Ghana Home Loans deepens footprint in mortgage market

Ghana Home Loans (GHL) has dominated the mortgage market for years after it was established to provide stable funds to estate developers to complete or start their projects.

It is currently the only mortgage finance institution that operates under a Bank of Ghana supervision as a non-bank financial institution tasked to provide mortgages to teh building public. 

Its mission is leveraging people, technology and strong relationship with funding partners and service providers to deliver superior and excellent customer services.

The company has over the years made conscious efforts to bring total housing solutions to prospective homeowners and mortgage finance institutions and experts.

It has been doing that through its ‘Housing Fair’ which is held twice in a year.

The fair often runs for two days and attracts real estate developers, contractors, merchants as well as insurance companies who come to showcase their products on a platform that has gained credibility over the years.

The April fair, which was the first for 2013, had scores of potential home owners thronging the venue to get answers to their questions as well as establishing links for further relations beyond the fair.

Some of the exhibiting companies included Blue Rose Limited, Salem Estates, NTHC, Lakeside Estates, Legonman Multi-Concept Limited, RSS Developers, Cedars, Kimo Homes, GLIICO, Starlife Assurance and Devtraco.

Also, Ghana Home Loans last month announced its intentions to issue mortgage backed securities in other to raise additional capital to sustain as well as expand its operations.

It has been relying on development finance institutions (DFIs) such as Proparco, DEG and International Finance Corporation (IFC) to raise funds for its operations.

However, the Chief Operating Officer (COO) of the company, Mr Kojo Addo-Kuffour, explained that the time had come for it to explore alternative ways of raising funds to support its ever-expanding business.

He mentioned the mortgage-backed securities as one area that could be of help to the company and expressed the commitment that his outfit will work with the relevant institutions such as the Securities and Exchange Commission (SEC), the National Pension and Regulatory Authority (NPRA), pension fund managers, among others to make the initiative a success.

It hosted the country’s first-ever mortgage-backed securities conference in Accra in which experts in the business; financial institutions, legal practitioners, fund managers, officials from the SEC, among others, were in attendance to exchange ideas on how to make it successful.

The SEC, which regulates he securities market, gave the assurance that it will help make teh initiatve a success.

The COO of Ghana Home Loans said after the conference tha the first mortgage-backed security is planned for the first quarter of next year and could be worth US$20 million coupon.

The successful issuance of a mortgage-backed security, as planned by Ghana Home Loans, will be the first of its kind in the country.

The company is wholly owned by the Africa Fund LLC.GB

Profile of real estate agencies

Lots of real estate agencies have entered the Ghanaian market, focusing on different target markets in a bid to bridge the housing gap. Jessica Acheampong looks at a few of such companies

Blue Rose to build 500 affordable housing units

Blue Rose Limited, a real estate developer championing the course of providing affordable housing units is to construct and sell a total of five hundred houses in the next three years.

The company has already constructed about 300 hundred houses in 2012, and is set to continue at this rate for the years to come and thus accomplish its mission of being the leader in the real estate industry in providing quality and affordable housing.

The company which has Mr Eric Ebo Acquah as its Chief Executive Officer believes it is a basic human right for every individual to own their own home and is thus committed to making this a reality.

The Company was incorporated in 1989 as a Sole proprietorship known as Blue Rose Florist with its main line of business as Landscaping and Horticulture and was later re-incorporated to include Blue Rose.

Aside the construction the company does, the horticulture industry lies at the heart of the company and as such have nurtured their passion for plants and gardens, both domestic and commercial for their clients.

The price range for Blue Rose houses are; 2 bedroom Terrace for US$25,000, 2 bedroom  Semi- Detached house for US$35,000, 3 bedroom semi- detached  for US$50,000 and the  three bedroom Detached house for US$65,000. GB

Regimanuel Gray provides quality, reasonable units 

Regimanuel Ltd, a Ghanaian company with substantial interest in the construction, mining and hospitality in Ghana partners with Gray Construction of Houston, Texas, a US firm with similar interests in the United States to bring quality housing units to Ghanaians.

The company was incorporated in 1991 with real estate development as its core business and represents an outstanding example of a successful international joint-venture in Ghana.

Ever since its inception, the company has had an assemblage of dedicated top caliber local and expatriate personnel managing its emergence as the leading private real estate developer in Ghana.

The real estate developer is well-known for its timely construction and delivery of high quality reasonably priced housing units at prime locations which are adequately provided with social amenities and well developed infrastructure.

To date it has more than 2000 houses bearing these hallmarks and has been the recipient of the 1998 Home Finance Company Gold Award for Best Estate Developer, the Ghana Millennium Excellence Award and the 13th International Construction Award of Trade Leaders Club, Paris. It is also a member of Ghana Club 100-a selection of the top 100 Companies in Ghana.

Its projects sites included East Airport, Kwabenya, in Accra, Essipon in Sekondi/Takoradi and Katamanso on the Accra-Dodowa road. GB

Devtraco targets executive community living

Devtraco Limited which has been in existence in Ghana since 1993 has lived up to its billing of providing exclusive community living with its Master- Planned Communities.

The “Devtraco Living” experience is characterised with peace of mind, serenity, utmost security, convenience and healthy living.

Their estates span across prime area of the Greater-Accra Region; including Greda Housing Project at Teshie-Nungua, Dovehill Estates at Spintex Road, Devtraco Villas at Baatsona (Tema Community 18) and currently, Devtraco Courts (City of Hope) at Tema Community 25.

The real estate developer also prides itself as a company that provides a wide range of products and services to its clientele, including real estate developments, building contractors, estate management services, rentals and sale of serviced plots.

Their twenty (20) years of experience in the provision of building and housing needs has helped them understand client needs and aided their quest to provide tailor-made solutions to them.

Currently at 17 per cent per annum and growing, Devtraco properties value appreciation is unrivalled anywhere in the world, making it the ultimate investment choice; and then there’s the rental yield of between 8% and 10% per annum. GB

Lakeside estates eyes young families

Lakeside Estate is a private real estate company specialising in affordable housing for the residential needs of young families and professional individuals.

