million, compared with GH¢14.8 million recorded for the same period in 2007, and GH¢17.4 million for December 2007.

· Cement production increased by 23.4 percent to 609,424 metric tons during the first quarter of 2008, compared to 493,879 metric tons recorded for the same period in 2007.

· The index for general retail sales suggests strong consumer demand growth in the first quarter of 2008.

· Advertised job vacancies recorded for the first four months of 2008 was 5,147, a sharp increase over the 2,243 recorded in 2007, with most of the vacancies in the services sector. This translates into an average monthly job vacancies advertised of 1,286 for the first four months of 2008 compared with 560 for the same period in 2007.

6. The Bank’s survey of Business and Consumer confidence indicate that confidence has softened over the first quarter of 2008, amid uncertainty about oil prices and rising inflation, while both business and consumer expectations about economic prospects for the rest of the year remain generally positive.

7. Credit to the private sector and public institutions continued its strong growth into the first quarter of 2008. Credit to the private sector and public institutions increased by GH¢1,615.8 million, or at an annual rate of 57.3 percent compared with GH¢846.0 million (50.4 percent) recorded for the same period in 2007. The private sector accounted for 81 percent (GH¢1,308.2 million) of the increase in credit.

· Distribution of the credit flow to the private sector continues to be broad-based. Services accounted for 33.9 percent, commerce and finance 17.9 percent, miscellaneous 16.1 percent, construction 9.3 percent, manufacturing 5.6 percent and transportation, storage & communication 5.4 percent. The remaining sectors recorded increases of between 1.0 percent and 4.9 percent.

· Distribution of the credit flow by user similarly remains broad-based with households gaining increased significance in the loan portfolios. Enterprises absorbed 69.9 percent of credit extended to the private sector over 12-month period to March 2008, down from 82.8 percent for the same period in 2007. The share of households rose to 27.4 percent from 15.0 percent over the same period. On year on year basis, credit to households increased by 85 percent to GH¢779.1 million at the end of March 2008, up from 41 percent in March 2007 when such credit stood at GH¢420.6 million.

8. The asset portfolio of the banking system continued to expand through to the first quarter of 2008. Total assets of the banking system grew by 43.7 percent to stand at GH¢8,085.9 million at the end of the first quarter of 2008, compared with 41.6 percent for the same period in 2007. At the same time, deposits grew by about 45 percent, compared with 42 percent for the same period in 2007. Generally, the banking industry remains strong, profitable and fairly liquid.

9. The quality of the loan book of the banking industry continued to remain strong in the first quarter of 2008, even though the Non-Performing Loans (NPL) ratio and the NPL net of provision edged up from 6.4 percent and 4.5 percent respectively at the end of the fourth quarter 2007 to 8.7 percent and 14.0 percent at the end of the first quarter of 2008 respectively. Similarly, loan loss provision to gross loans ratio also edged up from 5.5 percent to 5.9 percent over the same period.

10. Evidence from the Bank’s survey of credit conditions continues to point to increased access to credit by both enterprises and households but some tightening of long term loan conditions because of balance sheet constraints at the end of the first quarter of 2008. The easing of credit conditions was broad-based with Small and Medium Enterprises (SMEs) gaining improved access to credit.

11. Provisional data show that broad money (M2+) increased by 3.3 percent in the first quarter of 2008 compared with an increase of 1.2 percent for the same period in 2007, seasonally down from 19.4 percent recorded in the fourth quarter of 2007. Annual M2+ growth in March 2008 was 39.2 percent, up from 35.9 percent recorded for the same period in 2007.

12. Strong growth in liquidity of the banking system has been supported by significant increases in deposit mobilization with the opening of more bank branches and introduction of new products to attract deposits. Total deposits increased by 42 percent in year on year terms to GH¢4,828.9 million at the end of the first quarter of 2008, compared with 40 percent for the same period in 2007. Savings & Time deposits grew by 38 percent to GH¢1,920.3 million at the end of the first quarter of 2008, compared with 56 percent for the same period in 2007. Foreign currency deposits also grew by 41 percent to the equivalent of GH¢1,212.6 million at the end of the first quarter of 2008, at a much faster pace than the 25.1 percent for the same period in 2007.

13. Preliminary banking data of the fiscal position for the first quarter of 2008 continues to show buoyant revenue growth matched by sharp expenditure growth. Total revenue and grants for the first quarter of 2008 amounted to GH¢1,121.45 million (6.9 percent of GDP) compared with GH¢1,017.62 million (7.3 percent of GDP) for the corresponding period in 2007. Total revenue and grants increased further by GH¢383.84 million in the month of April to bring the cumulative amount for the year to April to GH¢1,505.28 million (9.2 percent of GDP), compared with GH¢1,436.71 million (10.3 percent of GDP) for 2007.

14. Total expenditure (excluding foreign financed capital expenditure) for first quarter of 2008 amounted to GH¢1,384.73 million (8.5 percent of GDP) compared with GH¢1,156.53 million (8.3 percent of GDP) for the same period in 2007. Additional spending of GH¢579.46 million was made in April to bring the cumulative expenditure for the first four months of 2008 to GH¢1,964.19 million (12.1 percent of GDP) including an estimated GH¢200.8 million outlays on the energy infrastructure financed by sovereign bond proceeds, compared with GH¢1,536.4 million (11 percent of GDP) recorded for 2007 and a budget target of GH¢5,109.3 million for the year.

15. The narrow budget deficit (defined to exclude foreign financed capital expenditure) but including expenditure financed by capital market borrowing for the first quarter of 2008 was GH¢479.54 million (2.9 percent of GDP), compared with GH¢125.97 million (0.9 percent of GDP) for the same period in 2007. The deficit in addition to a foreign loan repayment of GH¢207.86 million, were financed from the domestic economy.

16. The stock of domestic debt (gross) at the end of 2007 was 26.5 percent of GDP. This ratio declined to 24.2 percent by the end of the first quarter of 2008. The stock of external debt also ended 2007 at 24.6 percent of GDP, and reduced further to 22.5 percent at the end of the first quarter of 2008. This brings total public debt stock to US$7,607.0 million (46.7 percent of GDP) at end of the first quarter of 2008 compared with US$7,146.5 million (51.1 percent of GDP) at the end of 2007.

17. Developments in interest rates on the money market during the first quarter of 2008 have been shaped by rising inflation, and apparent shift in preferences towards shorter dated securities on the money market, and yields rising notably along the maturities range. The total share of short-dated securities increased by 1.5 percentage points during the quarter.

During the period from January to mid May 2008:
· overnight interbank rates firmed-up by 61 basis points to 12.65 percent.

· The 91-day and 182-day Treasury bill rates firmed-up by 234 and 282 basis points respectively to 12.96 percent and 13.62 percent respectively.

· The 1-year-note and the 2-year fixed rate note similarly inched up by 170 and 120 basis points respectively to 14.0 percent each.

· The rate on the 3-year fixed bond rose to 16.0 percent from 14 percent over the same period.

· Average base rate quotations of the banks were revised marginally upward by 26 basis points in April (on top of the 92 basis points revision at the end of March 2008) in the range 18.0 – 21.45 percent.

· Average lending rates were similarly revised upward by 19 basis points in April 2008 within the range of 14.8 – 33.9 per cent.

