NCA awards $5.5m BWA license to GoldKey Properties

The National Communications Authority (NCA) has announced the award  of $5.5 million Broadband Wireless Access (BWA) licenses to GoldKey Properties Limited.

The company, the NCA said  won the bid to have the 2500 – 2690 MHz band for the next ten years.

NCA said it used a multi–stage selection process to arrive at the decision.

“The Authority employed a multi-stage selection process (a combination of “beauty contest” and auction) to select the BWA licensees among a total of five applicants. At the end of the process GoldKey Properties Limited won a paired slot of 2x15MHz at the final Auction Price of Five Million, Five Hundred Thousand (US$5,500,000.00) United States Dollars”, the NCA said on its website.

According to the NCA, the BWA licenses are intended to provide wireless broadband connectivity to subscribers and licensees shall be authorized to develop and operate broadband networks to provide nationwide BWA services as well as a suitable technology of their choice to provide fixed, nomadic or mobile broadband services throughout Ghana.

The NCA also announced that Broadband Home (BBH) has also opted to remain in the band with an unpaired 30 MHz slot for the final auction price.

“The National Communications Authority is committed to employing appropriate regulatory mechanisms to achieve Government’s Policy objective of giving ‘every citizen and resident of the Republic of Ghana access to high quality and affordable Broadband services, to facilitate the accelerated transformation of Ghana into a knowledge-based society and technology-driven economy’ ”, NCA concluded.

By Ekow Quandzie
ghanabusinessnews.com

TV advertising revenue expected to hit $191b worldwide in 2011

Television, the world’s leading medium is expected grow its advertising revenue to $191 billion in 2011 worldwide to solidify its status as the super media among all forms of media.

In a report prepared by one of the world’s financial firms, Deloitte & Touche titled “Technology, Media and Telecommunications Predictions 2011”, the firm said worldwide TV advertising will grow by $10 billion which will add up to $191 billion in 2011 with 40 million new television viewers adding up to the current number of viewers.

“Television’s five year growth in advertising revenue will grow from $174 billion in 2007 to $191 billion in 2011”, said Deloitte & Touche adding that newspaper advertising revenue within the same year will decline from $126 billion to $93 billion.

In its estimation, Deloitte & Touche said it is expecting a 6 percent rise in 2012 to take TV advertising revenue to a $200 billion mark.

“A forecast 6 per cent increase in 2012 would take TV advertising revenue beyond the $200 billion mark: more than twice as much as for newspaper, the number two advertising medium” the report said.

Forecast TV advertising revenue in 2011should discourage any lingering doubts that the 30 second spot is in structural decline, Deloitte & Touche added.

According to the report, Deloitte & Touche expects television to grow its share of audience attention, despite competition from many other existing and emerging distractions both online and offline.

“In 2011, aggregate television viewing will likely reach 4.49 trillion hours. The global television audience is expected to grow by 40 million to 3.7 billion viewers.”

Deloitte & Touche says viewing of television per person is expected to rise modestly to 3 hours and 12 minutes per day as compared to the 15 minutes per day per member spent on social network sites.

By Ekow Quandzie
ghanabusinessnews.com

Newmont Ghana Gold achieves 96% ‘local content’

Newmont Ghana Gold Ltd., (NGGL)  the largest American investor in Ghana and second largest mining company in the country says 96% of its employees are Ghanaians.

The mining concern which is operating one of the largest mines in Ghana says it is making conscious efforts to integrate local communities within and around the company’s operations.

The Communications Manager of Newmont Ghana, Agbeko Azumah told journalists at a briefing at the miner’s offices in Ahafo in the Brong Ahafo region that, of the company’s 4,706 employees, about 96% are Ghanaians.

He said the breakdown are 57.25% ‘non-local’, that is Ghanaian citizens who do not come from the 10 communities within and around its concession, 38.01% of the group which the company calls ‘local-local’, “these are citizens from the 10 communities we are operating in,” he said, adding that “only 4.74% are expatriates.”

The Ghanaian government has indicated that there must be 90% of what it calls ‘local content’ in the extractive industries, by the year 2020, especially in the country’s nascent oil industry. A position, that energy advisor, Tony Paul who is advising the Ghana government on local participation in the oil industry has said the government itself has acknowledged as unrealistic and is taking a second look at.

He suggested that government must have law and formulate policy to regulate local content or local participation in the extractive industries.

Tony Paul said in pursuing the issue of local participation in the extractive sectors the country must “target areas to Ghana’s strategic interest.”

Meanwhile, Newmont Ghana Gold says since it began operations in Ghana in 2006 it has created 48,000 jobs, and the company says these are “direct, indirect and induced jobs.”

In pursuance of local participation in its activities, the company says it has established what it calls ‘Community Stakeholder Engagement’ where it puts down $1 per ounce of gold mined and 1% of its net profit are lodged into a development fund account to be invested in providing schools, and other infrastructure for local people. Mr. Agbeko said a microfinance fund has been set up to provide funding for local women in these communities.

The company believes that through these activities, it is able to address the key grievances of the local communities including the provision of employment.

However, Mr. Augustine Niber, of the Centre for Public Law Interest, who is also the first lawyer to initiate an environmental law suit in Ghana, says that the mining laws of Ghana, as they stand now, must be amended to address the issues affecting local communities where the extractive industries operate.


Source: ghanabusinessnews.com

Two Ghanaian languages to be printed on 2011 UK census forms

Two Ghanaian languages of the Akan stock, Twi and Fante will be added to the different languages that will be printed on census forms for the United Kingdom.

The UK population census to be held on March 27, 2011, will include the Twi and Fante languages for Ghanaian immigrants in that country.

According to the Telegraph a UK publication, the census form this year will be printed in 57 different languages including Twi, which is double the number in the last census conducted a decade ago.

“The languages range from Twi, spoken in southern Ghana, to Sinhala, spoken in Sri Lanka”, the Telegraph said on February 24, 2011.

A Daily Mail report of February 22, 2011 also said the Fante language will also be included.

The language translations will cost the UK government an amount of £50,000 out of the total cost of £428million, the Telegraph says.

Other African languages on the list include Ibo, spoken in Nigeria, Amharic of Ethiopia and Swahili, spoken mostly in East Africa.

The UK’s Office for National Statistics (ONS) will conduct the census in England and Wales and it will involve around 25 million households.

By Ekow Quandzie
ghanabusinessnews.com

Mobile network congestion to worsen unless there is growth in broadband – ITU

The International Telecommunications Union (ITU) has warned that if action is not taken to fast-track the growth of mobile broadband, mobile phone users would face worsening network congestion.

The ITU says the current bad situation of network congestion which subscribers are experiencing, will continue and eventually get worse.

According to the ITU, smartphones such as Iphone, Android, Galaxy Tab among others, which are set to rise from the current global estimate of 500 million handsets in use, to almost two billion by 2015, are consuming an average of five times data capacity more than users of ordinary mobile phones and hence the need for governments to show enough commitment to the growth of mobile broadband.

