By Kofi Ahovi
The new insurance premiums approved by the National Insurance Commission (NIC) would take off today May 10, 2010.
The new tariffs were supposed to have taken effect last week but were postponed to allow the commission to consult with the transport owners and driver unions before commencement.
Under the new tariffs approved by NIC on April 23, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners would pay a 200% increase, while private vehicle owners will pay 150% increase.
Taxis would now pay GH₵232.28, mini buses of up to 20 passengers will pay GH₵268.88 and maxi buses of up to 33 passengers would pay GH₵280.28, while ambulances would pay GH₵218.60 annually.
Also, Third Party Property Damage (TPPD) limit had been raised from GH₵1,000 to GH₵2,000, while personal accident benefit which was previously GH₵500 has been increased to GH₵2,000.
Interestingly, the NIC has reduced the insurance tariff for comprehensive policy holders by a percentage point and increased the compensation for accident and personal damages.
It is however feared that the new increases would be translated into higher fares by the transport operators.
The increases are necessary because it is becoming increasingly difficult for insurance companies to pay claims.
Insurance companies quoting for motor insurance are expected to necessarily complete a quotation slip to determine how they arrive at their rates.
Saturday, May 8, 2010
Friday, April 30, 2010
GBC installs digital TV transmitters
Ghana Broadcasting Corporation (GBC) has launched its Digital Terrestrial TV (DTT) to mark its migration from analogue to digital broadcasting.
This was possible after GBC took delivery and installed a 5 kilowatt and 2 kilowatts transmitters in Accra and Kumasi respectively and plans to cover the entire country as soon as the government has finalized its policy directive. The installations are the first phase of the DTT infrastructure in the two cities.
According to the Director of GBC, William Apem-Darko, GBC would be unveiling a number of new channels very soon.
“For us in the broadcasting industry, it’s not just about digital television; it is also about the socio-economic development of this country. Despite the magnitude and the complexity in the task of digitalization, not to talk about the cost, it is clear that the long term benefit clearly outweighs the short term cost,” he noted.
GBC for the past year has been running a pilot system to showcase the system and test the various and complex integration of equipment and software that needs to be done.
Ghana has up to 2015 to migrate from analogue broadcasting to digital. All around the world, the migration to digital broadcast transmission technology has begun.
Countries already advanced in their migration programmes are France, United States, United Kingdom, Sweden, and New Zealand among others. In countries like Sweden, Finland and Mauritius, the analogue switch-off has already been completed.
This was possible after GBC took delivery and installed a 5 kilowatt and 2 kilowatts transmitters in Accra and Kumasi respectively and plans to cover the entire country as soon as the government has finalized its policy directive. The installations are the first phase of the DTT infrastructure in the two cities.
According to the Director of GBC, William Apem-Darko, GBC would be unveiling a number of new channels very soon.
“For us in the broadcasting industry, it’s not just about digital television; it is also about the socio-economic development of this country. Despite the magnitude and the complexity in the task of digitalization, not to talk about the cost, it is clear that the long term benefit clearly outweighs the short term cost,” he noted.
GBC for the past year has been running a pilot system to showcase the system and test the various and complex integration of equipment and software that needs to be done.
Ghana has up to 2015 to migrate from analogue broadcasting to digital. All around the world, the migration to digital broadcast transmission technology has begun.
Countries already advanced in their migration programmes are France, United States, United Kingdom, Sweden, and New Zealand among others. In countries like Sweden, Finland and Mauritius, the analogue switch-off has already been completed.
HFC bank profit dips in 2009
By Kofi Ahovi
HFC Bank Limited recorded a marginal drop of 3.80% in its profit after tax of GH₵5.849 million during the 2009 fiscal year compared to GH₵6.08 million in 2008.
This, the Board Chairman, Nana Agyei Doku, at the Bank’s Annual General Meeting (AGM), explained that it was due to an increased in the cost of funding and continuous expansion of branch network.
However, its loans and advances stood at GH₵157.5 million, a growth of
11.29%. Deposits also increased by 37.96% from GH₵85.2 million in the previous year to GH₵177.6 million in 2009.
The HFC group interest income also rose by 37.9% to GH₵49.2 million from GH₵35.7 million in the previous year.
Based on its achievement for the 2009 fiscal year, the bank paid a divided of GH₵0.015 compared to GH₵0.01 the previous year.
The bank’s mortgage portfolio grew by 32.3% from GH₵37.9 million in 2008 to GHc50.1 million in 2009.
The consumer loans portfolio decreased from GH₵17 million in 2008 to GH₵10.2 million in 2009. Also the Public Sector Affordable Housing Scheme managed by the bank achieved a gross portfolio of GH₵4.44 million, providing 172 new homes to public servants.
HFC’s lending to corporate institutions and SMEs stood at GH₵103.4 million, an increase of 13.10%.
On the bank’s subsidiaries, HFC Investment Services Limited’s managed funds contributed GH₵ 220,736 to the group’s earnings for the year under review, while HFC Realty’s contribution was GH₵103,603 for the same year.
Shareholders fund increased to GH₵32million in 2009 from GH₵27.5 million in 2008.
According to the MD, Asare Akuffo, The bank managed to achieved significant strides of it’s objectives for 2009 which included branch network expansion, improved loan administration and recovery and recapitalization.
In the year under review, four new branches and five Automatic Teller Machines (ATMs) were added to the bank’s network. The bank is now represented in all but three of the 10 regions of Ghana.
In a related development, the bank cut a sod for the commencement of the construction of a six classroom block and offices at Kotobabi 2 basic school in Batsonaa in Accra.
Cutting the sod, Asare Akuffo, recounted that the area was one of the first vicinities that the bank started its real estate investments, “this motivated as to contribute to education infrastructure in this community”.
He added that, the bank was committed to its corporate social responsibility, adding the bank has undertaken similar exercises in Ashanti Akyim in the Ashanti Region and Krobo Adumasi in the Eastern region.
The assistant metro director for the Tema Metropolitan Assembly, Philomena Baltes, commended the bank for the initiative to rebuild one of the deprived schools in the metropolis.
She however, requested the bank to also sponsor needed but brilliant students in the metropolis to senior high level.
The head mistress of the school, Gifty Mawusi, expressed appreciation to HFC for the gesture, adding the facility will have a great impact in improving education in the school.
HFC Bank Limited recorded a marginal drop of 3.80% in its profit after tax of GH₵5.849 million during the 2009 fiscal year compared to GH₵6.08 million in 2008.
This, the Board Chairman, Nana Agyei Doku, at the Bank’s Annual General Meeting (AGM), explained that it was due to an increased in the cost of funding and continuous expansion of branch network.
However, its loans and advances stood at GH₵157.5 million, a growth of
11.29%. Deposits also increased by 37.96% from GH₵85.2 million in the previous year to GH₵177.6 million in 2009.
The HFC group interest income also rose by 37.9% to GH₵49.2 million from GH₵35.7 million in the previous year.
Based on its achievement for the 2009 fiscal year, the bank paid a divided of GH₵0.015 compared to GH₵0.01 the previous year.
The bank’s mortgage portfolio grew by 32.3% from GH₵37.9 million in 2008 to GHc50.1 million in 2009.
The consumer loans portfolio decreased from GH₵17 million in 2008 to GH₵10.2 million in 2009. Also the Public Sector Affordable Housing Scheme managed by the bank achieved a gross portfolio of GH₵4.44 million, providing 172 new homes to public servants.
HFC’s lending to corporate institutions and SMEs stood at GH₵103.4 million, an increase of 13.10%.
On the bank’s subsidiaries, HFC Investment Services Limited’s managed funds contributed GH₵ 220,736 to the group’s earnings for the year under review, while HFC Realty’s contribution was GH₵103,603 for the same year.
Shareholders fund increased to GH₵32million in 2009 from GH₵27.5 million in 2008.
According to the MD, Asare Akuffo, The bank managed to achieved significant strides of it’s objectives for 2009 which included branch network expansion, improved loan administration and recovery and recapitalization.
In the year under review, four new branches and five Automatic Teller Machines (ATMs) were added to the bank’s network. The bank is now represented in all but three of the 10 regions of Ghana.
In a related development, the bank cut a sod for the commencement of the construction of a six classroom block and offices at Kotobabi 2 basic school in Batsonaa in Accra.
Cutting the sod, Asare Akuffo, recounted that the area was one of the first vicinities that the bank started its real estate investments, “this motivated as to contribute to education infrastructure in this community”.
He added that, the bank was committed to its corporate social responsibility, adding the bank has undertaken similar exercises in Ashanti Akyim in the Ashanti Region and Krobo Adumasi in the Eastern region.
The assistant metro director for the Tema Metropolitan Assembly, Philomena Baltes, commended the bank for the initiative to rebuild one of the deprived schools in the metropolis.
She however, requested the bank to also sponsor needed but brilliant students in the metropolis to senior high level.
The head mistress of the school, Gifty Mawusi, expressed appreciation to HFC for the gesture, adding the facility will have a great impact in improving education in the school.
GOVT URGED TO AVERT ANOTHER ECONOMIC CRISES
By Jeorge Wilson Kingson, Ho
Government has been urged to take appropriate measures and formulate the right policies to ensure that in the unforeseen event of another global economic crisis as experienced recently its impact on the country will not be severely felt.
Deputy Secretary-General of the Ghana Trades Union Congress (GTUC), Dr. Yaw Baah, who sounded this warning, last week however gave government high marks for introducing strong fiscal policy measures in dealing with the crisis.
He praised policies such as the freeze on public sector employment, the reduction in the number of ministries, and the rationalization of subsidies to State Owned Enterprises (SOEs) as well as the rationalization of public sector wages and other expenditures including postponing the implementation of the single spine salary structures as very good moves that will bring the economy back on track.
He on the other hand slammed the current administration for its decision to go back to the Britton Wood institutions cup in hand saying it was a trivial decision. “I will advice the government to do anything to recover the economy but go back to the IMF. You see, the IMF controls you and forces you to listen to them and in such situations your options are limited and because you are the one who came begging you have no choice”
Dr. Baah, stated this last week at Ho when he addressed financial and economic journalists at a capacity building workshop on the aftermath of the 2008 financial and economic crisis. The workshop which was sponsored by the Friedrich Ebert Stiftung was under the theme “Beyond the 2008 financial end economic crisis: Assessing government response to the crisis in Ghana”
According to him governments all over the world which experienced the financial crisis including third world countries have started putting in place measures to ensure that the impact of future crisis is not as severe as that of 2008 and Ghana must not be different.
