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Petroleum earnings hit US$362.6m

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Total petroleum receipts – the sum of earnings from liftings and other petroleum proceeds from the Jubilee and TEN oil fields – stood at US$362.58million as at September 2017, data from the Ghana National Petroleum Commission (GNPC) have shown.

The figure, which indicates an astronomical surge from the US$172.91million realised in the same period of 2016, was raised from the 5,795,014 barrels that were lifted from the crude oil producing fields.

Also, the total volume of gas that was transported from the two fields to the Ghana National Gas Company (GNGC) within the period under review was 20,545.44mmscf.

Lead Petroleum Engineer at the GNPC, Albert Longdon-Nyewan, told the B&FT that the strong revenue performance was due to additional liftings from the TEN Field in 2017 as well as increased pricing of crude.

“In 2016 it was only the Jubilee Field, but this year we were able to increase production with the coming onstream of the TEN Field; also, pricing is everything in terms of revenue generation,” he said.

Last year, the Jubilee and TEN fields produced about 160,000 barrels per day; but according to Mr. Longdon-Nyewan, projection for this year is pegged at 70,000 barrels per day, in the hope that the Sankofa project will bring in additional volumes.

Allocation of receipts

Out of the total US$362.58million, GNPC was allocated US$126.67million – comprising equity financing cost and its share of the net carried and participating interest.

A total of US$135.81million was transferred into the petroleum funds for the period ending September 2017. Out of this, the Ghana Heritage Fund received US$40.74million while the Ghana Stabilisation Fund received US$95.07million.

The total amount transferred in 2017 from petroleum liftings and related proceeds to the ABFA was US$127.09million, while the Ghana Infrastructure Investment Fund (GIIF) received US$6.92million.

Performance of the GPFs

The total net profit on the Ghana Petroleum Fund for January to September 2017 was US$7.03 million.

Out of this, the Ghana Heritage Fund contributed US$5.20million compared to US$4.04million in 2016, while the Ghana Stabilisation Fund contributed US$1.83million compared to $0.65million in 2016.

Since quarter-three of 2017, the GPFs have netted US$25.94million in profit – with the GHF and GSF contributing US$19.59million and US$6.34million respectively.

Planned FPSO shutdown

The first of three planned shutdowns of the FPSO Kwame Nkrumah on the Jubilee Field is expected to begin on Friday, February 2, 2018.

These planned shutdowns are expected to make way for operators of the oil field to embark on a general maintenance exercise on the vessel.

Mr. Longdon-Nyewan indicated that the shutdowns are to allow for the Jubilee Field FPSO Turret Remediation Project and other maintenance works to help restore the facility to its original health.

“We expect three shutdowns this year to allow for liftings, maintenance and also the spread mooring; by October 2018, the FPSO will be restored to its original health,” he said.

State loses GH¢868m through fuel dumping

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The state in 2017 lost some GH¢868m to shady petroleum service providers who dump products meant for export back onto the Ghanaian market.

Due to tax waivers on some petroleum products meant for export, crooked service providers find an incentive in selling such products on the local market – which earns them a windfall.

“We have had unscrupulous petroleum service providers try to cheat the system by dumping export-declared products and Marine Gas Oil (MGO) declared to be sold to foreign vessels for economic gain and tax avoidance,” CEO of the National Petroleum Authority (NPA), Hassan Tampuli, said at a colloquium yesterday.

“MGO leakages are estimated to have cost the nation GH¢18million in lost tax revenue in 2017, while export dumping cost over GH¢850million,” he said.

A number of measures, he said, are being rolled out to curb the criminal activity, including the application of domestic taxes on MGO sold to foreign vessels and collaboration with sub-regional neighbours to help account for products declared as exports to those countries.

All these measures, he said, are aimed at removing the economic incentive to cheat the system – and they are seen to be yielding some results.

“Foreign MGO, for instance, has reduced from 20million litres a month to 290,000 litres a month based on the authority’s preliminary estimates,” he added.

Way Forward in 2018

In order to consolidate gains and make the industry more efficient, Mr. Tampuli said the authority intends to intensify activities toward plugging the supply leakages.

“Our activities will be geared toward assisting the Ghana Revenue Authority (GRA) achieve the Special Petroleum Tax (SPT) revenue target of GH¢1.8billion, and Ministry of Finance achieve the Energy Sector Levies Act (ESLA) revenue target of GH¢3.7billion, as provided for in the 2018 budget,” Hassan Tampuli said.

“We intend to roll out the second phase of the LPG refilling plant safety risk assessment. Currently, a total of 657 stations have been inspected using the criteria developed for the first phase, of which 59 remain closed down due to non-compliance,” he said.

The authority also seeks to amend its Act to give it enough legal backing to deal with the new wave of industry issues.

He assured that the Cylinder Recirculation model of LPG distribution will be implemented fully this year.

He said the relevant licences will be issued and safety protocols will be keenly observed to ensure the safety of Ghanaians, while increasing access to LPG for domestic, commercial and industrial use from the current 25 percent level to 50 percent.

The Energy Minister, Boakye Agyarko, also said government is focused on encouraging market-led innovations while removing barriers that undermine opportunities for those in the sector.

“I’m sure as an industry, you are also positioning yourself to make the most of the emerging opportunities. I am certain that an efficiency-led sector creates a positive environment that enables business operators to thrive, and we should be seen working toward that.”

