More Ghanaians demand for mortgages

INFORMATION gathered by the Daily Graphic from some mortgage companies in the country indicate that  resident Ghanaians demand more for mortgages than those residing outside the country.

This is contrary to growing perceptions that non-resident Ghanaians are out-pricing mortgages in the country.
The Chief Operating Officer of Ghana Home Loans, Mr Kojo Addo-Kufuor is as a result of borrowing being the best option for most Ghanaians who want to acquire a home as compared to those living outside who have a lot of financing options to explore.
Mr Addo-Kufuor said in an interview with the Daily Graphic that in the demand portfolio of mortgages, local applicants were far above those outside because statistically there were more people living in the country now.
Mortgages, which provide prospective home owners the needed amount to purchase their prospective homes, is the order of the day in the country. Their high rates, however, discourage most people from acquiring houses.
Consequently, most people perceive that Ghanaians in the diaspora are actually out pricing the residents ones as they have a better understanding and can easily meet requirements by these mortgage financing companies.
Mr Addo-Kufuor, however, said “Ghanaians living in the United States or United Kingdom and  can easily borrow from their savings, use credit cards or even remortgage their old houses to raise money to buy their houses.”
The situation, he said is different in Ghana where most people have to borrow to raise money.
In another interview, the General Manager in charge of Mortgage and Consumer loans at the HFC Bank Limited, Mr Charles Bonsu, debunked perceptions that non-resident Ghanaians have out-priced the local ones in acquiring mortgages.
He said the bank gave out its mortgages in cedis and its largest mortgage portfolio was being taken by Ghanaians.
“We at HFC Bank give out our mortgages in cedi terms and as such, most of our facilities are being taken by Ghanaians living here,” he said.
He was, however, quick to add that “HFC Bank does not give mortgages to non Ghanaians except in cases where they are married to Ghanaians and the application is a joint application. We also give mortgages to expatriates who are gainfully employed.  The expatriates must have legal permits to work in Ghana. So that perception cannot be true.”
According to him, the bank has a mortgage facility from its several mortgage products to suit everyone.
He added, “HFC bank has a wide range of mortgages to suit different needs, whether you want to buy a home, build your own home, or make improvements on an existing home.”
 

2012 Africa Business Reporting Awards Launched

The Annual Africa Business Reporting Awards 2012, has been launched by Diageo, the world’s leading premium drink business. 

The awards, which was initiated by Diageo in 2004, recognises and awards journalists and editors who provide high quality coverage of the business environment in Africa.

The President of Diageo, Mr Nick Blazquez, speaking at the launch of the awards, noted that business interest in Africa has clearly accelerated as the world focuses on the continent’s impressive growth prospects.

According to Diageo, better and accurate reporting plays a critical role in framing Africa’s economic prospects and challenges and encourages greater interest in doing good business, which in turns creates the right environment for sustained prosperity on the continent.

He also added that, “As a company that operates right across Africa, we at Diageo understand the increasingly important role business journalism has in creating the right environment to operate successfully and to attract long-term investment.”

Mr Blazquez also noted that over the years, there has been a sizeable shift in the standards of business journalism and the increased efforts of the media both inside and outside of Africa to promote trade and enterprise on the continent.

He also added that “I take great pride that Diageo can celebrate these achievements and look forward to another year of outstanding contribution.” 

According to him, as the Diageo Africa Business Reporting Awards approaches their tenth anniversary, they are continually thinking about ways to evolve the Awards’ relevance, impact and reach.

“Diageo hopes to build on the success of previous years, welcoming entries from all media platforms and from all over Africa and beyond,” he said.

He said this year, the New Media category has been removed as a separate category to reflect the ubiquity of multimedia use in modern news-telling while submission of pieces using new media are now encouraged across the board thus all media, including blogs and other online material, are eligible in every category.

The awards ceremony will be held on Thursday, 28th June 2012 in Central London. The closing date for entry is Friday, 23 March, 2012 and entries can be submitted online at: www.diageoafricabusinessreportingawards.com.

Categories that can be vied for includes Best Information and Communication Technology (ICT) feature, Best Finance feature, Best Infrastructure feature and Best Agribusiness / Environment feature.

The rest are Best Tourism feature, Best Business News story, Best Business feature, Best Newcomer, Media of the Year and Journalist of the Year.

Compel microfinance companies to join association – BoG urged.

