Inflation remains at 8.8% in January

THE Consumer Price Index (CPI) which measures the change over time in the general price level of goods and services that households acquire stood at 8.8 per cent in January, the same as recorded in December 2012.

The monthly change rate however, for January 2013 was 2.1 per cent compared with 0.7 per cent recorded in December 2012.

Announcing the rate at a news conference in Accra on Wednesday, the acting Government Statistician, Dr Philomena Nyarko attributed the rate not changing to the food and non-alchoholic beverages group which recorded the same year-on-year inflation rate of 3.9 per cent,same for December 2012.

“The price drivers for the food inflation were Mineral water, soft drinks and juices (18.0%), coffee, tea and cocoa (15.3%), Milk, cheese and eggs (12.2%), and Meat(11.8%),” she said.

The non- food group she also explained recorded a year-on-year inflation rate of 11.5 per cent in January 2013 compared to 11.6 per cent recorded in December 2012 adding “the price drivers for the non-food inflation rate were Education (21.9%), Alcoholic beverages, tobacco and narcotics (17.0%), Clothing and Footwear (16.3%) and Miscellaneous goods and services (15.0%).

On the regional level, Dr Nayrko explained that Greater Accra Region recorded the highest combined inflation rate of 11.0 per cent with the Northern Region following closely with 9.4 per cent, while the Volta Region recorded the lowest rate of 5.8 per cent.

MTN partners Echohouse to launch “kuulpeeps”

Mobile Telecommunications Company, MTN Ghana, has partnered Echohouse Ghana Limited to launch “www.kuulpeeps.com,” an online portal designed to give tertiary students unlimited access to information on their various campuses.

Addressing the media at the launch in Accra, the Head of Business Solutions at MTN Ghana, Mr Eric Nsarkoh, said the website would provide both social and academic information to selected tertiary institutions in the country.

According to him, kuulpeeps has the potential to significantly increase business opportunities on campuses and “it will also have a positive impact on students’ academic performance, personal development and improve social networking opportunities.”

Mr Nsarkoh explained that MTN partnered Echohouse to develop the website because kuulpeeps had displayed a lot of innovation and creativity in the development of the site and its relevance to the different aspects of tertiary students.

He said as the leading mobile telecommunications company in Ghana, MTN was constantly looking for new ways to meet the expectations of different segments of our subscribers, with the youth as a major stakeholder in this regard.

“This is why we continue to provide services which are suited for the youth or trendies, as we call them. Our Y ‘Cliq’ service which provides special discounted rates for students is one such example,” he added.

He said MTN would soon roll out an applications competition in the country to encourage more software developers to come out with innovative applications that are suitable for the environment.

The Director of Echohouse Ghana Limited, Ms Beryl Agyekum, said the portal will be the first and only stop for news, entertainment, fashion information and event pictures on the minute; simply put, “everything campus.”

She explained that kuulpeeps, powered by MTN, had four mini websites—EchoMag online, Rave Locator that will house pictures of various events, Kuulshop that will give students an opportunity to make purchases online using the convenience of MTN Mobile Money and an Academic and Career website that will afford students the opportunity to access information and useful resource on employment, and everything else that equips students for career after school.

Ghana International Foundation supports 21 institutions

THE Ghana International Foundation has presented cheques to 21 charity organisations as part of its annual donation programme in Accra.

The foundation, which was born out of the Ghana International Bank, a UK based bank in Accra, has been supporting the needy in society since its establishment in 1998.

Speaking at the event, the Chief Executive Officer of the Ghana International Bank, also a trustee of the foundation, Mr Joe Mensah, said the bank allocated one per cent of its pre-tax profit every year to the foundation to cater for the needs of the less privileged in society.

He said the foundation was set up by the bank to mainly enhance education, health and alleviate poverty in society as their own way of giving back to the society in which they operate.

That, he said, was done by evaluating the needs of people and donating money to support them in that direction.

He also advised beneficiaries to encourage other deprived institutions to approach the bank with their needs so they could also have a fair share of their support.

He also urged other banks to allocate a percentage of their profit to support the needy in society, which when done will help alleviate most of the problems that the under privileged in society face.

