President to launch Sspecial Initiative on cotton
Ottawa (Canada) 30 May 2003 - In a first of many forums
across Canada to come, the Ghana High Commission in Ottawa in collaboration
with the Toronto-based The Canada Africa Business Council Incorporated staged
an investment forum about Ghana’s investment potential on 15 May at Toronto’s
Rosewater Supper Club.
An investment forum for Canadian investors and businesses
about Ghana’s investment climate and policies today, the round-table was billed
“Ghana: Gate Way to West Africa,” and saw prominent Canadian business
personalities such as Al Wahba, vice president of Ontario Exports Inc.’s
International Market, Cindy Lapp, Desk Officer-Africa, Industry
Canada/International Trade Centre and Ruth Forthergill, vice president
corporate development, Export Development Canada (EDC) in attendance.
Ghana’s High Commission to Canada, Hon. Samuel Odoi-Sykes,
in a speech and video presentation, gave a brief history of Ghana’s tortuous
political history and her experiment with various economic and development
paradigms over her 46-year existence and why Ghana has come to the unwavering
conclusion that the free-market enterprise and multiparty democracy are good
for her.
Odoi-Sykes told his attentive listeners that the ruling
National Patriotic Party (NPP), born out of the struggles of multiparty
democracy, free market and private capital acquisition values over the past 50
years, sees the private sector as the key engine of the Ghanaian economy. He
said, this is seen, among others, in the government’s “Joint-Venture Search” which
directs and list private investment projects and information for potential
foreign partners via the Ghana Investment Promotion Centre.
A 15-minute video of Ghana’s investment environment,
including today’s policies, was shown. In the video foreign industry captains
operating in Ghana spoke about why they choose to set up businesses in Ghana.
Business owners from Akosombo Textiles, the steel and timber industries, among
others, spoke about the sound investment climate in Ghana compared with other
countries. CDs prepared by the Ghana High Commission highlight a profile of
Ghana, detailing activities of the Ghana’s Investment Promotion Centre was
given to the participants.
On the CD one could read Ghana’s Visa Regulations; Practical
Guide to Land Acquisition in Ghana; Investment Incentives, Benefits and
Guarantees; Investment Environment; Setting up Business in Ghana; Financial
Institutions in Ghana; and the Cost of doing Business in Ghana. Accra has also
created the Ghana Free Zones Board to advise foreign companies how they can set
up business in Ghana sorely for export as China is doing to create employment
and skill acquisition.
Joseph Kobina Annan, the Ghanaian-born president and CEO of
the Canada Africa Business Council Inc., who gave updates of his council, said,
his body aims to bridge the trade gap between Africa and Canada. Charles
Agyei-Amoama, the deputy Ghana High Commissioner to Canada, who planned and
organized the investment forum and is responsible for trade matters at the
mission, said the Toronto Ghana investment forum is the first of series that is
be staged Canada-wide in the coming months. - Kofi Akosah-Sarpong
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Accra (Greater Accra) 30 May 2003 - Anglogold of South
Africa has proposed to invest about $1bn in the Obuasi Mine if the merger talks
between it and Ashanti Goldfields Company (AGC) is successfully concluded. The
amount represents the largest single foreign investment in the country’s
history and in the mining sector and could provide the catalyst for development,
which the country urgently needs.
Very reliable sources close to the merger discussions
indicate that the South African gold giants have confidence in the government
and people of Ghana and wants to help place Ghana firmly on the world map as
one of Africa’s leading destinations for foreign direct investment. More
importantly, AngloGold is prepared for the government to keep its “golden
share” which gives Ghana a major say in any decision that concerns the disposal
of AGC’s Ghanaian assets.
They have equally agreed to retain Ashanti in the name of
the merged company since they recognise that Ashanti is a matter of pride for
many Ghanaians. Experts in the industry see the Obuasi Mine as one that has
been continuously producing gold for the longest period of time in the world.
Production has, however, stalled around 500,000 ounces
annually and analysts say that without a major injection of capital, it will be
impossible to increase production.
Shareholders of the AGC have in recent times complained
about the inability of the board to recommend payment of dividend. However, the
sources explained that AngloGold has assured the government that it will bring
to the merger, its trade record of being a high dividend-paying company, thus
assuring investors of dividend payments.