18. On the external front the average price of cocoa beans exports which was US$1,942.2 per tonne at the end of December 2007 increased by 7.7 percent to US$2,091.8 per tonne at the end of March 2008. Gold prices broke through the US$1000 mark in March 2008, resulting in an average export price of US$916.6 per ounce at the end of the first quarter of 2008, representing 17.8 percent over the level at the end of December 2007, and 42.4 percent rise in year on year terms.

19. The average weekly price per barrel of the benchmark Brent crude closed April at US$115.28, representing 22.5 percent increase over the end December 2007 level, and about 70 percent in year on year terms. It however reached a fresh record of US$124 per barrel on Thursday May 8, 2008.

20. Total merchandised exports for the first quarter of 2008 amounted to US$1,334.6 million, compared with US$1,041.5 million for the same period in 2007 (a growth of 28.1 percent), and US$1,098.3 million for the fourth quarter of 2007.

· Exports of Cocoa beans and products amounted to US$401.5 million, higher than US$382.27 million recorded for the same period in 2007 and US$221.9 million for the fourth quarter of 2007. However, cumulative cocoa purchases through the end of the first quarter totalled some 552,312 tonnes, against a target of 634,000 tonnes for the crop season, and 510,609 tonnes for the corresponding period of the 2006/2007 crop season.

· Gold exports totalled US$608.9 million as against US$395.0 million recorded for the same period in 2007 and US$486.4 million for the fourth quarter of 2007.

· Non-traditional exports rose by 27.1 percent to US$258.8 million, compared with (US$203.6 million) for the corresponding period in 2007 and US$325.3 million for the fourth quarter of 2007, and US$207.4 million for the fourth quarter of 2006..

21. Imports growth was strong at 33 percent during the first quarter of 2008, compared with the first quarter of 2007, with all import categories registering higher growth. Total merchandise imports for the first quarter of 2008 amounted to US$2,273.9 million, compared with US$1,659.3 million for the same period in 2007 and US$2,343.4 for the fourth quarter of 2007.

· Oil imports amounted to US$526.8 million and accounted for some 23 percent of total imports compared with US$346.1 million (21 percent of total imports) recorded for the same period in 2007 and US$571.1 million (24 percent) for the fourth quarter of 2007. The increased oil bill for the first quarter resulted from price effects. The average realized price rose by 53.3 percent; the value of crude imports declined by 50,930 barrels (1.4 percent) to 3.48 million barrels. Imports of refined petroleum products amounted to US$183.9 million, indicating a growth of 15.8 percent on year on year basis.

· Non-oil imports amounted to US$1,747.1 million and accounted for about 77 percent of total imports in the first quarter of 2008, compared with US$1,313.3 million (79 percent) for the same period in 2007, and US$1,772.3 million (76 percent) for the fourth quarter of 2007.

22. The merchandise trade account recorded a deficit for the first quarter of 2008 that amounted to US$939.3 million, compared with a deficit of US$617.8 million for the same period in 2007, and US$571.1 million for the fourth quarter of 2007. Preliminary estimates are that the current account recorded a deficit of US$725.8 million, compared with a deficit of US$422.9 million for the same period in 2007, and US$652.7 million for quarter four of 2007.

· The increased current account deficit was on account of imports of capital equipments for oil exploration and mining financed by foreign direct investment (FDI) inflow of US$367.5 million in the first quarter of 2008.

23. The overall balance of payments deficit is estimated at US$528.4 million for the first quarter of 2008, compared with a deficit of US$335.1 million for the same period of 2007.

24. Gross International Reserves (GIR) at the end of April 2008 was US$2.19 billion, and translates on average into goods and services import cover of 2.7 months.

25. The foreign exchange market continued to deepen, recording a sharp increase in the volume of sales and payments transactions during the first quarter of 2008. Total Purchases and Sales in the foreign exchange market by banks and forex bureaux for the first quarter of 2008 amounted to US$2.45 billion, 27.5 percent higher than US$1.92 billion for the same period in 2007, and 11.2 percent above US$2.20 billion recorded in the last quarter of 2007. This increased further by US$802.1 million in April 2008 (US$654.3 million for April 2007) to bring the cumulative amount for the first four months to US$3.3 billion, compared with US$2.6 billion for 2007, and US$2.2 billion for 2006..

26. Private inward transfers – received by NGOs, embassies, service providers, individuals etc. - through the banks and finance companies for the first quarter of 2008 amounted to US$2,008.4 million, which represents 35.4 percent increase over the amount of US$1,483.6 million recorded for the corresponding period in 2007.

• Of the total transfers at the end of the first quarter of 2008, US$400.8 million (or 20 percent) accrued to individuals, compared with US$345.2 million (22.8 percent) for the first quarter in 2007.

27. The cedi depreciated against all the three major currencies during January to April 2008, moving within relatively low range vis-à-vis the US dollar and the Pound Sterling, with depreciations of 1.8 percent, and 0.3 percent respectively. The Euro appreciated against the cedi by 8.2 percent. In trade weighted terms, the cedi depreciated by 3.2 percent, compared with a depreciation of 1.9 percent for the same period in 2007.

28. The latest inflation numbers released by the Ghana Statistical Service (GSS) show that inflation has been rising significantly to 13.8 percent at the end of March 2008, and further to 15.3 percent in April 2008, after reaching a low of 10.2 percent in September 2007. This rising inflation rate has been driven to a considerable extent by crude oil prices and its effect on the domestic market. Food inflation which was 9.3 percent in September 2007 rose to 13 percent at the end of March 2008 and further to 13.2 percent in April 2008. Non-food prices also moved from a low of 10.9 percent in September 2007 to 14.4 percent in March 2008 and further to 16.9 percent in April 2008.

29. Also core inflation (defined to exclude energy and utility) which has been in single digits since June 2006 began to increase from a low of 8.6 percent in September 2007 to 10.2 percent in March 2008 and further to 11.4 percent in April 2008.

30. To summarize, the economy has been resilient in terms of output and demand growth with economic activity proceeding at a pace above trend and with relative stability in the exchange market.

31. Domestic demand growth has been underpinned by strong fiscal stimulus, and rapid build-up of sectorally diversified bank loan portfolio in a deepening and competitive financial sector.

32. Inflation and cost price pressures have increased amidst rising and volatile oil prices, and a surge in food prices. And, uncertainty about developing inflation has weighed down business and consumer confidence, while the general assessment of economic prospects remains strongly positive.

33. Inflation has risen sharply over the past three months. Both headline and core inflation are now significantly above the target set over the medium term.

34. The risks in the outlook for inflation is on the upside with uncertainty about oil price increases and volatility and the potential for inflation expectations to become embedded in pricing and wage cost structure.

35. In the circumstances, to strengthen the anchor for macro-stability, the Monetary Policy Committee has decided to increase the Bank of Ghana Prime Rate from 14.25 percent to 16 percent.

Thank you for your attention.

16 WIN WORLD BANK DEVELOPMENT MARKETPLACE COMPETITION
Posted May 12, 2008

The World Bank Group has selected 16 companies and organizations as winners of the Development Marketplace competition for their innovative products or services tailored to Sub-Saharan Africa’s off-grid lighting market. The winners will receive up to $200,000 to implement projects that offer affordable, clean, and safe off-grid lighting and that improve access to lighting for people living without electricity across the region.