“Governments need to take urgent action now to support mobile broadband growth by avoiding network bottlenecks”, says Dr Hamadoun Touré, Secretary-General of the International Telecommunications Union in a press release dated February 11, 2011.

According to Dr Touré, this will accelerate fibre roll-out and greater spectrum availability.

According to the ITU, even though mobile operators have invested billions of dollars to upgrade and improve the capacity and performance of their networks, some mobile phone users are still frustrated by the chronic problems of network unavailability.

The ITU boss said countries need to have a National Broadband Plan which will promote enough and extra spectrum to support the growing number of data-intensive applications.

“Robust National Broadband Plans that promote extra spectrum and the faster roll-out of the fibre networks which are essential to mobile backhaul are vital to support the growing number of data-intensive applications,” he said.

An ITU analysis shows that only 98 countries have National Broadband Plans in place but this number is set to increase in the coming years.

In 2010, ITU inaugurated a Commission known as the Broadband Commission for Digital Development to highlight the need for governments worldwide to promote broadband as a key development tool and push broadband network roll-out more proactively.

The Commission, which is co-chaired by President Paul Kagame of Rwanda and Carlos Slim Helú, Honorary Lifetime Chairman of Grupo Carso recommended in its report which was delivered to UN Secretary-General Ban Ki-moon in New York September 2010, that world leaders should focus on building a ‘virtuous broadband development dynamic’, and urged governments not to limit market entry, not to tax broadband and related services too heavily, and to ensure ample availability of spectrum to support mobile broadband growth.

Mobile phones are particularly significant and popular in developing countries, where land lines and traditional communications infrastructure can be unreliable or non-existent.

In Ghana for instance about 75% of the country’s 23 million population are mobile phone subscribers, the national regulator, the National Communication Authority (NCA) has said.

According to statistics from the NCA, the total number of mobile phone subscribers in Ghana is over 17.4 million at December end 2010. It puts the figure specifically at 17, 436, 949 subscribers which is an increase of 2.2% from the November figure of 17,062,917. And the 2.2% increase in subscriber rates in the month of December is the highest increase in the entire year 2010.

And Ghanaian subscribers are familiar with network congestion issues.

By Emmanuel K. Dogbevi & Ekow Quandzie
ghanabusinessnews.com

Ghana Stock Exchange disappointed with government’s sale of AngloGold shares

The Governing Council of the Ghana Stock Exchange (GSE) has registered its displeasure at the government for bypassing the local bourse in the sale of the 1.28 per cent of its stake in AngloGold Ashanti (AGA), the Daily Graphic reports.

According to the report, the Council said the country could be better served if the sale of AngloGold Ashanti shares was rather floated on the GSE instead of the Johannesburg Stock Exchange (JSE).

“The GSE, registers its disappointment at the government’s decision to trade on AGA shares at the JSE when the deal could have been executed o the GSE, depriving the country of the benefits accruing from this transaction”, Graphic said citing Mr Frank Brako Adu, Chairman of the GSE Governing Council.

Ghana sold 1.28% of the country’s stake in AngloGold Ashanti for $43.97 a share and raised $215 million, according to a Bloomberg News report.

The report citing the Johannesburg-based unit of manager, Macquarie Group Ltd, said the sale of 4.88 million shares leaves Ghana with 1.72% in AngloGold that it agreed not to sell for 180 days.

The opposition New Patriotic Party (NPP) commended the National Democratic Congress (NDC) government for selling the stake.

The party’s spokesman on Finance and Member of Parliament, Dr. Osei Akoto told ghanabusinessnews.com that the decision is a right one because the price of gold has appreciated on the international market.

The Ghana government was the majority shareholder in Ashanti Goldfields Company, until it announced plans to sell 20-25% of its interest in the mine.

Subsequently, the company was listed on the London and Ghana Stock Exchanges.

In 1996 the company was listed on the New York Stock Exchange to raise new capital and it became the first African company to appear on Wall Street.

In 2004, it merged with AngloGold to create the world’s second-largest gold producer, AngloGold Ashanti Company.

AngloGold Ashanti owns two mines in Ghana at Obuasi and Iduapriem.


By Ekow Quandzie
ghanabusinessnews.com

Ghana to industrialize with bauxite – Collins Dauda

Alhaji Collins Dauda has said Ghana would industrialize using the bauxite industry.

According to the out-going Minister of Lands, Forestry and Natural Resources, the country intends to develop its struggling bauxite industry into an integrated one.

He was reported by the mining sector media to have said that Ghana is seeking to develop an integrated bauxite industry in order to draw more value from its natural resources.

“Bauxite would be a way to industrialize the country very fast,” he was quoted as saying on the sidelines of the Indaba mining conference in South Africa last Wednesday .

By selling its resources without seeking to process them in order to generate more value, “Ghana is losing money,” he said.
Bauxite is a key ingredient used to make alumina which is in turn refined into aluminum.

He said that Vimetco NV , the US’s Alcoa Inc, and China’s Bosai Minerals Group had all expressed interest in participating in Ghana’s desired development of an integrated bauxite industry.

He noted that talks have already started with Vimetco. He indicated that Vimetco has submitted an application for a bauxite exploration license that the ministry is trying to review “as fast as possible.”

Ghana’s bauxite industry has been suffering decline due to poor railway lines and deteriorating road networks that are hampering transportation of the resource.

A GNA report in 2009 quoted Prince William Ankrah, General Secretary of the Ghana Mines Workers’ Union as saying that due to the poor nature of railway lines and roads bauxite meant for export could not be hauled to the ports and are locked up at Awaso a bauxite producing area.

Reuters also reported in 2009 that Rio Tinto was selling its 80 percent stake in Ghana’s only bauxite mine at Awaso to Chinese minerals group Bosai.

According to the Reuters report Rio Tinto spokesman Stefano Bertolli cited the following as reasons for selling off the stake: “Apart from the prevailing unfavourable market conditions, the infrastructure is not ready yet for that programme … the cost of power and the supply system has to improve.”

Mining is significant to Ghana’s economy. The country is the second largest producer of gold in Africa after South Africa and it is among the world’s five top producers of manganese ore. The country also produces significant quantities of bauxite and diamond.


Source: ghanabusinessnews.com

Oil revenues won’t transform Ghana’s economy – UNDP

The United Nations Development Programme (UNDP) says neither Ghana’s new found oil revenues nor the recent rebasing of the country’s economy are fundamentally panaceas for economic transformation.

According to the findings of a study conducted by the UNDP titled “Leveraging fiscal space for human development in Ghana: The 2015 MDG target and beyond”, notwithstanding popular perceptions of an “oil boom,” there is little to indicate from present estimates that future oil revenue will resolve Ghana’s macro fiscal imbalances and structural weaknesses and be in itself ‘developmentally transformative’.

Ghana discovered oil in commercial quantities in June 2007 and commercial production began on December 15, 2010. The euphoria surrounding the new found resource has been characterised by a belief among most Ghanaians that the country’s economic challenges would be over. This study however says it won’t, unless some specific decisions are taken. It goes on to outline the areas government ought to look at to address the fiscal inbalances.

