ECOBANK Development Corporation (EDC), a subsidiary company of the Ecobank Group, has introduced a new investment product unto the market.
The product, dubbed; “EDC Ghana Fixed Income Fund”, is an open-ended unit trust offered to investors who are seeking current income on a steady basis, while preserving capital.
The Head of EDC Investments Limited, Mrs Sarah Brainoo Arhin, explained that the objective of the fund was to outperform short- term interest rates being offered on government securities in the country.
At a media launch in Accra, Mrs Arhin said the fund would be managed by professionals who would pull resources from investors and invest on behalf of the various unit holders.
The fund, she said, would invest in high-quality fixed-income securities such as government and corporate bonds, bankers acceptances, promissory notes, call money and fixed deposits of highly-rated institutions in Ghana.
She explained that the introduction of the product was part of efforts to reduce investor risks that came as a result of a high volatility in the performance of the stock market, the need to give investment options with respect to a change in risk appetite and an ease of transfer of funds from balanced funds to fixed income fund.
Mrs Arhin also added that the fund would give investors diversified options and a regular income, as returns on investments are accrued on a daily basis.
All investors need is a minimum of GH¢50 to invest, and distribution would be made through all Ecobank branches in the country.
Presenting an overview of the operations of the fund, she explained that the minimum investment number was 50 units at an offer price of GH¢1.00 per unit, with EDC Investments Limited being the fund manager and Merchant Bank Limited (Ghana) being the trustees.
However, investors could redeem their returns on investments at any time, giving five days prior notice.
The initial offering period for units of the EDC Ghana Fixed Income Fund would begin from June 18, 2012 and end, officially, on July 13, 2012, but subscriptions would still be received after the official closing.
Mrs Arhin, in an interview with the Daily Graphic after the launch, disclosed that the fund was for people who had a low risk appetite, since there were no equities and stocks involved and the volatility was quite low.
She added that people who were also planning their retirement or were in need of funds over a period of time could also access this fund.
The fund is targeted at pension funds, provident funds, endowment funds, insurance companies amongst others.
The EDC Ghana Fixed Income Fund, she said, was worthy of investment as the fund was highly professional, had efficient liquidity and was highly regulated by the Security and Exchange Commission (SEC) to ensure compliance with investment strategies in the country, while returns on investments were tax exempt.
Thursday, 21 June 2012
Tuesday, 12 June 2012
Businesses must adopt ICTs to improve efficiency
BUSINESSES in the country must adopt technological applications to run their businesses in a bid to increase the efficiency and productivity of their operations, the Director of Investor Services Division of the Ghana Investment Promotion Center, Mr Augustine A. Otoo, has stated.
He said through the use of technological applications, businesses are able to effectively undertake a number of projects such as Business Process Outsourcing (BPO) to increase their profitability.
Mr Otoo made these observations at the Innovation Week 2012 Programme, which is an initiative of the Ghana-India Kofi Annan Centre of Excellence in ICT in Accra.
The Business Process Outsourcing (BPO), he explained, primarily refers to the outsourcing of business processing services to an outside firm and the replacement of in-house services with labour from an outside firm.
Elaborating on the types of BPO’s available for prospective businesses; he said companies can take advantage of “Back Office Outsourcing which includes internal business functions such as human resource, finance, accounting etc. Front Office Outsourcing also includes customer- related services such as contact centre services.”
He added that more often the business processes are information technology based and are referred to as IT Enabled Services (ITES) BPO.
Mr Otoo also hinted that the growth of the BPO sector presents several investment opportunities including VSAT services, Call Center Activities, E-commerce and Legal Database Services, Logistics Management Services, Transaction Processing, Back Office Operations, and Internet Service Provision Service among others.
He said the eGovernance project was an initiative by the government with funding from the World Bank to generate growth and employment by leveraging Information and Communications Technology (ICT) and public private partnerships in order to develop the IT Enabled Services industry and contribute to improved efficiency and transparency of selected government functions through e-government applications.
Mr Otoo also explained that the Development of the ICT Park is expected to generate 10,000 jobs as well as an enhanced IT infrastructure, internet connectivity and opportunity for IT start-up firms to set-up at the ICT Park.
“GcNet was established as a PPP to develop and operate a customised electronic system for processing trade and customs documents. The GcNet uses a front-end and back-end electronic messaging platform, allowing for a 24/7 processing of declarations,” he said.
He said, GcNet, established in November 2000, is credited with improved clearance of goods at the Kotoka Airport and Sea Ports, online issuance of permits, licenses and exemptions through the TradeNet Platform, the introduction of an enhanced transit tracking module and also automation of the domestic tax unit of the Ghana Revenue Authority and the Registrar General’s Department.