The winners were selected from among 52 competitors, and their projects were judged using five criteria: innovation, measurability of outcomes, organizational and financial sustainability, growth potential, and realism. They will use the funds to implement their projects in several African countries, including Burkina Faso, Cameroon, Ghana, Kenya, Liberia, Namibia, Nigeria, Rwanda, and Tanzania.

The ideas and concepts presented during this competition were far beyond our expectations, and this level of innovation and creativity is exactly what Africa needs. We are looking forward to seeing the winners implement their projects, said Anil Cabraal, World Bank Lead Energy Specialist.

One of the winning projects will use cassava waste to produce biogas for lighting about 2,250 rural homes. Another project introduced a revolutionary type of energy efficient solar cell product for light emitting diodes that can also be used as a mobile phone and energy charger and a source of energy for radio. The people’s choice award went to a project that aims to use the Savings and Credit Cooperative Societies, a network of solar technicians in Tanzania, and reasonably priced solar systems to reach remote areas.

This has been one the most fruitful Development Marketplace competitions. All of the finalists were able to meet with businesses and NGOs that are relevant to their day-to-day activities. This will help broaden their reach and impact, said Monika Weber-Fahr, IFC Manager for the Sustainable Business Innovator.

The competition took place during Lighting Africa 2008, the first global business conference for off-grid lighting in Africa, held in Accra, Ghana, from May 6 to 8, 2008. The conference is part of the World Bank Groups Lighting Africa program, which aims to mobilize the private sector to provide modern off-grid lighting to more than 250 million people in Sub-Saharan Africa by the year 2030.

CREDIT: AAN

MONETARY POLICY COMMITTEE TO MEET
Posted May 12, 2008

The Monetary Policy Committee (MPC) of the Bank ofGhana will meet from Tuesday, May 13, 2008 to reviewdevelopments in the economy. The decision of the MPC, with respect to the Bank ofGhana Prime Rate, will be announced at a pressconference on Monday, May 19, 2008.

CREDIT: AAN

MCA ELIGIBLE AFRICAN COUNTRIES MEET IN ACCRA
June 11

African countries eligible for the millennium Challenge account of the united states of America are in Accra for a two-day on enhancing collaboration to reduce poverty in their respective countries.

Out of a total of 19 eligible African countries, only five, namely, Ghana, Madascar, Benin, Cape Verde and Mali have signed funding agreements with the Millenium Challenge Corporation, the washington-based body that is managing the MCA .

Speaking at the meeting, the ECOWAS commission president, Dr Mohammed Ibn Chambas said the MCA is welcomed in the subregion, considering that 12 of the 15 member states of ECOWAS are among the least Developed Countries in the world.

For his part, the chairman of the MCA country board, Dr Paa Kwasi Ndoum said the meeting would come out with reportsand resolutions that would be forwarded to the MCC, African Union and the respective eligible African governments.

BOG LADIES HIT ROAD WITH REDENOMINATION
June 5 2007

The fever of new money is rising among the populace as the whole nation prepares itself for the birth of the new Ghana cedi, bound to come into being less than four weeks from now. The new cedi is expected to start making the rounds as the new symbol of purchasing power from the first of July, with the hope that its use would catch-up fast with the public.
However, feedback from various groups such as market women, churches and other social groupings show that education to the public is not reaching far enough to the general fabric of society.
In that direction, the Bank of Ghana Ladies Association, BOGLA, has embarked on an extensive public education campaign to increase the understanding of social groups on the new cedi. They have visited Kasoa, Batsona and Tema markets as well as surrounding villages, where they educated market women and villagers on how to convert the new currency and how to identify security features.
The field educational campaign is certainly going down well with target groups judging by the sort of interest that listeners of "the gospel according to redenomination" show wherever the team has been to.
According to BOGLA, it is happy to be in a position of assisting the public, particularly women, to understand the change over to the new Ghana cedi.
Under the new cedi convention, ¢10,000 is equivalent to ¢1 or 100 pesewas, while the notes of the Ghana cedi come in five variations of ¢1, ¢5, ¢10, ¢20 and ¢50. The coins accompanying the notes are six types, beginning from one pesewa, 5 pesewas, 10 pesewas, 20 pesewas, 50 pesewas and ¢1. For instance, ¢100 today would be same as one pesewa, while ¢1000 now is equal to 10 peewas.
Speaking to Anextra Agency News (AAN), the president of BOGLA, Mrs Evelyn Kwatia, said the central bank ladies realize that places like churches and markets provide a large forum for education on the new cedi, more so in local dialect.
She stated that the association is aiming at getting very close to the public for one-on-one discussion to achieve greater understanding about the currency and its security features. BOLGA has therefore written to a lot of social organizations about readiness to provide free education to anyone who needs it.
On its church to church education, the team of educators has been communicating to many congregations including the Calvary Baptist Church Adenta branch, St Mary’s Anglican Church at Akoto Lantey and Freeman Methodist Church at Jamestown. One of the principal educators, Eleanor Laryea, a member of BOGLA, disclosed that the redenomination message was received tremendously by the church congregations especially as Ga, Ewe, and Akan are used for the education. "What motivates me about this campaign is seeing that the people are angry for information and I’m glad to be able to reach out to them in whatever language we can for them to appreciate what is happening because they are the integral part of the society and if they do not understand the whole process, then it would fail" she said. Another team member, Patience De-Graft Klo, who has been doing the rounds at Bubuashi and Kaneshie churches, such as Mount Ararat, expressed similar sentiment. "I was shocked to see church members eager to listen to us with some saying that they never knew the central bank has them too in the focus of the exercise." The work of BOGLA in the capital, particularly in the markets is expected to heat up as the ban on drumming is lifted. These efforts by the Bank of Ghana Ladies Association should allay the fears of the central bank governor, Dr Paul Acquah that staff may sabotage the success of the redenomination exercise. Pix

STRESS IS GOOD SAYS PROFESSOR

The former director-general of Ghana health service, Prof Agyeman Badu Akosa has acclaimed that stress is good for everybody as it imposes challenges on the human life.

That explains the numerous experiences of stress that people go through either at home, work place, behind the steer, or financial capabilities.

He said this in Accra at the second health seminar by Donewell Insurance Company on the theme stress, it effect on the body and its management.

Prof. Akosa said those who marry more than their income also face stress, adding that some drink and smoke to over come the stress but that is not the way to solve the situation.

He pointed out that the best way to overcome stress is to understand the stress and know how to solve by either meditating or relaxation.

Prof Akosa lamented that it is unfortunate that children give avoidable stress at home and school during their tender ages and adolescent ages.

He thereforeurge all parents and teachers to let children get their fare share of learning and playing, noting that playing is fundamental for the growing capabilities of every child.

JOE LARTEY TURNS 80 AND STILL STRONG
June 7

The celebrated public speaker and broadcaster, Joe Lartey is in his second day as an octogenarian.

The strong looking man, popularly known as Over To You, turned eighty years yesterday and as part of the day, the Accra Toastmaster Club honoured him with a plaque dubbing the acclaimed personality as the Doyen of Public Speaking in Ghana.

Gold news was at the event and asked Mr Joe Lartey, how it felt like chalking four score years and still going steady.

He replied that he is been taking very good care of his body and health for a very long time now, because he caanot afford to be a good public speaker and be looking sickly.

Joe Lartey, alias Over To You, is a celebrated public speaker and broadcaster, who who marked his 80th birthday yesterday.