Beneficiaries of this year’s donations included the National Cardiothoracic Centre, Akropong School for the Blind, Afrikids, Abokobi Health Centre, Urban Poor Child organisation, Kibi School for the Deaf, Seseame Women Association and others.

Feb inflation is highest since June 2010

The rate at which the general price level of goods and services increase in the country went up to 10 per cent in February, from the January figure of 8.8 per cent, the highest rate since June 2010.

According to the Ghana Statistical Service (GSS), the consumer price index (CPI), which is used to measure the rate of price changes, otherwise known as inflation, recorded a monthly change rate of 2.6 per cent in February 2013.

Inflation rate, which is measured by the CPI, looks at the change over time in the general price level of goods and services that households acquire for the purpose of consumption.

Explaining the reason for the increase at a news conference in Accra on Wednesday, the acting government Statistician, Dr Philomena Nyarko, said the hikes in fuel prices, which reflected in increases in transportation, housing and gas prices, contributed in part to the inflationary pressures.

That notwithstanding, she said prices of other food items moved up which did not result from the hike in fuel prices, attributing it to the lean season where people had to pay more for fewer goods.

The year-on-year non-food inflation rate was 12.6 per cent, while the rate for January 2013 stood at 11.5 per cent.

“The price drivers for the non-food inflation rate were alcoholic beverages, tobacco and narcotics (15.9%), transport (15.8%) and housing, water, electricity, gas and other utilities (15.5%),”  said Dr Nyarko.

Food inflation recorded a year-on-year change rate of 5.3 per cent, 1.4 per cent points higher than the 3.9 per cent recorded in January 2013.

The price drivers here, she explained, were mineral water, soft drinks and juices which recorded 15.7 per cent; milk, cheese and eggs which had 15.3 per cent inflation; the coffee, tea and cocoa sub-group also contributed 11.6 per cent with meat sub-group contributing 10.9 per cent.

On the regional level, the Northern Region recorded the highest year-on-year inflation rate of 12.0 per cent, followed by Greater Accra with 11.4 per cent, while the Western Region recorded the least rate of 7.4 per cent.

Stanchart re-launches raffle to promote savings

Standard Chartered Bank has re-launched its deposit-mobilising promotion, dubbed “Key 2 riches Reloaded” and enhanced the grand prize, a luxurious saloon car , Porsche Cayenne.

The re-launch complements an earlier promotion introduced last year that had a Rover MG750 saloon car as the ultimate prize. The bank explained that the promotions were part of efforts to deepen relationship with its customers.

 The promotion will run from March 18, 203 to June 30, 2013 and all existing and new account holders can win prizes if they deposit GH₵300 into their accounts continuously.

At a ceremony to launch the promotion in Accra, the Executive Director of Consumer Banking at Standard Chartered Ghana, Mr Andrew Okai, said “we will remain closer to our customers and continue to provide them with need-based solutions” adding “this promotion is our way of rewarding our loyal customers.”

He said an outstanding feature of the promotion was that they had elevated it to the digital space where everything was seamless.

“From the time the customer makes a deposit to when the winner is eventually picked, there is relatively no human intervention. This is another first in the industry and reinforces our brand promise of being Here for good,” he said.

Mr Okai said the promotion would run in all 23 branches of the bank across the country, with each customer standing an equal chance of winning either the ultimate prize or consolation prices such as LED TVs, iPads, home appliances, trips for two to Dubai and other souvenirs.

The Business Promotions Manager of the National Lottery Authority (NLA), Mr Ekow Incoom, said the collaboration between the bank and NLA to run the promotion was meant to excite the bank’s current and prospective customers and make their experience of saving with them even more rewarding.

“We, therefore, associate with the bank in presenting an equal opportunity to all people, both in good and bad times, and hope they experience the development this promotion promises through a fair transparent process accepted by all,” he said.

There would be a mini draw in May 2013 with the grand draw slated for July 2013.

UT Bank supports charity organisations

UT Bank has presented cheques totaling GH¢37,000 to seven charity organisations as part of the bank’s annual show of love towards the society.

The institutions include the National Cardiothoracic Centre, the Light Outreach International, Ghana National Trust Fund, and Hope for Kids.

The rest are Ghana Blind Union, Angel Zoe Foundation and Family Outreach Ghana.