The government, he said, also recognises the importance of having a competitive investment environment and has therefore pursued a number of programmes in this direction which includes a review of the Legal and Regulatory framework, policies to reduce the Cost and improve the Ease of Doing Business as well as Infrastructure Development.
The Innovation Week is an annual event aimed at showcasing ICT innovations in Ghana and her ECOWAS neighbours since ICT is key for economic and social development in Sub-Saharan Africa.
He said through the use of technological applications, businesses are able to effectively undertake a number of projects such as Business Process Outsourcing (BPO) to increase their profitability.
Mr Otoo made these observations at the Innovation Week 2012 Programme, which is an initiative of the Ghana-India Kofi Annan Centre of Excellence in ICT in Accra.
The Business Process Outsourcing (BPO), he explained, primarily refers to the outsourcing of business processing services to an outside firm and the replacement of in-house services with labour from an outside firm.
Elaborating on the types of BPO’s available for prospective businesses; he said companies can take advantage of “Back Office Outsourcing which includes internal business functions such as human resource, finance, accounting etc. Front Office Outsourcing also includes customer- related services such as contact centre services.”
He added that more often the business processes are information technology based and are referred to as IT Enabled Services (ITES) BPO.
Mr Otoo also hinted that the growth of the BPO sector presents several investment opportunities including VSAT services, Call Center Activities, E-commerce and Legal Database Services, Logistics Management Services, Transaction Processing, Back Office Operations, and Internet Service Provision Service among others.
He said the eGovernance project was an initiative by the government with funding from the World Bank to generate growth and employment by leveraging Information and Communications Technology (ICT) and public private partnerships in order to develop the IT Enabled Services industry and contribute to improved efficiency and transparency of selected government functions through e-government applications.
Mr Otoo also explained that the Development of the ICT Park is expected to generate 10,000 jobs as well as an enhanced IT infrastructure, internet connectivity and opportunity for IT start-up firms to set-up at the ICT Park.
“GcNet was established as a PPP to develop and operate a customised electronic system for processing trade and customs documents. The GcNet uses a front-end and back-end electronic messaging platform, allowing for a 24/7 processing of declarations,” he said.
He said, GcNet, established in November 2000, is credited with improved clearance of goods at the Kotoka Airport and Sea Ports, online issuance of permits, licenses and exemptions through the TradeNet Platform, the introduction of an enhanced transit tracking module and also automation of the domestic tax unit of the Ghana Revenue Authority and the Registrar General’s Department.
The government, he said, also recognises the importance of having a competitive investment environment and has therefore pursued a number of programmes in this direction which includes a review of the Legal and Regulatory framework, policies to reduce the Cost and improve the Ease of Doing Business as well as Infrastructure Development.
The Innovation Week is an annual event aimed at showcasing ICT innovations in Ghana and her ECOWAS neighbours since ICT is key for economic and social development in Sub-Saharan Africa.
Partner small enterprises - Hannah Tetteh
The Minister of Trade and Industry, Miss Hannah Tetteh has urged large business entities in the country to focus on partnering Small and Medium Enterprises (SMEs) into their business operations.
This she explained would help build up local supply chains thus strengthening small businesses in their operations.
These large companies she also said could use this to create market for small businesses if they are seen as a major supply of needed resources thereby creating more job opportunities and compliment government efforts to support SMEs.
Miss Tetteh made these remarks at the opening of the 2nd SME Expo dubbed Business Sense 2012 which is on the theme “Growing Sustainable Enterprises through Finance and Technology” in Accra.
She also explained that although government has put in several measures to help SMEs with a good source of funding, business owners must have a good understanding of their business as well as know the tools that will make their businesses thrive.
She said her ministry through the Business Development Service assists business owners to think through the prospects of their business and to plan effectively.
The Business Development Services Fund she said was also set up to give marching grants for start-up businesses to raise half the amount needed to finance the business.
This she said is done in collaboration with the National Board for Small Scale Industries (NBSSI), Rural Enterprise Project (REP), Micro, Small and Medium Enterprises (MSME) and the Export and Development Investment Fund (EDIF) which provides funds for export as well as agriculture.
As part of efforts to promote small businesses in the country, the ministry according to her has designed a website which is currently been run by the NBSSI and allows businesses to post their information and adverts on the platform at no charge.
Again, Miss Tetteh disclosed that the ministry is developing a website to promote Made- in- Ghana goods which is also been done with the assistance of the Association of Ghana Industries (AGI).
