Category Archives: Business

First Lady leaves for China to follow up on key investment talks

By | Business | No Comments

First Lady Rebecca Akufo-Addo

First Lady Rebecca Akufo-Addo has left Accra for the People’s Republic of China.

Travelling with her on Monday were the Minister of State in charge of Tertiary Education, Professor Kojo Yankah, Director of Crop Research Institute (CSI) Dr. Stella Ennim, and Millicent Degraft-Johnson of the Ministry of finance.

The First Lady’s trip follows the visit of Vice President Dr. Mahamudu Bawumia to China in June and the subsequent visit of China’s Vice Minister of Commerce, Qian Keming, to Ghana in September.

It is expected to further deepen relations as well as strengthen economic cooperation between Ghana and China.

During the visit, the First Lady will support the President of the Association of Ghana Industries (AGI) to open the first Ghana Trade and Investment Office in Qingdao in China.

In addition, the delegation will travel to Hunan, where they will meet provincial officials and visit the laboratory of ‘The Father of Rice’, Yuan Long Pin, who is known for his investment into the hybrid rice variety.

The two will discuss how China could assist Ghana to improve its yield in her rice production.

The First Lady will then proceed to Shenzhen in the Guangdong Province to meet officials of China National Building Materials (CNBM) who are working with Ghana on her ‘One-District, One-Factory’ initiative and also visit Huawei Headquarters to hold discussions with their officials.

On her way to Ghana, Mrs. Akufo-Addo will make a stopover at Hong Kong to meet with the Hong Kong Financial and Investment community.

“The visit by the First Lady follows recent high level exchanges between the two countries and is an indication of the importance His Excellency, Nana Akufo-Addo’s government attaches to Ghana-China relations,” says Ghana’s Ambassador to China, Edward Boateng.

The First Lady will return on Wednesday, November 29.

Source: 3news.com|Ghana

Chinese can sabotage one-district-one-factory policy – Govt cautioned

By | Business | No Comments

Government-backed factories to be sited in the various districts can easily be undermined and forced to go on their kneels by foreigners, especially Chinese investors.

According to Prof. Clement Dzidonu, President of Accra Institute of Technology, these factories can be collapsed in no time if the Chinese decide to stage a price war against them.

Commenting on the ‘one district one factory’ programme of the government on TV3 New Day on Saturday, Prof. Dzidonu challenged the “smart” people in government to think through the kind of factories they established and how to sustain them.

When government launched the policy in August, President Akufo-Addo said by the close of 2017, 51 factories will be at various stages of construction and create about 80, 000 jobs. READ MORE

Advising the government to measure how it raises the expectations of Ghanaians, Prof. Dzidonu said government must take time to build factories that can stand the test of time.

He pointed out how competitive the local market is, and reminded government, “everything you produce from these factories you must get a buyer for it.”

“A Ghanaian is not going to buy the one district one factory goods if he can get it cheaper at Makola market coming from China,” he said.

It was based on the above that he concluded, “the Chinese would even determine whether or not these our factories will succeed”.

With the availability of loans in China and the low interest rate on them as compared with the high interest rate which partly translates into the high cost of doing business in Ghana, he warned, “all they need to do is to undercut us”.

By Isaac Essel | 3news.com | Ghana

Ekumfi MP shoots down one-district-one-factory ‘noises’

By | Business | No Comments

 

Member of Parliament for Ekumfi in the Central Region, Francis Kingsley Ato Cudjoe has described as ‘noises’ assertions that government has abandoned the One-District-One-Factory project recently launched in Ekumfi.

The One-District-One-Factory policy was officially launched by president in August this year to drive industrialization across the country. A sod was therefore cut for the construction of the Ekumfi Fruits and Juices factory, which is expected to create over 4,000 direct jobs and also employ some 5,000 outgrowers.

Members of the opposition NDC have cast doubts on government’s commitment in delivering on this much-publicized campaign promise.

NDC Communicator Chief Biney has described the juice factory as a “grasscutter breeding house” and expressed disgust over the state of the factory, accusing the government of neglecting the factory, which he said is now a “playing ground” for animals.

But MP for Ekumfi who doubles as a Deputy Minister of Fisheries, Ato Cudjoe, told Bright Kwesi Asempa host of Onua FM morning show ‘Yen Nsem Pa’ that the juice factory would be completed in December 2018.

He pointed out that the government did not want to repeat the mistakes of the erstwhile NDC administration, it is making sure that the necessary arrangements are in place, citing for instance the availability of raw material to feed the factory.

This, he said, would ensure that if the factory eventually takes off, it will not be hindered by excuses of unavailability of outgrowers or raw material.

“The sod cutting was in two-fold, one for the factory construction and the other for the outgrower scheme. So far what we have done is to put the outgrowers together, and we are looking for over 2000 of them. Phase one of that is to register people who are already having the farms, and we have registered all those people which in next two weeks we will commission them officially. “So, if someone is somewhere making noise, such people should be ignored,” Francis Kingsley Ato Cudjoe stressed.