Fathia Nkrumah Is Dead
May 31 2007

Madam Fathia Nkrumah, 75, the widow of the late President Nkrumah is dead.

Madam Nkrumah was suffering from stroke and died in a hospital in Cairo, Egypt.

One of the sons of Madam Fathia, Mr Sekou Nkrumah told Joy News ( www.myjoyonline.com )shortly after her death that although his mother’s death was sad to hear it was something the family expected due to the complicated nature of the illness.

"It is sad in a way but at least we should celebrate her life…I was expecting the worst. At her age I believe all kinds of things take place in her body," he said.

Mr Nkrumah said it was good President Kufuor took time off to visit his mother before her death. He said that should serve as a basis for all Ghanaians to shun political differences and live in unity.

"Good timing on the President’s part to visit her before her death. Ghanaians need to move beyond partisan politics and see ourselves as one," he said.
Madam Fathia was a very young wife and mother of three very young children when her husband was overthrown in Ghana’s first successful military coup on February 24 1966.

SOLDIER ABANDONS HIS ACCIDENT VICTIM

May 26 2007

The fate of an innocent mother of three hangs between death and life due to the recklessness and indiscipline of a soldier whose disregard for road signs has resulted in the hospitalization of this woman.

The woman, Madam Lucy Bosso, 32, was the victim of a head-on collision that occurred on the 14th of April 2007 around 4pm in front of flagstaff house. She was sitting in the passenger seat beside the driver when Corporal Nubi Baadah drove a Tata bus with registration number 33 GA 85 into the front part of the vehicle that madam Bosso was sitting in, a commercial minivan GR 9402 X.

The victim, who had left Aflao that day for Accra in that vehicle to purchase goods, was quickly rushed to the 37 military hospital with fatal injuries including a completely shattered right leg and a broken right arm.The news of the accident was telecasted by GTV in its news.

According to doctors, the leg cannot heal unless it is amputated, but even then the critical condition of the victim is hampering the operation, and so she is still lying in bed at the hospital immobile.

Surprisingly, Cpl. Baadah with identification serial number 188736, has abandoned the woman to her fate right from the moment that the incident occurred.

He never followed the victim to the hospital immediately following the accident, and has up till now never paid any visit to her to even ascertain her condition neither is he bearing the cost of her bills which is currently running into almost ¢10 million.

According to a brother of the victim, Holy Bosso, he has borne the cost of all the medical bills of his senior sister to date since the husband or any other family member lacks the means to take care of her.

He said they have reported the case to the cantonment police station but this has been to no avail. "And now the doctors at the hospital are suggestion that my sister's leg should be cut but since I don't have the money they are delaying while my sister suffers," he lamented.

Mr Bosso said although he received some donations from some individuals but it is not enough to take care of his sister and therefore pleaded with philanthropists to help him bring the sister out of pains.

He disclosed to that his sister was the bread winner for her family due to her husband being out of work for some years now and so the accident is having serious consequences on the family as the children and their father have been dispossessed of the breadwinner.

Mr Bosso said he is very much surprised at the behavior of the Corporal because he expected soldiers to be more disciplined than the character that Cpl Baadah has displayed.

He therefore appealed to the military authorities to help bring the culprit to book as well assist the victim get out of hospital.

PIX

Madam Lucy Bosso lying prostrate on bed at the 37 military hospital

CONSERVE WATER: MINISTER
Posted 24-05-07

Aqua Vitens Rand limited has estimated that illegal connections constitutes about 40 to 50 percent of unaccountable water and thus rendering the water company handicapped in supplying the required volume of water to consumers.

The company stated this at the launching of the save water education campaign in Accra.

Speaking at the launching ceremony, the minister of water resources, works and housing, Hackman Owusu-Agyemang said it is very essential for water to be conserved in order to complement governments efforts at providing portable water to all Ghanaians.

He said water is becoming increasingly scarce due to high population growth with its attendant increase in pollution coupled with growing economic activities, which is becoming a potential source of conflict in most African countries.

The minister pointed out that water conservation must include the protection and management of river bodies.

MASA TO BE HELD IN ABIDJAN
Posted May 24, 2004

African culture is one important contributing factor to the democracy that the continent is enjoying today. Therefore in restoration of peace and the consolidation of democracy in Cote d’Ivoire, a special edition of the Market For African Performing Arts, MASA is to held from July to August this year.

This unique edition of was re-launched in Accra after its four years break due to the Ivorian crises which brought the celebration of the festival to a halt.

The director general of MASA, Mr. Thomas Manou Yabalaih said MASA is the only Pan African artistic project which combines business opportunities, a forum for professionals and a festival.

The programme assists the African theatrical, dance and musical productions and artists to be better known by and help foster the circulation of their productions within Africa and the rest of the world.

Mr. Yabalaih disclosed that the special edition of the programme would be held in Abidjan and in four other cities in Cote d Ivore, namely Bouake, Korhogo, Man and Daloa.

World Migratory Bird Day

World Migratory Bird Day, WMBD, a global initiative, will from 12-13 May 2007 celebrate the beauty of migratory birds and how to promote and conserve them through out the world. This year’s theme is “Migratory Birds in a changing climate”, which will focus attention on the plight of migratory birds as well as highlight the way they are being affected by climate change and living things. Briefing the media on activities put in place for the day, the Acting Executive Director of Ghana Wildlife Society, Mr. Erasmus Owusu said the theme for this year’s World Migratory Bird Day is appropriate because climatic change has a severe consequence on migratory birds, causes the loss of essential bird habitats, changes migration patterns and increases the competition for food between migrating birds and residents when they travel far to other lands. He said climatic change is one of the most critical global challenges of this time because recent events have demonstrated the growing vulnerability to climatic change, not only on migratory birds but would also affect agriculture and even endanger food security. The World Migratory Bird Day is being promoted worldwide by the African-Eurasian Migratory Water bird Agreement and the Convention on Migratory Species

MORE OF LOCAL RICE MUST BE EATEN

Imagine the number of mouths that relished the taste of one of the most delicious staple foods, rice, as Africans celebrated Africa Liberation Day on Friday May 25, 2007.

Sadly, whether in the continent’s most populous country, Nigeria or in small Eritrea, so would majority of Ghanaians also enjoy their rice, without regard to its source and that only a small percentage of the rice being eaten is produced in Ghana and that the consumption of the greater percentage makes poor local rice farmers poorer.

Rice is the most consumed staple food in this country after maize. In 2000, Ghanaians consumed 309,808.9 metric tons of rice with local production volume of 137,216 metric tons or 44.30 %, but in 2003 percentage of local rice in total consumption was 29.04 % at 155,353.6 metric tons out of 534,905.9 metric tons. Total national production of rice in 2004 was 169.45 metric tons.

The value of yearly commercial imports of rice in total consumption was 54.16 % in 2000, 62.37 % in 2001, 60.30 % in 2002 and almost 70 % in 2003.

Infact, for over a four-year period between 2000 to 2003, commercial rice imports averagely constituted about 61.52 % of total national consumption, while local rice comprised an average of 36.58% and food aid 1.90%. (Action Aid)

High volumes of rice imports with their low prices has made local rice production ever more less competitive and unappealing as the price of local rice has been increasing over the years. The net incomes of rice producers in Ghana has been in the negative from 2002 to date, and therefore raising the poverty levels of these farmers.