The Deputy Managing Director of UT Bank, Ms Pearl Esua-Mensah, said the donations were to supplement resources being used by those organisations to cater for the under privileged in society.

She said UT was committed to its Corporate Social Responsibility (CSR) and hence was always willing to give back to the society where they draw their income from.

According to her, their annual charity donations started eight years ago and based on the positive feedback on how the organisations used it, the company had added GH¢2,000 to the amount for last year.

She added UT sees what the charity organisations do with the money and will therefore be a crime for them to ignore the people around them.

Ms Esua-Mensah said the banks local branches are also encouraged to pick out issues of concern in the areas they operate so everyone can have a fair share of their CSR project.

She also said UT was hoping to set up a foundation to spearhead financial literacy in the country as well as collaborating with GIZ to provide basic health screening for communities.

She was also optimistic that the various organisations would use the resources made available to them to support their initiatives.

Representatives from the various charity organisations were grateful to UT Bank for their constant support which helps them cater properly for their inmates.

Track global investment flows – Trebah

The Acting Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mrs Mawuena Trebah has reiterated the need to for investment agencies to set up strong teams to monitor and track investment inflows into countries.

This she explained would not only help investment agencies to know the number of investors in their countries but also help to develop strategies to encourage new ones in a bid to achieve national development.

She made these remarks when a delegation from the Sierra Leone Investment and Export Promotion Agency (SLIEPA) who were in the country last week on a trade and investment exploration mission paid a courtesy call on her at the centre in Accra.

Mrs Trebah explained although it was not easy to surmount the challenge of adequately tracking what comes into a country, she believes a strong investment team which operates from a Public Relations and Marketing perspective can make strides in this regard.

She also explained although the GIPC Act provides a legislation framework that defines how investment propositions are made in Ghana, an extra effort to encourage various stakeholders and institutions to engage and drive investors to the GIPC would be of immense to help get the right information about investments in the country.

The GIPC is currently working in close alliance with agencies like the Freezones Board and the Minerals Commission who engage investors that comes to them and refer them appropriately to the centre in order to track what comes into the country.

Mrs Trebah also noted by engaging in quality investments, some perceptions about investments with respect to human resource, infrastructure and power were gradually being surmounted.

She however expressed her commitment to collaborate with other investment agencies to help create platforms that can help promote pan African investments.

The Director of Investment Promotion at SLIEPA, Mr Raymond K. Gbekie said the SLIEPA started operations in 2009 and was therefore in the country to build an effective collaboration that can help them build their own effective investment team.

He explained the areas of interest include tourism, fisheries, infrastructure which includes providing low cost houses amongst others and thus called for more collaboration and insight into the workings of the centre to enable them gain more information.

The trade visit was facilitated by the Ghana Export promotion Authority (GEPA) and amongst the delegation were the Director of Export Development of SLIEPA, Mr Shiaka Kawa and an assistant Export Development Officer of the Ghana Export Promotion Authority (GEPA), Ms Regina Manu.

They also had consultations with the Association of Ghana Industries (AGI), West Africa Trade Hub, the Ghana Institute of Packaging and the Ghana Stock Exchange.

Govt working towards meeting oil production target

Government is working audaciously to ensure it meets its target of producing 120,000 barrels of oil a day compared to the 110,000 barrels it is currently producing.

The Director of Petroleum at the Ministry of Energy, Dr Paul Frimpong told the GRAPHIC BUSINESS in an interview after the opening of the oil and gas career fair in Accra that due to the challenge of sand infiltration into boreholes used for drilling, production was interrupted intermittently.

The fair which is on the theme “Mapping your future” was endorsed by the Ministry of Energy and is to practically address challenges associated with the introduction of new workers into the sector.

Those challenges he however said were been resolved but plans were far advanced to meet the set target of producing 120,000 barrels a day for the first phase of the project.

“Our plan in the first phase is to get 120,000 barrels per day but due to challenges with respect to the sand that were infiltrating into the borehole, we had that problem for some time but it was resolved quickly but currently production is around 110,000 barrels,” he said.

One of such government initiatives to drive the oil and gas sector, he said was the formulation of the Local Content Policy, which provides the policy framework for regulating the emerging sector.