He alleged that the only wish of the NDC in opposition “is to see the Ekumfi 1D1F project end up like the Komenda Sugar factory which they (NDC) spent $35 million constructing it but cannot produce a spoon of sugar.”

The Ekumfi MP said government has already finished with talks with China to supply the machines for the building of the factory, adding that in December 2018, the factory will be completed and start commercial production in January 2019.

“As for the NDC, they can make noise, but they should be assured that Ekumfi will soon benefit from the one district one factory project and the youth in the area shall have work to do”, he concluded.

By Bright Dzakah/Onua 95.1 fm/3news.com

Gov’t returns to Eurobond market

By | Business | No Comments

Finance Minister Ken Ofori-Atta

Government has said it will be turning its attention to the Eurobond market as it seeks to raise a billion cedis to finance its budget deficit for the 2018 fiscal year, Finance Minister Ken Ofori- Atta has said.

Presenting this year’s Budget Statement and Economic Policy to Parliament on Wednesday, the minister revealed that government is to record a GH¢10.9 billion budget deficit, equivalent of 4.5 percent of GDP, which will be financed from both domestic and external sources including the Eurobond market.

Giving a breakdown of how the deficit will be financed, Mr. Ofori-Atta explained that: “Net foreign financing will amount to about GH¢3 billion (including a Eurobond of up to GH¢1.0 billion), equivalent to 1.2 percent of GDP.

Net Domestic Financing (NDF) will constitute about 73 percent of total financing and includes financing from bank and non-bank sectors, other domestic sources such as divestiture proceeds and mineral royalty prepayment. The total NDF is estimated at GH¢8 billion or 3.3 percent of GDP.”

Mr. Ofori-Atta’s return to the Eurobond market will be the first time for the Akufo-Addo government having issued a number of domestic bonds to help support government’s planned programmes.

Ghana made its debut on the Eurobond market a decade ago when it first issued a US$750 million at a coupon rate of 8.5 percent. It took the country close to six years before returning to the market for another Eurobond.

After the country’s second Eurobond in 2013, it became a regular activity for the Mahama-led administration as it went to the market in each of the four years that they were in power.

The planned GH¢1 billion Eurobond for 2018 will be Ghana’s lowest debt issued to date, that is, approximately US$222 million.

Set to achieve its 2017 budget of 6.5 percent despite recording lower than expected revenues, government appears to be going all out to ensure that it optimizes sources available to be able to meet its budget estimates.

The 2018 budget projects that government will rake in revenue and grants of GH₵51 billion with provision for total expenditure and arrears clearance expected to reach GH₵62 billion, leaving a deficit of GH₵10.9 billion, equivalent of 4.5 percent of GDP.

Source: B&FT | Ghana

IGP confers with GOIL Management

By | Business | No Comments

The Inspector General of Police, Mr. David Asante Apeatu, has paid a working visit to the Managing Director and Group Chief Executive of GOIL, Mr Patrick Akorli, for discussions on a number of issues.

The visit was the first by a visiting IGP to the head-office of GOIL in Accra.Accompanying the IGP was DCOP Alex Amponsah Asiamah, Director-General in charge of Services and ASP Peter Adjei, ADC to the IGP.Also in attendance at the meeting were GOIL Chief Operating Officer, Alex Adzew, and Gyamfi Amanquah, Chief Operating Officer of GOenergy as well as some management members of the company.

Farmers excited by government’s pension scheme proposal

By | Business | No Comments

File photo

Farmers have welcomed government’s decision to establish a pension scheme purposely for farmers especially for those into cash crops to cater for their needs when they grow old.

The government, since assuming office in less than a year has initiated some interventional policies in the agricultural sector to cushion and support farmers aimed at expanding the sector to achieve its vision of making Ghana the food basket of Africa.

The initiatives includes Planting for Food and Jobs, One district One factory, One district One warehouse, and subsidization of fertilizers.

The introduction of the pension scheme, according to the 2016 national best farmer Mr. Robert Crentsil, is a clear indication that, the NPP administration is a listening government that cares about the welfare of the people, especially farmers.

He however appealed to government to walk the talk by ensuring that the pension scheme materialized and reflected in the lives of farmers.

The 42 year old multi-purpose farmer from the Ejumako-Enyan-Essiam District of the Central Region was reacting to the 2018 budget where the finance minister announced the scheme, which he said has excited most of his colleague farmers.

In an interview with OnuaFM, Mr. Crentsil said the scheme has the propensity of making farming lucrative and attractive to the youth to help reduce unemployment rate in the country.

The Informal Sector Pension Scheme under the third tier of the National Pension Scheme will cover cocoa farmers among others. The framework to operationalise the scheme will be developed in 2018, the finance minister said.

By Maxwell Otoo |Onua FM |3news.com

Bawumia breaks ground for construction of new cement factory

By | Business | One Comment

The Vice President, Dr. Mahamudu Bawumia has cut sod for the construction of a $30 million cement factory in Dawa Industrial Enclave on the Tema-Aflao road.

The initiative, which is a joint venture between Ghana and the Iranian government with the latter owning 90 percent shares, is scheduled to be completed within a period of two years.