“The IMF is synonymous with short term measures but Ghana’s problem is long term. As long as we keep depending on the IMF to give us short time measures for our long time problems we will never get there. Ghanaians would have been better off without the IMF. Ghana is still waiting for that bold leader who will take drastic decisions to change the paradigm” Dr. Baah stated.
Participants at the two day workshop in a communiqué issued after the programme urged government to formulate policies to protect the economy and review policies that are not helpful to the Ghanaian financial system such as efforts at increasing revenue mobilization and making the private sector more competitive.
They urged government to develop negotiating capacity to effectively engage development partners on issues of national interest and further develop and strengthen institutions to deliver efficiently on government policies and programmes devoid of corruption.
The group identified sectors of the economy such as the agricultural sector, education sector as areas that government must focus spending its revenue effectively on so as to add value to primary agro products.
“Government should pursue the ECOWAS and African Union agenda by promoting inter regional trade, use of common currency in Africa, the protocols of free movement of people across region, and undertake strategic and active industrialization programmes and policies for the long term transformation of the economy by revamping collapsed state industries.” The communiqué stated.
They also urged government to effectively regulate the financial institutions and the financial market to protect the financial sector and the economy as a whole from future financial shocks and also adopt long term strategies to deal with structural problems such as prioritizing and developing the energy sector to be more efficient and effective.
Government has been urged to take appropriate measures and formulate the right policies to ensure that in the unforeseen event of another global economic crisis as experienced recently its impact on the country will not be severely felt.
Deputy Secretary-General of the Ghana Trades Union Congress (GTUC), Dr. Yaw Baah, who sounded this warning, last week however gave government high marks for introducing strong fiscal policy measures in dealing with the crisis.
He praised policies such as the freeze on public sector employment, the reduction in the number of ministries, and the rationalization of subsidies to State Owned Enterprises (SOEs) as well as the rationalization of public sector wages and other expenditures including postponing the implementation of the single spine salary structures as very good moves that will bring the economy back on track.
He on the other hand slammed the current administration for its decision to go back to the Britton Wood institutions cup in hand saying it was a trivial decision. “I will advice the government to do anything to recover the economy but go back to the IMF. You see, the IMF controls you and forces you to listen to them and in such situations your options are limited and because you are the one who came begging you have no choice”
Dr. Baah, stated this last week at Ho when he addressed financial and economic journalists at a capacity building workshop on the aftermath of the 2008 financial and economic crisis. The workshop which was sponsored by the Friedrich Ebert Stiftung was under the theme “Beyond the 2008 financial end economic crisis: Assessing government response to the crisis in Ghana”
According to him governments all over the world which experienced the financial crisis including third world countries have started putting in place measures to ensure that the impact of future crisis is not as severe as that of 2008 and Ghana must not be different.
“The IMF is synonymous with short term measures but Ghana’s problem is long term. As long as we keep depending on the IMF to give us short time measures for our long time problems we will never get there. Ghanaians would have been better off without the IMF. Ghana is still waiting for that bold leader who will take drastic decisions to change the paradigm” Dr. Baah stated.
Participants at the two day workshop in a communiqué issued after the programme urged government to formulate policies to protect the economy and review policies that are not helpful to the Ghanaian financial system such as efforts at increasing revenue mobilization and making the private sector more competitive.
They urged government to develop negotiating capacity to effectively engage development partners on issues of national interest and further develop and strengthen institutions to deliver efficiently on government policies and programmes devoid of corruption.
The group identified sectors of the economy such as the agricultural sector, education sector as areas that government must focus spending its revenue effectively on so as to add value to primary agro products.
“Government should pursue the ECOWAS and African Union agenda by promoting inter regional trade, use of common currency in Africa, the protocols of free movement of people across region, and undertake strategic and active industrialization programmes and policies for the long term transformation of the economy by revamping collapsed state industries.” The communiqué stated.
They also urged government to effectively regulate the financial institutions and the financial market to protect the financial sector and the economy as a whole from future financial shocks and also adopt long term strategies to deal with structural problems such as prioritizing and developing the energy sector to be more efficient and effective.
Monday, April 19, 2010
BOG slashes policy rate by 1%
…Pressure on banks to cut lending rates
By Elorm DESEWU
Universal banks in the country would this week begin slashing their respective base lending rates between 50 and 100 basis points in response to the Monetary Policy Committee (MPC) of the central bank’s policy rate cut.
The MPC, led by the governor of the Bank of Ghana (BOG), Kwesi Amissah-Arthur, cut the policy rate by 100 basis points to settle at 15%, a reduction from 16%.
The policy rate, which serves as a benchmark, is the rate at which the central bank does overnight lending to universal banks in the country.
It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers.
Headline inflation dropped from its March 2009 level of 20.5 per cent to 13.2 per cent last month. Monthly changes in the Consumer Price Index (CPI) continue to grow at a pace lower than trends observed in 2009. Food inflation, which was 18.4 per cent in March 2009, declined steadily to 7.4 per cent by March 2010.
Similarly, non-food inflation, which was 22.0 per cent in March 2009, declined to 17.6 per cent by March 2010.
According to Amissah-Arthur, interest rates have generally declined along the full spectrum of the yield curve - 8.7 percentage points on the lower end and 4 percentage points at the higher end - since December 2009.
The market observed shifts towards long-dated instruments, in line with easing inflation expectations.
Between December 2009 and mid-April 2010, the benchmark 91-day Treasury bill rate went down by 8.7 percentage points to 13.9 per cent. Similarly, the 182-day Treasury bill rate declined by 11 percentage points to 14.4 per cent.
The rate on the 1-year note fell by 5.0 percentage points to 15.0 per cent, while the 2-year fixed rate note went down by 7.3 percentage points to 16.3 per cent. The 3-year fixed rate bond also fell by 4.0 percentage points to 14.9 per cent.
On the interbank market, the average overnight interbank interest rates fell by 1.4 percentage points to 14.9 per cent during the same period.
After staying largely static initially, commercial banks have also begun revising their base and lending rates downwards in line with the general decline in interest rates and easing inflation expectations.
However, the declines have only been marginal and have not kept pace with the recent reductions in the policy and money market rates.
Average base rates of the banks were revised downward, after the previous policy rate cut, by 200 basis points, in February, into the range of 24.7 – 32.0 per cent, with an industry average of 29.9 per cent. Similarly, average lending rates were revised downward by 0.61 percentage points to 32.1 per cent into the range 23.6 – 39.9 per cent.
By Elorm DESEWU
Universal banks in the country would this week begin slashing their respective base lending rates between 50 and 100 basis points in response to the Monetary Policy Committee (MPC) of the central bank’s policy rate cut.
The MPC, led by the governor of the Bank of Ghana (BOG), Kwesi Amissah-Arthur, cut the policy rate by 100 basis points to settle at 15%, a reduction from 16%.
The policy rate, which serves as a benchmark, is the rate at which the central bank does overnight lending to universal banks in the country.
It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers.
Headline inflation dropped from its March 2009 level of 20.5 per cent to 13.2 per cent last month. Monthly changes in the Consumer Price Index (CPI) continue to grow at a pace lower than trends observed in 2009. Food inflation, which was 18.4 per cent in March 2009, declined steadily to 7.4 per cent by March 2010.
Similarly, non-food inflation, which was 22.0 per cent in March 2009, declined to 17.6 per cent by March 2010.
According to Amissah-Arthur, interest rates have generally declined along the full spectrum of the yield curve - 8.7 percentage points on the lower end and 4 percentage points at the higher end - since December 2009.
The market observed shifts towards long-dated instruments, in line with easing inflation expectations.
Between December 2009 and mid-April 2010, the benchmark 91-day Treasury bill rate went down by 8.7 percentage points to 13.9 per cent. Similarly, the 182-day Treasury bill rate declined by 11 percentage points to 14.4 per cent.
The rate on the 1-year note fell by 5.0 percentage points to 15.0 per cent, while the 2-year fixed rate note went down by 7.3 percentage points to 16.3 per cent. The 3-year fixed rate bond also fell by 4.0 percentage points to 14.9 per cent.
On the interbank market, the average overnight interbank interest rates fell by 1.4 percentage points to 14.9 per cent during the same period.
After staying largely static initially, commercial banks have also begun revising their base and lending rates downwards in line with the general decline in interest rates and easing inflation expectations.
However, the declines have only been marginal and have not kept pace with the recent reductions in the policy and money market rates.
Average base rates of the banks were revised downward, after the previous policy rate cut, by 200 basis points, in February, into the range of 24.7 – 32.0 per cent, with an industry average of 29.9 per cent. Similarly, average lending rates were revised downward by 0.61 percentage points to 32.1 per cent into the range 23.6 – 39.9 per cent.
Dev’t fund for private media houses takes off
By Solace AMANKWA
The Media Foundation for West Africa (MFWA) has launched the West African Media Development Fund (WAMDeF) in Accra.
The fund is to be used to improve and expand access to finance and technical assistance to private media entrepreneurs by lending and investing in private media enterprises.
Products that would be offered by the fund include quick operating loans of up to $10,000, repayable between 60- 120 days, short term loans between $10,000 and $50,000, repayable between 120 days and two years, medium term loans between $50,000 and $100,000, repayable between three and five years and long term loans between $100,000 and $200,000, repayable between five and seven years.
The loans would attract small interests up to about 10%t to be charged on case by case basis
This would provide innovative and customized financial and capacity-building solutions to private media companies in West Africa.
The WAMDeF would also strive to engender the emergence of successful, vibrant, dynamic, diversified and sustainable media enterprises, optimize value to stakeholders and contribute to the strengthening of democracy in the ECOWAS region.
The Executive Director of the Foundation, Professor Kwame Karikari, speaking at the launch, disclosed that the idea of setting up the fund was conceived in 2005 by MFWA, due to the rapid change in the media landscape.