Its mission is to provide quality but affordable housing units that are environmentally friendly and meet the aspirations of many Ghanaian home dwellers while giving shareholders value.

The company has a vision of becoming one of the best customer focused Real Estate Companies in Ghana that will expand through the building of unique variety of housing units that are environmentally friendly, affordable to many, and conforming to the Ghana Building Code.

Presently Lakeside Estate is developing its Ashale-Botwe North property which was leased from the Nungua Stool.

The company is a member of the Japan Motors Group of Companies and a member of Ghana Real Estate Developers Association (GREDA). GB

Single digit inflation target in limbo

The rate at which the general price level of goods and services change over time, thus inflation inched up for the seventh consecutive time to peg at 11.8 per cent in July 2013.

The rate is per the rebased Consumer Price Index (CPI) which has 2012 as its base index and meant to reflect the actual consumption pattern of individuals.

Inflation slipped from the single digit target by government in January 2013 after it recorded a rate of 10.1 per cent and has increased steadily to its current rate.

Although the combined pressures of the food and non food basket push the rate up often, the trend for July was different as the food component recorded 7.3 per cent same as June 2013.

The non-food component however recorded a rise from 15.1 per cent in June to 15.4 per cent in July 2013.

Governor of the Bank of Ghana, Dr Henry Wampah at the last Monetary Policy Committee (MPC) press briefing explained that inflation could further move up given the upside risk of potential pass-through effects of further petroleum price adjustments, possible adjustment of utility tariffs, and pressures arising from the impending public sector wage settlement.

According to him, these could however be moderated by the tight monetary policy stance, the ongoing fiscal consolidation and favourable seasonal factors arising from the oncoming harvest season.

The Government Statistician, Dr Philomena Nyarko responding to concerns about further increase of the rate could not give a definite stance as according to her, their work relied heavily on available data and not forecast.

But with the oncoming harvest season, the food inflation is likely to fall while other factors could push the non food inflation up, hence making it difficult to determine the outcome of the rate in the months ahead.

She however explained that the rising exchange rate could affect the rate as not all food items are grown locally because others are imported and those one would feel the impact of declining fortunes.

Governor Wampah said the inflation forecast had shifted marginally since the last MPC meeting although the Committee noted that the forecast for end-year inflation is likely to be close to the upper band.

“However, subject to the rate and timing of the adjustment in utility tariffs, the forecast could return to central path by the first quarter of 2014,” he said.

Meanwhile, brisk economic activities in the Western Region as a result of the oil find pushed the regions inflation up to 15.0 per cent, higher than the national rate of 11.8 per cent.

She however added that the fact that the rate is rising does not necessarily mean prices are high in the region but it tells you the consumption pattern of people there as a result of the natural resource finding.

The Ashanti Region followed closely with 14.1 per cent while inflation was lowest in the Upper East Region with 4.6 per cent. GB

July inflation rises to 11.8%

INFLATION for the month of July inched up to 11.8 per cent, from the 11.6 per cent recorded for June 2013, the Ghana Statistical Service (GSS) has announced.

The monthly change rate for July 2013 was 1.3 per cent, compared to 1.5 per cent recorded in June 2013.

Inflation, which is measured by the Consumer Price Index (CPI), measures the change over time in the general price level of goods and services that households acquire for the purpose of consumption.

The Government Statistician, Dr Philomena Nyarko, addressing the media said food inflation recorded a rate of 7.3 per cent, same as June 2013 while the non food basket recorded 15.4 per cent in July 2013 compared to a rate of 15.1 per cent in June 2013.

Although inflation rate for July was expected to dip due to the harvest season, Dr Nyarko explained that the effect of the rising exchange rate helped push the rate higher.

The main drivers of the non food inflation were clothing and footwear (18.1%), Miscellaneous goods and services (17.7%), furnishing, household equipment and routine maintenance (17.0%), and Housing, water, electricity, gas and other utilities recorded inflation of 16.6 per cent whilst the communications sub group had the lowest rate of 1.3 per cent.

At the regional level, the Western Region recorded the highest year-on-year inflation rate of 15.0 per cent, followed by the Ashanti Region with 14.1 per cent. Inflation was lowest in the Upper East Region with 4.6 per cent.

Govt, BoG commits to release stake in ADB

The call for shareholders of the ADB to sell their stake to the public is yielding positive results. Jessica Acheampong reports

The shareholders of the Agricultural Development Bank (ADB); Government of Ghana and Bank of Ghana (BoG) have given their strongest indication yet to let go their stake in the bank.

The move forms part of efforts to recapitalize the bank to enable play its role more effectively as a major financier of agricultural development projects as per the mandate that set it up as well as remain competitive among its peers in the highly competitive banking sector.

Although it is not clear how much each intends to offload, the two shareholders have pledged to offload their stake on the local bourse to allow indigenous Ghanaians to have a stake in the bank.

Hitherto, past governments had attempted to get a strategic partner to take over the bank but for the public uproar against such move which made it impossible.

“I wish to state that government genuinely supports the plan initiated by the outgoing Board of Directors prevail on the shareholders of the bank to offload their shares through share floatation on the Ghana Stock Exchange,” Trade and Industry Minister, Mr Haruna Iddrisu said on the sidelines of the inauguration of a new board for the bank.

According to him, the government committed itself to that bid and would work with the new board through the various steps required to arrive at the objective of raising capital through the GSE.

With regards to the stake held by the BoG in the bank, the minister described the situation as a conflict of interest since the central bank was in the position a regulator and at the same time a player with shares in the bank.

“BoG will be encouraged to divest its shares in ADB since BoG cannot be both a regulator and a player,” he said.

The Governor of the BoG, Dr Henry Wampah has however given positive indications of a possible pull out of ADB in due course.

He explained that currently a committee comprising ADB, BoG and the Ministry of Finance were deliberating on the way forward.

The Governor was however optimistic that in a few weeks something definite would come out of the deliberations and would be more geared towards the bank listing on the GSE.