The report indicates that in view of its history of persistent deficits and low savings rate, Ghana lacks the policy credibility to -scale deficit-financed investment strategy and counter-cyclical fiscal expansion.

The report says there is also little prospect of additional support from development partners in the foreseeable future, and warns that as the country becomes or has already become a Middle-Income Country (MIC), Ghana’s access to concessional lending and grants will be reduced.

However, Ghana, the report says would benefit from improving its credit rating and devising a clear exit strategy from aid.

After analysing the implications of the exploitation of oil and of the recent ‘rebasing’ of GDP, including opportunities and uncertainties, the report concludes that the principal means for creating additional fiscal space to boost progress towards the MDGs by the 2015 benchmark will come from increased efficiency and reallocation of expenditures within the Ghanaian budget.

The report draws attention to the fact that the rebasing exercise, however, sheds new light on a number of parameters and options and suggests that the country’s actual tax effort is below 15% rather than around 25% as currently estimated, pointing to the potential for raising tax efforts over the medium run.  Similarly, “the newly computed GDP estimates are likely to foster a rating upgrade and expand Ghana’s access to external finance on commercial terms in the medium run,” it added.

“At the same time, these estimates also reduce Ghana’s current net savings rate, reinforcing the conclusion that further deficit financing would not be a wise policy choice in the short to medium run,” it said.

A meeting beween the government and the UNDP to discuss the report will be held Tuesday February 15, 2011 in Accra.


Source: ghanabusinessnews.com

Tullow fails to find oil in Mauritania well

The most successful oil producer in Ghana, UK based Tullow Oil has been unsuccessful in finding oil in Mauritania.

The company announces Wednesday February 16, 2011 that the Gharabi-1 well, located in Block 6 offshore Mauritania, “was unsuccessful and has been plugged and abandoned.”

Tullow says, the well, drilled by the Maersk Deliverer in water depths of 1,787 metres to a total depth of 4,433 metres, intersected poorly developed water-bearing reservoirs. Gharabi-1 was drilled by the Operator Petronas to meet a commitment on the block and the result has no impact on Tullow’s future plans for its Mauritanian acreage.

Tullow Oil, which is the leading oil producer in Ghana started commercial oil production at the Jubillee oil field in the country December 15, 2010. According to Tullow the Jubillee field was drilled in record time and production costs were within original budget.

Tullow also has exploration activities ongoing in Uganda, Gabon, Cote d’Ivoire, Mauritania, Congo (Brazzaville) and Equatorial Guinea. Tullow’s largest appraisal and development programmes in Africa are in Ghana and Uganda, the company says.

Source: ghanabusinessnews.com

Ghana’s Cape Coast Castle to feature in Bob Marley documentary

Ghana’s historical edifice, the Cape Coast Castle will play an important role in the opening shot of the upcoming Bob Marley official documentary titled ‘Marley’.

The Cape Coast Castle was chosen to feature in ‘Marley’ because of the historical role it played during the Trans-Atlantic Slave Trade. It is also to show the reggae legend’s ancestral slave roots.

“The opening shot of the film will feature a tour of Cape Coast Castle, a fortification in Ghana that contains the infamous “Door of No Return” through which many Africans passed before being shipped into slavery”, Los Angeles Times reported citing the film director and Oscar-winner, Kevin Macdonald on February 8, 2011.

Macdonald also gave a personal reason for choosing the castle. The director of the “Last King of Scotland” told the LA Times, “I want to suggest the idea that his ancestors passed through the “Door of No Return” and that his music is trying to come home again spiritually, psychologically and politically”.

Ghanabusinessnews.com reported on Thursday, February 3, 2011 that Ghana has been selected among five other countries including Japan, United Kingdom, Jamaica and the United States to stage a documentary about the legendary Bob Marley.

“When completed, ‘Marley’ will be the first time ever that his family has authorized the use of their own private Bob Marley archives”, the website ComingSoon.net indicated.

Even though there are no reports of the major characters in the documentary, a blogger with the Black Entertainment Television (BET), Clay Cane said “At one point Jaime Foxx had the role but he fell off due to legalities on who owns the rights of Bob Marley’s music but believes that “A few actors who I think could do Marley justice are Jeffrey Wright, Michael Ealy and Idris Elba”.

The film will receive a world wide theatrical release in the third quarter of 2011, during the 30th anniversary year after Bob Marley passed away in 1981.

The film is been produced by Tuff Gong Pictures and Shangri-La Entertainment in association with Cowboy Films.

Steve Bing, Chris Blackwell and Ziggy Marley are the Executive producers.

Considered a true legend, Bob is one of the most influential singers, songwriters, musicians and activists in history as well as famous Jamaican singer and songwriter

Generally credited as having popularized reggae music on a global scale, Bob Marley was the lead singer and guitarist of The Wailers from 1974 up until his death in 1981.

His biggest hits include tunes like “No Woman, No Cry,” “Jamming,” “I Shot the Sheriff,” and the posthumous release “Buffalo Soldiers” (among several others).

His compilation album, Legend (also released following Marley’s death from skin cancer at age 36) remains the best-selling reggae album to date, according to the site.


By Ekow Quandzie
ghanabusinessnews.com

Rising food prices drive 44 million people into poverty – World Bank

The World Bank says rising food prices have driven an estimated 44 million people in developing countries into poverty.

In a press release issued Tuesday February 15, 2011 and copied to ghanabusinessnews.com, the World Bank President Robert Zoellick says since June 2010 “global food prices have risen to dangerous 2008 levels and threaten tens of millions of poor people around the world.”

“The price hike is already pushing millions of people into poverty, and putting stress on the most vulnerable, who spend more than half of their income on food,” he added.

Citing the latest edition of Food Price Watch, the World Bank’s food price index, it said food price index rose by 15% between October 2010 and January 2011, and that is 29% above its level a year earlier and is only 3% below the 2008 peak.

According to the index, among grains, global wheat prices have risen the most, doubling between June 2010 and January 2011. Maize prices are about 73% higher, but crucially for many of the world’s poor, rice prices have increased at a slower rate than other grains. Sugar and edible oils have also gone up sharply. Other food items essential for dietary diversity in many countries have increased, such as vegetables in India and China, and beans in some African countries.

It also indicates that the increase in extreme poverty (under $1.25 a day) due to the price hike is associated with higher malnutrition, as poorer people eat less and are forced to buy food that is both less expensive and less nutritious.

In contrast to the 2008 food price spike, however, it says, two factors have prevented even more people falling into poverty this time. One is that good harvests in many African countries have kept prices stable, especially for maize, a key staple. Another is the fact that the increases in global rice prices have been moderate and the outlook for the rice market appears stable.

At the beginning of 2008, the World Bank estimated that 33 countries of the world faced potential social unrest because of rising food and energy prices. Some African countries experienced very difficult times. Countries such as Cote d’Ivoire, Egypt, Togo, Cameroon and Bourkina Faso all experienced social unrests leading to the loss of lives and injury to citizens in some cases.