He said the MFWA was motivated by the severely challenging economic and financial situations of the media in the region, where most of the privately owned and independent media organizations were established on weak capitalization and under shaky economic regimes.
The Chief Executive Officer of the African Media Initiative, Adamou Mahtarba, who launched the fund, last week, observed that the media was the oxygen of the body of democracy, adding that without it, media democracy would not thrive.
He said the fund would be of great importance to the media in Africa, which is faced with capital, political challenges and the rapidly changing technological landscape.
He urged all private media companies to take advantage of the opportunity to improve their working conditions.
"It was established as a regional, independent, non-profit, non-governmental organization to defend and promote the rights and freedoms of the media, and generally, to help expand the boundaries of freedom of speech and expression in West Africa," he said.
The Chief Executive Officer of WAMDeF, Kwesi Owusu Asare, noted that the fund was targeted at emerging and already established private media enterprises with real or potentially solid management and financial performance in the sub- region.
He said such media groups should also have the potential to add value to democratic processes in the sub-region by increasing access to information, encouraging political dialogue and catering to a diverse range of viewpoints among members of the society.
The Media Foundation for West Africa (MFWA) has launched the West African Media Development Fund (WAMDeF) in Accra.
The fund is to be used to improve and expand access to finance and technical assistance to private media entrepreneurs by lending and investing in private media enterprises.
Products that would be offered by the fund include quick operating loans of up to $10,000, repayable between 60- 120 days, short term loans between $10,000 and $50,000, repayable between 120 days and two years, medium term loans between $50,000 and $100,000, repayable between three and five years and long term loans between $100,000 and $200,000, repayable between five and seven years.
The loans would attract small interests up to about 10%t to be charged on case by case basis
This would provide innovative and customized financial and capacity-building solutions to private media companies in West Africa.
The WAMDeF would also strive to engender the emergence of successful, vibrant, dynamic, diversified and sustainable media enterprises, optimize value to stakeholders and contribute to the strengthening of democracy in the ECOWAS region.
The Executive Director of the Foundation, Professor Kwame Karikari, speaking at the launch, disclosed that the idea of setting up the fund was conceived in 2005 by MFWA, due to the rapid change in the media landscape.
He said the MFWA was motivated by the severely challenging economic and financial situations of the media in the region, where most of the privately owned and independent media organizations were established on weak capitalization and under shaky economic regimes.
The Chief Executive Officer of the African Media Initiative, Adamou Mahtarba, who launched the fund, last week, observed that the media was the oxygen of the body of democracy, adding that without it, media democracy would not thrive.
He said the fund would be of great importance to the media in Africa, which is faced with capital, political challenges and the rapidly changing technological landscape.
He urged all private media companies to take advantage of the opportunity to improve their working conditions.
"It was established as a regional, independent, non-profit, non-governmental organization to defend and promote the rights and freedoms of the media, and generally, to help expand the boundaries of freedom of speech and expression in West Africa," he said.
The Chief Executive Officer of WAMDeF, Kwesi Owusu Asare, noted that the fund was targeted at emerging and already established private media enterprises with real or potentially solid management and financial performance in the sub- region.
He said such media groups should also have the potential to add value to democratic processes in the sub-region by increasing access to information, encouraging political dialogue and catering to a diverse range of viewpoints among members of the society.
Govt to pay NHIS arrears
By Kofi AHOVI
The government will from next week begin clearing the nationwide unpaid claims of the National Health Insurance Scheme (NHIS) totaling GH¢50 million.
This would cover all outstanding arrears to service providers up to February, this year.
The announcement comes as a big relief to service providers, who have been complaining of delays in claims’ refund.
The delays, they say, were affecting their operations, especially, drugs re-stock, and procurement of other supplies and equipment, a situation which has resulted in growing anxiety among subscribers about the possible collapse of the scheme.
According to a source at the NHIA, the authority is determined to maintain a clean sheet.
“By June, this year, the Authority would no longer allow itself to be accused of delaying payment and would keep to payment in arrears of not more than three months as provided for in the law,” the source stated.
The source stated that the target is to approach a maximum of two months’ arrears by the close of the year.
However, recent clinical audits of the district mutual schemes across the country have revealed massive abuses and fraudulent activities by some scheme officials and service providers.
Three scheme managers and some officers are in prison custody, while 33 others are on interdiction.
Sylvester Mensah, CEO of NHIS, has vowed that the NHIA would tackle corrupt practices and inject sanity into the system, adding that the authority would also cooperate with all stakeholders to find appropriate mechanisms to sustain the operations of the scheme
Central to these efforts, a new legislation has been drawn up which will make the 145 various district mutual schemes part of the national scheme, supervised directly by the NHIA.
The government will from next week begin clearing the nationwide unpaid claims of the National Health Insurance Scheme (NHIS) totaling GH¢50 million.
This would cover all outstanding arrears to service providers up to February, this year.
The announcement comes as a big relief to service providers, who have been complaining of delays in claims’ refund.
The delays, they say, were affecting their operations, especially, drugs re-stock, and procurement of other supplies and equipment, a situation which has resulted in growing anxiety among subscribers about the possible collapse of the scheme.
According to a source at the NHIA, the authority is determined to maintain a clean sheet.
“By June, this year, the Authority would no longer allow itself to be accused of delaying payment and would keep to payment in arrears of not more than three months as provided for in the law,” the source stated.
The source stated that the target is to approach a maximum of two months’ arrears by the close of the year.
However, recent clinical audits of the district mutual schemes across the country have revealed massive abuses and fraudulent activities by some scheme officials and service providers.
Three scheme managers and some officers are in prison custody, while 33 others are on interdiction.
Sylvester Mensah, CEO of NHIS, has vowed that the NHIA would tackle corrupt practices and inject sanity into the system, adding that the authority would also cooperate with all stakeholders to find appropriate mechanisms to sustain the operations of the scheme
Central to these efforts, a new legislation has been drawn up which will make the 145 various district mutual schemes part of the national scheme, supervised directly by the NHIA.
Inflation declines further to13.32% in March
By Fred SARPONG
Year-on-year inflation measured by the Consumer Price Index (CPI) dropped by 0.91% for the 12-month period ended March 2010, from the 14.23% recorded in February 2010 to 13.32% last month, according to figures released by the Ghana Statistical Service (GSS).
The March 2010 inflation rate is the lowest in the past 26 consecutive months. The monthly rate of inflation in March 2010 was 1.14%, which was the lowest figure this year, and compares with 1.59% recorded in January 2010.
Inflation had been on the increase since October 2008 when it recorded 17.30% and in June recorded its peak of 20.74%, but since then has been declining significantly until it recorded 13.32%, the lowest since January 2008.
The food component of the CPI which constitutes about 45% of the weighted items in the basket, contributed to the decline for March 2010 inflation. Non-food inflation for March was 17.55%, while food inflation for the same period recorded 7.35%.
BusinessWeek learnt that the most notable changes over the period from March 2009 to March 2010 were the highest figures recorded in recreation and culture with 41.03%; furnishing, household equipment 22.25%; hotel and restaurants 20.43%; and clothing and footwear 19.78% and some food product groups like sugar, jam, honey, syrups, chocolate and confectionary 33.77%; food products 24.37%, mineral waters, soft drinks and juices 22.95% and meat 17.7%. Fish subgroup recorded the lowest inflation rate of 0.03%.
Inflation rates in the regions included 6.98% for Eastern Region, as the lowest, and 20.16% for Central Region as the highest. Three regions, Greater Accra 11.26%, Northern 10.90% and Eastern 6.98% recorded inflation rates below the national rate of 13.32%. Other regions which recorded above the national rate are Western Region 14.58, Ashanti Region 14.67%, Volta Region 15.23%, Brong Ahafo Region 15.44%, Upper East and Upper West 17.20% Central Region 20.16%.
Even though inflation has continued declining, analysts have predicted that inflation is likely to go up within the second quarter of 2010 as a result of some key policy initiatives taken by the government.
These, according to them, include road toll increase and new tax on some packages of mineral waters, among others.
There are also the prospects of major increases in electricity tariffs and the likelihood of higher petrol prices as well, both of which would reverberate around the economy in the form of accelerated inflation.
Year-on-year inflation measured by the Consumer Price Index (CPI) dropped by 0.91% for the 12-month period ended March 2010, from the 14.23% recorded in February 2010 to 13.32% last month, according to figures released by the Ghana Statistical Service (GSS).
The March 2010 inflation rate is the lowest in the past 26 consecutive months. The monthly rate of inflation in March 2010 was 1.14%, which was the lowest figure this year, and compares with 1.59% recorded in January 2010.
Inflation had been on the increase since October 2008 when it recorded 17.30% and in June recorded its peak of 20.74%, but since then has been declining significantly until it recorded 13.32%, the lowest since January 2008.
The food component of the CPI which constitutes about 45% of the weighted items in the basket, contributed to the decline for March 2010 inflation. Non-food inflation for March was 17.55%, while food inflation for the same period recorded 7.35%.
BusinessWeek learnt that the most notable changes over the period from March 2009 to March 2010 were the highest figures recorded in recreation and culture with 41.03%; furnishing, household equipment 22.25%; hotel and restaurants 20.43%; and clothing and footwear 19.78% and some food product groups like sugar, jam, honey, syrups, chocolate and confectionary 33.77%; food products 24.37%, mineral waters, soft drinks and juices 22.95% and meat 17.7%. Fish subgroup recorded the lowest inflation rate of 0.03%.
Inflation rates in the regions included 6.98% for Eastern Region, as the lowest, and 20.16% for Central Region as the highest. Three regions, Greater Accra 11.26%, Northern 10.90% and Eastern 6.98% recorded inflation rates below the national rate of 13.32%. Other regions which recorded above the national rate are Western Region 14.58, Ashanti Region 14.67%, Volta Region 15.23%, Brong Ahafo Region 15.44%, Upper East and Upper West 17.20% Central Region 20.16%.
Even though inflation has continued declining, analysts have predicted that inflation is likely to go up within the second quarter of 2010 as a result of some key policy initiatives taken by the government.
These, according to them, include road toll increase and new tax on some packages of mineral waters, among others.
There are also the prospects of major increases in electricity tariffs and the likelihood of higher petrol prices as well, both of which would reverberate around the economy in the form of accelerated inflation.