ADB commenced business with an authorised share capital of GHC3,000 (then ₵30 million) but is now operating with a share capital GH₵75 million made up of 25.0 million shares.

Much of these shares were not issued for cash and, in the current scheme of things ADB will require a much larger capital base to make much more meaningful impact in its operations and be able to compete favourably with its peers in the industry.

ADB’S NEW BOARD

sworn into office has Nana Soglo Allon IV as its chairman with Mr Abdul-Samed Iddrisu, Mr Maurice Tanko Abisa Seidu, Ms Nancy Dakwa Ampofo and Dr Samuel Kofi Dapaah as members.

The rest are Managing Director of the bank, Mr Stephen Kpordzih, Mrs Caroline Otoo and Major (RTD.) Mahama Samuel Tara.

They were sworn in by Mr Iddrisu on behalf of the Minister of Finance, Mr Seth Tekpeh and charged them to provide the needed leadership required to turn around the fortunes of the bank.

BRIEF ON ADB

In 1964, Bank of Ghana set up a Rural Credit Department to prepare the necessary legislation, plans and procedures for the establishment of a specialized bank for the provision and administration of credit and other banking facilities in the agricultural sector.

In 1965, Parliament passed The Agricultural Credit and Co-operative Bank Act, 1965 (Act 286) which incorporated a bank under that name.

In 1967, National Liberation Council Decree (NLCD 182) was passed to change the name of the Bank to Agricultural Development Bank (ADB) and amended certain sections of the original Act to allow ADB to undertake the acceptance of deposits on current and savings accounts and transact banking business normally carried on by commercial banking institutions, including raising loans from foreign sources.

 In 1970, The Agricultural Development Bank Act, 1970 (Act 352) was passed to broaden the Bank’s functions. ADB was granted a full banking license in that year under the Banking Act, 1970 (Act 339).

 In 2004, ADB gained a Universal banking license under Banking Act 2004 (Act 673) which removed restrictions on banking activity.

From its original Head Office on Tunisia Road, ADB moved to the Ring Road Central, then to the Cedi House on Liberia Road in 1993, before finally settling at its current ADB House Head Office premises on Independence Avenue in 2005. GB

BoG stays policy rate at 16%

The Bank of Ghana (BoG) has maintained the policy rate at which it lends to commercial banks at 16 per cent for the third quarter of the year.

This was after it assessed economic activities in the country and policies put in place to prevent prices of goods and services from rising constantly.

The Monetary Policy Committee of the bank, chaired by the Governor, Dr Henry Kofi Wampah, told journalists in Accra today that the bank was satisfied with the policies put in place by the government to check increases in general price levels, hence the decision to maintain the rate at 16 per cent.

Speaking at the 56th Monetary Policy Committee (MPC), Dr Wampah said”the committee also noted measures put in by the government to address the shortfall in revenues and also reduce expenditures.”

The policy rate is the rate at which the BoG does overnight lending to universal banks in the country.

According to Governor Wampah, “exchange rate pressures moderated during the half year relative to the same period last year, largely on account of the various policy measures implemented by the Bank.”

It is expected that the proceeds from the cocoa loan syndication and the Eurobond issue, amounting to a total of almost US$2.0 billion during the second half of the year, would shore up the international reserves and further calm pressures in the foreign exchange markets.

Meanwhile, prospects for growth improved in the second quarter of the year as evidenced in the Bank’s Composite Index of Economic Activity (CIEA), a rebound in consumer confidence and improved credit conditions and in the outlook, the improvement in energy supply and increased oil production are expected to support growth.

Addressing the media, he said although inflation forecast had shifted marginally since the last MPC meeting, the Committee was forecasting that end-year inflation was likely to be close to the upper band.

“However, subject to the rate and timing of the adjustment in utility tariffs, the forecast could return to central path by the first quarter of 2014,” he said.

Due to these economic indicators, he said the committee was of the view that the current monetary policy stance was appropriate and, therefore, decided to maintain the policy rate at 16 per cent.

Agric Ministry yet to receive 2013 budgeted funds

THE Ministry of Food and Agriculture (MoFA) is yet to receive funds budgeted for in the 2013 budget, a deputy Director in charge of Policy, Planning, Monitoring and Evaluations Division of the ministry, Mr Daniel Ohemeng Boateng has revealed.

That, he said was due to  the fact that the Ministry of Finance and Economic Planning approved just 39 per cent of MoFA’s request for GHC 745.83 million to be used to finance its activities in the 2013 financial year.

MoFA, which oversees the country’s agricultural sector, put up a budget of GHC 745.83 million as captured in the 2013 budget.

However, Mr Ohemeng Boateng said MoFEP approved only GHC292.48 million, leaving a funding gap of GHC 452.75 million.

That notwithstanding, he said even the approved funds were yet to be released. “As we speak, operational funds we have received are only for the first quarter while the second quarter funds for 2013 are still awaiting approval from MoFEP.”

He, meanwhile stated that salaries for staff were accordingly received  every month while the district assemblies under the ministry had not received a dime for their operations.

The deputy director could not hide his disappointment about the rate of release of funds to the ministry for its operations at a budget advocacy workshop organised by the Institute of Financial and Economic Journalists (IFEJ) with support from Star Ghana.

Bemoaning the woes of the sector further, he said the ministry still owed suppliers of fertilizers under the fertilizer and seed subsidy programme for last year, something which he said was very embarrassing.

Also, payments to contractors of their irrigation projects were still outstanding for the year 2012, he revealed.

He, however, explained that in spite of the lack of inflow of funds to the ministry, it would still pursue some strategies to ensure that it lived up to its billing of promoting and sustaining agriculture in the country.

Paramount among the strategies is to partner the private sector to develop the agricultural value chains as well as upscale credit support facilities for farmers in the value chain.

The ministry is therefore suggesting that the government set aside a separate fund for its fertiliser and seed subsidy programme to prevent cost in destabilising MoFAs budget as well as stifle funds for normal operations.

A discussant at the forum, Mr Philip Abayori who is the National President of the Farmers and Fishermen award winners called for an advocacy to ensure that authorities realised the need for support for the sector.