It is believed that the money that AngloGold will provide
will enable the Obuasi Mine to replace its underground fleet, modernise its
ventilation system and allow the miners to reach new depths. They said
AngloGold has extensive experience in building and bringing to production deep
level mines, with some of its existing mines as deep as 4,000 metres whereas
the deepest mine at Obuasi presently is 1,000 metres.
Given the enormousness of the challenges facing the country,
many development experts see the AngloGold proposed investment as an example of
what developing countries need if they are to break through the cycle of
poverty and underdevelopment. “It is about time we started attracting real
money. Forasmuch as we appreciate the support provided by bilateral and
multilateral partners, we cannot continue to rely on them,” a source close to
government said.
The source emphasised that the amounts that donors provide
are not enough to turn things around and that what Ghana requires are large
amounts of capital injection, which can only be found in the private sector.
Earlier in the year, Newmont Mining, presently the world’s leading
gold-producer, announced its intention to invest above $400m towards the
development of two new mines in Ghana.
The merger between Ashanti and AngloGold will make them the
largest gold producing company and place Newmont second. The government
recently gave the approval for the merger talks between Ashanti and AngloGold
to go on. However, there were some Ghanaians who expressed concerns about what
could happen to the golden share and the possible loss of the name Ashanti.
“Once these issues have been resolved positively in favour
of Ghana, it is our hope that the discussions could be concluded as early as
possible,” our source pointed out. – Graphic
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Accra (Greater Accra) 30 May 2003 - The State Insurance
Company (SIC) has auctioned two landed properties of a former board chairman of
the company, Roland Atta Kesson, for refusing to repay moneys he collected as
loans from two financial institutions with SIC guarantee. The moneys, which
were collected from the National Investment Bank (NIB) and the Consolidated
Discount House (CDH), are said to have been used by Atta Kesson to do his own
business.
The SIC was compelled to repay about ¢900 million, including
interest which had accrued since the mid 90s when the loans were contracted, to
the two financial institutions .A highly placed source at the company which
disclosed this in an interview said the company acted on the orders of an Accra
High Court to auction the property of Mr Atta Kesson at Adenta to enable it to
recover the moneys the company had paid to the two financial institutions.
It said several attempts were made by the new board and
management of the company to compel Mr Atta Kesson, who was one time chairman
of the National Convention Party, to refund the moneys but this request failed
persistently. The source said the company, realising that the moneys were not
forthcoming, sought the assistance of the court, which authorised the sale of
the properties to defray the loan.
It said even after the order, Mr Atta Kesson wrote to the
company to allow him some time to refund the money in instalments, but after
the company waited for some time without any sign of repayment, the board had
no alternative but to authorise the sale of the property to defray the cost.
The source described as most unfortunate, how a board chairman of a reputable
institution could use the name of the company to collect loans for his own
business without repaying.
It said in this era of zero tolerance for corruption, the
company will ensure that all persons who have fraudulently used the name of the
company to contract loans or other business transactions are brought to book. The
source served notice to any individual or group of individuals and
organisations who have duped the company to refund such moneys or else they
will be exposed.
It said the new management and board of the company are
determined to ensure that SIC maintains its position as the most reputable,
efficient and viable insurance company in the country and will, therefore,
ensure that all manner of corrupt practices which tend to affect the efficient
running of the company or cause financial loss to it are made a thing of the
past. – Graphic
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Accra (Greater Accra) 30 May 2003 - A constitutional and
legal expert, Nana Dr S. K. B. Asante, yesterday said any amendment of the provisions
of the 1992 Constitution should be inspired by the desire to improve upon the
entire Constitutional structure and democratic governance. He said an amendment
should not be instigated by the expedience of avoiding a temporary
inconvenience or irritation.
Speaking at a national forum on consolidating constitutional
democracy in Ghana in Accra yesterday, Nana Dr Asante said amendment should be
the outcome of a sustained process of application, review and sober reflection.
The forum, which had the Vice-President, Alhaji Aliu Mahama, as the guest,
forms part of a series of activities organised by the Legon Centre for
International Affairs (LECIA) in collaboration with the Law Faculty of the
University of Ghana and the Fredrich Ebert Foundation, to brainstorm and share
experiences on the current Constitution.