According to him, the policy contains the fundamental principles for the sector and was “expected to drive the sustainable development of our oil and gas endowment.”

This is he said would be made possible through the identification of  stakeholders and their roles, capacity and training, technology transfer and its utilisation, infrastructure development, creation of conducive and thriving environment to encourage optimum local participation.

To encourage local participation in the sector, Dr Frimpong said government would also integrate the oil and gas sector into the long term national development plan.

Government he explained was in the process of setting up a Small and Medium Enterprise in Takoradi to train companies and individuals who want to participate in the oil and gas sector to bring them up to meet standards of international oil companies.

That notwithstanding, Dr Frimpong explained the quantum of local content and the extent to which local people can participate  in the oil and gas sector was limited with respect to finance, human resource and technology.

He said the oil industry had been a major driver of economies where policy makers have prudently managed resources resulting in remarkable transformation of the fortunes of those countries.

Responding to a question on the extent to which the Petroleum Bill had advanced, he said it was being worked up but was however not privy to information on its current state adding the legal department at the ministry was in a better position to give detailed information about that.

The Chief of Staff at Tullow Oil, Mr Kofi Esson also told the GRAPHIC BUSINESS the company was poised to encourage enthusiasm among students and graduates who were interested in the oil and gas sector adding “you have to expose them and spark the interest, to help them become industry champions”. GB

Traders abandon market stalls

The Accra Metropolitan Assembly (AMA), under the leadership of its former Chief Executive, Mr Stanley Nii Adjiri Blankson constructed the pedestrian shopping mall at the Kwame Nkrumah Circle to accommodate traders who formally sold on the streets of the Central Business District at Makola under a convenient umbrella.

The whole idea was to house traders who were affected by the decongestion exercise carried out by the AMA to rid the street of hawkers who used the place as their sales centers. It was also to give relief to both traders and patrons to conduct their business in a more relaxed and healthy manner.

Although some traders have heeded the call and have relocated to the new market, others have put up their shed, abandoned them and are still selling on the pavements of the Central Business District at Makola in broad day light. Others however prefer the late hours of the day on the pavements of the Kwame Nkrumah Circle to prevent any tussle with the AMA task force.

One part of the market has been occupied by traders while the other part, nicknamed “Tuobodom” by the market women appears to be left dormant. According to them, the place had been isolated from the main market and therefore attracted few customers.

A visit to the market by the GRAPHIC BUSINESS indeed confirmed that a chunk of sheds had only been put up by the traders but no brisk business was going on there like the other part showed.

The other wing of the mall however serves as a one stop shop for all commodities people require ranging from fashion accessories, kitchenware, stationery and other household items.

The irony nonetheless is even those who sell on the pavements during the day still display their wares at night in a bid to up their sales for the day, as low sales had become the bane of the new market.

A trader, Madam Grace Quansah, who deals in ladies accessories told this reporter, although they new market was more comfortable and healthier than trading on the sun at the Central Business District in Makola, people hardly visit the new market, and the few who pass by occasionally barely make purchases.

According to her, during festive seasons and occasions, the market picks up and that is when they are able to make some sales and therefore resorts to selling on the pavements at night so she can add up to her sales for the day.

She told the GRAPHIC BUSINESS because their colleagues have been allowed to sell on the pavements; people barely come into the mall since they are able to get everything they want on the pavements outside the mall.

PATRONS PERCEPTIONS OF THE NEW MARKET

An attempt by the GRAPHIC BUSINESS to unravel why people barely bought from the market revealed that, high prices of goods sold at the mall contributed to this issue.

Madam Jifa Adatsi said things sold at the market were very expensive, far higher than what is offered at the Kaneshie and Makola markets adding “if you really want to shop, go to Accra. That place is far better.”

According to her, even though the traders reduce their prices when they bring it outside at night, the difference is not that much, “it is just GH¢1.00 difference or so.”

Another patron of the market, Ms Wilhemina Vanderpuije explained to the GRAPHIC BUSINESS that although their things are expensive, it is more convenient shopping there.

“There is so much convenience but the prices are high. You can walk through the market and get what you want at a particular place,” she said.

She explained that unlike Tema Station and Makola where you can bargain and get prices reduced, the traders at the mall would not accept any bargain and would allow you to go.