The Event Director of OML Africa, organisers of Business Sense 2012, Mr Paul Asinor in his address at the opening said “the second Ghana SME Expo is for anyone starting a business or expanding a business in Ghana. With a conference, exhibition, one- to- one advice and networking events, it is the perfect opportunity to find all the tools and information to start and develop a profitable and sustainable business in Ghana,”
The event he said had been crafted with the needs of the small business in mind adding that “issues of acquisition of capital and SME funding has been given prominence with a special SME finance Day set aside for delegates to meet banks, venture capitalists, local and foreign institutions.”
Mr Asinor also explained that a lot of attention at this year’s conference is on the utilization of modern technology such as the internet, websites and mobile telephony in improving business processes.
The 3 day conference he said will help exhibitors generate sale leads from new contacts which will culminate into more business and profits as well as establish and enhance linkages between small and large businesses.
Running alongside the conference is a business exhibition where businesses are showcasing their services and products to the audience. Exhibitors at Business Sense 2012 will also have the unique opportunity to network with highly targeted and focused visitors on a face to face basis as well as major decision makers attending the conference.
This she explained would help build up local supply chains thus strengthening small businesses in their operations.
These large companies she also said could use this to create market for small businesses if they are seen as a major supply of needed resources thereby creating more job opportunities and compliment government efforts to support SMEs.
Miss Tetteh made these remarks at the opening of the 2nd SME Expo dubbed Business Sense 2012 which is on the theme “Growing Sustainable Enterprises through Finance and Technology” in Accra.
She also explained that although government has put in several measures to help SMEs with a good source of funding, business owners must have a good understanding of their business as well as know the tools that will make their businesses thrive.
She said her ministry through the Business Development Service assists business owners to think through the prospects of their business and to plan effectively.
The Business Development Services Fund she said was also set up to give marching grants for start-up businesses to raise half the amount needed to finance the business.
This she said is done in collaboration with the National Board for Small Scale Industries (NBSSI), Rural Enterprise Project (REP), Micro, Small and Medium Enterprises (MSME) and the Export and Development Investment Fund (EDIF) which provides funds for export as well as agriculture.
As part of efforts to promote small businesses in the country, the ministry according to her has designed a website which is currently been run by the NBSSI and allows businesses to post their information and adverts on the platform at no charge.
Again, Miss Tetteh disclosed that the ministry is developing a website to promote Made- in- Ghana goods which is also been done with the assistance of the Association of Ghana Industries (AGI).
The Event Director of OML Africa, organisers of Business Sense 2012, Mr Paul Asinor in his address at the opening said “the second Ghana SME Expo is for anyone starting a business or expanding a business in Ghana. With a conference, exhibition, one- to- one advice and networking events, it is the perfect opportunity to find all the tools and information to start and develop a profitable and sustainable business in Ghana,”
The event he said had been crafted with the needs of the small business in mind adding that “issues of acquisition of capital and SME funding has been given prominence with a special SME finance Day set aside for delegates to meet banks, venture capitalists, local and foreign institutions.”
Mr Asinor also explained that a lot of attention at this year’s conference is on the utilization of modern technology such as the internet, websites and mobile telephony in improving business processes.
The 3 day conference he said will help exhibitors generate sale leads from new contacts which will culminate into more business and profits as well as establish and enhance linkages between small and large businesses.
Running alongside the conference is a business exhibition where businesses are showcasing their services and products to the audience. Exhibitors at Business Sense 2012 will also have the unique opportunity to network with highly targeted and focused visitors on a face to face basis as well as major decision makers attending the conference.
Online platforms to boost business operations
Businesses have been given a facelift in recent times as a result of the inception of various online platforms. Jessica Acheampong writes
The Internet, until recently, had never been a part of business because of high cost of owning and managing a website.
The unavailability and inaccessibility of the Internet for most Small and Medium Enterprises (SMEs) and the incapability of entrepreneurs to utilise it to their benefit was also a major factor.
But with the inception of various online platforms, SMEs can now have access to the global world either through the Internet or by SMS.
According to the Country Lead for Google Ghana, Ms Estelle Akwofio-Sowah, the Internet plays a very important role in businesses hence the need to strive to make its usage an integral part of businesses which have so many benefits on the economy.
With the various online platforms available, business owners can build their websites for free, interact better with clients, and have a wider reach to people on a global level for free.
Some online platformsGoogle Trader is one platform introduced by Google, which has fast gained roots in Ghana. Trader is a classified product which allows business owners to post products and services being offered, as well as search for products they want.
Trader, according to Ms Akwofio-Sowah can either be used online or via SMS (Airtel and Tigo) as well as on feature phones.
This, she said, gave businesses the opportunity to have access to a larger market whether they were connected to the Internet or not.
“Africa get your business online” is another platform. Businesses can build free websites which are easy to manage. It also has the potential to reach customers all over the world. Feedbacks could also be acquired through SMS.