Source: ghanabusinessnews.com

Government to re-open investigations into missing cocaine in Police vault, MV Benjamin

The Ghana government says it will re-open investigations into the cases of seized cocaine in the possession of the Ghana Police that went missing at its headquarters, and 77 parcels seized from a ship MV Benjamin.

President John Atta Mills who gave the indication in his State of the Nation Address to Parliament Thursday morning said his government has acquitted itself well in the war on drugs in the two years of his administration. The President said he has subjected himself to body checks at the Kotoka Airport to energise officials of the Narcotics Board (NACOB) to do their work.

The President said it is necessary to open investigations into these matters because Ghana has been cited as a transit point in the drugs trade.

Meanwhile a WikiLeaks publication of US cables in December 2010 say Ghanaian officials including some close to the presidency know who the drug barons in the country are, but choose not to arrest them. Instead they arrest only small couriers.

According to the cables written on Friday December 21, 2007, Ghana is becoming a significant transshipment point for cocaine from South America and heroin from South East Asia.

The cable says “The Government of Ghana does not have a handle on the issue and lacks an overarching strategy to deal with the problem.”

According to the cables Ghana focuses more on prevention rather than investigations of drugs trafficking.

The government was also accused of failing to implement the recommendations of the Georgina Wood Report in 2006.

The Georgina Wood Committee was set up on July 4, 2006 to investigate the disappearance from a shipping vessel, MV Benjamin of 77 packets of cocaine on April 26, 2006.

It was also mandated to investigate an alleged $200,000 bribe paid to senior police officers by a lady linked to a
Venezuelan drug baron, as well as the 588 kg of cocaine seized at Mempeasem, East Legon in Accra from the Venezuelans.

The government was accused of not providing the resources necessary to address the problem of drugs trafficking, even though it has been credited with public education on the dangers of narcotics use.

The government of Ghana the cables say “does not appear to have the political will to go after the major drug barons.”

A portion of the cable reads: “For example, Government of Ghana (GOG) contacts in both the police Service and the President’s office have said they know the identities of the major barons, but they have not said why they have not chosen to arrest them. A Police Service contact told us the GOG does not have the political will to go after the barons.

This official and other others close to the President have also told us that they cannot trust anyone when it comes to narcotics.”


Source: ghanabusinessnews.com

State of the Nation Address – What’s new?

The President, Prof. John Evans Atta Mills presented the State of the Nation address to Parliament Thursday morning February 17, 2011. It is his third, since becoming President of Ghana. And I guess like many other Ghanaians, I was expecting a forward looking and inspirational address, but it turned out to be “business as usual”. Not many new issues came up.

Among others he addressed the following issues:

The construction of roads, ending the situation of schools under trees by building more schools, improving the wages of public sector workers and improving the health sector.

He captured other issues of importance, but not in necessarily new ways. The approach was the same, the situations not dramatically different from what he inherited from the previous government, and running into the third year of his being in office he didn’t present any innovative solution.

Agriculture

The President spoke about expanding support for agriculture by converting the Export Development Investment Fund (EDIF) into Export and Agriculture Development Fund to cater for investors who are interested in investing in agriculture.

He also spoke about constructing an irrigation plant at the Accra plains which will cover 5000 hectares of land to boost agriculture production in that area.

The importance of expanding the National Buffer Stock Company to hold 60,000 tonnes of food from 34,000 tonnes is a very important initiative that should not remain on paper. Especially so in the face of current global hike in food prices, which the World Bank says is driving 44 million people into deeper poverty. Ghana should be able to produce enough food to feed its people and have enough surpluses for export.

Broadcasting Law

On the country’s pending Broadcasting Law, the President said he wants to see to it’s enactment to curb excesses in the media. He therefore, called for fair and objective discussions when the bill comes up for debate. This law has been gathering dust for many years now, and if indeed, he means his word, it is a good thing to have it passed.

Corruption

Corruption is a serious setback to efforts of development in Ghana. While, it is not clear how much money the country loses to corruption, it is believed millions of cedis are lost to the canker. The President said the Serious Fraud Office (SFO) was turned into the Economic and Organised Crime Office (EOCO) and given additional powers to fight corruption, as if to say change of name of institutions and giving them more powers have done much in turning bad situations in this country around.

He also called on the Ghana Revenue Authority to pursue tax dodgers relentlessly.

On the Ghana Customs, Excise and Preventive Service (CEPS) he said in the light of the recently broadcast video by Anas Aremeyaw Anas exposing corruption at the Tema Harbour, “I expect the management of CEPS to take steps to restore public confidence in the institution.” And where does that leave us? As if the CEPS bosses were unaware of the sickening situation before the video was broadcast.

Dumping

President Mills urged officials of the Ghana Standards Board (GSB) to work stop the dumping of substandard goods into Ghana. Unfortunately, he missed out on the very serious problem of e-waste dumping in Ghana. Despite local and international exposure of the situation in Ghana, not much appears to be happening on the part of government to deal squarely with the deadly crime of e-waste dumping in Ghana. E-waste contains dangerous substances that put human health and the environment at risk.

Audit Service Act

More importantly, he urged the Auditor-General to enforce Act 584 of the Audit Service Act 2000  – which empowers the Auditor-General to withhold salaries and emoluments of public officials who refuse to respond to queries from that office. Does the Auditor-General need a directive from the President to enforce the  existing law?

War on drugs

Responding to the country being labelled as a transit point for drugs within West Africa, the President says his government will re-open investigations into missing cocaine at the Police Headquarters and 77 parcels from a vessel, MV Benjamin in 2006.

He also indicated that he subjects himself to body checks at the Kotoka International Airport because he wants to energise anti-drug organisation officials NACOB into doing their job and to shield them from being intimidated by any ‘high placed’ people.

What the President has said is nothing new.  As it turned out not much of what he said he would do in his first State of the Nation Address has been addressed. Indeed, there were no indications in his presentation that he was making reference to any of the objectives he set out to achieve in his earlier address.

With nothing new in the President’s State of the Nation Address, it is hard to see how far the country will get, especially in an ‘Action Year’.


By Emmanuel K. Dogbevi
ghanabusinessnews.com

Bank of Ghana keeps policy rate at 13.5%

The Bank of Ghana, as widely expected has maintained its policy rate at 13.5%.

Addressing the media this morning at the central bank, governor, Kwesi Amissah-Arthur said the bank has taken into consideration revenue mobilization, which is strong as well as the development in the energy sector and the geopolitics of the current happenings in North Africa and the threat these pose to inflationary outlook to maintain the policy rate at 13.5% for the fourth time running.

Inflation for January 2011 stood at 9.1% a marginal increase from the December rate of 8.6%.


Source: ghanabusinessnews.com

Vodafone to introduce Webbox for Internet in Ghana

Vodafone will soon introduce in Ghana a device that can be used to connect to the Internet using the television set.

The device known as the Vodafone Webbox, is an innovation developed specifically for customers in emerging markets, where technology and cost barriers often exclude many from enjoying affordable, ready internet access at home or in the workplace, the company has said.