The National Board Chairman of the Ghana Association of Microfinance Companies, Mr Collins Amponsah- Mensah has urged the Bank of Ghana to make it mandatory for all microfinance institutions in the country to be members of the association.

This, he said will help the association to effectively monitor and regulate the operations of most micro finance institutions  and also help rid the industry of what he described as unscrupulous operators.

In an interview with the Graphic Business in Accra, Mr Amponsah- Mensah said as at end of the January 1, 2012, deadline issued by the Bank of Ghana for microfinance institutions to get licensed, the association had registered 362 new members while 150 operating institutions had applied for licensing to be regulated.

He observed that as a result of less coordination between the Bank of Ghana and the Registrar Generals Department regarding registration and licensing, the association could not play any major role in ridding the industry of illegal operators because they seem to be riding on the back of the freedom of association clause in the 1992 Constitution to avoid being registered as members of the association.

He also urged all members to embrace the idea of licensing as this would bring sanity and give credibility to the operations of the industry.

“We all need to embrace the idea and work closely with the regulator to make joining mandatory and make the work of the regulator very easy as well as that of the association,” he said.

Mr Amponsah- Mensah however said the association is also playing its role in getting more members to join the association and consequently obtain licensing from the Bank of Ghana.

He said “currently the association had set up two national secretariats in Accra and Kumasi to educate members and encourage other institutions to register with the association. We are also encouraging peer referencing among our members and monthly sensitisation meetings to encourage members to register.”

Commenting on whether the Bank of Ghana has hinted any further extension after the January 1 2012 deadline, he said there had not been any formal announcement but with the silence of the Central Bank on the issue he was sure the association could use that laxity to get more members to register.

“The Bank of Ghana understands the challenges associated with the registration and licensing as it takes time and the 6 months allocated was not enough,” Mr Amponsah- Mensah explained.

He added that the Rural and Agricultural Finance Programme (RAFiP) introduced by the Ministry of Finance and Economic Planning was a good initiative as it would enhance the capacity of most of these operators.

“Our industry, although new and not developed and exposed like other countries, is a specialized field that requires training to build the capacity of members,” he said.

 

Susu collectors fail to meet BoG directive

THE Ghana Co-operative Susu Collectors Association (GCSCA) has registered 200 members as of January 1, 2012, the deadline for the Bank of Ghana directive mandating all susu collectors to register with the association.
The association estimates that there are at least 4,000 susu collectors operating across the country and it will embark on a nationwide sensitisation exercise to achieve a minimum of 50 per cent registration.
As per the Bank of Ghana directive, only those that register with the association would be given licences and recognised.
The General Secretary of the association, Mr Obed Asamany, told the Daily Graphic that there were still more collectors that needed to be registered.
According to him, looking at the number of susu collectors nationwide, those registered represented a small percentage and called on susu collectors to respond to the Bank of Ghana directive to regularise their operations in order to avoid severe sanctions from the regulator of the banking industry.
He, however, attributed the low turn-out to poor publicity about the directive and urged clients of the collectors who were aware of it to educate their collectors.
“It is very worrying to meet these collectors and they barely know about this directive. It is, therefore, a collective effort by the association, the central bank and the general public to sensitise these collectors for them to enjoy the benefits that come with the registration.”
Registered members will be taken through periodic capacity building programmes and training in various accounting programmes such as book and record keeping to help them enhance their knowledge base on the job.
Mr Asamany also added that “an Insurance Fund will also be set up to safeguard deposits of clients of all registered members in order to avert risks associated with the job and members will be required to make monthly premium contributions into the fund.
Projecting into 2012, he said, the association would provide its members with accurate data on the industry, step up capacity building of its members, set up a formal record system for members and also provide basic services that would add value to the operations of its members.
One such service is to develop a uniform accounting pass book for members to enhance the credibility of their operations.
Officials of the association disclosed that they were in the process of forwarding the registered names to the BoG Banking Supervision Department to enable it to issue them with the Bank of Ghana/GCSCA license to operate.
The GCSCA has also received partnership from the German Development Corporation (GIZ) to develop software to help the association to have a web reporting system which will be accessed by members on a monthly basis to provide information on their operations.