“Google Search” also gives users the opportunity to find suppliers, information, new techniques and technology in running businesses while the Gmail account also gives businesses a platform to communicate professionally, use calendar and manage their time carefully, as well as use and share their own documents with partners.
Success stories“Africa get your business online” was launched by Google in January 2012 and five months down the lane, it has registered several businesses hosting free domain names on its website.
Some businesses who have taken advantage of the Africa get your business online platform shared their experiences with the GRAPHIC BUSINESS.
Alhassan Abdul- Rashid Alandu, who manages the website for Auntie Muni Waakye, a popular waakye joint in Accra, disclosed that ever since the company took advantage of that opportunity, they had recorded a significant growth increase.
The company, he said, had been able to reach a larger market, thus ensuring a global presence for the company since they get good feedback.
Asked if he would recommend an online platform for any business, he re-sponded in the affirmative.
“The Internet is a powerful tool to reach a larger market besides, this platform is inexpensive and can be managed so easily,” he said.
Another beneficiary, William Edem Senyo, who is the Chief Executive Officer of the Accra Music Lounge, also explained that going online helped his company to reach more people as well as get sponsorship from partners who shared the vision of his company.
He said they had been able to build several key partnerships, both locally and international, mainly because people found them online. Notable among these partners are Hekimax Solutions Ghana, Muhimanchi Arts and the Kerstner Foundation in the USA.
“Thanks to this free webhosting service, we’ve been able to link up with a wide range of potential partners all over the world. Aside the impressive numbers of Ghanaian users who visit our website, our monthly web statistics show consistent visits from the USA, Canada, UK, India etc,” he said.
In terms of getting feedback, Mr Senyo explained that the contact form on the websites made it easy for them to respond to enquiries and messages which are forwarded to their Gmail accounts or received by SMS.
He further told the GRAPHIC BUSINESS that “as a small company, we are always on the lookout for ways of cutting cost and maximizing returns on our expenditure. The Google free webhosting has therefore been very useful since we do not have to incur extra costs for web- design and hosting. It’s free! Businesses everywhere can take advantage of this free service.”
Ms Akwofio-Sowah also hinted that Google was very much concerned about growing SMEs and with the feedback that they had obtained about the usage of online platformme; the company would still do more.
“We are excited about the usage because we have over 3,000 businesses registered online, feedback has been great and companies are given free publicity within a long reach,” she said.
She said despite the impressive turnout, it must get to a point in the business sector that SMEs wouldl have, as a matter of norm, to go online to reach out. GB
The Internet, until recently, had never been a part of business because of high cost of owning and managing a website.
The unavailability and inaccessibility of the Internet for most Small and Medium Enterprises (SMEs) and the incapability of entrepreneurs to utilise it to their benefit was also a major factor.
But with the inception of various online platforms, SMEs can now have access to the global world either through the Internet or by SMS.
According to the Country Lead for Google Ghana, Ms Estelle Akwofio-Sowah, the Internet plays a very important role in businesses hence the need to strive to make its usage an integral part of businesses which have so many benefits on the economy.
With the various online platforms available, business owners can build their websites for free, interact better with clients, and have a wider reach to people on a global level for free.
Some online platformsGoogle Trader is one platform introduced by Google, which has fast gained roots in Ghana. Trader is a classified product which allows business owners to post products and services being offered, as well as search for products they want.
Trader, according to Ms Akwofio-Sowah can either be used online or via SMS (Airtel and Tigo) as well as on feature phones.
This, she said, gave businesses the opportunity to have access to a larger market whether they were connected to the Internet or not.
“Africa get your business online” is another platform. Businesses can build free websites which are easy to manage. It also has the potential to reach customers all over the world. Feedbacks could also be acquired through SMS.
“Google Search” also gives users the opportunity to find suppliers, information, new techniques and technology in running businesses while the Gmail account also gives businesses a platform to communicate professionally, use calendar and manage their time carefully, as well as use and share their own documents with partners.
Success stories“Africa get your business online” was launched by Google in January 2012 and five months down the lane, it has registered several businesses hosting free domain names on its website.
Some businesses who have taken advantage of the Africa get your business online platform shared their experiences with the GRAPHIC BUSINESS.
Alhassan Abdul- Rashid Alandu, who manages the website for Auntie Muni Waakye, a popular waakye joint in Accra, disclosed that ever since the company took advantage of that opportunity, they had recorded a significant growth increase.
The company, he said, had been able to reach a larger market, thus ensuring a global presence for the company since they get good feedback.
Asked if he would recommend an online platform for any business, he re-sponded in the affirmative.
“The Internet is a powerful tool to reach a larger market besides, this platform is inexpensive and can be managed so easily,” he said.