First National connects to gh-link

FIRST National Savings and Loans Company has signed its automated teller machines (ATMs) onto the “gh-link” portal to enable their customers to use their ATM cards on ATMs of other banks.

The company is part of 25 other financial institutions that are currently on the “gh-link” platform, which is an interbank switching and processing system, interconnecting the systems (switches) of financial institutions and those of third party institutions.

At a ceremony to announce the linkage, the Chief Executive Officer of the company, Mr Patrick Anumel, said the reason for joining the universal banking platform was to provide customers of the bank more opportunities to optimise the use of their ATM cards.

That, he said, was a demonstration of the company’s growth and transformation process which had taken an electronic dimension.

The company has been growing consistently since its establishment. The company’s total assets as at June 2013 stood at GH¢261.7 million, with deposits standing at GH¢177.8 million. During the same period, the savings and loans company had given out a total of GH¢118.7 million as loans and advances.

“We believe that by developing more products and improving our services, we shall delight our customers the more and in the process, strengthen their loyalty to the bank and by implication do more business with First National,” he said.

Mr Anumel also hinted that the company would be adding new products before the end of the year to meet the growing needs of customers.

An Assistant Director at the Banking Supervision Division of the Bank of Ghana, Mr Raymond Amanfu, commended the financial institution for being one of the fore runners committed to meeting the increasing needs of their clientele.

He said the “gh-link” would give customers a greater avenue of using their ATM cards.

Mr Amanfu, however, cautioned them to be mindful of the challenges associated with the use of the interconnected platform and do their best to avert any unforeseen risk by implementing control mechanisms in the management of ATMs.

FACT SHEET

-        The company’s total assets as at June 2013 stood at GH¢261.7 million.

-        Their deposit is currently at GH¢177.8 million.

-        Loans and advances also increased to GH¢ 118.7million as at June 2013.

MoF launches manual on ‘Composite Budgeting’

THE Ministry of Finance has launched a manual to guide the implementation of a composite budget for Metropolitan, Municipal and District Assemblies (MMDAs).

The composite budget forms part of public financial management reforms by government aimed at improving efficiency and accountability of MMDAs operating at various levels.

Also, the composite budget is to see to the effective allocation of resources to enhance service delivery of the various MMDAs.

At the maiden conference for MMDA budget officers in Accra, a deputy Minister of Finance, Mr Kwaku Ricket Hagan, explained that the various reforms by the ministry was to deal with challenges of public financial management to put such systems on a sound footing and propel the country for growth and also move it from the present low middle income status into a higher middle income bracket.

He said government was committed to ensuring that resources for decentralised functions were transferred through the composite budget process to MMDAs to improve service delivery.

“I assure you that government is taking the necessary steps to ensure that resources are disbursed in a more predictable and timely manner,” he said.

According to Mr Hagan, the ongoing fiscal decentralisation reforms which entailed entrusting the assemblies with the authority and capacity to generate, allocate and utilise financial resources to promote socio- economic development of the districts would not make any meaning unless the lapses in financial management at the MMDA level were addressed.

The forum, he said, was apt as it provided the opportunity for stakeholders to discuss their respective roles in improving financial management and service delivery on a more sustainable basis.

The deputy minister also charged the budget officers at the MMDA level to play their roles effectively in ensuring the elimination of weaknesses that undermine budgeting performance and produces poor budgetary outcomes.

The Acting Director of Budget for the Ministry of Finance, Mr Patrick Nomo, appealed to participants to use the platform created to network extensively and share experiences as part of strategies to improve budgeting and financial management at the districts.

Govt to source for cheaper funds for SMEs

THE government will source for cheaper funds for Small and Medium Enterprises (SMEs) as part of measures to provide financial leverage for the fragile SME sub-sector.

Obtaining funds remain a big challenge for most SMEs in the country as most of them are not able to provide the requisite collateral for loans, while those who are able to borrow do so at higher interest rates.

The Minister of State in Charge of Public Private Partnerships, Mr Rashid Pelpuo, who acknowledged this challenge at a budget tracking forum in Accra, said the government would be financially innovative in finding cheaper ways of getting money for SMEs.

Although he did not explain how this would be done, Mr Pelpuo agreed that it was unfair for SMEs to borrow from the same institutions as other large businesses, hence the need for them to “borrow at cheaper rates to expand their business.”

Meanwhile, the 2013 Budget Statement of Government hinted that it would revamp existing credit schemes alongside new schemes, such as the Youth Entrepreneurship Development Fund to provide funds for start-ups and SMEs.

The Minister however did not mince words in reiterating the relevance of SMEs to economic growth at a budget advocacy workshop for financial journalists in Accra.

The workshop was organised by the Institute of Financial and Economic Journalist (IFEJ) with support from Star Ghana, a multi donor pooled grant, under the theme, “Tracking the Performance of the 2013 Budget Statement and Expectations for 2014.”

According to Mr Pelpuo, the growth of an economy was in question if it could not create jobs for its people, hence the need for investment by both public and private workers adding “it is through investments that you can create jobs.”

A discussant at the forum, Mr Charles Bimpong, who is the Head of Research and projects at the Ghana Employers Association (GEA), also expressed concern about how industry players in the private sector who sourced for funds battled with high interest rates from lenders.

Despite several requests by these players for government to intervene for them to borrow at competitive rates, actions were yet to be taken on it, he said.

Interestingly, it appeared the government itself was at a brick end as it required US$150 million to implement the first phase of the Private Sector Development Strategy II (PSDS) meant to create jobs for about 500,000 people, Bimpong pointed out.

Even though the funds had not been sourced, the government again in the 2013 Budget Statement pledged it would continue to pursue the implementation of the PSDS II to widen economic opportunities for the transformation of the Ghanaian economy and to develop a thriving private sector that creates jobs and enhances livelihoods for all. GB

ACEP calls for regulatory framework to track mining revenue

The Africa Centre for Energy Policy (ACEP) has called on government agencies in charge of the extractive sector to expedite the formulation of a regulatory framework to control revenue management in the sector.

