Ghana/Italy approves list of 99 investment proposals

Ghana and Italy has approved a list of 99 investment proposals submitted by local small and medium enterprises (SMEs), to be eligible for funding with a credit line granted by the Italian Government. Dr Ekwow Spio-Garbrah Minister of Trade and Industries and Laura Carpini Italian Ambassador who co-chaired the 10th Joint Management Committee meeting of the Ghana Private Sector Development Facility (GPSDF) jointly announced the list. The cooperation initiative, worth 20 million Euros has already allocated 75 per cent of the funds, and the Committee is looking forward to utilise the residual funds. The initiative also includes a grant component, worth 1.1 million Euros for technical assistance in favour of the Ghanaian private sector, for education, training and monitoring activities. The Italian Ambassador announced that the disbursement of the second installment of the granted amount equivalent to GH? 2.5 million. Dr Spio-Garbrah commended Italy for the project. The GPSDF aims at supporting the import of Italian equipment to Ghanaian SMEs with reciprocal benefits for the partnership between the two countries. The GPSDF supports Italian exports and promotes made in Italy and made in Ghana with Italy brands to contribute to the upgrade of the Ghanaian private sector capacity to manufacture goods with high standards, improve competitiveness of local productions and contribute to the creation of new jobs. The credit line was designed as the second phase of the Ghana Private Sector Development Fund, a previous cooperation initiative completed in 2009, which has the same structure and aim of the current GPSDF. Upon completion of the initiative, about 60 Ghanaians companies would receive the funds for acquiring Italian equipment. Dr Spio-Garbrah invited the Italian Ambassador to support the Ghanaian request for refinancing of the initiative that could serve as a model for similar projects with other countries.

President lauds Tema Port phase lift collaboration

President John Dramani Mahama has lauded the on-going collaboration between Ghana Ports and Harbours Authority and Meridian Ports Service that would bring about total transformation at the Tema Port.

He said government would continue to forge relationships that would bring mutual benefit and create numerous jobs for Ghanaian youth in the coming days.

President Mahama gave the commendation when the two bodies called on him at the Flagstaff House, Kanda, to inform President Mahama of the new Ghc1.8 billion deal they had signed towards the expansion of the port.

The deal involves the building four new berths to help in expanding the facility to become centre of excellence in the West African sub-region.

President Mahama said the project is the single largest project in terms of investment in the non-oil sector in the country.

He said although the expansion project is privately funded, government would continue to play its role to ensure that the port regained its status as the leading port with efficiency in Africa.

The President said the Tema motorway would also be expanded to accommodate the fleet of vehicles that would be using it due to the expansion programme at the port.

Dr Richard A.Y. Anamoo, Director General of the port said the project, which would effectively commence by December, would witness the completion of two of the berths in the first two years of construction.

He said the construction of the berths would change the maritime system of Ghana to make it iconic in West Africa and beyond.

The Director General said the project would eventually place Ghana in an advantageous economic position to create vital jobs and brisk business in the country.

Steel Industry to receive major boost

                                 
The steel manufacturing industry is to receive a major boost with the establishment of wire coils and sections manufacturing plant at Tema, to serve both the local market and West African sub-region.

The plant, a phase-two project of Sentuo Steel Limited costing about US$53million, is expected to add 500,000 metric tonnes annually to the company’s existing 300,000 metric tonnes of annual production capacity.

The amount was raised from shareholders of Sentuo: Fugian Overseas Chinese Industrial Group Corporation (FOCIGC) which owns a 74 percent shares, and the Social Security and National Insurance Trust (SSNIT) with 26 percent shares.

Mr. Ningqian Xu, Managing Director of Sentuo Steel Limited, told newsmen during a visit to its plant at the Tema Heavy Industrial Area, as part of a media tour, organised by the Chinese Embassy in Ghana.

Mr. Xu explained that the media tour was to highlight Chinese investments in Ghana over the past 55 years of bilateral relations, and said the phase-two project will be completed in about two months’ time.

Mr. Xu noted that the plant, expected to be completed in two months, will be the only one in the West African sub-region that manufactures products such as wire coils and sections like square pipe, steel round pipe, and angle steel among others.

He said Sentuo is fully poised to take advantage of emerging opportunities and challenges, while providing high-quality steel products and services to meet demand on the West African market.

Sentuo Steel currently manufactures reinforced iron rods for the Ghanaian market. With an annual installed capacity of 300,000 metric tonnes, the plant currently produces only about 40 percent of that capacity due to unavailability of enough ferrous scrap metal, its main raw material for production.

Mr. Xu said the company could not produce at full capacity because it cannot get enough scrap metal, despite the ban on exporting scrap metal, and has had to import some from countries such as Mali and Kenya.