Another beneficiary, William Edem Senyo, who is the Chief Executive Officer of the Accra Music Lounge, also explained that going online helped his company to reach more people as well as get sponsorship from partners who shared the vision of his company.
He said they had been able to build several key partnerships, both locally and international, mainly because people found them online. Notable among these partners are Hekimax Solutions Ghana, Muhimanchi Arts and the Kerstner Foundation in the USA.
“Thanks to this free webhosting service, we’ve been able to link up with a wide range of potential partners all over the world. Aside the impressive numbers of Ghanaian users who visit our website, our monthly web statistics show consistent visits from the USA, Canada, UK, India etc,” he said.
In terms of getting feedback, Mr Senyo explained that the contact form on the websites made it easy for them to respond to enquiries and messages which are forwarded to their Gmail accounts or received by SMS.
He further told the GRAPHIC BUSINESS that “as a small company, we are always on the lookout for ways of cutting cost and maximizing returns on our expenditure. The Google free webhosting has therefore been very useful since we do not have to incur extra costs for web- design and hosting. It’s free! Businesses everywhere can take advantage of this free service.”
Ms Akwofio-Sowah also hinted that Google was very much concerned about growing SMEs and with the feedback that they had obtained about the usage of online platformme; the company would still do more.
“We are excited about the usage because we have over 3,000 businesses registered online, feedback has been great and companies are given free publicity within a long reach,” she said.
She said despite the impressive turnout, it must get to a point in the business sector that SMEs wouldl have, as a matter of norm, to go online to reach out. GB
Thursday, 7 June 2012
BonVi to expand wings into other markets
BonVi! is a consumer products company focusing on beauty and healthcare products that were recently introduced onto the Ghanaian market. Jessica Acheampong looks at what the company offers to its potential customers
FAST consumer goods producer, BonVi, says it is spreading its tentacles in Africa to help bring quality products to people of the continent and also help create jobs through private enterprise.
A subsidiary of the US based company, IAWL, BonVi came to the country in 2010 with its home care, personal care and nutritional United States made products to their customers.
The Vice President, Sales, of the company, Mr Daniel Osafo, told the Graphic Business in an interview that BonVi’s presence in Ghana was part of an overall Africa business strategy by their parent company, IAWL, to increase their presence across Africa.
“With support of our US parent company, we launched BonVi in 2010 to encourage private enterprise and job creation. We continue to grow and expand our sales territories by offering high quality products that you use every day,” he explained.
The company, he disclosed, was committed to providing high quality products that Ghanaians used every day at affordable prices.
He added that “our fundamental values of integrity, trust and commitment are reflected in everything we do. We are committed to enhancing the communities in which we live, work and play by supplying high quality products at affordable prices.”
PRODUCTS
Mr Osafo told the GRAPHIC BUSINESS that the company focused on the retailing of their products through their various retail outlets nationwide.
For home care, the company has many products including all purpose cleaning solutions, washing powder, scrubbing care, and concentrated washing powder, which are designed to give homes a clean touch.
BonVi also houses several nutritional products like the Slim meal replacement drink, energy drinks in both ready-to-drink and powder forms, glucosamine pain reliever and food supplements.
The company also offers personal care products like the anti-bacterial bathing soap, body wash soaps, body lotions and glycerin and honey facial soap.
Mr Osafo was, however, quick to add that their products are of high quality yet have affordable prices, which he said had helped the company to penetrate into the Ghanaian market very well.
IMPRESSIONS OF THE GHANAIAN MARKET
BonVi, he said is a brand that has fast gained roots in the market hence their ability to compete favourably on the market, riding on its quality yet affordable value propositions.
The Vice President of BonVi described the Ghanaian market as an interesting one, since customers know what they wanted and would not settle for anything less.
“We want consumers to be interested in our products because of the attributes and benefits they offer,” Mr Osafo explained, adding that the company understood the needs of its customers and offered products to suit them without taking the market for granted.
“As partners within our community and with our consumers, we are continually striving to improve our products to meet their needs. Our success will be measured not only in economic terms, but by the respect, trust and credibility we earn,” he said.
CORPORATE SOCIAL RESPONSIBILITY
Mr Osafo explained that the company had contributed significantly towards developing the community in which they operated, recollecting that in September 2010, the company partnered the Accra Metropolitan Authority to refurbish two schools at Kotababi, a suburb of Accra.
The company also supports five orphanage homes in the Northern Region, donating some food supplements to the inmates.
PLANS FOR EXPANSIONS
Despite the various challenges that the company faces, Mr Osafo told the Graphic Business that the company was poised to grow and expand its foot prints and product lines in the country.
For now, the focus would be to ensure a nationwide presence with several retail distributors in the various regions.