Making particular reference to the Ministry of Energy and Petroleum, ACEP is of the view that the absence of a regulatory framework to ensure accountability in earnings from the sector has resulted in the loss of millions of Cedis by government.

It thus called on the ministry to lay the new Petroleum Exploration and Production Bill before Parliament as a matter of urgency.

The Executive Director of ACEP, Mr Mohammed Amin Adam was speaking at an international conference on payment disclosure on the extractive industry in Accra.

The conference was organised by ACEP and was to create a platform for stakeholders in the industry to explore accountability initiatives to ensure transparency in the management of revenue in the extractive sector.

He explained that the absence of transparency in the licensing regime strengthens a perception of ‘too lucrative legal benefits for firms, adding that it makes for mining deals to remain confidential, thus, providing opportunities for hidden benefits to companies as well as avenues for tax evasion.

He, however, expressed confidence in the ability of the government to change the situation and said there was an encouraging development where President John Mahama directed the Ministers of Energy and Petroleum and Land and Natural Resources, to map out potential areas of resource accumulation.

With this directive, he noted that the country would adopt a public auction process for licensing concessions adding that “these directives are welcome, much more progressive and will enhance transparency and accountability in Ghana’s licensing regime”. GB

FAGRO partners agritech to bring technology to farmers

Ghanaian farmers would have the opportunity to leverage  the expertise and technology of an Israeli Company, Agritech, to improve their agriculture yield in the coming years.

The platform would be created upon finalisation of a partnership agreement between, FAGRO, to promote agriculture in the country and Agritech from Israel.

The two parties have subsequently met in Accra to deliberate on how best the partnership would bring the much awaited face lift to agriculture and the agric fairs at large.

Come next year, the annual National Food and Agric Show (FAGRO) would have a facelift from what pertains every year to and would showcase technology as a main feature for farmers to help them learn modern techniques of agricultural marketing and effective management aimed at ultimately increasing yield.

The Exhibition Director for FAGRO, Ms Alberta Nana Akyaa Akosa, explained that with this strategic partnership, patrons to the annual agric fair should expect a bigger fair next year, where it would not only involve showcasing agriculture produce by farmers.

The General Manager of agritech, Mr Dan Meiri reiterated the need for government to support farmers with relevant infrastructure to help them transform the agricultural landscape in Ghana.

He said support must also be given to farmers to enable them attend international exhibition adding that would help open their eyes to what they can achieve outside.

The Executive Chairman of the Great Argon Holdings Limited, Dr Torgbor Mensah said FAGRO, which is the seed planted to showcase the nations agriculture produce was getting bigger and bigger by the year.

The partnership he stressed was a step in the right direction as it would help expose farmer to new ideas and techniques in farming to bring about what he termed “a revolution in agriculture.”

He said with the new face of technology in farming, the country’ agriculture would witness a leap frog from the old system of farming to what currently pertains in the world so long as agriculture was concerned. GB

BoG wants banks, others to be risk-averse

The Bank of Ghana (BoG) has directed all banks and other financial institutions to create risk management units that will ensure effective management of transaction related risks.
The regulator’s directive is to ensure that financial institutions have adequate risk management strategies commensurate with the risk profile of the business they wish to undertake.
The Assistant Director of Banking Supervision of the BoG, Mr Philip Cobbinah, who made this known, reiterated that it was imperative for financial institutions to have policies in place to support the management of the risks inherent in their lines of business.
The expansion in the financial services market comes along with increased risk, hence the need to develop a culture of vigilance and respect for internal controls within an organisation.
To control this risk, Mr Cobbinah suggested that management should assess the company’s overall risk profile, especially when the institution is expanding and ensure the adoption and management of strict control measures.
The directive was made known at the commissioning of the Tema Branch of First Capital Plus, an indigenous savings and loans company.
Risk management is an important part of every business activity as failure to manage risk efficiently could result in losses leading to decline profits, reputation, trust and confidence.
The regulator thus hinted that the BoG was fully committed to the viability and sustainability of the financial system in Ghana and to this end would ensure that financial institutions maintain adequate capital, adopt good credit organization and administration practices, robust treasury/liquidity management policies, good corporate governance and sound internal control measures.
“Thus one sure way of survival in Ghana`s competitive financial environment is for players to know and forge closer relationships with their customers,” he said.
The Chief Executive Officer of the company, Mr John Kofi Mensah, said the company is set to expand to other areas in the country in order to establish its presence.
He also hinted of plans to acquire a to acquire a universal banking license soon following the implementation of the requisite systems and structures necessary for its transition from a savings and loans company to a bank.GB

Youth unemployment still prevalent – Census Report

Unemployment among the youth emerged as one of the economic challenges that needs to be addressed, accounting for about a quarter of the population over the past 50 years, an analytical report on the 2010 Population and Housing Census (PHC) has revealed.
The proportion of the population aged 15 years and over that is economically not active decreased from 27.0 per cent in 1960 to 17.5 per cent in 1984, increased to 25.3 per cent in 2000 and again to 28.9 per cent in 2010.
The report went on further to state that among males, the proportion increased from 11.0 per cent in 1960 to 27.2 per cent in 2010 and for females the proportion decreased from 43.3 per cent in 1960 to 18.4 per cent in 1984 and then increasing to 30.4 per cent in 2010.
It however explained that the pattern in the female economically not active population could reflect socio-economic and cultural changes over time, including for example, declining emphasis on the homemaker role and increased opportunities for further study.
According to data collected in 2010, about 59 per cent of unemployed persons were seeking for work for the first time and 41.0 per cent had worked before and were no longer in employment.
The breakdown was that more than 60.0 per cent of unemployed males and 55.0 per cent of the unemployed females were first time job seekers.
The report said the pattern was reflected in all regions, for males and females, though with varying proportions: ranging from 56.1 per cent in the Greater Accra Region to 47.4 per cent and 47.4 per cent in the Upper West and Northern Regions respectively
“Unemployment was found to be high among those aged 15-29 years, most of who were seeking for jobs for the first time. That age at which unemployment is highest coincides with the transition from various levels of education to the world of work,” it said.
The report was put together by the Ghana Statistical Service (GSS), the national data compilation body of the country after the 2010 PHC.