West Africa Gas Pipeline restarts operations
By Kofi AHOVI
The West African Gas Pipeline has restarted operations, following a one-year outage, which was caused by vandalism and fuel quality problems in Nigeria.
The volume of gas flowing is approximately 30 million standard cubic feet per day (mmcfd), which is enough to generate 110 megawatts to fuel one out of the four installed turbines at the Takoradi Power Station in the Western Region.
The resumption of flows on the line would allow power plants in Takoradi to switch from the expensive light crude it has been using to produce electricity since the shutdown in May 2009.
Flows along the pipeline, which were originally started in 2008, were suspended due to the destruction of supply lines in Nigeria, where energy infrastructure is routinely targeted by rebels who are angered by unequal distribution of oil wealth.
The 678 kilometre (420 mile) line was designed to transport gas from Nigeria's oilfields to Benin, Togo and Ghana to help ease chronic power shortages around West Africa, which are seen as a hindrance to the region's development.
The gas flowing into Ghana is not compressed, which means volumes fall short of optimal.
This is due to the pre-commissioning activities, which are ongoing at the huge Lagos Beach Compressor Station (LBCS) in Nigeria, as well as the other regulating and metering stations near Tema, Lome and Cotonou.
Pre-commissioning involves checking/testing the various items of equipment to ensure everything is in proper working order before introducing gas. Once pre-commissioning is completed, the sites are deemed to be mechanically complete and ready for commissioning. The commissioning process itself is estimated to take two months.
This facility is supposed to compress the gas originating from Escrovas to maximize the volumes that the pipeline can carry. The compressors for capacity of 170mmcfd, ultimately rising to six compressors with capacity of 474 mmcfd.
The use of natural gas to run the Takoradi thermal power station is expected to bring down electricity cost considerably. Since its construction a decade ago, it has been run on heavy diesel oil, which has proved very expensive, compared with the hydro-electric power from the Akosombo dam.
The construction of the pipeline has certainly been worth it, but this has come at a considerable cost, as lots of construction difficulties were encountered pushing the project far behind schedule and far over the original planned cost.
The original estimate for construction cost was US$615million, however, by the end of 2008, a year after the pipeline should have been completed, it had risen to US$750 million. During 2009, largely due to a change of contractor was necessary, a supplementary budget of US$200 million was made, bringing the final construction cost close to US$1 billion.
The construction of the pipeline began in 2005 and was expected to be completed in 2007 but this could not be realized due to unforeseen construction problems.
The West African Gas Pipeline has been more than 25 years in the making, having first been proposed by the Economic Community of West African States (ECOWAS) as a key regional economic goal.
It took another 10 years before the next step was taken, but when in 1992 a World Bank study confirmed the viability of such a pipeline, interest began to rise and planning for the pipeline began to pick up pace.
US oil giant, Chevron, holds a 36.7% stake in the West African Gas Pipeline Co.
Other shareholders include the Nigerian National Petroleum Corporation (NNPC), Royal Dutch Shell, Ghana's Takoradi Power Company Limited, Societe Togolaise de Gaz and Societe Beninoise de Gaz.
The West African Gas Pipeline has restarted operations, following a one-year outage, which was caused by vandalism and fuel quality problems in Nigeria.
The volume of gas flowing is approximately 30 million standard cubic feet per day (mmcfd), which is enough to generate 110 megawatts to fuel one out of the four installed turbines at the Takoradi Power Station in the Western Region.
The resumption of flows on the line would allow power plants in Takoradi to switch from the expensive light crude it has been using to produce electricity since the shutdown in May 2009.
Flows along the pipeline, which were originally started in 2008, were suspended due to the destruction of supply lines in Nigeria, where energy infrastructure is routinely targeted by rebels who are angered by unequal distribution of oil wealth.
The 678 kilometre (420 mile) line was designed to transport gas from Nigeria's oilfields to Benin, Togo and Ghana to help ease chronic power shortages around West Africa, which are seen as a hindrance to the region's development.
The gas flowing into Ghana is not compressed, which means volumes fall short of optimal.
This is due to the pre-commissioning activities, which are ongoing at the huge Lagos Beach Compressor Station (LBCS) in Nigeria, as well as the other regulating and metering stations near Tema, Lome and Cotonou.
Pre-commissioning involves checking/testing the various items of equipment to ensure everything is in proper working order before introducing gas. Once pre-commissioning is completed, the sites are deemed to be mechanically complete and ready for commissioning. The commissioning process itself is estimated to take two months.
This facility is supposed to compress the gas originating from Escrovas to maximize the volumes that the pipeline can carry. The compressors for capacity of 170mmcfd, ultimately rising to six compressors with capacity of 474 mmcfd.
The use of natural gas to run the Takoradi thermal power station is expected to bring down electricity cost considerably. Since its construction a decade ago, it has been run on heavy diesel oil, which has proved very expensive, compared with the hydro-electric power from the Akosombo dam.
The construction of the pipeline has certainly been worth it, but this has come at a considerable cost, as lots of construction difficulties were encountered pushing the project far behind schedule and far over the original planned cost.
The original estimate for construction cost was US$615million, however, by the end of 2008, a year after the pipeline should have been completed, it had risen to US$750 million. During 2009, largely due to a change of contractor was necessary, a supplementary budget of US$200 million was made, bringing the final construction cost close to US$1 billion.
The construction of the pipeline began in 2005 and was expected to be completed in 2007 but this could not be realized due to unforeseen construction problems.
The West African Gas Pipeline has been more than 25 years in the making, having first been proposed by the Economic Community of West African States (ECOWAS) as a key regional economic goal.
It took another 10 years before the next step was taken, but when in 1992 a World Bank study confirmed the viability of such a pipeline, interest began to rise and planning for the pipeline began to pick up pace.
US oil giant, Chevron, holds a 36.7% stake in the West African Gas Pipeline Co.
Other shareholders include the Nigerian National Petroleum Corporation (NNPC), Royal Dutch Shell, Ghana's Takoradi Power Company Limited, Societe Togolaise de Gaz and Societe Beninoise de Gaz.
Tullow Oil to list on Ghana Stock Exchange
…First oil confirmed for December
By Kofi AHOVI
Tullow Oil Plc, the majority stakeholder in the Jubilee field, plans to list on the Ghana Stock Exchange (GSE) by the end of this year, BusinessWeek has gathered.
The decision to list on the Ghanaian bourse would play a significant role in the development of the country’s oil industry.
Additional information gathered indicates that the company may also list on Uganda Stock Exchange.
If the listing of Tullow is successful, it will mean that Ghanaians would have the opportunity to own shares not only in the operations of Tullow Ghana but also operations of Tullow worldwide.
It is however unclear what percentage of the company’s shares would be listed on the bourse.
The Communications Manager for Tullow Oil Ghana, Gayheart Edem-Mensah, who confirmed this, said this is yet to be established, but the move had been under consideration since early last year but is at its early stages.
According to him, the move is to offer Ghanaians the opportunity to share in the company’s operational success in the country so far.
“It is also to demonstrate the company’s commitment towards the sustainable development of the emerging oil industry,” he added.
“Tullow Oil is determined to contribute to the development of the oil industry in Ghana, especially since it is an emerging industry,” Edem-Mensah said.
He stressed that Tullow has a long term commitment to countries within which it operates, and this explains why the company will want to offer Ghanaians the opportunity to participate in its share offering.
In a related development, Tullow Oil PLC's (TLW.LN) Jubilee field in Ghana is on target to produce its first oil in the fourth quarter this year, with the first cargo expected as early as December, Robin Sutherland, a senior executive has confirmed.
"First oil is on schedule for the fourth quarter, so discovery to first oil in 40 months," Robin Sutherland stated.
"We feel it is a common mistake that oil companies make in neglecting their exploration roots," said Sutherland, adding, "We have no intention in doing this, and 80% of our 2010 capital will be spent in Africa."
He said the company is on target for the Floating Production Storage and Offloading vessel to sail in May, and has already started well-completion activities.
Sutherland said the first stage development cost of the Jubilee field had remained within the original $3.1 billion budget.
The field's output is expected to ramp-up to 120,000 barrels a day within six months of first oil produced.
Tullow has developed its own transport assets, including helicopters and fixed-wing aircraft in order to access the site, Sutherland said.
Tullow is also in the process of developing oil fields in Uganda's Lake Albert basin and is in talks over licenses in two oil blocks on the Congolese side of the lake.
By Kofi AHOVI
Tullow Oil Plc, the majority stakeholder in the Jubilee field, plans to list on the Ghana Stock Exchange (GSE) by the end of this year, BusinessWeek has gathered.
The decision to list on the Ghanaian bourse would play a significant role in the development of the country’s oil industry.
Additional information gathered indicates that the company may also list on Uganda Stock Exchange.
If the listing of Tullow is successful, it will mean that Ghanaians would have the opportunity to own shares not only in the operations of Tullow Ghana but also operations of Tullow worldwide.
It is however unclear what percentage of the company’s shares would be listed on the bourse.
The Communications Manager for Tullow Oil Ghana, Gayheart Edem-Mensah, who confirmed this, said this is yet to be established, but the move had been under consideration since early last year but is at its early stages.
According to him, the move is to offer Ghanaians the opportunity to share in the company’s operational success in the country so far.
“It is also to demonstrate the company’s commitment towards the sustainable development of the emerging oil industry,” he added.
“Tullow Oil is determined to contribute to the development of the oil industry in Ghana, especially since it is an emerging industry,” Edem-Mensah said.
He stressed that Tullow has a long term commitment to countries within which it operates, and this explains why the company will want to offer Ghanaians the opportunity to participate in its share offering.
In a related development, Tullow Oil PLC's (TLW.LN) Jubilee field in Ghana is on target to produce its first oil in the fourth quarter this year, with the first cargo expected as early as December, Robin Sutherland, a senior executive has confirmed.
"First oil is on schedule for the fourth quarter, so discovery to first oil in 40 months," Robin Sutherland stated.
"We feel it is a common mistake that oil companies make in neglecting their exploration roots," said Sutherland, adding, "We have no intention in doing this, and 80% of our 2010 capital will be spent in Africa."
He said the company is on target for the Floating Production Storage and Offloading vessel to sail in May, and has already started well-completion activities.