He said the company would explore options of developing new products to suit customer needs and called on customers to expect more from the company as it strove to be the ultimate beauty and health care solutions provider in the country.
FAST consumer goods producer, BonVi, says it is spreading its tentacles in Africa to help bring quality products to people of the continent and also help create jobs through private enterprise.
A subsidiary of the US based company, IAWL, BonVi came to the country in 2010 with its home care, personal care and nutritional United States made products to their customers.
The Vice President, Sales, of the company, Mr Daniel Osafo, told the Graphic Business in an interview that BonVi’s presence in Ghana was part of an overall Africa business strategy by their parent company, IAWL, to increase their presence across Africa.
“With support of our US parent company, we launched BonVi in 2010 to encourage private enterprise and job creation. We continue to grow and expand our sales territories by offering high quality products that you use every day,” he explained.
The company, he disclosed, was committed to providing high quality products that Ghanaians used every day at affordable prices.
He added that “our fundamental values of integrity, trust and commitment are reflected in everything we do. We are committed to enhancing the communities in which we live, work and play by supplying high quality products at affordable prices.”
PRODUCTS
Mr Osafo told the GRAPHIC BUSINESS that the company focused on the retailing of their products through their various retail outlets nationwide.
For home care, the company has many products including all purpose cleaning solutions, washing powder, scrubbing care, and concentrated washing powder, which are designed to give homes a clean touch.
BonVi also houses several nutritional products like the Slim meal replacement drink, energy drinks in both ready-to-drink and powder forms, glucosamine pain reliever and food supplements.
The company also offers personal care products like the anti-bacterial bathing soap, body wash soaps, body lotions and glycerin and honey facial soap.
Mr Osafo was, however, quick to add that their products are of high quality yet have affordable prices, which he said had helped the company to penetrate into the Ghanaian market very well.
IMPRESSIONS OF THE GHANAIAN MARKET
BonVi, he said is a brand that has fast gained roots in the market hence their ability to compete favourably on the market, riding on its quality yet affordable value propositions.
The Vice President of BonVi described the Ghanaian market as an interesting one, since customers know what they wanted and would not settle for anything less.
“We want consumers to be interested in our products because of the attributes and benefits they offer,” Mr Osafo explained, adding that the company understood the needs of its customers and offered products to suit them without taking the market for granted.
“As partners within our community and with our consumers, we are continually striving to improve our products to meet their needs. Our success will be measured not only in economic terms, but by the respect, trust and credibility we earn,” he said.
CORPORATE SOCIAL RESPONSIBILITY
Mr Osafo explained that the company had contributed significantly towards developing the community in which they operated, recollecting that in September 2010, the company partnered the Accra Metropolitan Authority to refurbish two schools at Kotababi, a suburb of Accra.
The company also supports five orphanage homes in the Northern Region, donating some food supplements to the inmates.
PLANS FOR EXPANSIONS
Despite the various challenges that the company faces, Mr Osafo told the Graphic Business that the company was poised to grow and expand its foot prints and product lines in the country.
For now, the focus would be to ensure a nationwide presence with several retail distributors in the various regions.
He said the company would explore options of developing new products to suit customer needs and called on customers to expect more from the company as it strove to be the ultimate beauty and health care solutions provider in the country.
Merger will bring more synergies - Dooso
The merger between Ecobank Ghana and The Trust Bank (TTB), which was officially sealed on Friday June 1, is expected to set the template for future mergers in the banking industry.
In December last year, Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Ghana, acquired a 100 per cent share in TTB in a deal estimated at about US$135million.
Board Chairman of Ecobank Ghana, Mr Lionel Van Lare Dooso has said the combination of the two banks would result in a Ghanaian banking organisation with approximately GHø2.4 billion in total assets and deposits of GHø1.7 billion and a wider network of 78 branches across the country with over 160 ATMs.
Mr Dooso made these remarks at the official unveiling of the rebranding of TTB branches as Ecobank in Accra.
The unveiling he said, was to officially announce that TTB is now a part of the Ecobank chain of branches not only in Ghana but in 34 other African countries.
He added that, “so far, any of our customers who travels or does business in any of those 34 countries, we will be there to serve you.”
Mr Dooso said Ecobnk’s primary goal now was to offer exemplary customer service and a smooth transaction in line with the bank’s mission statement.
“We all share a common mission of ensuring that Ecobank remains strong in Ghana serving individuals, families and businesses during this period of what I call vigorous economic growth in our economy,” he said.
The former Acting Managing Director of The Trust Bank, Ms Emelia Atta- Fynn, later said in an interview that the merger present a bigger platform for more successes.
She said the reconstituted Ecobank will now have a bigger balance sheet to be able to undertake bigger transactions as well as give customers better services and products.