ECONOMICALLY ACTIVE POPULATION
One of the factors which emerged is the increase in the absolute numbers in the economically active population.
This  increased from 5.6 million in 1984 to 10.9 million in 2010. The increase in the economically active population was due to the increase in the overall population which was basically from natural increase
The economically active population was concentrated in the Greater Accra, Ashanti and Eastern regions, the three regions with the highest populations in the country. Furthermore, the proportion of the economically active population in rural areas was more than those in urban areas in 2010, although the proportion of the population in urban areas was more than those in rural areas.
According to the report, the regional distribution of the economically active population is about the same as that of the total population for all the years specified and for all the regions. For instance, in 2000 and 2010, Ashanti Region accounted for 19.4 per cent and 19.1 per cent respectively of the economically active population followed by Greater Accra with 16.6 per cent and 18.1 per cent respectively.

OCCUPATION OF EMPLOYED POPULATION
The census report indicated that about 40 per cent of workers were engaged as skilled agricultural, forestry and fishery workers, followed by service and sales workers with 21 per cent and craft and related trade workers accounting for 15.2 per cent of the population.
It however explained that the two leading occupational categories did not require highly skilled expertise and therefore high educational training. The proportions of the occupations which required high skills and years of training such as professionals, managers and technicians accounted for 9.5 per cent of the employed persons.

SELF- EMPLOYMENT
The proportion of the employed population aged 15 years and over which was self-employed declined from 80.6 per cent in 2000 to 65.9 per cent in 2010, the report indicated.
The proportion of females which were self-employed females was 86.8 per cent in 2000 and 69.4 per cent in 2010 and that of males were 74.5 per cent in 2000 and 60.2 per cent in 2010.
“In 2010, 75.3 percent of the employed population in the Volta Region was self-employed, the highest in the country. This was followed by Eastern Region with 72.4 percent. The two regions which reported the lowest percentages of self-employed populations were Greater Accra region (55.7%) and Upper West (55.5%)”, the report said.
Among males, Greater Accra Region had the lowest proportion of self-employed persons (44.4%) and for females it was Upper West region (55.5%). Volta Region had the highest proportion of self-employed for males and females: over seven in every ten for males and nearly eight in every ten for females.

WAY FORWARD
The report thus recommended that the area of youth unemployment would need to be managed with pragmatic policies such as apprenticeship and start-up capital so as to reduce the proportion of unemployed youth. GB

QUICK READ
- The economically not active population increased from 2.8 million in 2000 to 4.3 million in 2010.
- Unemployment was found to be high among those aged 15-29 years, most of who were first time job seekers.
- That age at which unemployment is highest coincides with the transition from various levels of education to the world of work.

First Capital to embark on expansion drive

FIRST Capital Plus, an indigenous savings and loans company is to establish 10 more branches as part of efforts to position itself strategically in the financial services market.
The Chief Executive Officer of the company, Mr John Kofi Mensah who gave the hint at the commissioning of their Tema Branch said they would also extend services to two more regions before the year ended.
He said the expansion drive was to present customers with several avenues to transact business with the company who had Small and Medium Enterprises (SMEs) as its core clientele.
Aside the physical presence strategy, the company is also set to acquire a universal banking license soon having implemented the requisite systems and structures necessary for its transition from a Savings & Loans to a fully-fledged universal bank.
The newly established Tema Branch which is located in Community 1 comes with a SME Loan Centre signaling their strategic intent to Focus on the SME sector.
He said the establishment of the SME loan centre was to help ease the difficulties in accessing fast credit faced by SMEs in the metropolis and its environs adding that loans at the centre were processed within 24 hours.
The Managing Director of Agapet Petroleum Limited, Mr Emmanuel Abledu, who was the chairman of the occasion, urged people to patronise the services of indigenous company in order to help such companies grow.
The Assistant Director of Banking Supervision of the Bank of Ghana, Mr Philip Cobbinah commended First Capital Plus for making tremendous strides in its operations among the Non- Bank Financial Institutions, Savings and Loans category, maintaining the number one position in terms of total assets and total credit with a market share of 19 per cent and 16 per cent respectively.

Fact Sheet
- First Capital Plus grew its deposit by 117.79 per cent to GH¢211,110,964 in 2012.
- Its total assets also increased to 286,797,625 in 2012.
- Loans and advances also grew to 107,635,665 in 2012.

Airtel launches “supa star” promotion

Mobile Telecommunications Company, Airtel Ghana, has launched its national consumer promotion to reward both customers and prospective ones.
The promotion, dubbed, “supa star,” is to run for the next three weeks and would be characterised by weekly draws and a grand draw at the end of each month, with the winner driving home a BMW car.
Speaking at the launch at the Ring Road office of Airtel Ghana, the Managing Director, Mr Philip Sowah, said the promotion was designed to allow everyone who owned an Airtel SIM card to have a chance to win any of the three BMWs, 30 Samsung S4 phones, trips to Brazil in 2014, cash, shopping vouchers and thousands of cedis in airtime. 
According to him, their customers look forward to receiving and winning goodies from the company, like what is being offered currently, adding that “it is important for us at Airtel that just as we continuously work to improve our network, increase our coverage even wider, strengthen our Airtel Money platform, we are mindful of what customers look forward to from us.”
He explained that Airtel Ghana would continue to be responsive to the customer and would continue to be responsive to the customer and would continue to roll out various services that were customer centered.
Explaining the dynamics of the promotion, the Marketing Director of Airtel Ghana, Mr Ashish Malhotra, said customers accrued points when they used a minimum of 50 pesewas daily.
A top up of GH¢2 or more could be earned via airtime reload, voice calls and SMS. Data usage also earns customers points.
He said customers would be sent their points accrued daily and also have the option of opting out of the daily SMS.
“The short code *450# would be used for customers to find out their accrued pints. Winners would be declared weekly, with a customer winning a BMW at the end of each month,” he added.