NDK supports two schools

NDK Financial Services has donated computers and its accessories to the Osu Presby Primary and JHS and St Barnabas Anglican School in Accra.
The donation, according to the Head of Marketing, Mr Anthony Quaye, was part of their Corporate Social Responsibility (CSR) to the society in which they operate.
He explained that, “we feel that we need to make an impact in our immediate environment and since these schools are very close to us, we decided to help them to improve upon their Information Technology (IT) level this year.”
He also added that the donation was a follow up to a successful counselling programme they organised for final year students of various schools at Osu last year.
“Due to the huge success of the programme which reflected in improved results of the students, we decided to donate these computers to help perk up on their IT level,” he said.
Headmistress of Osu Presby Primary and JHS, Madam Theresa Okantey, said the computers had come at the right time to supplement the ones they already had because some of the old ones were getting outmoded.
She added that, “we are happy for these computers because since they are gadgets and prone to damage, we need them replaced constantly so these computers have come at the right time to add to the ones we already have.”
She seized the opportunity to compliment corporate bodies that engaged in CSRs that were beneficial to the communities and asked more institutions to follow suit because they could not expect the government to provide them with everything.
Madam Christina Apafo, Headmistress of St. Barnabas Anglican School, was full of praise for NDK for their kind gesture and promised that the staff of the school would make the most of the computers and also keep them in the best of shape.

TOYOTA GHANA URGED TO EMPLOY GRADUATES

THE Greater Accra Regional Minister, Nii Armah Ashietey, has appealed to the management of Toyota Ghana Company Limited to place priority on the recruitment of unemployed graduates in the country.
That, he said, would help reduce the high level of graduate unemployment in the country.
Speaking at the third Toyota National Skills Contest in Accra, the minister said the company, which had operated successfully in the country over the years, was expected to play a lead role  in eradicating graduate unemployment in the country for other companies to emulate.
“We want to encourage more investors into the country and by so doing we shall solve our unemployment problem. May I appeal to you to give priority attention to the young ones who have just completed school and are without employment,” he said.
He also urged the management to continue with the cordial and good working relationship existing between it and the employees, since disagreement over labour issues did not augur well for the growth of a company.
Commenting on the contest, he said it was a welcome opportunity, since participation in it would no doubt enhance the skills and competence of the technicians, as well as service advisors.
“This platform creates an opportunity for technicians to share experiences and by the end of this competition after-sales service of the company will be enhanced and strengthened and the human resource capacity improved,” Nii Ashietey said.
The Managing Director of Toyota Ghana, Mr Takahiko Takabayashi, said the main objective of the contest was to develop the skills and proficiency standards of the technicians and parts advisors and establish in their minds the importance and purpose of quality checks.
He said the contest, which was in two categories, general technicians and parts advisors, would help improve the quality of service by the company’s vendors.
He added that the two champions who would emerge after the contest would each get a trophy, a certificate, a laptop, Toyota branded souvenirs and a trip to Japan to represent Toyota Ghana at the Customer Service Champions Assembly.
Mr Jesse Asmah emerged the winner in the general technicians contest, while Mr Alfred Allotey and Mr Bismark Tachie placed second and third, respectively. In the parts advisors category, Mr Iddrisu Mohammed placed first, with Mr Kwame Attobrah and Mr Frank Ankoh placing second and third, respectively.

15 Institutions benefit from Ghana International Foundation

FIFTEEN institutions in the country have received various cheques amounting to £120,000 to support them in catering for their needs.
They included the Akropong School for the Blind, Ghana Education Project, Afrikids, Kintampo Senior High School, Compassionate for Humanity, Nsuaem Rural Health Clinic and Ghana Outlook.
The rest were Awaa Waa 2, Abokobi Health Centre, Hia Community Library, Osenase Orphanage, Urban Poor Child Organisation, Dagbon State Secondary Technical, Anfoega Roman Catholic School Old Pupils and the Seseame Women Association.
The cheques were presented by the Ghana International Foundation, a subsidiary of Ghana International Bank, a UK-based bank in Ghana, to support the society, particularly the needy and under-privileged.
 Presenting the cheques in Accra, the Chief Executive Officer of  Ghana International Bank,  Mr Joe Mensah, said the bank allocated one per cent of its pre-tax profit every year to the foundation to cater for the needs of the less-privileged in society.
He said the foundation was set up by the bank in 1998 to enhance education, health and alleviate poverty in society.
Mr Mensah, who is also a trustee of the foundation, said “the evaluation is done through assessing the needs of people and assisting them with the needed support.”
He also urged other banks to allocate a percentage of their profit to support the needy in society, which will help alleviate most of the problems of the less-privileged in society. * Trustees of the foundation (seated in front) in a group photograph with some beneficiaries.