TTB customers, she said would have their ATM cards replaced with Ecobank VISA Debit Card which will give them access to several VISA ATMs across the country.
Responding to how TTB customers are reacting to the merger, she said customers were in tune with the merger as they have been involved in discussions prior to and after the merger.
The Managing Director of Ecobank Ghana, Mr Samuel Ashietey Adjei, also disclosed that the bank will open three more branches by the end of the year.
In December last year, Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Ghana, acquired a 100 per cent share in TTB in a deal estimated at about US$135million.
Board Chairman of Ecobank Ghana, Mr Lionel Van Lare Dooso has said the combination of the two banks would result in a Ghanaian banking organisation with approximately GHø2.4 billion in total assets and deposits of GHø1.7 billion and a wider network of 78 branches across the country with over 160 ATMs.
Mr Dooso made these remarks at the official unveiling of the rebranding of TTB branches as Ecobank in Accra.
The unveiling he said, was to officially announce that TTB is now a part of the Ecobank chain of branches not only in Ghana but in 34 other African countries.
He added that, “so far, any of our customers who travels or does business in any of those 34 countries, we will be there to serve you.”
Mr Dooso said Ecobnk’s primary goal now was to offer exemplary customer service and a smooth transaction in line with the bank’s mission statement.
“We all share a common mission of ensuring that Ecobank remains strong in Ghana serving individuals, families and businesses during this period of what I call vigorous economic growth in our economy,” he said.
The former Acting Managing Director of The Trust Bank, Ms Emelia Atta- Fynn, later said in an interview that the merger present a bigger platform for more successes.
She said the reconstituted Ecobank will now have a bigger balance sheet to be able to undertake bigger transactions as well as give customers better services and products.
TTB customers, she said would have their ATM cards replaced with Ecobank VISA Debit Card which will give them access to several VISA ATMs across the country.
Responding to how TTB customers are reacting to the merger, she said customers were in tune with the merger as they have been involved in discussions prior to and after the merger.
The Managing Director of Ecobank Ghana, Mr Samuel Ashietey Adjei, also disclosed that the bank will open three more branches by the end of the year.
Agric financing is risky business- Frank Adu Jnr
The Managing Director of CAL Bank Limited, Mr Frank Adu Jnr has described the agriculture sector as a risky venture for banks to invest in.
He said to do so, a bank required good structures and equal benefits as other players in the industry before taking that risk.
His comments comes on the heels of the just ended 11th edition of the Ghana Banking Awards, at which no bank emerged the best in Agricultural Financing to the disappointment of many considering the contribution of the sector to the economy.
The phenomenon is an indication that less effort is being put in by key players in the financial services sector, particularly the banks to develop the agricultural sector aside from the Agricultural Development Bank which was established solely for that purpose.
The Agricultural Development Bank, the only bank which does that, he said was tax exempted because it was mainly established to finance agriculture hence they were able to price cheaper and that puts them at an advantage over the other banks, thus if all banks wanted to go into agric financing then they should also be tax exempted.
Aside from the tax exemption benefit, Mr Adu Jnr told the Graphic Business that the risk of losses in agricultural financing was very high as a result of the unavailability of a good market, lack of storage facilities, the lack of proper transport network, among other things.
Mr Adu Jnr also explained that it would be very unfair for a bank paying 25 per cent corporate tax to compete favourably with a bank which did not pay tax in financing in the same project and thus advised government to use its mandate to encourage investments into designated areas of development.
Citing the bank’s experience of losses when it veered into the area some time past, he noted that every bank needed to protect its balance sheet and consider benefits associated with any expenditure before doing so.
Adding that although the bank contributed to agriculture, it was very minimal and focused on other sectors which had yielded results over the years.
FIRST QUARTER RESULTS
Taking its turn at the facts behind the figures on the Ghana Stock Exchange, Mr Philip Owiredu, an Executive Director of the bank disclosed that the bank recorded an impressive growth in the first quarter of 2012.
The Bank recorded a profit before tax of GH¢10, 439, representing a 126.4 per cent over the GHC¢4,940 figure recorded for the first quarter of 2011. Net interest income also grew by 36.0 per cent over the 2011 figure to GH¢12, 570 this year.
The bank also attained a profit after tax of GH¢7, 830 and subsequently earned GH¢0.0315 ratio earnings per share.
On their balance sheet, the bank’s total assets grew from GH¢ 524,884 in the first quarter of 2011 to GH¢ 843,705 in the first quarter of 2012. Customer deposits also went up by 80.6 per cent in the same period under review from GH¢309, 505 to GH¢ 558,840 in 2012. Shareholders fund’s in the bank went up from GH¢ 80,391 to GH¢ 100,234in the first quarter of 2012.