Sutherland said the first stage development cost of the Jubilee field had remained within the original $3.1 billion budget.
The field's output is expected to ramp-up to 120,000 barrels a day within six months of first oil produced.
Tullow has developed its own transport assets, including helicopters and fixed-wing aircraft in order to access the site, Sutherland said.
Tullow is also in the process of developing oil fields in Uganda's Lake Albert basin and is in talks over licenses in two oil blocks on the Congolese side of the lake.
SA Tourism promotes 2010 FIFA World Cup with trade workshop in Ghana ,
South African Tourism, the organization responsible for the marketing and promotion of South Africa as a world-class destination, has done this year’s version of its annual West Africa Trade Road Show event in Ghana.
The event featured a one-day, tailor-made trade workshop which aims to update Ghanaian tour operators and travel agents on available business and leisure tourism products, enhance their destination marketing skills and create excitement for the upcoming 2010 FIFA World Cup.
“SA Tourism is embarking on this workshop as Ghana has become a tactical source market for arrivals into South Africa from the West Africa sub-region and it presents the opportunity to share SA Tourism’s marketing and activation calendar for the year with the trade, consumers and the media,” explained Phumi Dhlomo, Regional Director, Africa & Domestic Markets for South African Tourism.
In addition to the trade workshop, Media Roundtable, Round Robin Session/Product Presentations and a Consumer Activation (exhibition) were held to boost public excitement about SA destinations.
“Our partnership with trade and media in the country is key to our success. By showing them what is on offer from a business and leisure perspective, and giving them the opportunity to explore and experience the offerings and country, they are better equipped to sell the packages and encourage people to visit South Africa,” Dhlomo added.
Though the Ghanaian market is characterised predominantly by business arrivals, South African Tourism aims to significantly grow the numbers for the next three years by encouraging more Ghanaians to visit South Africa for the FIFA 2010 World Cup and beyond.
“We know Ghanaians are very passionate about football and we hope to use this workshop to build up momentum to get more Ghanaians to visit South Africa now, during the FIFA 2010 World Cup and after,” stated Hloni Pitso, Acting Manager: Trade Relations, West Africa at South African Tourism.
In a related event, South Africa recorded a lion share of more than 7.7 million tourist arrivals from Africa out of the 9.9 million altogether from around the world statistics between the period of January and December, 2009.
In the recently released tourism statistics report for 2009, global tourists’ arrivals to South Africa grew by 3.6% in 2009 to reach 9,933,966 with countries on the African continent having the largest share amounting to 7,762,921 travelers. Tourist arrivals from Africa thus represented about 78% of the total global tourist arrivals in South Africa for the year 2009.
The report stated that South Africa outperformed most international tourism markets in 2009.
The event featured a one-day, tailor-made trade workshop which aims to update Ghanaian tour operators and travel agents on available business and leisure tourism products, enhance their destination marketing skills and create excitement for the upcoming 2010 FIFA World Cup.
“SA Tourism is embarking on this workshop as Ghana has become a tactical source market for arrivals into South Africa from the West Africa sub-region and it presents the opportunity to share SA Tourism’s marketing and activation calendar for the year with the trade, consumers and the media,” explained Phumi Dhlomo, Regional Director, Africa & Domestic Markets for South African Tourism.
In addition to the trade workshop, Media Roundtable, Round Robin Session/Product Presentations and a Consumer Activation (exhibition) were held to boost public excitement about SA destinations.
“Our partnership with trade and media in the country is key to our success. By showing them what is on offer from a business and leisure perspective, and giving them the opportunity to explore and experience the offerings and country, they are better equipped to sell the packages and encourage people to visit South Africa,” Dhlomo added.
Though the Ghanaian market is characterised predominantly by business arrivals, South African Tourism aims to significantly grow the numbers for the next three years by encouraging more Ghanaians to visit South Africa for the FIFA 2010 World Cup and beyond.
“We know Ghanaians are very passionate about football and we hope to use this workshop to build up momentum to get more Ghanaians to visit South Africa now, during the FIFA 2010 World Cup and after,” stated Hloni Pitso, Acting Manager: Trade Relations, West Africa at South African Tourism.
In a related event, South Africa recorded a lion share of more than 7.7 million tourist arrivals from Africa out of the 9.9 million altogether from around the world statistics between the period of January and December, 2009.
In the recently released tourism statistics report for 2009, global tourists’ arrivals to South Africa grew by 3.6% in 2009 to reach 9,933,966 with countries on the African continent having the largest share amounting to 7,762,921 travelers. Tourist arrivals from Africa thus represented about 78% of the total global tourist arrivals in South Africa for the year 2009.
The report stated that South Africa outperformed most international tourism markets in 2009.
Public takes on power providers
By Jeorge Wilson KINGSON
The utility service providers in the country, comprising the Volta River Authority (VRA), Electricity Company of Ghana (ECG), Ghana Water Company (GWC) and the Ghana Grid Company (GRIDco), have been urged by the public to take urgent steps to address the problem of wastage in their operating systems before contemplating the idea of tariff increments.
The belief is that wastage contributes about 50% loss to the utility companies, causing them to record series of losses which has impeded their retooling and expansion drives.
Proponents of these concerns are further of the view that if the utility providers are able to do a clean exercise by controlling the waste in their system, there would virtually be no reason for them to call for tariff adjustments.
These were among concerns expressed by participants at last week’s public forum, organized by the utility service regulator, the Public Utilities Regulatory Commission (PURC).
It was aimed at allowing members of the public to express their views and concerns regarding the proposed tariff increment being put forward by the utility companies.
While some suggest that companies such as ECG and GWC step up their meter reading technologies so as to bring it in tandem with modern trends, others were of the view that perhaps it is time the country started considering a switch to wind technology as an option to its energy problems.
According to the consumers, should the companies do their homework well, but still see the need to for tariff hike, they will not hesitate to pay more.
“We want reliable emergency numbers that we can call and reach you on when we have complaints and reservations,” stated one participant.
“Most of your call centre numbers don’t work. They often leave us stranded and this doesn’t give us a good reason to pay more for your services. Private companies are going inn for toll free telephone lines, may be it is time you also consider that in the interest of all of us.”
The chairman of the PURC, Edu Annang, announced that beginning from October, this year there will be penalties imposed against utility companies which fail to deliver satisfactory services to the public.
He however added that that the penalties will only take effect after a company refuses to act on persistent complaints about its service delivery.
Vice President John Dramani Mahama, in his address, acknowledged the challenges of the utility sector saying “the rapid growth of the economy and competition for vital investments in utility infrastructure has unfortunately led to shortages in the supply of electricity and water, a situation which will continue to negatively impact on our development unless drastic measures are taken to address the collective failure of several stakeholders over the years.”
He urged the utility service providers to endeavor to ensure a reduction in losses, which consist of illegal connections, as well as technical and commercial losses.
According to him, the utility providers need to raise their capital expenditure in order to expand, adding that an additional increment in tariffs should ensure an improvement in the quality of service.
He assured of the government’s commitment to providing the necessary resources and a conducive, environment to support both the utility companies and the PURC to move rapidly towards a new era of enhanced efficiency in service delivery and regulation.
To this effect, he announced the government’s directive to the ECG to fix prepaid meters in all Ministries, Departments and Agencies (MDAs).
This is to curtail the abuse of electricity consumption at the MDAs, while steps are being taken by the government to clear its huge indebtedness to the ECG which, according to sources, is in the region of US$80 million.
The objective of the PURC among others is to create an independent regulatory body with the mandate to regulate water and electricity by balancing the needs of utility companies and consumers, in a manner that would enhance cost effectiveness and efficiency in the provision of utility services.
Representatives from all the companies involved in generating and distributing electricity took turns to explain to the participants why it is necessary to increase their tariffs in order for them to provide efficient and quality services for consumers.
They argued that without a substantial tariffs increase, the government would have to support them substantially.
The utility service providers in the country, comprising the Volta River Authority (VRA), Electricity Company of Ghana (ECG), Ghana Water Company (GWC) and the Ghana Grid Company (GRIDco), have been urged by the public to take urgent steps to address the problem of wastage in their operating systems before contemplating the idea of tariff increments.
The belief is that wastage contributes about 50% loss to the utility companies, causing them to record series of losses which has impeded their retooling and expansion drives.
Proponents of these concerns are further of the view that if the utility providers are able to do a clean exercise by controlling the waste in their system, there would virtually be no reason for them to call for tariff adjustments.
These were among concerns expressed by participants at last week’s public forum, organized by the utility service regulator, the Public Utilities Regulatory Commission (PURC).
It was aimed at allowing members of the public to express their views and concerns regarding the proposed tariff increment being put forward by the utility companies.
While some suggest that companies such as ECG and GWC step up their meter reading technologies so as to bring it in tandem with modern trends, others were of the view that perhaps it is time the country started considering a switch to wind technology as an option to its energy problems.
According to the consumers, should the companies do their homework well, but still see the need to for tariff hike, they will not hesitate to pay more.
“We want reliable emergency numbers that we can call and reach you on when we have complaints and reservations,” stated one participant.
“Most of your call centre numbers don’t work. They often leave us stranded and this doesn’t give us a good reason to pay more for your services. Private companies are going inn for toll free telephone lines, may be it is time you also consider that in the interest of all of us.”
The chairman of the PURC, Edu Annang, announced that beginning from October, this year there will be penalties imposed against utility companies which fail to deliver satisfactory services to the public.
He however added that that the penalties will only take effect after a company refuses to act on persistent complaints about its service delivery.
Vice President John Dramani Mahama, in his address, acknowledged the challenges of the utility sector saying “the rapid growth of the economy and competition for vital investments in utility infrastructure has unfortunately led to shortages in the supply of electricity and water, a situation which will continue to negatively impact on our development unless drastic measures are taken to address the collective failure of several stakeholders over the years.”
He urged the utility service providers to endeavor to ensure a reduction in losses, which consist of illegal connections, as well as technical and commercial losses.
According to him, the utility providers need to raise their capital expenditure in order to expand, adding that an additional increment in tariffs should ensure an improvement in the quality of service.