Reduction in incomes has led to the loss of investment capital of many rice farmers and consequently affecting their access to food particularly as about 70% of producer households use rice for food and crop for cash.

The incomes of national rice farmers have been falling steadily over the years, but these falls have quickened since 2002. In the Ejisu Juaben district, for instance 24 farmers recorded a positive net returns from rice production in 2002, but this number reduced to 20 in 2003. out of 190 rice farmers that cultivated the crop in 2004, only 65 had slight positive returns while 125 experienced negative returns.

Interestingly, this situation does not endanger only the food security of the rice farmers, but also the whole nation as the populace would easily be held to ransom if at any time food imports is used as a weapon against the country. That means the nation’s food security is insecure.

Furthermore, the current situation indicates that the nation would continually need more cash for rice imports and worsens the foreign exchange pressure. On the health front, the strength of citizens would be less than optimum as imported rice is far less healthy than the locally produced rice.

The World Bank in 1986. defined food security as the "access by all people at all times to enough food for an active and healthy life." This definition deals with food availability; equitable distribution; and consumption

In 1979 the World Food Programme Report conceptualized food security as being equal to an "assurance of supplies and a balanced supply-demand situation of stable foods in the international market”.

But this conception is not applicable to Ghana considering its food status, particularly with regard to rice production.

It is in the face of such disheartening picture of the rice industry in the country that the efforts of civil society organisations like Oxfam, General Agriculture Workers Union (GAWU) and Action Aid, among others should be appreciated.

These organisations concerned about the plight of local rice farmers, are doing the best through advocacy and interventionist programs to assist these affected farmers.

Such groups are giving support to the peasant rice farmer because food security is such an important component of the development module to the extent that any country that does not secure its food by its own hands but rather relies on the benevolence of others loses the key to growth and development.

The Project-Citizens’ Voice In Trade Policy project, sponsored by the Rights and Voice Initiative (RAVI) is one of the strategies adopted by GAWU to strengthen the capacity of farmers by enabling the farmers make a direct input into policy formulation for the enhancement of their sector. RAVI is the rights advocacy window of the Ghana Research and Advocacy Programme (G-RAP).

The Project-Citizens’ Voice In Trade Policy project is intended to strengthen the capacity of rice farmers and agricultural employees to engage with government on trade policy affecting food security with particularly reference to rice.

It seeks to ensure sustained citizen-government engagement on rice issues, as well as secure enhanced government responsiveness to citizens concerns on trade policy and food security.

GAWU’s intervention in the rice industry has shown that the impact of rice dumped by heavily subsidized sources threatens to destroy the livelihoods of thousands of farming families and prospects for rural development.

The state of the rice industry in Ghana is an indication of how World Trade Organisation (WTO) trade regulations are forcing many small scaled farmers out of business as low-cost imports of rice have flooded the local markets.

Because of the WTO, government is weak in implementing strategies to benefit the local rice producers, such as imposition of high import tariffs and strengthening the production capacity of poor farmers who have sustained this economy all over the years but whose livelihoods are now disregarded in the name of liberalization.

The rural poor who are a major producer of food crops live in extreme poverty as a result of unfair competition arising from the influx of artificially cheap imports.
Despite these stark truths, the nation, particularly government looks on apathetically with the argument that the country lacks ability to meet its rice consumption requirements that is why cheaper rice imports must be continued.

The more we consume foreign cheap rice, the worse the plight of local rice become as they continually deprived of the needed funds that would have enabled them produce more at lesser costs.

It is time we put in place strategies to increase the consumption of local rice so that the miserable farmers can have access to more markets if they cannot be helped with subsidy.
The rice imported is heavily subsidized, and come to break the market of local farmers.

Food security means availability of food in sufficient quantities all year-round with a national buffer stock located at right places at affordable prices.

In 2002, Agriculture Development Bank gave out a loan of ¢112million to 141 women in processors and by June 2,430 acres of rice had been planted. This was certainly a good gesture of how support can work.

For now, government through the Ministry of Agriculture should support local rice farmers to go into large scale production and processing under let’s say a special five-year project that would ensure that rice produced would be enough to meet the nations need by end of the project.

We must consume more local rice from now on as we observe 50 years of independence, more so when local rice is become tastier to the extent that is packaged with foreign labeled bags.

A rice farmer inspecting his farm

A group of rice farmers working on their cultivation

A rice farmer inspecting his farm

Officials of GAWU educating local rice farmers on their rights

MINING COMPANIES URGED TO BE MORE RESPONSIBLE

Mining companies have been advised to mine responsibly in order not to compromise the livelihoods of future generations.

Chief executive of the chamber of mines, Ms Joyce Aryee gave the advice during a media interaction in Accra.

She noted that the mining sector is very important as almost everything revolves around mine products, however, mining firms must be more accountable to the society.

Ms Aryee expressed joy that members of the chamber have lived up to their social responsibility by providing free medical care for workers and their dependants as well as host communities.

Apart from establishing hospitals, there is a multi – billion malaria control programme underway to reduce the high rate of malaria in mining communities.

The sector’s contribution to GDP increased from 2.3 percent in 1991 to 5.2 percent in 2005 as the third highest contributor to internal revenue, accounting for over 12 percent of IRS collections.

Miss Aryee stated that the mining sector contributed 2.199 trillion cedis in 2005 towards national development.

MPC REVIEW OF GHANA'S ECONOMy JAN-APRIL
Posted 22/5/07

Below is the full text of the economic review report of the Monetary Plicy Committee of the Bank of Ghana, which was dekivered by the Governor, Dr Paul Acquah:
READ ON:

Ladies and Gentlemen, it is always a privilege to welcome you to our MPC press briefing.

Available information on developments through the first quarter of 2007 show that economic activity continues to be robust, underpinned by significant growth in imports and exports and strong corporate performance with the continuing load management programme in the energy sector a source of weakness in the outlook. Headline inflation continued to be stable on its downward trend but showed an up-tick in April to 10.5 percent. The Bank of Ghana’s Composite Index of Economic Activity (CIEA) at the end of the first quarter was up by 5.2 points (1.8 percent) over the December 2006 level of 285.7, and 21.8 percent in year-on-year terms against a trend growth of 20.9 percent.

The components contributing to the growth in the index were employment, exports, commercial bank credit, imports and tourism; there were some declines in port activities, cement sales and electricity consumption.

Evidence from the Bank’s surveys of Business and Consumer Confidence show that both indices of business and consumer expectations dipped slightly at the end of the first quarter from the highly favourable levels recorded in preceding quarters. Non-financial corporate sector performance during the first quarter of 2007, was robust and broad based for listed companies. These companies posted good results in terms of turnover growth, net profits and cost of sales in various sectors, covering manufacturing, Distribution, Food and Beverages, Agriculture, and Information Technology.

Deposit Money Bank’s (DMBs) credit to the private sector and public institutions continued to show significant growth as it increased by 12 percent (¢3,021 billion or GH¢302.1 million) to ¢28,218.8 billion (GH¢2.82 billion) in the first quarter of 2007 and 11.9 percent during the last quarter of 2006. Over the twelve-month period to March 2007, DMBs credit to the private sector and public institutions rose by 50.4 percent (¢9,460 billion or GH¢946.0 million) compared with 42.1 percent (¢5,559 billion or GH¢555.9 million) recorded for the same period in 2006.