The project is expected to produce some 600,000 tones of premium cement annually.

The ground breaking ceremony for the construction of the factory on Tuesday follows the signing of an MOU between Ghana and Iran when the Vice President visited Iran earlier this year during the inauguration of  Iranian President Hassan Rouhani.

Dr Bawumia said the project reflects the economic element of the relationship between Iran and Ghana. This, he said, would boost Ghana’s infrastructure, create more jobs and help make the price of cement affordable.

He added that government would create the enabling environment for businesses to grow and contribute to the industrial transformational agenda of the government.

Vice President Bawumia was optimistic that there would be many more beneficial cooperation between Iran and Ghana .

“I understand a fruit processing factory is also to be commissioned at Asamankese under the auspices of an Iranian company. Projecting into the future, I see that there will be many more areas of cooperation that Ghana will enter into with Iran for our mutual benefit.”

Present at ceremony was the Iranian Agricultural Minister Mahmoud Hajjati, who joined the Vice President to perform the sod cutting ceremony.

By Vida Asiedu |3news.com | Ghana

Infographics: Portions of 2018 budget simplified

By | Business | No Comments

191 COMPANIES UNDER  ONE DISTRICT, ONE FACTORY

Following the launch of the One District, One Factory policy in August, the Ministry of Trade and Industry has given clearance to some 191 companies to begin operations in all 10 regions of the Ghana.

Presenting the 2018 Budget Statement and Economic Policy in Parliament on Wednesday, Minister of Finance Ken Ofori-Atta emphasized government’s commitment to transform Ghana into an economic hub.

More than 50% of the 191 companies will be operating in the Agribusiness Sector, with the rest operating in the cosmetics, pharmaceutical, meat and poultry, and the construction and materials sector.

Below is an Infographic representing the regional breakdown of all 191 Companies.

2018 MACROECONOMIC TARGETS

The 2018 Budget statement and Economic Policy is targeted at achieving an overall GDP Growth Rate of 6.8%.

Government is hopeful of a strong economic boost under the 2018 fiscal year.

The infographic below highlights the macroeconomic targets for the 2018 fiscal year.

ELECTRICITY TARIFF REDUCTION

Government has announced a proposed reduction in electricity tariffs to as high as 21% as seen in the infographic below.

By Irene Amesimeku |3news.com | Ghana

Document: Highlights of 2018 Budget Statement

By | Business | No Comments

The 2018 Budget Statement and Economic Policy of the Akufo-Addo-led administration was presented to Parliament on Wednesday, November 15, 2017.

The statement is under the theme: ” Putting Ghana back to work”.

The macroeconomic targets set for 2018 fiscal year are:

  • Overall GDP growth rate of 6.8 percent;
  • Non-oil GDP growth rate of 5.4 percent;
  • End period inflation rate of 8.9 percent;
  • Average inflation rate of 9.8 percent;
  • Fiscal deficit of 4.5% percent GDP;
  • Primary balance (surplus) of 1.6 percent of GDP;
  • Gross Foreign Assets to cover at least 3.5 months of imports of goods and services

CLICK FOR FULL HIGHLIGHTS

Source: 3news.com | Ghana

Gov’t will achieve 6.3% fiscal deficit in 2017 – Ofori-Atta insists,

By | Business | No Comments
Ken Ofori-Atta (in white) was accompanied by Vice President Dr. Bawumia

Vice President Dr. Bawumia accompanied Ken Ofori-Atta (in white) to Parliament house

The Finance Minister, ken Ofori-Atta says government is likely to end the 2017 fiscal year with a fiscal deficit of 6.3%.

“We resolved to be fiscally disciplined and respect the limits that Parliament set for us. I am glad to report that we are on course to end the year with the fiscal deficit of 6.5%,” Mr. Ofori-Atta told Parliament on Wednesday when he delivered the 2018 budget statement and economic policy of government.

In July this year, when the Finance Minister presented the mid-year budget review to Parliament, he told the house that the overall fiscal deficit has been revised by government downwards from 6.5 percent of GDP to 6.3 percent of GDP.

The 6.5 percent the government envisaged is a remarkable improvement over the 9.3 percent of GDP achieved by the previous administration for the 2016 fiscal year.

“We have achieved in one year, what seemed impossible to achieve in eight years,” Ken Ofori-Atta touted.

The 2018 budget has been themed, “Putting Ghana back to work”.

Mentioning a number of achievements chalked by the New Patriotic Party government in 2017, he asserted, “I am happy that we have turned the economy around and policies are yielding results’.

He noted that the Akufo-Addo-led administration has been able to restore macro stability and renewed confidence in the economy.

The minister commended Parliament for the cooperation his government has enjoyed from the House in implementing the government’s “agenda for jobs and wealth creation”.

He noted that the 2017 budget christened the ‘Asempa budget’ to wit the good news “is restoring and bringing hope to the people of Ghana”.

He stressed, “We are happy to note that our policies are yielding results that have brought back smiles to several Ghanaians”

By Isaac Essel |3news.com | Ghana