He assured of the government’s commitment to providing the necessary resources and a conducive, environment to support both the utility companies and the PURC to move rapidly towards a new era of enhanced efficiency in service delivery and regulation.
To this effect, he announced the government’s directive to the ECG to fix prepaid meters in all Ministries, Departments and Agencies (MDAs).
This is to curtail the abuse of electricity consumption at the MDAs, while steps are being taken by the government to clear its huge indebtedness to the ECG which, according to sources, is in the region of US$80 million.
The objective of the PURC among others is to create an independent regulatory body with the mandate to regulate water and electricity by balancing the needs of utility companies and consumers, in a manner that would enhance cost effectiveness and efficiency in the provision of utility services.
Representatives from all the companies involved in generating and distributing electricity took turns to explain to the participants why it is necessary to increase their tariffs in order for them to provide efficient and quality services for consumers.
They argued that without a substantial tariffs increase, the government would have to support them substantially.
Friday, April 16, 2010
Draft policy document for oil and gas production soon
By Solace AMANKWA
Government has constituted a high level committee of security and legal experts to draft a policy document, aimed at safeguarding operations in the oil and gas sector.
The policy will protect the petroleum industry against acts of terrorism, sabotage, piracy and vandalism.
This would create a safe, secure and enabling environment to facilitate the exploration, exploitation and distribution of oil and gas.
Besides, it would prevent the diversion and stealing of petroleum products, and further prevent other users of the sea from interfering with operations.
According to the Minister of Energy, Dr. Joe Oteng-Adjei, government is putting up measures to give a timely response to emergencies in the oil and gas sector.
He said efforts should be made to ensure that transparency goes beyond the monitoring of the flow of oil revenues to all contracts signed between the extractive companies and the government.
Ghana signed up to the Extractive Industries Transparency Initiative (EITI) mechanism in 2003 to enhance improved governance in the mining sector through full publication and verification of company payments and government revenues.
Government is however planning to extend EITI from the mining area to the oil and gas sector before the country commences production in commercial quantities in the last quarter of this year.
This would make government committed to the principles of managing the resources that will flow from the sector prudently.
Tullow Oil is on course to pump the first oil from Ghana's giant Jubilee field in the last quarter of this year.
The field is estimated to hold as much as 1.8 billion barrels of oil, and the output could ramp up to 150,000 barrels per day within months of startup.
Government has constituted a high level committee of security and legal experts to draft a policy document, aimed at safeguarding operations in the oil and gas sector.
The policy will protect the petroleum industry against acts of terrorism, sabotage, piracy and vandalism.
This would create a safe, secure and enabling environment to facilitate the exploration, exploitation and distribution of oil and gas.
Besides, it would prevent the diversion and stealing of petroleum products, and further prevent other users of the sea from interfering with operations.
According to the Minister of Energy, Dr. Joe Oteng-Adjei, government is putting up measures to give a timely response to emergencies in the oil and gas sector.
He said efforts should be made to ensure that transparency goes beyond the monitoring of the flow of oil revenues to all contracts signed between the extractive companies and the government.
Ghana signed up to the Extractive Industries Transparency Initiative (EITI) mechanism in 2003 to enhance improved governance in the mining sector through full publication and verification of company payments and government revenues.
Government is however planning to extend EITI from the mining area to the oil and gas sector before the country commences production in commercial quantities in the last quarter of this year.
This would make government committed to the principles of managing the resources that will flow from the sector prudently.
Tullow Oil is on course to pump the first oil from Ghana's giant Jubilee field in the last quarter of this year.
The field is estimated to hold as much as 1.8 billion barrels of oil, and the output could ramp up to 150,000 barrels per day within months of startup.
SCB adds 5 new products to its Bancassurance
By Kofi Ahovi
Standard Chartered Bank (SCB) has unveiled five new additions to its Bancassuarance product suite.
These are Drive Safe (motor insurance), Live Safe (personal Accident insurance), Travel Safe (foreign Travel insurance), Cargo Safe (marine insurance) and Home Safe (home and personal assets).
Bancassurance is a bundle of insurance solutions that enables customers of the bank meet their insurance needs along with their banking needs, under one roof.
These solutions are underwritten by Ghana’s oldest insurance providers, Enterprise Insurance Company and the Enterprise Life Insurance Company.
The new offer complements the Family Funeral Insurance, Educare Insurance and Term Assurance Products already on offer from the bank.
With this development, standard Chartered, which pioneered this innovation in Ghana in 2007, now has on offer the most insurance products than any bank in the country.
The general manager of wealth management/insurance and transactional banking of SCB, Ben Mensah said the bank strives to offer customers creative4 innovations that deliver international standards and quality.
“This means a situation where our customers enjoy 360 degree solutions to all their financial problems at any of our touchpoints,” Mensah stated.
He added that the bank’s bancassurance solutions have been deepened to offer customers a full range of solutions to ensure they are equipped to fulfill all their needs and deal with any risk that the customer might encounter
Standard Chartered Bank (SCB) has unveiled five new additions to its Bancassuarance product suite.
These are Drive Safe (motor insurance), Live Safe (personal Accident insurance), Travel Safe (foreign Travel insurance), Cargo Safe (marine insurance) and Home Safe (home and personal assets).
Bancassurance is a bundle of insurance solutions that enables customers of the bank meet their insurance needs along with their banking needs, under one roof.
These solutions are underwritten by Ghana’s oldest insurance providers, Enterprise Insurance Company and the Enterprise Life Insurance Company.
The new offer complements the Family Funeral Insurance, Educare Insurance and Term Assurance Products already on offer from the bank.
With this development, standard Chartered, which pioneered this innovation in Ghana in 2007, now has on offer the most insurance products than any bank in the country.
The general manager of wealth management/insurance and transactional banking of SCB, Ben Mensah said the bank strives to offer customers creative4 innovations that deliver international standards and quality.
“This means a situation where our customers enjoy 360 degree solutions to all their financial problems at any of our touchpoints,” Mensah stated.
He added that the bank’s bancassurance solutions have been deepened to offer customers a full range of solutions to ensure they are equipped to fulfill all their needs and deal with any risk that the customer might encounter
SEC decides on Comet Properties this week
By Kofi AHOVI
The Securities and Exchange Commission (SEC), the regulator of the capital market, will this week finalize the approval of the prospectus of Comet Properties Limited, a wholly owned Ghanaian real estate company, for listing on the Ghana Stock Exchange (GSE).
Comet Properties late last year got its provisional listing on the Ghana Stock Exchange.
Provisional listing was introduced to the Ghanaian stock market a couple of years ago to help small and medium companies list on the GSE.
Companies have to complete all processes to get fully listed on the exchange within 18 months after provisionally listing on the exchange. However, management of Comet Properties promised to complete the processes within six months.
After the approval of its prospectus by SEC, the company would commence its Initial Public Offer to enable the general public to invest in the company.
The company, which started operations in 2002, is ranked as the 47th company in the Ghana Club 100 magazine.
Since its inception, the company has built 200 houses, with another 200 which are at various levels of construction. It has a 2,000 acre Hillside Estate Project at Brekusu near Ashongman in Accra. The company’s products have been well patronized by the general public. It is in this regard that the business has acquired another 1,500 acre site at Obosomase on the Akwapim Hills in the Eastern Region.
Comet is a prominent member of the Ghana Real Estates Developers Association (GREDA).
The Securities and Exchange Commission (SEC), the regulator of the capital market, will this week finalize the approval of the prospectus of Comet Properties Limited, a wholly owned Ghanaian real estate company, for listing on the Ghana Stock Exchange (GSE).
Comet Properties late last year got its provisional listing on the Ghana Stock Exchange.
Provisional listing was introduced to the Ghanaian stock market a couple of years ago to help small and medium companies list on the GSE.
Companies have to complete all processes to get fully listed on the exchange within 18 months after provisionally listing on the exchange. However, management of Comet Properties promised to complete the processes within six months.
After the approval of its prospectus by SEC, the company would commence its Initial Public Offer to enable the general public to invest in the company.
The company, which started operations in 2002, is ranked as the 47th company in the Ghana Club 100 magazine.
Since its inception, the company has built 200 houses, with another 200 which are at various levels of construction. It has a 2,000 acre Hillside Estate Project at Brekusu near Ashongman in Accra. The company’s products have been well patronized by the general public. It is in this regard that the business has acquired another 1,500 acre site at Obosomase on the Akwapim Hills in the Eastern Region.
Comet is a prominent member of the Ghana Real Estates Developers Association (GREDA).
Stakeholders dialogue on disaster recovery management
Esolution Consulting, a risk management consultancy, has organized a workshop on Business Continuity and Disaster Recovery Management to ensure the achievement of business goals.
The workshop was to create awareness and the need for organizations, businesses and government to develop the capacity to continue critical business activities in the event of any disaster.
The Chief Executive of Esolution Consulting, Solomon Adiyiah, observed that, effective business continuity and disaster recovery must be informed by clear understanding of critical processes that must be conducted in order to achieve business goals and key supporting objectives.
He added that, to ensure that the processes are adequately protected, business continuity planners must have clear and comprehensive understanding of all critical business elements in an organization, including their relationships, inter-dependencies and relative priority to the businesses. “So risks can be identified, assessed and appropriately planned for,” he stressed.
Adiyiah cautioned that “incomplete business continuity analysis would leave the organization vulnerable to a critical failure.”
Topics treated at the workshop include understanding business continuity planning concepts, risk management, business impact analysis, business continuity strategy development, business continuity plan development, business continuity plan testing and maintenance.
The workshop brought together participants from the insurance industry, the banking industry, Bank of Ghana, Ghana Armed Forces, Volta River Authority and VAT services.
The workshop was to create awareness and the need for organizations, businesses and government to develop the capacity to continue critical business activities in the event of any disaster.
The Chief Executive of Esolution Consulting, Solomon Adiyiah, observed that, effective business continuity and disaster recovery must be informed by clear understanding of critical processes that must be conducted in order to achieve business goals and key supporting objectives.
He added that, to ensure that the processes are adequately protected, business continuity planners must have clear and comprehensive understanding of all critical business elements in an organization, including their relationships, inter-dependencies and relative priority to the businesses. “So risks can be identified, assessed and appropriately planned for,” he stressed.