In real terms, credit to the private sector grew by 41.7 percent in March 2007 (highest in recent times), compared with the 28.7 percent recorded for December 2006 and the 19.4 percent for the corresponding period of 2006. The distribution of the annual credit flow was broad-based, but continued to be concentrated in the services (27.1 percent), commerce and finance (22.2 percent), manufacturing (12.6 percent) and construction (11.2 percent).

Total assets of the banking industry rose by 41.6 percent to ¢56,275.7 billion (equivalent to GH¢5.62 billion) over the year to March 2007, compared with 24 percent a year ago. Net loans and advances increased by 58.1 percent to reach ¢26,354.7 billion (or GH¢2.63 billion) in March 2007, compared with 41.8 percent for the preceding year.

The quality of the banking industry’s loan portfolio improved. Non-Performing Loans (NPL) ratio declined to 6.9 percent at the end of March 2007 from 7.9 percent in December 2006, compared to 12.9 percent recorded a year ago. Banks’ solvency remains strong as the industry Capital Adequacy ratio stood at 16.9 percent in March 2007 compared with 16 percent a year earlier. These developments are driven by the recent build up of bank’s loan books but also the clean up of balance sheets and write off of bad debts.

Broad money (M2+) rose by 1.2 percent during the first quarter of 2007, compared with the 17.4 percent recorded in the last quarter of 2006, and 3.6 percent in the corresponding period of 2006. On annual basis, M2+ grew by 35.9 percent, down from 39.1 percent at the end of December 2006 and compares with 19.6 percent recorded for the same period in 2006. Reserve money broadly declined at a somewhat more rapid pace in the first quarter of 2007. After peaking at 32.3 percent in December 2006, reserve money declined by 11.8 percent in the first quarter of 2007 compared with 8.2 percent seasonal drop over the same period in 2006.

Provisional data at the end of April 2007 show that on year-on-year basis, reserve money grew by 20.6 percent compared with 32.3 percent at the end of December 2006 and 18.5 percent at the end of April 2006. Interest rates eased downwards along the spectrum of maturities.

The benchmark 91-day Treasury bill rate fell by 9 basis points to 9.55 percent at end April 2007. The 182-day Treasury bill and 1-yr note also fell by 27 and 60 bases points respectively to 10.26 and 12.4 percent respectively. The 3-year fixed instrument moved to 13.5 percent in April 2007 from 14.0 percent in December 2006. Average base rate quotations of Deposit Money Banks moved downwards by 1.41 basis points in the first quarter of 2007 within the range of 18.00 and 21.45 in March 2007 from a range of 19.20 and 22.50 percent in December 2006.

However, average lending rates remained unchanged within the range of 15.0 percent and 33.5 percent at the end of March 2007.

The first quarter of 2007 saw a continued shift in the portfolio preferences of investors on the money market to the medium to long end of the market. This follows similar trends observed over the past 12 months. Shares of the 91-day and 182-day Treasury Bills declined further from 34 percent at the end of December 2006 to 27 percent at the end of April 2007 (from 56 percent at end of December 2005). The shares of the 2-year and 3-year fixed rate notes together with the 5-year GOG bond increased from 34 percent to 45 percent over the same period to April 2007. And, the share of 2-year and 3-year floating notes and bonds declined further from 7 percent to 4 percent at the end of April 2007.

The shift in portfolio preferences together with the issue of the 5-year bond resulted in lengthening of average maturity of government securities to 391 days from 322 days a year earlier.

Provisional data for the external sector during the first quarter of 2007 shows the trade balance improved by 7.6 percent from a deficit of US$842.25 million in the first quarter of 2006 to US$778.63 million at the end of the first quarter of 2007.

Total merchandise exports at the end of March 2007 amounted to US$1,044.08 million, an increase of 12 percent over fourth quarter 2006 position, and 13 percent compared with that of the first quarter of 2006. Total imports in the first quarter of 2007 amounted to US$1,822.71 million, a growth of 15.8 percent over that of first quarter of 2006, and 2.7 percent over the fourth quarter of 2006.

Crude oil imports amounted to US$415.43 million, about 24 percent above the US$379.79 million recorded in the first quarter of 2006, reflecting an increase in volume, as the average price declined by 6.7 percent.

Trade deficit however narrowed by 7.6 percent from US$842.25 million in the fourth quarter of 2006 to US$778.63 million for the first quarter of 2007. The external current account recorded a deficit of US$482.8 million compared to a deficit of US$181 million (before debt relief) recorded in the first quarter of 2006.

Private inward transfers – received by NGOs, embassies, service providers, individuals etc. through the banks and finance companies for the first quarter of 2007 amounted to US$1.52 billion, representing 17.1 percent increase over that recorded for the same quarter of 2006. Of the total transfers, US$346.56 million (22.8 percent) accrued to individuals, compared with 32.8 percent for the same period in 2006, when total transfers for the year amounted to US$5.80 billion.

The gross international reserves (GIR) stood at US$2.07 billion (2.5 months of goods and services imports). In April 2007, a decline of 8.8 percent from the end of 2006 level, but an increase of 8.4 percent in year-on-year terms.

On the foreign exchange market, total purchases and sales of foreign exchange by the banks and forex bureaux amounted to US$1.90 billion for the first quarter of 2007 (or an increase of 15.9 percent), compared with the fourth quarter of 2006. For the month of April 2007 alone, total purchases and sales increased by 20.2 percent to US$646.17 million, compared with US$537.14 million recorded in April 2006, raising the total purchases to US$2.55 billion (a 16.9 percent in year-on-year terms).

Developments in the nominal bilateral exchange rates of the cedi against the three core currencies – the US dollar, the pound sterling and the Euro – show that for the period from January to April 2007, the cedi depreciated, cumulatively, against all three core currencies by 0.5, 3.7 and 4.0 percent respectively. This compares with depreciation of 0.01 percent against the US dollar and depreciation of 0.2 and 4.1 and 7.8 percent respectively against these currencies over the same period in 2006. The result was a nominal depreciation of 1.9 percent in trade-weighted terms.

On the Budget, provisional banking sector data on the implementation of the 2007 budget indicates that total receipts for the first four months of 2007 amounted to ¢14,402.7 billion (GH¢1.44 billion), compared with ¢8,505.7 billion (GH¢850.6 million) for the same period in 2006. This represents some 23.5 percent of the annual budgeted target for 2007 and shows a growth of 69.3 percent over the outturn for the same period in 2006.

Total revenue and grants amounted to ¢10,758.9 billion (GH¢1.08 billion), some 45.9 percent above the outturn for the same period in 2006. Of this amount, programme grants received amounted to ¢1,440.24 billion (GH¢144.0 million), about 94.5 percent of programmed target for 2007.

Total payments for the first four months of 2007 amounted to ¢15,962.7 billion (GH¢1.60 billion), 55.9 percent over the same period in 2006, and constitutes some 35.9 percent of programmed expenditures for 2007.

These developments resulted in a deficit of ¢1,560.0 billion (GH¢156.0 million) compared with a deficit of ¢1,736.3 billion (GH¢174.0 million) for the same period in 2006. The resulting overall budget deficit was financed to the tune of ¢2,485.5 billion (GH¢248.6 million) through domestic borrowing mainly on the auction market.