GROWTH STRATEGY FOR 2012
Mr Owiredu further explained that the bank was focusing on strengthening and expanding various sections in the bank with respect to corporate banking, treasury, retail portfolio, cost of funds and Information Technology infrastructure.
The bank, he said, was poised to expand and strengthen corporate banking and corporate finance loan portfolio by focusing on growing sectors in the economy, such as oil and gas, mining and telecoms.
In strengthening the banks treasury activities, the bank he hinted, would capitalise on trade finance opportunities from growth in economic activities while developing and promoting relevant treasury products for their clientele.
Mr Owiredu also explained that the bank would develop a sound retail portfolio with focus on asset backed lending, investment in alternative delivery channels to spread their footprint and improve on brand visibility.
Cal bank would also expand its operational network in strategic areas by reducing cost of funds and deposit concentration by increasing retail deposits.
The bank he said would also enhance IT infrastructure to augment its service quality and focus extensively on process automation, enhancing management information systems and investments into modern communication systems.
Mr Owiredu also added that the bank would use its secured funds to increase its working capital, expand its branch network and invest in IT infrastructure.
He said to do so, a bank required good structures and equal benefits as other players in the industry before taking that risk.
His comments comes on the heels of the just ended 11th edition of the Ghana Banking Awards, at which no bank emerged the best in Agricultural Financing to the disappointment of many considering the contribution of the sector to the economy.
The phenomenon is an indication that less effort is being put in by key players in the financial services sector, particularly the banks to develop the agricultural sector aside from the Agricultural Development Bank which was established solely for that purpose.
The Agricultural Development Bank, the only bank which does that, he said was tax exempted because it was mainly established to finance agriculture hence they were able to price cheaper and that puts them at an advantage over the other banks, thus if all banks wanted to go into agric financing then they should also be tax exempted.
Aside from the tax exemption benefit, Mr Adu Jnr told the Graphic Business that the risk of losses in agricultural financing was very high as a result of the unavailability of a good market, lack of storage facilities, the lack of proper transport network, among other things.
Mr Adu Jnr also explained that it would be very unfair for a bank paying 25 per cent corporate tax to compete favourably with a bank which did not pay tax in financing in the same project and thus advised government to use its mandate to encourage investments into designated areas of development.
Citing the bank’s experience of losses when it veered into the area some time past, he noted that every bank needed to protect its balance sheet and consider benefits associated with any expenditure before doing so.
Adding that although the bank contributed to agriculture, it was very minimal and focused on other sectors which had yielded results over the years.
FIRST QUARTER RESULTS
Taking its turn at the facts behind the figures on the Ghana Stock Exchange, Mr Philip Owiredu, an Executive Director of the bank disclosed that the bank recorded an impressive growth in the first quarter of 2012.
The Bank recorded a profit before tax of GH¢10, 439, representing a 126.4 per cent over the GHC¢4,940 figure recorded for the first quarter of 2011. Net interest income also grew by 36.0 per cent over the 2011 figure to GH¢12, 570 this year.
The bank also attained a profit after tax of GH¢7, 830 and subsequently earned GH¢0.0315 ratio earnings per share.
On their balance sheet, the bank’s total assets grew from GH¢ 524,884 in the first quarter of 2011 to GH¢ 843,705 in the first quarter of 2012. Customer deposits also went up by 80.6 per cent in the same period under review from GH¢309, 505 to GH¢ 558,840 in 2012. Shareholders fund’s in the bank went up from GH¢ 80,391 to GH¢ 100,234in the first quarter of 2012.
GROWTH STRATEGY FOR 2012
Mr Owiredu further explained that the bank was focusing on strengthening and expanding various sections in the bank with respect to corporate banking, treasury, retail portfolio, cost of funds and Information Technology infrastructure.
The bank, he said, was poised to expand and strengthen corporate banking and corporate finance loan portfolio by focusing on growing sectors in the economy, such as oil and gas, mining and telecoms.
In strengthening the banks treasury activities, the bank he hinted, would capitalise on trade finance opportunities from growth in economic activities while developing and promoting relevant treasury products for their clientele.
Mr Owiredu also explained that the bank would develop a sound retail portfolio with focus on asset backed lending, investment in alternative delivery channels to spread their footprint and improve on brand visibility.
Cal bank would also expand its operational network in strategic areas by reducing cost of funds and deposit concentration by increasing retail deposits.
The bank he said would also enhance IT infrastructure to augment its service quality and focus extensively on process automation, enhancing management information systems and investments into modern communication systems.
Mr Owiredu also added that the bank would use its secured funds to increase its working capital, expand its branch network and invest in IT infrastructure.
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