“If you bargain for price reductions, they will say no and allow you to leave and won’t bother calling you back like people do in Makola and Tema Station,” she said.

THE MARKET AT A GLANCE

Just on the outskirts of the mall is a lorry station that plies different routes in Accra making it a complete and convenient hub for both traders and patrons of the market.

The Novotel market which was relocated to the other wing of the mall has brought some briskness into activities carried on there, as residents in Adabraka patronize the market for their foodstuffs due to its close proximity.

Some women have also taken advantage of it to sell cooked food to both market women and people working at the lorry station.

The idea of the mall being built has not lost its essence entirely but authorities need to be up and doing to ensure the market does not become a hub for filth while hawking on the street must be completely eradicated. GB

Tertiary students to benefit from holiday jobs

Energy Bank, a Nigerian bank which entered the Ghanaian market two years ago, says all is set for the introduction of holiday jobs for tertiary students in June this year.

The holiday jobs, which give university students the opportunity to use their long vacation period to gain professional experience of what they are learning in school, will begin with 50 students this year.

The Chairman of the bank, Barrister Dr. Jimoh Ibrahim, told the GRAPHIC BUSINESS in an interview after the bank opened its7th Branch on the Spintex Road in Accra that the opportunity would not only help them gain experience but also help them acquire some funds during the period.

He added that would also provide an auxiliary platform for students who distinguish themselves and work in line with the company’s vision to also get employed in the bank.

According to him, the offer was open to all level 200 and 300 tertiary students as no stringent criteria would be attached to the offer adding “all that is needed is for you to show you are a tertiary student.”

He also hinted of the banks plan to open three other branches by the end of the year as the bank was making great strides in the Ghanaian market being named the first bank in liquidity and the first in return on assets.

The Managing Director of the bank, Mr Sam Ayininuola, said the new branch was poised to provide personalized and specialised services premised on the banks timeless principle of loyalty.

He said with the newly introduced private banking service, customers on that platform would have a dedicated relationship executive who will constantly assist and guide them to manage and grow their wealth.

“We will also offer you a customised and dedicated branch to assist in serving you to the best of our ability,” he said.

The Greater Accra Regional Minister, Nii Laryea Afotey Agbo, bemoaned the inability of local entrepreneurs to get the right assistance from financial institutions to finance their business.

He therefore advised management of the bank to develop products to meet the income of public and civil servants as well as low income earners through support for Micro Small and Medium Enterprises (MSMEs).

According to him, government would continue to champion the cause of job creation as well as lay the foundation for sustainable growth of the economy.

The Deputy Governor of the Bank of Ghana, Mr Millison Narh, in a speech read on his behalf advised financial institutions to peg their lending rates in a way that would promote economic growth as concerns of high cost of borrowing has been the bane of some banking institutions.

Single digit inflation is achieveable - ISODEC

A Policy Analyst of the Integrated Social Development Centre (ISODEC), Mr Dennis Nchor says the government is likely to meet its single digit inflation target for 2013 despite the reverse of the rate to 10 per cent in February 2013.

According to him, government’s plans to reduce its deficit and maintain stability in the exchange rate if sustained would help achieve its macroeconomic target of an end year inflation of nine per cent.

Mr Nchor who is also the Head of Budget at ISODEC told the GRAPHIC BUSINESS in an interview after the release of the inflation rate for February by the Ghana Statistical Service that, “it is still possible for government to achieve its target as this year government plans to reduce its deficit from 12 to 9 per cent which shows there will be a cut in expenditure” adding “that is one source of controlling inflation.”

Again, he said unlike 2012 when the economy witnessed an unprecedented depreciation of the cedi, “we are expecting a stable exchange rate and so it should be possible for government to achieve its target.”

Inflation, also known as 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 February rate of 10 per cent, which was the highest since June 2010, was recorded following the upward review of petroleum prices by 20 per cent by the National Petroleum Authority (NPA) last month which resulted in a surge of general prices of goods and services.

Mr Nchor said, the 10 per cent was a reflection of overspending in 2012 without a corresponding increase in output and if that happens “you end up getting high inflation”.

Despite the murky outlook of the CPI as the Ghana Statistical Service is yet to review its base for computing the CPI, the Volta River Authority has called for an increase in utility tariffs despite the current energy and water crises the country is currently facing.