Developments in the Consumer Price Index through the first quarter of 2007 showed a decline in the rate of inflation by 0.7 percentage points to 10.2 percent, driven by non-food prices. Food prices rose by almost a percentage point (to 8.4 percent) on an annual basis, while increases in non-food prices eased from 13.6 percent (at the end of December 2006) to 11.6 (at the end of March 2007).

In April 2007, CPI inflation showed an up tick to 10.5 percent. The increase in the Month of April 2007 was driven by unusual increases in food prices which have been attributed to supply conditions. The core measure of inflation which excludes energy and utility items from the consumer basket dropped by 0.3 percentage points from 9.4 percent at the end of December 2006 to 9.1 percent at the end of March 2007. It went up to 9.2 percent in April. Another core measure of inflation which excludes energy and utility and selected volatile food items followed a similar pattern.

To summarise economic activity has been robust through the first quarter of the year (with the uncertainty around the load management and energy supply a source of weakness in the outlook). Indications of performance in the composite index of economic activity is above its trend growth, corporate profitability and turnover are strong in both the non-financial corporate (listed companies) and the financial sector.

And, strong private sector deposit growth in the banking system is supporting rapid credit expansion that is becoming increasingly broad-based across sectors.

Data on the budget underlines the stimulus government spending is imparting to the economy. The lack of balanced synchronisation of spending with budgetary resources has enlarged the public sector borrowing requirement that will need unwinding later in the budget cycle.

Headline inflation showed an up-tick in April from the steady decline observed in the last quarter. However, inflation pressures remain relatively subdued and price volatility was driven by utility and energy over the past several months. Core CPI inflation excluding energy and utility continued to track inflation at below or close to the single digit threshold.

The downside risks in the outlook is associated with managing the output and cost pressures inherent in the load shedding and supply uncertainties in the energy sector, with the current round of wage settlements in the public sector is an added factor. The economic fundamentals are strong.

And, the external payments outlook remains favourable with commodity prices firm and inflows steady. To conclude I will like to announce for information of the public that the Bank of Ghana has formally adopted an inflation targeting framework and it will be using this core measure of inflation that I have just described as its principal variable for tracking underlying inflation in the economy.

The risks in the outlook are therefore well balanced and the Monetary Policy Committee has decided to keep the prime rate unchanged at 12.5%.

BOG ESTABLISHES GIPSS
Posted 10/05/07

The Bank of Ghana and the Ghana Association of Bankers have agreed to establish the Ghana Interbank Payments and Settlement System (GIPSS). GIPSS would be an independent entity responsible for the different components of Ghana’s payment and settlement system infrastructure. It would include National Switch (the Common Platform), Biometric Smart Card, Cheque Clearing, Codeline Cheque Truncation, Real Time Gross Settlement System (RTGS), and Automated Clearing House (ACH) A statement released today from the public affairs department of the Bank of Ghana said all banks would be members of GIPSS either directly or access the system through member banks. It is expected that the National Switch, biometric smartcard, codeline cheque truncation, and Automated Clearing House would be installed by the end of 2007 and this should provide Ghana with an efficient, robust and modern payment system infrastructure. The GIPSS would also significantly reduce the usage of cash for business transactions and move the economy towards electronic payments, with the National Switch allowing ATM interoperability between banks. The system would extend services to the unbanked and underbanked segments of the population. It would allow banks, savings and loans, and other financial and non-financial institutions (such as Government, Universities, Cocobod, SSNIT, NHIS, large enterprises, hospitals, public transport, etc) to deploy products for the banked and unbanked that they have thus far been unable to do. The biometric (finger print) smartcard, for example, is designed to function in location without electricity and telecommunication equipment and eliminates the need to have basic literacy and numeracy to operate a bank account, and it also offers protection against fraud. The cost of electronic transactions should also reduce as banks would be able to pass on the advantages of economies of scale to be derived from this cooperative effort.

NTEs EXPECTED TO HIT $ 1 BILLION
Posted 10/05/07

Revenue from the Non-Traditional Exports (NTE) sector is projected to hit the one billion-dollar mark this year as efforts to diversify the country’s export market is gradually paying off. The percentage share of NTE to overall exports for last year stands at $ 892,878 m, representing 26.14 percent of total exports of $3,415,700 m. Additionally, NTEs has been growing at an annual average rate of 14.3 percent since 1997. The Ghana Export Promotion Council (GEPC) revealed this at the first ever reception for sponsors of the GEA. The GEPC initiated the export awards to enhance NTEs and thereby lead to favourable foreign exchange earnings. The occasion was also used as an opportunity to present awards to some organisations that could not receive their awards last year, namely, Tongu Fruits, BOMAG Farms, Bio Plantlets and Export Development and Investment Fund (EDIF). Non-Traditional Exports is used to classify the export of all products apart from the traditional ones such as cocoa beans, timber logs and lumber, electricity and gold. There are over 383 different Non-Traditional Export products categorized into Agricultural, Processed / Semi Processed and Handicrafts. Launching the highlights for 2006 statistics of the NTE sector, a board member of the GEPC, Nana Asante Frimpong said processed/semi-processed products topped the list with a total of $ 710.89 m, followed by agriculture at $ 177.5 m and handicrafts $ 4.49 m. He noted that the contribution of NTE to the overall export sector has been very significant since the inception of the Ghana Exports Award (GEA) in 1989 to date. For his part, the general manager of GEPCMr Lawrence Prempeh stated that NTE earnings by markets for last year showed the European Union as the biggest with 47.03 % at $ 419,882,938 m , ECOWAS 27.18 % at $ 242,689,210 m, and Emerging Markets 11.9 % at $ 106,237,220 m. Markets for Other Developed Countries were 11.07 % at $ 98,857,773 m and Other African Countries 2.82 % at $ 25,210,576 m. Burkina Faso was the most African country that trade with Ghana, followed by Nigeria, while Liberia was the least in the sub-region that was traded with. GEPC is the National Export Trade Promotion Organisation that facilitates the Development and Promotion of Non-Traditional Exports. It was established in 1969 as an agency of the Ministry of Trade and Industry with the mandate to develop and promote Ghanaian exports. The Council’s focus has primarily been to diversify Ghana’s export base from the traditional export products of Gold and other minerals, Cocoa Beans, Timber Logs and Lumber, and Electricity. GEPC has a clientele base of over 3000 registered private sector exporting companies organized into 15 Product Associations, which she relates to both on individual corporate basis and as groups/associations. This year’s export awards, which is annually organised by the council with sponsorship from corporate entities, would be on the theme “Managing Ghana’s Export Trade For Economic Development”.