The Webbox is a sleek, black, 14 x 25cm QWERTY keyboard, which uses standard RCA connectors to plug into the television. With no set-up required, the plug and play keyboard converts any standard domestic television into an internet portal, according to Vodafone.

“The Webbox is a simple yet very innovative product. It has the potential to make a powerful difference in the lives of people in emerging markets who have limited access to the internet, but where TV penetration is typically very high,” Patrick Chomet, Vodafone’s Group Director of Terminals said.

Vodafone indicates that the Webbox Opera Mini browser runs over the 2.5G and EDGE mobile networks, compressing data by around 90% and so serving fast-loading internet pages. The browser homepage comes with bookmarks such as news, sport and social networking sites as well as locally relevant apps such as a job search and application service. In addition, the portal comes with some games, a dictionary and a basic text editor.

According to Vodafone, all that is required to activate the Webbox is a Vodafone SIM.

The product has already been launched in South Africa.


Source: ghanabusinessnews.com

Ghana’s 2010 budget deficit is GH¢1.7 billion – Bank of Ghana

The government of Ghana has missed its 2010 budget deficit of GH¢1.3 billion which is 2.9% of GDP. The 2010 budget deficit according to the Bank of Ghana is GH¢1.7 billion which is 3.7% of GDP.

The governor of the central bank, Kwesi Amissah-Arthur told the media Friday morning February 18, 2011 at a press conference in Accra that its analysis of government operations based on the narrow coverage and comparisons to GDP are with respect to the country’s rebased GDP and the deficit calculations were based on that.

In November 2010, the Ghana Statistical Service (GSS) revalued the country’s GDP at GH₵44.8 billion for 2010. It had earlier estimated the GDP at GH₵25.6 billion. The new growth projection was made according to a re-based index of the economy aimed at more accurately reflecting sectors such as banking and telecoms. The base year for the index was put at the year 2006 instead of 1993.

The governor said the Tax-GDP ratio of 13.3% of GDP narrowly missed the target of 13.4%.

Mr. Amissah-Arthur said the total expenditure for 2010 was GH¢8.8 billion (19.7% of rebased GDP) and that was 1.3% above the target of GH¢8.3 billion.

The deficit of GH¢1.7 billion together with net foreign loan repayment of GH¢30 million and the TOR Debt Financing of GH¢445 million created a resource gap of GH¢2.1 billion (4.8% of GDP), he said.


Source: ghanabusinessnews.com

West African countries said to record improved economies in 2010

Countries in the West African sub-region have recorded improved economic outcomes during 2010, the governor of the Bank of Ghana has said.

Mr. Kwesi Amissah-Arthur told journalists in Accra Friday February 18, 2011 that global economic conditions showed a rebound as economic activities in emerging and developing economies remained strong and continued to drive world growth.

He said in the United States, growth appears to be more solid as a result of the policy of Quantitative Easing. In the Euro area, however he said prospects for recovery are being hindered by the sovereign debt crisis and tight fiscal and financial conditions.

In the countries of the West African Monetary Zone (WAMZ), he said economic performance remained robust and output turn out stronger at 7.2% in 2010 compared to 4.5% recorded for the whole of Africa.

Mr. Amissah-Arthur said inflation pressure dampened and was projected at 11.3% at the end of 2010, down from 12.3% at the end of 2009.

“With proper coordination of domestic policies and external sector stability, medium term prospects for growth remain positive across the sub-region,” he said.

Meanwhile, a report released February 15, 2011 by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group says that sub-Saharan Africa is becoming an increasingly popular investment destination.

According to MIGA, a survey conducted for the report, World Investment and Political Risk, indicates that two-thirds of the multinational executives responding to the survey expect to increase foreign direct investment (FDI) in the region over the next three years.

“This expected upsurge in FDI into Sub-Saharan Africa is very welcome news, especially given the region’s investment needs,” MIGA Executive Vice President Izumi Kobayashi was quoted as saying.

“We know that FDI flows directed to productive assets can spur substantial economic growth and reduce poverty,” he added.


Source: ghanabusinessnews.com

Access to bank loans improves – Survey

The latest credit conditions survey conducted by the Bank of Ghana (BoG) in January 2011 shows that access to credit continues to improve.

According to the central bank, this development was due to commercial banks easing credit conditions through reductions in margins on average loans and increased size of credit.

“Commercial banks eased credit conditions for both small and medium sized and large enterprises through reductions in margins on average loans and increased size of credit”, said Mr Amissah-Arthur, central bank governor at a Monetary Policy Committee press conference in Accra on February 18, 2011.

“The survey points to an overall improvement in credit conditions for both households and enterprises”, Mr Arthur added.

The survey also revealed that credit conditions for mortgages continue to be tightened through additional collateral requirements.

The Bank maintained its policy rate at 13.5% for the third conservative time.


By Ekow Quandzie
ghanabusinessnews.com

Bank of Ghana to remould one pesewa coin to moderate inflation

After the re-denomination of the cedi, the one Ghana pesewa, the lowest of the coins among the currency has not been accepted by Ghanaians. The coin was rejected and even though not officially withdrawn, has gone out of circulation because most Ghanaians will not accept it in transactions.

As a result, the Bank of Ghana is considering remoulding the coin to make it attractive to the public, as well as moderate inflation.

According to the central bank governor, Mr. Amissah-Arthur, some samples of the new coin have been sent to some markets for feedback in order to determine which one will be acceptable to both traders and buyers.

“We went round the market with samples of the one pesewa coin and we got some interesting results and we are working on that but we are looking at cost”.

“There is an associated cost to melt and remint these coins but if that will help people use it to moderate inflation then we will go ahead and do that”, Mr Amissah-Arthur said, adding “In the next couple of months we will inform you if we decide the cost will be advantageous to doing it but as of now the cost that we are getting suggests that if we do it then it will be disadvantageous to us”.

The governor disclosed this in an interaction with journalists at the Bank in Accra last Friday February 18, 2011.

The governor admitted that refusal of the one Ghana pesewa coin by some traders is a worry to the bank since it is a legal tender which can be used to purchase goods and services.


By Ekow Quandzie
ghanabusinessnews.com

British man punished for exporting e-waste into Ghana

A British man found guilty of exporting e-waste into Ghana has been punished by the UK Environment Agency (EA).

He has been ordered to serve 280 hours of unpaid work and given a six months curfew order for not having the correct environmental permission in place for operating an e-waste collection site and for exporting the waste to Ghana.

The man, Phillip Jesson, according to the EA, operated the waste site at Britannia Works, Smallbridge, Rochdale where he was storing waste fridges, freezers, televisions and computers of which some parts are classed as hazardous.

By operating this site without a permit in place, the EA says on its website there is the potential for significant harm to the environment and/or human health.

Sites which operate with environmental permits have strict controls in place and also benefit from regular visits from the Environment Agency to ensure that their activities will not cause harm, it added.

Jesson was found guilty of illegally exporting fridge and freezers to Ghana.

The shipping container in which the waste fridges and freezers were being shipped to Ghana was discovered in Belgium following a routine stop check by authorities in that county, the EA says.