Adiyiah cautioned that “incomplete business continuity analysis would leave the organization vulnerable to a critical failure.”
Topics treated at the workshop include understanding business continuity planning concepts, risk management, business impact analysis, business continuity strategy development, business continuity plan development, business continuity plan testing and maintenance.
The workshop brought together participants from the insurance industry, the banking industry, Bank of Ghana, Ghana Armed Forces, Volta River Authority and VAT services.
Stanbic Bank group profits down 17%
By Kofi Ahovi
The headline earnings of Standard Bank Group, the parent company of Stanbic Bank Ghana, were down by 17% recording SAR 11,718 billion in 2009.
The bank also recorded a 20% reduction in its headline earnings per share recording 757 cent per share in the same year. The group further recorded 13.6% return on equity (ROE) compared to 18.2% in 2008.
Based on this, the bank maintained its total distribution per ordinary share at the same level as 2008, resulting in a total distribution for the year of 386 cents per share.
Announcing the annual results of the bank for 2009, the Group Chief Executive, Jacko Maree said “It was an extremely tough year, but one in which our focus on developing markets stood us in good stead. Our vision to be a leading emerging markets financial services organization remains unchanged. Our resilience in the face of the severe challenges of the past two years confirms that the group is strategically well placed.”
Emerging markets accounted for two-thirds of global growth in 2009, growing their share of global GDP to 31% in 2009 from 20% in 1998.
Net interest income was down 2%, and non-interest revenue grew by 6% with trading revenue also recording 12% increase.
The bank’s non performing loans stood at 6.2% compared to 3.4% in 2008. The credit loss ratio for the year was 1.6% as against 1.5% in 2008.
According to the bank, the recovery from the global financial crisis in 2010 is likely to be hesitant and employment and credit conditions are expected to remain under pressure, adding that most of the growth in the global economy are likely to originate from emerging markets especially Asia.
“We anticipate that the group’s normalized headline earnings will recover from the 2009 base and management’s immediate focus will be to restore earnings to 2008 levels. The financial impact of possible regulatory interventions is currently being assessed and may impact results and returns over the long term.” The Chief Executive stated.
The headline earnings of Standard Bank Group, the parent company of Stanbic Bank Ghana, were down by 17% recording SAR 11,718 billion in 2009.
The bank also recorded a 20% reduction in its headline earnings per share recording 757 cent per share in the same year. The group further recorded 13.6% return on equity (ROE) compared to 18.2% in 2008.
Based on this, the bank maintained its total distribution per ordinary share at the same level as 2008, resulting in a total distribution for the year of 386 cents per share.
Announcing the annual results of the bank for 2009, the Group Chief Executive, Jacko Maree said “It was an extremely tough year, but one in which our focus on developing markets stood us in good stead. Our vision to be a leading emerging markets financial services organization remains unchanged. Our resilience in the face of the severe challenges of the past two years confirms that the group is strategically well placed.”
Emerging markets accounted for two-thirds of global growth in 2009, growing their share of global GDP to 31% in 2009 from 20% in 1998.
Net interest income was down 2%, and non-interest revenue grew by 6% with trading revenue also recording 12% increase.
The bank’s non performing loans stood at 6.2% compared to 3.4% in 2008. The credit loss ratio for the year was 1.6% as against 1.5% in 2008.
According to the bank, the recovery from the global financial crisis in 2010 is likely to be hesitant and employment and credit conditions are expected to remain under pressure, adding that most of the growth in the global economy are likely to originate from emerging markets especially Asia.
“We anticipate that the group’s normalized headline earnings will recover from the 2009 base and management’s immediate focus will be to restore earnings to 2008 levels. The financial impact of possible regulatory interventions is currently being assessed and may impact results and returns over the long term.” The Chief Executive stated.
Microsoft introduces new products
By Kofi Ahovi
Microsoft, a software manufacturing company, has introduced a new operating system dubbed Windows7 and an antivirus, Microsoft Security Essentials, that only works on Microsoft genuine windows.
The new products were introduced to the company’s distributors and resellers in the country at a day’s seminar organized by ProTech, a software and hardware distribution in Ghana.
Explaining the features of Windows7 to the participants, Uzo Okpaka, Channel Compliance Manager of Microsoft, said the new product was developed based on a survey conducted among its clients who requested for a more convenient, faster and safer operating system.
Windows7 was built on windows Vista due to its security features making it safer compared to other operating systems.
According to Okpaka, Windows7 has been tested with more that 8000 Original Equipment Manufacturers (OEM) “and it was more responsive compared to other operating systems” she noted.
Windows7 comes in for categories and these are Windows7 Starter, Home premium, Professional and Ultimate enterprise. The Starter and Home premium were designed for the consumer segment while the Professional and the Ultimate were designed for institutions.
The participants were also taken through licensing procedures and other benefits that retailers could enjoy which include Microsoft club. The Microsoft Club gives partners the opportunity to earn cash rebates and marketing funds for purchasing selected Microsoft licences and products.
Microsoft, a software manufacturing company, has introduced a new operating system dubbed Windows7 and an antivirus, Microsoft Security Essentials, that only works on Microsoft genuine windows.
The new products were introduced to the company’s distributors and resellers in the country at a day’s seminar organized by ProTech, a software and hardware distribution in Ghana.
Explaining the features of Windows7 to the participants, Uzo Okpaka, Channel Compliance Manager of Microsoft, said the new product was developed based on a survey conducted among its clients who requested for a more convenient, faster and safer operating system.
Windows7 was built on windows Vista due to its security features making it safer compared to other operating systems.
According to Okpaka, Windows7 has been tested with more that 8000 Original Equipment Manufacturers (OEM) “and it was more responsive compared to other operating systems” she noted.
Windows7 comes in for categories and these are Windows7 Starter, Home premium, Professional and Ultimate enterprise. The Starter and Home premium were designed for the consumer segment while the Professional and the Ultimate were designed for institutions.
The participants were also taken through licensing procedures and other benefits that retailers could enjoy which include Microsoft club. The Microsoft Club gives partners the opportunity to earn cash rebates and marketing funds for purchasing selected Microsoft licences and products.
Two institutions collaborate on the Africa Carbon Asset Development Facility
Standard Bank and United Nations Environment Programme (UNEP) have collaborated on the Africa Carbon Asset Development (ACAD) Facility to fight against climate change in Africa.
The Facility which is the first facility dedicated to boosting the African carbon market is a partnership between the UNEP, Standard Bank and the German Government’s International Climate Initiative, administered by its Federal Environment Ministry.
ACAD supports African carbon projects through a combination of technical assistance, grants and preferential access to corporate finance and transactional guidance.
ACAD takes a new approach toward capacity and market development, sharing costs and risks with African banks such as Standard Bank to realize and replicate projects.
“Huge investments, especially in Africa, will be needed if we are to minimize the effects of climate change,” said Sylvie Lemmet, Director of UNEP’s Paris-based Division of Technology, Industry and Economics. “Government investment alone will not be enough. ACAD is a good example of how we can attract much-needed private capital for investments that address climate change.”
The ACAD partnership couples UNEP's longstanding capacity building expertise in environmental policy and finance with the financial know-how and regional reach of Standard Bank.
“We are keen to bring our global experience on carbon finance back to our roots in Africa and to combine it with the leading technical expertise of UNEP and its Risoe Center,” said Geoff Sinclair, Head of Carbon Sales and Trading at Standard Bank. “Our objective is to collaborate with local companies and investors to bring Africa to the forefront of the carbon markets and we look forward to working with everyone to achieve this.”
ACAD has recently awarded its first grants to innovative “green” development projects in Kenya, Nigeria and South Africa. These include:
The Lake Turkana Wind Power Project in Kenya, one of the largest renewable energy generation projects on the African continent to have achieved financial closure. ACAD will provide partial payment for validation costs under the Clean Development Mechanism—the U.N. carbon credit scheme; and
The Lagos Waste Management Authority in Nigeria which is developing several waste-to-energy sites. ACAD is supporting the costs of engineering and carbon auditing studies required to earn carbon credits.
Another ACAD beneficiary is the Athi River Mining (ARM) Company Ltd., which operates a cement plant in Kenya and is attempting to reduce coal consumption in a cement plant by using locally available biomass resources. "As we are continuously working to improve our environmental footprint, Athi River Mining appreciates the technical and financial support provided by the new ACAD Facility to get this project off the ground. We will look to the lessons of this project for further energy and cost savings across the company," says Mr. Pradeep Paunrana, Managing Director of ARM.
Cas Coovadia, CEO of the Banking Association of South Africa, points to the timeliness of the initiative. “Climate change will affect African business profoundly over time. The continent, and its people, will feel the brunt of climate change and will need to address its impact in conditions that are already difficult.
The role of business in addressing this challenge in a sustainable manner is critical. I am delighted that the partners are launching the ACAD initiative, which will build capacity and understanding amongst African financial institutions and in turn the business community. This will enable these sectors to bring their unique skills to the table in tackling the climate change problem.”
Posted by zotomelo at 11:15 AM 0 comments Links to this post
Labels: Two institutions collaborate on the Africa Carbon Asset Development Facility
The Facility which is the first facility dedicated to boosting the African carbon market is a partnership between the UNEP, Standard Bank and the German Government’s International Climate Initiative, administered by its Federal Environment Ministry.
ACAD supports African carbon projects through a combination of technical assistance, grants and preferential access to corporate finance and transactional guidance.
ACAD takes a new approach toward capacity and market development, sharing costs and risks with African banks such as Standard Bank to realize and replicate projects.
“Huge investments, especially in Africa, will be needed if we are to minimize the effects of climate change,” said Sylvie Lemmet, Director of UNEP’s Paris-based Division of Technology, Industry and Economics. “Government investment alone will not be enough. ACAD is a good example of how we can attract much-needed private capital for investments that address climate change.”
The ACAD partnership couples UNEP's longstanding capacity building expertise in environmental policy and finance with the financial know-how and regional reach of Standard Bank.
“We are keen to bring our global experience on carbon finance back to our roots in Africa and to combine it with the leading technical expertise of UNEP and its Risoe Center,” said Geoff Sinclair, Head of Carbon Sales and Trading at Standard Bank. “Our objective is to collaborate with local companies and investors to bring Africa to the forefront of the carbon markets and we look forward to working with everyone to achieve this.”