Asked how it will feed its production in the second phase to produce enough for both the Ghanaian and West African markets, Mr. Xu said they will import steel billets from Europe and America.

He explained that this will not increase the prices of the finished products, since the cost of importing the raw material is cheaper that buying the scrap from local scrap dealers.

He reiterated the company’s commitment to Ghana, saying: “Ghana and China have a long-standing relationship; one of friendship and brotherliness," noting that Sentuo is interested first in supporting the local manufacturing industry in Ghana, despite current challenges in the economy.

Mr. Emmanuel Ayansu, General Manager and Consultant at Sentuo Steel, called on government to prefer value addition to fundamental raw materials, and do more to support companies that undertake such work.

He said -- in line with the company’s commitment to knowledge and skill transfer, Sentuo Steel’s Chinese investors are thinking of instituting a scholarship programme for Ghanaian employees to understudy the parent company in China.

He said the plant currently employs about 600 people, including 127 foreigners, and hopes to double that number when the second phase became operational.

Accra floods: turn your challenges into praise – Council of State

 The Council of State has appealed to the general public to stop the blame game on who is responsible for Wednesday’s devastating floods in Accra. In a statement signed by the Council of State’s Public Affairs Director, Jemima Asare, said: “Avoid accusatory and divisive actions and language that will compound the already difficult situation.” The Council also expressed its sadness at what it described as the tragic loss of lives recorded on June 3, 2015 as a result of the explosion at a fuel station at the Kwame Nkrumah Circle in Accra. On that day, heavy floods ultimately led to the explosion, which claimed over 90 lives and caused loss of property worth millions of Ghana cedis. “In these heart rending moments of unimaginable pain and distress, the Council wishes to express its deepest condolences to the bereaved families, the families of those who still remain unaccounted for and other victims who have suffered loss of property and remain traumatized by the unfortunate development the  Council further commended the security agencies and the National Disaster Management Organization (NADMO), health officials and ordinary citizens whose interventions helped limit the scale of destruction to lives and property; lending its support for President John Mahama’s declaration of a three day mourning period for the dead.

American investors to ‘flood’ Ghana soon

Ghana will, in the coming months, witness the influx of American investors to the country, the United States of America (USA) Ambassador to Ghana, Mr Gene A. Cretz, has said.

That, according to him, follows the steps being taken by the government to bring the economy back on track after some challenges.

Speaking with the Daily Graphic shortly after hosting the Vice-President of Microsoft and some top business executives in the country to breakfast at his residence in Accra, he mentioned some of the sectors as the oil and gas because of the shape the sector was taking as a result of the Atuabo gas project, and infrastructure among other things.

“We have a network of companies that we are always talking to. The State Department is also encouraging the companies to come and our commercial department is also active in getting out the information about changing economic trends,” he said.

Mr Cretz said: “It is beginning to manifest that the situation in Ghana is beginning to turn and now is really the appropriate time to come here,” he said.

“I am pretty confident that in the next several months we are going to see a real upsurge in America corporate interest in Africa and Ghana in particular,” Mr Cretz added.

According to the May report of the Monetary Policy Committee (MPC) of the Bank of Ghana, preliminary fiscal data for the first quarter indicate that the fiscal consolidation efforts are on track.

Revenue and grants were above target, on the back of strong growth in domestic revenue. Expenditures were below target, as the major items, including the wage bill, were contained within target.

These resulted in a cash fiscal deficit equivalent to 0.6 per cent of GDP, against a target of 1.9 per cent.

The deficit was financed mainly from external sources totalling GH¢1 billion with a domestic net repayment of GH¢278.2 million.

Ghana’s economy had been saddled with a myriad of challenges that have almost forced the nation to its knees.

For instance, the energy crisis is eating away the profits of many businesses while those which are not able to absorb the extra cost brought unto their businesses are being forced to lay off workers.

Inflation is still in the double digits at about 16.6 per cent as of March this year, with no sign of it abating because of the recent rise in petroleum prices.

The cedi, the local currency, has plunged against the United States dollar, having lost more than 20 per cent of its value between January and now. This has taken a serious toll on a country which is predominantly import-dependent.

Interest rates are hovering around an average of 29 per cent on the back of the high interest on government securities such as treasury bills (TBills). Although the Bank of Ghana claims the rates are dropping, the situation is still crowding out the private sector players who rely on bank loans to stay afloat.

For instance, according to the MPC report, interest rates have broadly declined during the period. Between December 2014 and April 2015, both the 91-day and 182-day Treasury bill rates fell from 25.8 per cent and 26.4 per cent to 25.1 per cent and 25.8 per cent respectively.