“The container had been exported from the UK and was destined for Ghana. It was found that Mr Jesson was exporting waste illegally from his site in Rochdale. Under current legislation, the export of waste fridges and freezers to Ghana is prohibited,” the EA says.

Ghana has been cited as a choice destination for criminal gangs in Europe and America who in contravention of international laws ship unusable electronics items to Ghana and other developing countries under the guise of sending second-hand items to charity or to sell cheaply to local citizens.

Some media reports had indicated that e-waste from the UK was continually being dumped in Ghana. Following the reports the EA initiated investigations into the matter in 2008.

During investigations, some of the damaged computers found at the Agbogbloshie dump site in Accra had labels of the National Health Service (NHS). Some other computers with NHS labels were also found to be on sale at secondhand electronics equipment dealers’ shops in Ghana’s capital Accra. Some of the PCs were also found to have come from UK local councils and universities, including Kent County Council, Southampton County Council, Salford University and Richmond upon Thames College’s (RUTC).

E-waste is known to contain dangerous chemical pollutants that are released into the atmosphere and underground water.

The modes of disposal, which include dumping old gadgets into landfills or burning in smelters, also expose the environment and humans to a cocktail of toxic chemicals and poison.

These chemicals contain substances like lead, mercury and arsenic.

The cathode ray tubes (CRTs) in most computer monitors and television screens have x-ray shields that contain 4 to 8 pounds of lead, mostly embedded in glass.

Flat screen monitors that are mostly used in laptops do not contain high concentrations of lead, but most are illuminated with fluorescent lights that contain some mercury.

A PC’s central processing unit (CPU), the module containing the chip and the hard disk, typically contains toxic heavy metals such as mercury (in switches), lead (in solder on circuit boards), and cadmium (in batteries).

Plastics used to house computer equipment and cover wire cables to prevent flammability often contain polybrominated flame retardants, a class of dangerous chemicals. Studies have shown that ingesting these substances may increase the risk of cancer, liver damage, and immune system dysfunction.

Lead, mercury, cadmium, and polybrominated flame retardants are all persistent, bio-accumulative toxins (PBTs), that can create environmental and health risks when computers are manufactured, incinerated, landfilled or melted during recycling. PBTs, in particular are a dangerous class of chemicals that linger in the environment and accumulate in living tissues.

And because they increase in concentration as they move up the food chain, PBTs can reach dangerous levels in living organisms, even when released in minute quantities. PBTs are harmful to human health and the environment and have been associated with cancer, nerve damage and reproductive disorders.

Looked at individually, the chemicals contained in e-waste are a cocktail of dangerous pollutants that kill both the environment and humans slowly.

Lead, which negative effects were recognized and therefore banned from gasoline in the 1970s causes damage to the central and peripheral nervous systems, blood systems, kidney and the reproductive system in humans.

Effects of lead on the endocrine system have been observed, including the serious negative effects it has on children’s brain development. When it accumulates in the environment, it has high acute and chronic effects on plants, animals and micro-organisms.

Cadmium compounds are also toxic with a possible risk of irreversible effects on human health and accumulate in the human body, particularly the kidneys. Cadmium occurs in certain components such as SMD chip resistors, infra-red detectors, and semi-conductor chips.

Mercury on the other hand, can cause damage to various organs including the brain and kidneys as well as the fetus. More especially, the developing fetus is highly susceptible through maternal exposure to mercury.

These are only few of the chemicals used in the manufacture of electronics equipment. Other chemicals are Hexavalent Chromium which is used as a corrosion protection of untreated and galvanized steel plates and as a decorative or hardener for steel housings. Plastics including, PVC are also used. Plastics constitute about 13.8 pounds of an average computer.

The largest volume of plastics, 26% used in electronics is PVC. When PVC is burned, dioxin can be formed because it contains chlorine compounds. Barium, is a soft silvery-white metal that is used in computers in the front panel of a CRT, to protect users from radiation.

Studies have shown that short-term exposure to barium has caused brain swelling, muscle weakness, damage to the liver, heart and spleen.

Considering the health hazards of e-waste, another ubiquitous computer peripheral scrap worth mentioning is toners. The main ingredient of the black toner is a pigment commonly called, carbon black – the general term used to describe the commercial powder form of carbon.

Inhalation is the primary means of exposure, and acute exposure may lead to respiratory tract irritation.


Source: ghanabusinessnews.com

Ghana-US trade hits $1.3b in 2010

Two-way trade between Ghana and the United States has grown 48% in 2010 reaching nearly $1.3 billion, the Deputy US Trade Representative, Demetrios Marantis told journalists in Accra Tuesday February 22, 2011.

He said in a speech that the US selected Ghana as one of the countries for the President’s new Partnerships for Growth (PFG) initiative this year as a result of the country’s strong democracy and economic prosperity. The PFG is the signature effort of the Obama Administration to promote broad-based economic growth through trade and investment.

However he said, “one key success that can help support and implement the PFG is the United States-Ghana Trade and Investment Framework Agreement (TIFA),” adding, “the TIFA is our foremost bilateral economic dialogue and brings together governments’ top trade and economic agencies.”

“The TIFA focuses on trade and investment policies that help both our economies grow, diversify, and create well-paying jobs. And the TIFA is designed to help build on Ghana’s successes and leadership to achieve new ‘firsts’ in its economic development,” he said.


Source: ghanabusinessnews.com

Report ranks Ghana high for mining investment

Ghana has been ranked high as one of the best countries in the world to engage in the mining business.

The country’s already booming mining industry received a boost following the release of the Bahre Dolbear’s 2010 ranking of countries for mining investment that placed Ghana at a position of eight.

The countries were assessed against seven main categories. The report titled “Where Not To Invest” which had seven categories included a country’s economic system, degree of social issues, delays in receiving permits, degree of corruption, currency stability, and tax regime. It also assessed the political risk of mining investments in 25 mineral-rich countries in the world.

Ghana scored total points of 36 in tie with Botswana and Mongolia affirming the relatively congenial climate in the mining industry for the past decades.

According to the report, each category under consideration is rated from 1 to 10, with the highest being 10. This means the maximum score attainable for a country is 70 points.

Though Ghana finds herself in a reputable position worth attracting investments into the mining sector, the report cites Ghana as performing poorly in terms of improving on social issues, the third category. Social Issues continue to be the highest risk facing the development of mineral projects in every country – a phenomenon being fomented and advanced by advocacy NGOs into mining. The report stated “Ghana’s societal picture has clouded, with inter-tribal issues and government interference putting a negative light on the country”. The country, therefore, dropped one point in this category to a rank of 2 compared to the 2009 ranking.

The country was again downgraded by one point to a rank of 6 under the fourth category – Permitting Delays – as government delays are affecting new investments.

In the detailed scoring results, Ghana had 6 out of 10 under economic system, 6 for political system, 2 for social issues, 6 for permitting delays, scored 4 under corruption, 6 under currency stability and 6 under tax regime totaling 36.

Behre Dolbear Group Inc is a Colorado based mining industry consulting firm that assesses the political risks and investments in various mineral-rich countries since 1992. Australia had the highest point of 61 out of 70, followed by Canada with 56 points and Chile attaining the third position with 49 points.