12th banking awards lives up to billing ... Ecobank crowned best bank

The 12th edition of the Ghana Banking Awards held at the Event Haven at the Ghana International Trade Fair Centre in Accra once again lived up to expectation as deserving banks in the country were rewarded for their excellent perofrmance in the sector.

The awards, under the auspices of Corporative Initiative Ghana (CIG), was on the theme, “Promoting Ethics, Integrity and Compliance in the Financial Services Sector” and also attracted many captians of the banking sector among many others.

After what could be described as a tensed night, Ecobank Ghana Limited, beat all other competitors to annex the most prestigious award, “Bank of the Year 2012” a category sponsored by the Graphic Communications Group Limited.

The Bank of the Year goes the bank with the highest weighted scores for the customer survey, corporate social responsibility and financial perfoemance. Scores earned by each bank in Corporate Bank of the year, Retail Bank of the Year and Corporate Social Responsibility and Financial Peroprmance were used, based on weightings agreed to by the banks. The single most indicative factore is the Financial Perofmance.

A visibly elated Executive Director of the Bank, Mr George Mensah Asante later in an interview did not mince words as he explained how the bank had put what he described as a lot of hard work to ensure that it gave its customers what they wanted.

According to him, it was a proof of their hard work in the year under review and promised all existing clients and prospective ones not to look any further for best banking services than the “Pan African Bank”, which is one of the largest banks on the African continent.

Prudential Bank also bounced with a lot of force as it took home three awards and was also mentioned as runner ups in eight categories to the surprise of the mammoth crowd at the event.

It was the Best Bank in Long- Term Financing, Trade Financing and Consumer Lending. The bank was also the First Runner ups in Best Bank Retail, IT/ Electronic Banking and Short Term Loan Financing. It was also the Second Runner Up in Corporate Social Responsibility and Corporate Banking.

Unibank Ghana Limited was picked as the Best Bank in Short Term Loan Financing, IT and Electronic, and Retail Banking and was the first runner up under the Best Bank Long Term Loan Finance, Consumer Lending, and Corporate Social Responsibility categories.

Zenith Bank took the Best Bank in Corporate Banking and was the second runner up under the Best Bank in Long Term Loan Finance, and Short Term Loan Finance, and the first runner up in the Best Bank in Trade Finance categories.

The Trade Finance Dealer of the Year 2012 category was jointly won by Cal Bank Ghana Limited, Guarantee Trust Bank Limited, Zennith Bank, and HFC Bank Limited.

The Agricultural Development Bank (ADB) performanced creditably as it was adjudged the Agric Finance Dealer of the Year 2012, the Best Bank in Medium Term Loans, and the Best Bank in Corporate Social Responsibility. It was however the second runner up under the best Bank in Competitive Pricing category.

The rest are Best Growing Bank for the Year 2012; Access Bank Ghana Limited, Best Bank in Mobile Banking for Year 2012, Guarantee Trust Bank; Best in Customer Care and Best in Bank Advisory Services was awarded to First Atlantic Merchant Bank respectively.

Standbic Bank won the first runner up under the Best Bank in Financial Performance, Mobile Banking, Competitive Pricing, and Medium Term Loans Financing for the year 2012.

International Commercial Bank was the first and second runner up under the Best Bank in Customer Care and Best Bank in Advisory Services categories while Fidelity Bank was the second runner up under the Best Bank in Trade Finance category.

United Bank for Africa (UBA), and Bank of Africa were also named as the second runner up under the IT and Electronic Banking, and Consumer Lending categories respectively.

There were however no winners for the Best Bank in Innovation and Export Financing because none of the banks could accumulate the required scores.

The event also witnessed the conferment of Life Time Achievement Awards on three individuals; Mrs Stephanie Baeta- Ansah, Dr Quabina Quansah and Mr J. S. Addo for their sterling contributions to the banking sector in Ghana.

Mrs Baeta- Ansah who rose through the ranks to become the Managing Director of HFC Bank Ghana, then Home Finance Company Limited from 1990 to 2005 could not hide her joy after being honoured.

She recounted how she was able to surpass all challenges and was able to leave a legacy in home financing, something she is being rewarded for.

Mr Addo, on his part urged banks to improve their access to credit to the export finance sector, especially Small and Medium Enterprises (SMEs) in order to work together for the growth of the economy.

Housing deficit still chronic ... As population growth spiral

 Government is battling the scourge of a housing deficit that has hit the country and  attempts to narrow the  gap has hit a brick wall. Suleiman Mustapha and Jessica Acheampong examines the situation

The country is in the midst of an accommodation crises, despite a two fold rise in the country’s housing stock.     

 Since 2000 to 2010  house and land prices have spiralled out of control,leaving middle class workers struggling to get their feet on the property ladder.

The 2010 Population and Housing Census puts Ghana’s population at 25 million with 3,392,745 houses up from the 2,181,975 recorded in 2000. This  represents a 4.4 per cent rise, the highest annual growth rate in housing stock since 1960 when there were just a little over 636,000 houses.

Ghana’s housing sector, which had been at the centre of past policy failure has experienced an acute housing problem triggered by rapid urbanisation, population and economic growth. 

The Acting Coordinator of the Census Secretariat  of  the Ghana Statistical Service (GSS), Mr David Kombat in an interview with the GRAPHIC BUSINESS said “the housing stock has increased but this was not enough to offset the growing population.”

Mr Kombat explained that census report indicate that more than 50 per cent of households sleep in one room.

The number of ‘sleeping rooms’ provides an indication of the extent of crowding in households adding overcrowded rooms have health implications arising from, among others, disturbed sleep, increased risk of the spread of infectious diseases.

He added that considering the hot and humid conditions, overcrowding can lead to psychological distress; lack of tolerance, reduced levels of concentration and can affect mental health.

In 2009, the government in an attempt to provide 200,000-unit housing with US$10 billion could not start the project due mainly to boadroom wranglings.

According to him,  the current deficit was a reflection of the levels of income of people as a result of a high unemployment rate and the low incomes of workers.