Nana Dr Asante, who was the chairman of the committee of
experts that drafted the 1992 Constitution, said, “Amendment, by itself,
without a culture of constitutionalism is meaningless.” He said Ghana is internally
celebrated as an oasis of good governance, stability and democracy in a region
bedevilled by conflicts, instability and faltering governance.
Nana Dr Asante said “the emergence of a restrained Executive
that does not hesitate to exercise effective powers, a Judiciary which is
assertive in performing its delicate function of judicial review of executive
and legislative acts, although it is dogged by a perception of venality and a
Parliament slowly building its strength after decades of being involuntarily
dysfunctional,” are commendable.
He said the prevailing vibrant press, the excellent work of
the Commission on Human Rights and Administrative Justice (CHRAJ) and the new
vitality and dynamism which have inspired private sector activities and the flowering
of a plethora of NGOs merit celebration. “We are in the process of building the
sinews of our constitutional and democratic order and the accent should, quite
properly, be on strengthening and consolidating these institution and utmately,
on fidelity to the fundamental precepts of the Constitution,” he said.
The Vice-President called on constitutional and legal
experts to map out strategies to ensure public ownership of the Constitution.
He said public ownership of the Constitution is the greatest protection
Ghanaians can give to constitutional democracy in their country. The
Vice-President stressed the need for every home, classroom and office to have a
copy of the Constitution.
Alhaji Mahama urged Ghanaians to rededicate themselves to
the cause of the Constitution, its protection and to the deepening of
constitutional democracy. He said the biggest challenge to consolidating
democracy is ensuring individual economic empowerment and added that “democracy
does not thrive well in poverty.” The Vice-President said the people must be
economically strong so as not to be easily persuaded by demagogues and
intimidated into worshipping them and submitting to a culture of silence.
He said government through the governance unit is
strengthening the capacity of democratic institutions and administrative bodies
like Parliament, the judiciary, and CHRAJ. The Director of LECIA, Professor
Kofi Kumado, said discussions at the forum will help make an input into
constitutional democracy. The Resident Director of FES, Joerg Bergstermann,
said constitutional rule has been remarkable in Ghana. – Graphic
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Tamale (Northern Region) 30 May 2003 - The President, John
Kufuor, will soon launch a Presidential Initiative on Cotton to complement
those on the garment and textiles industries. This is also aimed at boosting
the cotton industry to help alleviate poverty in the northern Savanna areas of
the country where cotton is the leading cash crop.
The Minister of Food and Agriculture, Major (rtd) Courage
Quashiga, announced this in a speech read on his behalf at the opening of a
two-day international workshop on National Synthesis of Research Project in
Tamale. The project is titled “Monitoring the Cotton Sector in sub-Saharan
Africa’’ and dubbed “The Cotton Network”. About 46 participants from Ghana
Mali, France and the United Kingdom attended the workshop.
The Ministries of Agriculture of western and central African
countries and other stakeholders who met in Ouagadougou in 2000 to deliberate
on the future of the industry in sub-Saharan Africa undertook the research
project in response to a request. The minister described the workshop as timely
and necessary since the cotton industry in the country is now experiencing its
worst crisis ever.
He noted that despite the increase in the number of cotton
companies from one to 13, production has dropped from 38,000 metric tonnes in
1998/99 to 15,000 tonnes in 2002/2003. “The problem of the cotton industry can
be traced partly to globalisation as well as unfair subsidies in the developed
countries, even though our own policies and actions or inactions have
contributed greatly to our present problems,’’ Major Quashiga stated.
The minister commended the Faculty of Agriculture of the
University for Development Studies (UDS) for the major role it played in the
research work on cotton. He said that his outfit will continue to support the
faculty because within its short period of existence, it has shown that it is
capable of spearheading community-based problem solving, teaching and research
required for the country’s sustainable development.
The Northern Regional Minister, Ernest A. Debrah, said the
growth and sustenance of the cotton industry will go a long way to solve the
unemployment problem in the region in particular and the country as a whole. He
said such a development will help to stamp out the protracted conflicts in the
area, since most of the conflicts are the result of lack of employment for the
youth in the area. – Graphic
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