Ghana’s poor performance in the category of social issues and corruption brings to light the need to end the era of secrecy that has shrouded the mining sector. Transparency will bring to light all details of contracts between companies and government as well as the exact revenues that companies make for government. On social issues, the mining industry must embrace the principles of sustainable development as a vital ingredient in maximizing mining investments.

In totality, however, Ghana has improved upon its investment climate in the mining industry.

Mining has been going on in Ghana for over 100 years.


Source: ghanabusinessnews.com

Lawmakers blamed for poor management of telecoms fraud in Africa

A telecoms risk management expert, Ola Akibola says part of the difficulties the telecoms industry in Africa has in dealing with telecoms fraud is because lawmakers and regulators in Africa do not understand the telecom industry.

Akibola is the Technical Sales Director of UK-based Connectiva Systems, a Telecoms Risk Management vendor, and he tells Adom News “African lawmakers and industry regulators need education about the industry in order to be able to help fight telecoms fraud.”

He spoke on the fringes of a two-day High Level Telecoms Risk Management Conference in Ghana, organized by the UK-based BSP Media Group, a business intelligence solutions company.

The conference brought together top executives of telecoms operators and vendors, the National Communications Authority (NCA), and the Ghana Police Service.

Telecoms Risk Management experts were drawn from various developed telecoms markets like the UK, USA and Israel to share their experiences and solutions with the Ghanaian industry players.

Ghana is particularly faced with the SIM boxes challenge, where fraudsters terminate international calls through local mobile phone numbers and siphon money meant for telecoms operators and the state into individual pockets.

Prepaid fraud is also rampant in the country, as many fraudsters send fake messages to prepaid mobile phone users and demand replies under the pretext of giving some reward but end up draining people of their phone credit.

Akibola noted that because the lawmakers do not understand the telecoms industry they are unable to pass appropriate laws to deal with these fraudulent acts.

“Prosecutors also face a difficulty preferring charges against such fraudsters because the existing laws cannot support such charges – and the judges are also unable to sentence them because they cannot appreciate how the industry works,” he said.

He however noted that the challenges facing the Ghanaian, and African telecoms industry went beyond SIM boxes and prepaid fraud.

“By focusing all their energies on SIM boxes and prepaid fraud, telecom operators risk taking their minds off other major revenue leakage areas,” he said.

Akibola explained that the telecoms industry risks loses across the entire network, its operations, the people in the organization, and business processes, saying that “even if you have the best network and the people and processes are not right you will continue to lose money.”

He noted that risk managers in telecom companies need to pay close attention to when a subscriber comes unto the network, when he makes a call, the configuration on the switches of the network, the billing system and the deployment of some network elements like promotions.

“It is estimated that between 2.5 per cent and 15 per cent of revenue from the telecom industry is lost through leakage and this happens through poor billing systems, deficient processes, inefficient network switch configuration, which may mean the network is recording communication activity wrongly,” he said.

He said so far telecom operators in Africa are able to recover just about five per cent of the revenue that leaks, but with the help of risk management vendors they could be able to retrieve a substantial part of the revenue that is leaking.

“Connectiva has a client in Ghana who used our services and is now able to save a lot of money which was leaking through other channels until we came onboard,” he said.

Akibola said telecom operators in Ghana had used the revenue assurance and fraud solutions as the main risk management strategies, but they needed to go beyond those and use customer experience management strategies in managing risk.

“Telecom operators need to have a deeper visibility into customer profile from the time the customer joins the network, his background, what kind of services and packages he is interested in, how much credit he consumes within what time, and other such detailed information in order to ensure that the operator is getting full value from the customer,” he said.

He noted that in terms of risk management, Ghanaian telecom operators were on the upward but had not arrived yet, saying that there is hope for the industry in Ghana in managing risks as it matures from an emerging one to a saturated one.


Source: ghanabusinessnews.com

Ghana’s Nyantakyi wins CAF/FIFA Executive Committee elections

The Ghana Football Association (GFA) President, Mr Kwesi Nyantakyi has been elected to serve on both the CAF and FIFA Executive Committee after winning the Zone West B elections in Khartoum, Sudan today February 23, 2011,

According to results posted on cafonline.com, Mr Nyantakyi  won by 34 votes beating his closest competitor Anjorin Moucharafou of Benin who had 19 votes. Tata Adaglo Avlessi of Togo and Hima Souley of Niger withdrew from the contest.

Mr Nyantakyi is the fifth Ghanaian to serve on the CAF Executive Committee after Ohene Djan (1961-1966), Kobina Hagan (1961-1962), Nana Fredua Mensah (1968-1972) and Samuel Okyere (1990-1994).

Former African Best player, Kalusha Bwalya of Zambia also won the Southern Zone edition.


By Ekow Quandzie
ghanabusinessnews.com

There is perception of money laundry, low interest in Ghana’s offshore banking – BoG

The Bank of Ghana (BoG) has explained why it decided to convert Barclays Bank’s offshore license into a regular one.

The central bank says the decision was taken because of perceptions of money laundry, low interest by Ghanaians in the service and lack of regulations.

“Very little interest has been shown in offshore banking in Ghana,” central bank governor , Mr Kwesi Amissah-Arthur, told the media in Accra.

He also said while the Act for offshore banking has been passed, the regulations are yet to be passed.

“At a time that Ghana was gaining a reputation for laundry, we did not want to confirm this misperception”, the governor said during a Monetary Policy Committee meeting on February 18, 2011.

Commenting on Barclays Bank, he said,“we did not impose this on Barclays” but instead both had agreed to convert the license.

He added that the withdrawal was not because Barclays has done anything wrong.

Meanwhile, Barclays Bank is planning to stop offshore banking in Ghana in the next six months, according to Bloomberg News.

Barclays was the only bank among the about 27 banks registered in Ghana that was given license for offshore banking.

Mr.  Benjamin Debrah, Managing Director of Barclays Bank Ghana was cited by Bloomberg News saying “The country currently does not have the legislative framework and tax reforms to allow the smooth operation of an international financial services centre”.

Barclays Bank was given the offshore banking license in September 2007 and had opened 200 accounts, according to Mr Debrah.

Early 2010, Ghana was warned by the Organisation for Economic Co-operation and Development (OECD) to be ware of the risks of becoming a tax haven with the establishment of offshore banking in the country.

The head of the OECD, Jeffrey Owens said, “The last thing Africa needs is a tax haven in the centre of the African continent.”

A report  by the Christian Aid Ghana which was launched in Accra in September 2009, suggested that the risk of illicit funds finding their way into the offshore financial centre is particularly acute given the extensive cocaine trade in the country and the massive flows from oil that are expected in the near future.

The report argues that if the Ghanaian government is committed to the International Financial Services Centre (IFSC) becoming fully operational, it should first produce and disseminate credible, well-researched evidence about the potential benefits and risks for Ghana. In addition, officials working in the central bank, Registrar General’s Department and tax agencies should be extremely well versed in the relevant laws and should work closely together to minimise the risks.