ACAD has recently awarded its first grants to innovative “green” development projects in Kenya, Nigeria and South Africa. These include:
The Lake Turkana Wind Power Project in Kenya, one of the largest renewable energy generation projects on the African continent to have achieved financial closure. ACAD will provide partial payment for validation costs under the Clean Development Mechanism—the U.N. carbon credit scheme; and
The Lagos Waste Management Authority in Nigeria which is developing several waste-to-energy sites. ACAD is supporting the costs of engineering and carbon auditing studies required to earn carbon credits.
Another ACAD beneficiary is the Athi River Mining (ARM) Company Ltd., which operates a cement plant in Kenya and is attempting to reduce coal consumption in a cement plant by using locally available biomass resources. "As we are continuously working to improve our environmental footprint, Athi River Mining appreciates the technical and financial support provided by the new ACAD Facility to get this project off the ground. We will look to the lessons of this project for further energy and cost savings across the company," says Mr. Pradeep Paunrana, Managing Director of ARM.
Cas Coovadia, CEO of the Banking Association of South Africa, points to the timeliness of the initiative. “Climate change will affect African business profoundly over time. The continent, and its people, will feel the brunt of climate change and will need to address its impact in conditions that are already difficult.
The role of business in addressing this challenge in a sustainable manner is critical. I am delighted that the partners are launching the ACAD initiative, which will build capacity and understanding amongst African financial institutions and in turn the business community. This will enable these sectors to bring their unique skills to the table in tackling the climate change problem.”
Posted by zotomelo at 11:15 AM 0 comments Links to this post
Labels: Two institutions collaborate on the Africa Carbon Asset Development Facility
Four banks already beat BoG’s deadline
According to a report by PricewaterhouseCoopers, prepaid in collaboration with the Ghana Association of Bankers, three majority Ghanaian owned banks and a majority foreign owned bank have already met the new minimum capital requirement, six months ahead of the deadline for completion of the first stage for the recapitalization demanded by the Bank of Ghana.
The new minimum capital requirements are to be met in stages, involving differing minimum capital levels for indigenous and foreign banks, during the first stage which has December this year as its deadline, but a common minimum capital level by the end of the second and final stage, which has the end of 2012 as its deadline.
Banks with majority foreign owned equity are required to have minimum capital of GH¢60 million by the end of this year. However, banks with majority Ghanaian owned equity are required to have minimum capital of first GH¢25 million by the end of this year, but must have increased this to at least GH¢60 million by the end of 2012.
Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), Merchant Bank Ghana (MBG) and Barclays Bank Ghana Ltd. (BBGL), have already crossed the bridge.
According to the report, GCB already possesses capital of GH¢152.3 million as against the minimum capital requirement of GH¢25 million by the end of 2009.
ADB also possesses a capital of GH¢62.8 million, well above the required amount.
Though MBG has beaten this year’s deadline of GH¢25 million, it needs to raise additional 25.2 million to meet the 2012 deadline. Its available capital is GH¢34.8 million.
BBGL is the only majority foreign bank to beat the new minimum requirement ahead of the set date. Its capital stands at GH¢71.6 million.
CAL Bank needs GH¢5.1 million in addition to its GH¢19.9 million to meet the new requirement. It further needs about GH¢46 million to meet the 2012 deadline.
HFC needs GH¢6.5 million to top up its capital of GH¢18.5 million to meet the new capital requirement by December and about GH¢35 million before the 2012 deadline.
The Trust Bank will also need about GH¢7.4 million to augment its capital of GH¢17.6 million in order to meet the 2009 deadline. In order to meet the 2012 deadline, it needs about GH¢42.4 million.
UT Bank has a capital of GH¢16.9 million and needs about GH¢8.1 million to meet this year’s deadline and about GH¢51.9 million to meet the overall minimum requirement.
Prudential Bank also possesses a capital of GH¢9.2 million and needs about GH¢15.8 million by December this year and GH¢ 50.8 million by 2012.
Fidelity bank also possesses a capital of GH¢8.6 million and requires additional GH¢16.4 million and about GH¢51.4 million by 2009 and 2012 respectively.
Unique Bank, according to the report needs about GH¢17 million in addition to its capital of GH¢ 8.62 million and about GH¢52.05 million by 2009 and 2012 respectively.
First Atlantic Merchant Bank possesses a capital of GH¢7.01 million and needs about GH¢17.99 million to meet the GH¢25 million new requirements by December this year and about GH¢52.99 million by 2012.
Standard Chartered Bank, a majority foreign owned bank, also needs an amount of GH¢7.2 million to add to its capital of GH¢52.8 million in order to meet the new minimum requirement.
Ecobank Ghana (EBG) needs additional capital of GH¢9.2 million to add to its capital of GH¢50.9 million.
SG-SSB possesses a capital of GH¢43.6 million and needs an additional GH¢16.4 million by the end of the year.
Stanbic bank also possesses a capital of GH¢38.8 million and needs an additional GH¢21.2 million to meet the new minimum requirement by the set date.
Zenith Bank on the other hand needs about GH¢24.8 million to augment its capital of GH¢35.2 million by end of the year.
Intercontinental Bank Ghana (IBG) has a capital of GH¢16.2 million and needs about GH¢43.8 million during the same period.
Amalgamated Bank Ltd (ABL) also has a capital of GH¢9.2 million and needs about GH¢50.8 million by the end of the year to meet the new requirement.
International Commercial Bank (ICB) on the other hand needs about GH¢52.2 million to add to its capital of GH¢7.8 million.
Guarantee Trust Bank (GTB) also needs about GH¢49.9 million to add to its capital of GH¢10.14 million.
Bank of Baroda possesses a capital of GH¢7.2 million and needs about GH¢52.8 million by the end of the year.
Finally, United Bank for Africa (UBA) which possesses a capital of GH¢20.6 million and needs about GH¢39.4 by year end.
The increase in the new minimum capital requirement will further improve both the liquidity and solvency position of banks to enable them deal effectively with any future expected shocks.
Posted by zotomelo at 1:00 PM
Labels: Four banks already beat BoG’s deadline, Kofi Ahovi
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The new minimum capital requirements are to be met in stages, involving differing minimum capital levels for indigenous and foreign banks, during the first stage which has December this year as its deadline, but a common minimum capital level by the end of the second and final stage, which has the end of 2012 as its deadline.
Banks with majority foreign owned equity are required to have minimum capital of GH¢60 million by the end of this year. However, banks with majority Ghanaian owned equity are required to have minimum capital of first GH¢25 million by the end of this year, but must have increased this to at least GH¢60 million by the end of 2012.
Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), Merchant Bank Ghana (MBG) and Barclays Bank Ghana Ltd. (BBGL), have already crossed the bridge.
According to the report, GCB already possesses capital of GH¢152.3 million as against the minimum capital requirement of GH¢25 million by the end of 2009.
ADB also possesses a capital of GH¢62.8 million, well above the required amount.
Though MBG has beaten this year’s deadline of GH¢25 million, it needs to raise additional 25.2 million to meet the 2012 deadline. Its available capital is GH¢34.8 million.
BBGL is the only majority foreign bank to beat the new minimum requirement ahead of the set date. Its capital stands at GH¢71.6 million.
CAL Bank needs GH¢5.1 million in addition to its GH¢19.9 million to meet the new requirement. It further needs about GH¢46 million to meet the 2012 deadline.
HFC needs GH¢6.5 million to top up its capital of GH¢18.5 million to meet the new capital requirement by December and about GH¢35 million before the 2012 deadline.
The Trust Bank will also need about GH¢7.4 million to augment its capital of GH¢17.6 million in order to meet the 2009 deadline. In order to meet the 2012 deadline, it needs about GH¢42.4 million.
UT Bank has a capital of GH¢16.9 million and needs about GH¢8.1 million to meet this year’s deadline and about GH¢51.9 million to meet the overall minimum requirement.
Prudential Bank also possesses a capital of GH¢9.2 million and needs about GH¢15.8 million by December this year and GH¢ 50.8 million by 2012.
Fidelity bank also possesses a capital of GH¢8.6 million and requires additional GH¢16.4 million and about GH¢51.4 million by 2009 and 2012 respectively.
Unique Bank, according to the report needs about GH¢17 million in addition to its capital of GH¢ 8.62 million and about GH¢52.05 million by 2009 and 2012 respectively.
First Atlantic Merchant Bank possesses a capital of GH¢7.01 million and needs about GH¢17.99 million to meet the GH¢25 million new requirements by December this year and about GH¢52.99 million by 2012.
Standard Chartered Bank, a majority foreign owned bank, also needs an amount of GH¢7.2 million to add to its capital of GH¢52.8 million in order to meet the new minimum requirement.
Ecobank Ghana (EBG) needs additional capital of GH¢9.2 million to add to its capital of GH¢50.9 million.
SG-SSB possesses a capital of GH¢43.6 million and needs an additional GH¢16.4 million by the end of the year.
Stanbic bank also possesses a capital of GH¢38.8 million and needs an additional GH¢21.2 million to meet the new minimum requirement by the set date.
Zenith Bank on the other hand needs about GH¢24.8 million to augment its capital of GH¢35.2 million by end of the year.
Intercontinental Bank Ghana (IBG) has a capital of GH¢16.2 million and needs about GH¢43.8 million during the same period.
Amalgamated Bank Ltd (ABL) also has a capital of GH¢9.2 million and needs about GH¢50.8 million by the end of the year to meet the new requirement.
International Commercial Bank (ICB) on the other hand needs about GH¢52.2 million to add to its capital of GH¢7.8 million.
Guarantee Trust Bank (GTB) also needs about GH¢49.9 million to add to its capital of GH¢10.14 million.
Bank of Baroda possesses a capital of GH¢7.2 million and needs about GH¢52.8 million by the end of the year.
Finally, United Bank for Africa (UBA) which possesses a capital of GH¢20.6 million and needs about GH¢39.4 by year end.
The increase in the new minimum capital requirement will further improve both the liquidity and solvency position of banks to enable them deal effectively with any future expected shocks.
Posted by zotomelo at 1:00 PM
Labels: Four banks already beat BoG’s deadline, Kofi Ahovi
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