The private sector through the real estate developers and agencies are building and offering luxurious apartments at high prices to people. For instance, a two bedroom house could cost as much as US$65,000 which automatically the average worker cannot afford.

But a consultant and former head of infrastructure at the country office of the World Bank, Mr Charles Boakye, estimates that if the current trend continued, the country shall have a housing deficit of about 2.8 million by 2025.

According to Mr Boakye if the country is to solve its housing problems by 2025, the country should have been constructing 160,000 houses every year since 2000 to meet new demands and replace dilapidated structures.  Over the 13 years since 2000 the country has accumulated to 1.4 million houses. 

Unfortunately, Ghana has constructed only 378,000 since 2000, at 42,000 per year.  This leaves a deficit of 1.9 million houses as of the end of 2012. Infact If the situation remains the same, the country shall have a housing deficit of 2.8 million by 2025, analysts fear.  

“At this rate, if Ghana maintains the status quo, the country shall have a housing deficit of 2.8 million by 2025”, he said adding that, the  construction industry was bedeviled with multiple problems that hinder the development of the housing industry.

Mr Boakye suggested  an overhaul of the country’s construction industry  for it contribute to the housing delivery, which he says could be done by improving the classification system of  developers and instituting  an effective monitoring and evaluation mechanisms to measure the performance of  developers.

Other measures he suggested was the establishment of a body by an act of Parliament to classify contractors and developers in civil engineering, building and road works and regulate the sector. 

He also want the government to develop a comprehensive approach to tackle the housing issue by providing  state credit systems and encourage a savings culture.

“All the mining tailings that are buried and used to cover our arable lands in the mining area should be excavated and the material used as aggregates, base or sub-base material in the construction of houses and roads in every part of the country.  These materials could constitute savings of about 20 to 30 per cent in the construction boom that the state shall credit to building and road contractors, and real estate developers.”

“In the case of the mining areas, the government should set housing standards required for mining communities, and every mining community should be planned and developed into a community or township comparable to any mining town in the world”, he added.

Low level of literacy poses problems for agric sector - Census Report

An Analytical report on the 2010 Population and Housing Census (PHC) has revealed the challenge that the low level of literacy poses for the agricultural sector. Jessica Acheampong writes

In the 2010 PHC, data collated on agricultural activities in the country showed that the population of agricultural households in 2010 was 13,366,340 and accounted for 54.2 per cent of the total population.

For the purpose of the census, an agricultural household was defined as where, at least, one person in the household was engaged in any type of farming activity, be it crop farming, tree growing, livestock rearing and fish farming.

The report which was put together by the Ghana Statistical Service (GSS), the national data compilation body, said 31.5 per cent of the agricultural household members had no formal education, 60.3 per cent had up to middle school level education and 8.2 per cent had secondary school education or higher.

Also, among the heads of the agricultural households, 44.1 per cent had no formal education, 35.2 per cent had up to middle school education and the remaining 10.7 per cent had post-middle school education.

These statistics are worrying for a country that is touted as an agriculture dominant economy because it employs a large per cent of the population.

Again, with the call for the introduction of mordenised farming technologies in the agriculture sector to help improve yield, it becomes a challenge if the people intended to use it do not have the needed capacity to do so.

“The high proportion of low level of education among agricultural population has implications for the sector as the adoption of modern farming technologies requires relatively higher levels of education and literacy, particularly, in English language,” the report explained.

It also posited that with the low level of formal education and literacy among heads of agricultural households as well as the other members engaged in farming activities, there should be a concerted effort to improve the literacy level of agricultural and rural populations.

OVERVIEW

In the 2010 PHC, specific questions were asked, for the first time, on households in farming activities, namely, crop farming, tree growing, livestock rearing and fish farming.

The report showed that of the agricultural households, 95.1 per cent were engaged in crop farming, 40.5 per cent were in livestock rearing while only 1.1 per cent was in tree growing and 0.2 per cent in fish farming.

In six of the regions, the proportions of agricultural households engaged in crop farming exceeded 95.0 per cent with the highest proportions in the Ashanti (96.8%), Upper East (96.7%), and Brong Ahafo regions (96.6%) while the lowest proportion was 80.2 per cent in the Greater Accra region.

On tree growing, the report revealed that 4.5 per cent of households practiced in the Greater Accra and 2.0 per cent in Brong Ahafo region. “In six of the regions, the proportions were below 1.0 per cent with the least being in the Upper East (0.4%), Western (0.5%) and Volta regions (0.6%).”

Forty per cent of the agricultural households were in livestock rearing and the regions with the highest proportions are the three in the northern savannah agro-ecological, namely, Upper East (82.8%), Upper West (63.7%) and northern regions (60.9%).

In the rest of the seven regions, the proportions were below 40.0 per cent except the Eastern region which had a proportion of 41.5 per cent. The lowest proportions were in the Ashanti (25.4%) and Western regions (29.1%).

The report also showed that the proportion of agricultural households engaged in fish farming was low in all the regions. The highest proportion was only 0.5 per cent in Greater Accra region, followed by Western region (0.4%) and Eastern region (0.3%). In three regions, namely, Central, Volta and Northern, the proportions were the same as the national average (0.2%). In the remaining four regions, namely, Ashanti, Brong Ahafo, Upper East and Upper West, the proportion was 0.1 per cent.

WAY FORWARD

The Acting Census Cordinator of the GSS, Mr David Kombat explained to the GRAPHIC BUSINESS that Agriculture was still the main employer of the economy, with about 42 per cent and as such efforts must be made to address the issue of illiteracy currently facing the sector.

The report also recommended the reactivation of the non-formal adult education programme which has been stalled and to be targeted to rural areas where agriculture is predominantly practiced.

The 2010 Census gathered information from each individual present in Ghana on 26th September, 2010; the Census also collected data on all living quarters in Ghana as at 26th September, 2010.

Beyond providing benchmark data for planning released in the final results of the 2010 census in May, 2012, the detailed analysis according to Mr Kombat was aimed at enhancing understanding of the effectiveness of the various interventions initiated by government and its collaborators to improve the lives of Ghanaians. GB