It however recommended that government should introduce special methods to monitor inflows of funds from regional oil producing states, potentially in conjunction with the Extractive Industries Transparency Initiative, because such funds are of notoriously questionable origin.


By Emmanuel K. Dogbevi & Ekow Quandzie
ghanabusinessnews.com

FIFA makes $1.2b from 2010 World Cup

Football’s world governing body, Federation of International Football Association (FIFA) has revealed that it made an amount of $1.2 billion from the South Africa 2010 World Cup.

According to FIFA, the money realized was far more better than that of the Germany 2006 World Cup which realized $600 million.

“There was better news from 2010 as FIFA had realised $1. 2 billion after the World Cup in South Africa compared to $600 million realised after Germany 2006 World Cup”, FIFA President Sepp Blatter said.

He made the disclosure when he addressed the 33rd Confederation of African Football General Assembly in Khartoum, Sudan on  February 23, 2011.

“The Federations and associations will benefit from this windfall, this again is victory for Africa” said Mr. Blatter.

The money, FIFA said could be sustained for 18 months if a World Cup is canceled.

FIFA began the World Cup year with reserves of $1.06 billion, the Associated Press reported.

In Ghana, FIFA and the Football Association (GFA) have funded four major projects dubbed “FIFA Goal Projects”.

The first project, Goal One was a $400,000 grant to start development of a technical centre at Prampram.

The money for Goal Two was used to build the Ghana Football Association headquarters in Accra.

Goal Three was the multi-purpose restaurant and kitchen plus a conference facility to cater for national soccer teams in the country.

The fourth one, which the GFA and FIFA recently signed, is to construct a world-class football academy in Ghana.


By Ekow Quandzie
ghanabusinessnews.com

Africa can feed the world – Kofi Annan

Agriculture still remains the mainstay of the African economy and has higher potential of feeding the world to reduce hunger, says Kofi Annan, Chairman of the Alliance for a Green Revolution in Africa (AGRA).

In a keynote address to the 34th session of International Fund for Agricultural Development (IFAD) Governing Council in Rome, Italy, on February 19, 2011, the former UN Chief, said Africa can help achieve the needs of the hungry across the world.

“I want to set out a vision that is optimistic but achievable: where Africa can feed not only its own citizens but help meet the needs of the hungry across the world.”

Mr Annan added “It is a vision which requires us to transform agriculture on the continent by building on the progress already underway”.

If this is achieved, Kofi Annan said it will help transform the prospects for Africa.

Mr Annan said even though Africa has a long way to achieve this ambition, progress has being made across Africa in the last few years and that gives hope for the future.

He attributed some of this progress to creative thinking, effective partnerships, leadership from governments and the efforts of small-holder farmers who are helping drive the development of Africa’s agriculture.

“Partnering with the financial sector including IFAD, AGRA, for instance, has helped leverage $160 million in affordable loans to agriculture from commercial banks in Kenya, Uganda, Mozambique, Ghana and Tanzania”.

He however highlighted some of the challenges facing the agric sector in Africa citing lack of accessible credit and other financial services including crop insurance as a major setback.

According to Mr Annan, Africa must give priority to food crops and not cash crops adding “The market within Africa for staple food crops is estimated at $150 billion a year which far exceeds the revenue African countries receive for internationally traded cash crops like coffee, cocoa, tea, and cut-flowers”.

He urged the international community to “provide effective, efficient and equitable market access policies so that African countries can compete on a level playing field”.

Already the World Bank says rising food prices have driven an estimated 44 million people in developing countries into poverty.

“Since June 2010, global food prices have risen to dangerous 2008 levels and threaten tens of millions of poor people around the world” Robert Zoellick, World Bank President said in a release issued Tuesday February 15, 2011 and copied to ghanabusinessnews.com.

In order to curb this threat, Ghana’s Food and Agriculture Minister, Mr Kwesi Ahwoi in an interview with TV Africa, said the government has established the Buffer Stock Company that offers farmers the minimum guaranteed price at which it will take the farmer’s produce if the market refuses to buy at the normal reasonable market price.

This, he said, has contributed to the output of grain production by 6% with rice production up by 28.9 per cent, sorghum by 8 percent as well as 10 per cent increase of production in maize which has gone a long way to reduce higher food prices in Ghana.

Currently, Ghana is preparing a Bill ready to submit to parliament for approval which will set up the Agricultural Development Fund this year that can help farmers get loans to help the agri-business industry.

By Ekow Quandzie
ghanabusinessnews.com

Ghana ‘shitor’ in high demand in America – US Official

If you are an entrepreneur in Ghana who is looking for opportunities to enter the non-traditional export business, then preparing and exporting ‘shitor’ to the US is a big opportunity, as the demand for the locally popular spice is in high demand in that country, a US Embassy official in Accra has said.

The Chief Economist of the Embassy, Phil Cummins said during an interaction with the public, business people, students and the media at the US Ambassador’s residence Tuesday February 22, 2011 that he has identified some retail shops in the US that demand high volumes of the product.

He said, “no one can make ‘shitor’ better than Ghanaians.”

‘Shitor’ is a sauce made from spices like pepper, ginger, garlic, other vegetables like tomatoes, onion and dried fish and some crustaceans. These are ground and then fried in oil till it browns.

Under the African Growth and Opportuinity Act (AGOA) Ghanaian businesses can export products to the US duty free.

Making a presentation during the interaction, the US Deputy Trade Demetrios Marantis said, there has been a 129% increase in AGOA in 2010.

He indicated that 92% of Ghana’s exports to the US enter duty-free under the Generalised System of Preferences (GSP) and AGOA programmes.

“Ghana has profited from these opportunities, exporting a growing range of products including over $800,000 in textiles during 2010, more than double the amount in 2009,” he said.

According to Ambassador Marantis, Ghanaian workers and farmers exported nearly $48 million in goods to the US under AGOA, which is also more than double the amount in 2009.

Ghanaian businesses export products such as cocoa powder, vegetables, fruits, metals and baskets to the US.

He however indicated that Ghanaians have a bigger advantage if they enter the fresh-cut flower export business because of the existence of a direct flight schedule between Ghana and the US. This is a market he said the East Africans are taking advantage of even though, there is no direct flight between their countries and the US.


Source: ghanabusinessnews.com

Man captured in Ghana, returned to US to face trial for shooting wife to death

A Ghanaian man wanted since 2003 for the alleged shooting to death of his wife in the US has finally been captured in Ghana and returned to the US last Thursday February 24, 2011 to stand trial.

39-year-old Richard Konadu who was living in Irvington is accused of shooting to death his wife and mother of two, 27-year-old  Regina Carroll, a report by a New Jersey publication nj.com says citing US security officials.

According to the report, Konadu first fled to England after the incident and then to Ghana.

His arrest followed international investigations involving overseas agents, US diplomatic security services in Nigeria, Sierra Leone and the Ghana Police Service.

Konadu will face weapons and murder charges related to his alleged role in the shooting to death of his wife.


Source: ghanabusinessnews.com