Responding to concerns of the impact of the expected increase in tariffs on maintaining single digit inflation, Mr Nchor said increase in tariffs will definitely play a role.

“An increase in tariffs will increase cost of production, producers will march it up by pushing the burden to consumers and inflation can only go up further,” he said.

He was however quick to add that in the face of the current energy crises with no quality service to march it, there will be no basis for increasing tariffs.

The last time the economy recorded double digit inflation was in June 2012 (10.68%) after which it kept fluctuating between 9 and 8 per cent, with the latest pegging at 8.8 per cent in January 2013.

Unlike the usual trend of the non-food basket contributing largely to the increase of inflation, in February a combination of the increase in the pressures of the food and non-food basket used in the computation of inflation pushed the figure.

The year-on-year non-food inflation rate for February stood at 12.6 percent compared to 11.5 per cent it recorded in January 2013, the main drivers which were Alcoholic beverages, tobacco and narcotics (15.9%), Transport (15.8%) and Housing, water, electricity, gas and other utilities (15.5%).

The 5.3 per cent year-on-year food inflation recorded was also largely due to these price drivers ; mineral water, soft drinks and juices (15.7%), milk, cheese and eggs (15.3%), coffee, tea and cocoa (11.6%0 and meat (10.9%). GB

Agric sector needs paradigm shift - Abayori

The President of the National Farmers and Fishermen Association, Mr Philip Abayori has called on government to shift emphasis from channeling resources to improve the agriculture sector to addressing challenges confronting the sector.

“We need to have a paradigm shift as to how we can move resources to create employment, increase our productivity, strengthen the bottlenecks and rather ensure that  we do not direct resources back to where inefficiencies are,” he said.

According to him, it was good that government wants to support the sector but “it should be a holistic approach, where the issues that we are confronting will be lifted.”

Mr Abayori was contributing on the critical issues in the 2013  Budget Statement and Economic Policy organised  by the Institute of Financial and Economic Journalists (IFEJ) on his assessment of the provisions made by government for the sector in the budget. The progamme was supported by Star Ghana with technical assistance from the World Bank.

Mr Abayori explained that initiatives for the sector was laudable but they would have wished for a budget that would go directly to strengthen capacity of operatives in the Ministry of Food and Agriculture to deliver good services and major infrastructure that would support agriculture.

Bemoaning their challenges, he said the post harvest losses were  over 40 per cent, because of their inability to transport  their produce from their farm gates to market centers and “even to process and store them.”

“We realise we are weak because we have inadequate resources, lack of credit facilities and even those we obtain credit facilities have to pay dearly for it” he said.

According to him, the component of the budget brings several issues to the fore, adding, “for instance if you look at the livestock sector, which is the  least in the chain in agriculture, the support going there is to enhance capacity of  farmers to procure 30,000 cockerels which is supposed to reduce importation of poultry and meat products.”

That notwithstanding, a director of the Ministry of Finance, Ms Eva Esselba Mends said government was on course to revamp the sector to ensure food security in 2013.

She said the broad objective of government policy for agriculture was to ensure food security and in doing that technology would be introduced in the various production processes - crop production through to the market centers.

She explained  that mechanisation centers had been set up to provide equipment to farmers to reduce labour and the drudgery of producing crops 

“Again, one of the areas you find in the budget is research. Government has supported research in agric and that is to ensure we reduce post harvest losses and add value to the raw materials that we produce. Those are the two key objectives of government in the 2013 budget in terms of providing food security,” she said.

She said food security means ensuring that food was available and affordable.  She said this included reducing the price of food adding “that is why the introduction of fertilizer subsidy and improved seeds were important”. 

The sector which hitherto was the largest contributor to the country’s Gross Domestic Product (GDP) recorded a growth rate of 0.8 per cent in 2011 and 2.6 per cent in 2012 as against a target of 4.8 per cent.

But in 2013, government is budgeting that the number of Agricultural Mechanisation Service Centers will be increased to cover at least 170 districts in 2013.

Again, government would also distribute 180,000 metric tons of  subsidised fertiliser to farmers under the fertiliser and seed programme among other interventions.GB