TABLES Ten Leading Markets for NTEs

COUNTRY	2005 (US$Million)	2006 (US$Million)	% Growth Rate	% Cont. to 2006 NTEs
UNITED KINGDOM	113.4	108.2	-4.58	12.12
FRANCE	58.1	82.1	41.36	9.20
BURKINA FASO	63.3	77.1	21.70	8.63
NIGERIA	54.1	67.6	24.96	7.57
UNITED STATES	50.0	55.0	9.89	6.16
NETHERLANDS	30.6	50.2	64.03	5.62
INDIA	14.8	47.5	221.38	5.32
GERMANY	21.4	45.7	113.16	5.12
SPAIN	36.6	43.2	17.78	4.83
ITALY	29.6	38.1	28.69	4.27
TOTAL	371.9	614.7		68.84

LEADING MARKETS FOR NTE IN ECOWAS

	COUNTRY	2005 (US$)	2006 (US$)	% Growth
1	BURKINA FASO	63,348,365	77,093,703	21.70
2	NIGERIA	54,119,399	67,625,854	24.96
3	COTE D'IVOIRE	18,583,507	31,782,748	71.03
4	TOGO	36,180,679	24,399,327	(32.56)
5	*****	19,210,495	10,701,010	(44.30)
6	MALI	19,546,213	8,310,346	(57.48)
7	BENIN	4,455,321	8,029,864	80.23
8	SENEGAL	5,981,704	6,767,921	13.14
9	GUINEA	1,400,816	1,897,292	35.44
10	LIBERIA	2,149,018	1,764,550	(17.89)

Performance of NTE relative to Total Exports 2004 to 2006

	2004 US$’000	2005 US$’000	2006 US$’000
Total Export	2,740,240	2,768,400	3,415,700
NTEs	705,429	777,593	892,878
% Cont. of NTE to Total Exports	25.74	28.09	26.14

Ten Leading NTE Products

	Product	US$	% Cont. to NTE
1.	Cocoa Paste	90,354,822	10.12
2.	Veneer Sheets	56,030,284	6.28
3.	Prepared Tuna	55,519,913	6.22
4.	Cocoa Butter	53,058,590	5.94
5.	Frozen Tunas	29,835,512	3.34
6.	Plywood	27,350,979	3.06
7.	Shea Nuts	27,248,779	3.05
8.	Cut Fresh Pineapples	25,869,191	2.90
9.	Other Prepared	24,487,115	2.74
10	Other Frozen Fish	20,088,060	2.25
	TOTAL	409,843,245	45.9

Ten Leading Processed/Semi Processed Products

Product Description	2005 (US$)	2006 (US$)	% Growth Rate
Cocoa paste	29,311,705	90,354,822	208
Veneer sheets	10,425,899	56,030,284	437
Prepared Tuna	54,849,916	55,519,913	1
Cocoa butter	33,468,122	53,058,590	59
Plywood	11,502,149	27,350,979	138
Cut Fresh Pineapples	13,429,736	25,869,191	93
Prepared Fish	22,869,768	24,487,115	7
Tomato paste	20,242,168	15,916,821	(21)
Aluminum Coil	16,544,780	15,412,863	(7)
Natural rubber	6,044,492	14,307,594	137
Total	227,179,689	379,440,094	67

Ten Leading Agriculture Produce

Product Description	2005 (US$)	2006 (US$)	% Growth Rate
Frozen tunas	14,978,982	32,148,162	115
Shea nuts	28,968,495	27,248,779	(6)
Other frozen Fish	6,688,347	20,088,060	200
Pineapples, fresh or dried	12,784,322	19,086,134	49
Yams	10,951,355	14,156,905	29
Cashew nuts, in shell	5,235,834	11,794,820	125
Banana, Fresh	458,940	10,297,106	2,144
Cotton linters	4,053,066	4,427,006	9
Cotton Seed	1,761,748	3,187,066	81
Vegetables	1,592,515	2,089,071	31
Total	87,473,604	144,523,109	65

Ten Leading Handicrafts Products

Product Description	2005 (US$)	2006 (US$)	% Growth Rate
Statuettes of wood	18,942,744	3,136,099	(83.44)
Sculptures and statuary	94,585	604,624	539.24
Tanned or crust skins of sheep	3937	337,142	8,462.99
Articles of jewellery of base metal	200	90,449	45,104.25
Ceramic roofing tiles	13,548	61,114	351.08
Shells of molluscs		39,840	-
Glazed ceramic flags and wall tiles	4403	38,683	778.56
Plaits and plaitings	2520	37,825	1,400.98
Paintings and drawings	8,011	28,998	261.96
Ceramic pot and jars	12,281	26,112	112.63
Total	19,082,231	4,400,887	(76.94)

PERCENTAGE SHARE OF NTE EARNINGS BY MARKETS MARKETS PERCENTAGE EUROPEAN UNION (EU) 47.03 % ECOWAS 27.18 % EMERGING ECONOMIES 11.90 % OTHER DEVELOPED COUNTRIES 11.07 % OTHER AFRICAN COUNTRIES 2.82 % TOTAL 100 % Performance of NTE Sector by Markets

MARKETS	2005	2006	% Growth
EUROPEAN UNION (EU)	368,706,315	419,882,938	13.88
ECOWAS	243,953,543	242,689,210	(0.52)
EMERGING ECONOMIES	72,162,406	106,237,220	47.22
OTHER DEVELOPED COUNTRIES	74,024,165	98,857,773	33.55
OTHER AFRICAN COUNTRIES	18,746,191	25,210,576	34.48

Trends in Percentage Share of NTE Earnings by Destination Category

DESTINATION CATEGORY	2004	2005	2006
EU	53.76	47.42	47.03
ECOWAS	16.37	31.37	27.18
OTHER AFRICAN C'TRIES	3.8	2.41	2.82
OTHER DEVELOPED COUNTRIES	16.86	9.52	11.07
EMERGING ECONOMIES	9.21	9.28	11.9

ANEXTRA AGENCY

anextranews — Mon, 28 Jul 2008 14:46:44 CDT

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GENERAL NEWS

anextranews — Sat, 31 May 2008 14:35:23 CDT

GHANA NEEDS TOBACCO FREE YOUTH - says GHS Director-General

May 30, 2008

The Director-General of Ghana Health Service (GHS), Dr Elias Sory has called for a concerted effort to pass the Tobacco Bill to ensure the health and safety of the nation's youth.

According to him, the long-overdue bill would give legal backing to moves by the GHS and the gneral public to stop tobacco use and smoking particularly among the youth.

He said this in Accra Friday at the country's launch of 2008 World Tobacco Day on the theme "Tobacco Free Youth".

This year's campain focuses on the main mesage that countries can protect young people from experimenting and become regular tobacco users. The objective is to ban all forms of direct and indirect tobacco advertising, including promotion of tobacco products and sponsoships by the tobacco indusy of events.

In Ghana, facts from the Global Youth Tobaco Survey indicates a prevalence rate of 11.5 percent of students ever smoking cigaretes, 14.4 percent currently use any tobacco product, and 4.0 % currently smoke cigarretes. While 12.5 % of students curently use tobacco products other than cigarettes, 14.6 % of never smokers are likely to initiate smoking next year.

Dr. Sory advised the youth and students to use their energy and creativity to motivate their peers and others to support antti-tobacco measures in the country.

For her part, the deputy health minister, Dr. (Mrs) Gladys Norley Ashitey urged the media to focus on the harmful effects of tobacco as their contribution to the fight against the tobacco epidermic.

Additionally, she appealed to filmmakers and event organisers not to allow tobacco companies to get the youth hooked through their productions.

Credit: Anextra Agency News

UNCTAD XII IN GHANA

Posted April 2008
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UN SEC-GEN IN GROUP PIX WITH GHANA MPs AT UNCTAD XII: On the right is speaker of Ghana Parliament, Hon. Ebenzer Sakyi-Hughes

ANEXTRA AGENCY NEWS

anextranews — Thu, 22 May 2008 10:03:31 CDT

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anextranews — Mon, 12 May 2008 08:24:01 CDT