He said one thing is certain, which is that in future the petroleum downstream sector will be very different from how it is today.

He therefore expressed confidence that the enabling environment means banks will be willing to do business with players in the downstream sector – without concerns they may not be able to recover facilities made available to the industry.

On the health and technology fronts, he said there will be changes in the fuels and technologies that are used in the country, and the way households engage with as well as control the use of their petroleum products.

“Therefore, business models will have to change and adapt to the trends in order to accommodate and drive these changes,” he advised.

The Vice President, Dr. Mahamudu Bawumia, in a speech read on his behalf said the industry has witnessed significant investment and expansion of petroleum products storage and outlet facilities – largely championed by the private sector, which is mostly dominated by a growing number of indigenous Ghanaian companies due to deregulation of the petroleum downstream industry.

This, he said, has translated to a significant number of new entrants licenced to operate as Petroleum Service Providers (PSPs) in the industry.

Consequently, he said, there are currently over 250 licenced companies across the value chain players, and support services in over 15 different categories of the downstream sector.

The sector has over the years contributed significantly to growth and development of the economy. Over the past four years (2013-2016) alone, the sector is estimated to have contributed over GH¢46billion to the country’s GDP – representing an average contribution of 10% per annum, he said.

Reckless Raila?…leadership lessons & losses

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Esther A. Armah

 

Raila Odinga. The People’s President of Kenya?  I watched a video where Mr. Odinga inaugurated himself as a President of a nation that had already elected President Uhuru Kenyatta.

Confused? Aren’t we all! What a wow!

This is an extraordinary series of events.

Kenya ignited global headlines when post 8 August 2017 elections, Kenya’s Supreme Court made an unprecedented ruling to reject the election result citing serious irregularities and illegalities in the process.  That ruling made global headlines. It prompted renewed confidence in the judicial element of the governance process in Kenya where elections are a bloody and brutal business.

The quest for political power jeopardizes lives and the Kenyan people continually take to their streets to push, rally and raise their voices in pursuit of governance that their votes – not the violation of their rights and the violence – determine.

As the Kenyan people counted down to the re-run election in October, their  optimism and celebration of Kenya’s Supreme Court was quickly marred by escalating violence directed at Kenya’s judiciary,

Kenya’s Electoral Commission (EC) came under fire.  Commissioner Roselyn Akombee fled to the US amid death threats.  The Election Commission conceded that the re-run election poll might not be credible. There were calls for the EC irregularities to be resolved before the election re-run. Violence escalated. The October election took place. Mr. Raila Odinga boycotted it.

Mr. Uhuru Kenyatta won a second term.

I was last in Kenya in 2003. I was making a documentary for BBC Radio 4’s Crossing Continents exploring the prospects of education after the 2002 election of Kenya’s new National Rainbow Coalition government. This election ended the dominance of the Kenya African National Union which had governed Kenya since independence in 1963. That included 23 years as the only legal party. The new president was Mwai Kibaki of the National Rainbow Coalition. Primary education was now compulsory and free – just as Ghana now has Free SHS.

My feet would touch down in Nairobi as Kenya grappled with governance and democracy.  I think about my interview in Nairobi with Africa’s first Nobel Peace prize winner, the environmentalist and activist turned Minister – Wangari Maathai. She founded the Green Belt movement; a poor people’s environmental movement that empowered women and was about land, leadership and democracy. I remembered our discussion with her exploring leadership in Kenya in May 2003, and I think about it again now as I ponder Raila Odinga’s actions on January 30th 2018.

Mr. Odinga boycotted the October election, citing an unlikelihood of transparency. The death threats, fleeing Commissioners and the words of the EC Chief himself seemed to validate Mr. Odinga’s concerns.

So yes, Mr. Odinga may indeed be right that the Kenya election was a mess; that there was brutality and violence that quelled the judicial and governmental structures who have oversight of this process.

Those realities do not justify this action; nor does this action serve to resolve any of the issues that created the farce of process.

So, what action does a leader then take in pursuit of his goal to honor the Kenyan people’s democratic process in voting for their president – and having that vote respected? Because frankly, it is unclear how self-declaration as president honors governance and voting process.

There are instructive lessons in leadership here.

A primary lesson in leadership is to make failure instructive. It is to recognize when we lose, we can learn why we lost and then get up, strategize, organize, rally, control our egos and stand again. We are strengthened through understanding that the loss was not the issue; the issue is the lesson from the loss.

So, what lesson does Raila Odinga teach Kenya – and by extension Africa – by this inauguration? Raila Odinga’s bid is reckless, not revolutionary. It is the worst indulgence of ego. It sets up the Kenyan people to face continued violence from a government and a president they already oppose.

Odinga’s actions did not make him the People’s President. They were the actions of a dictator; a man imposing his will on a flawed process, rather than correcting the process and strategizing to fight more smartly and win on another day.

Defeat is bitter. Loss is difficult to swallow in the face of apparently clear evidence that you won. Ghana faced that same dilemma in 2012.

Leadership is process and practice – it is not performance. And Raila Odinga’s actions were about the performance of leadership.  They were about the seduction of a cheering crowd; the infectious cancer of hearing your name screamed by the thousands gathered. What happens on January 31st and February 2nd? Who do you practically lead? And how do you actually lead them? What alliances are you able to court and create through this action?  What opportunity do you create to run – legitimately in the eyes of the Kenyan people – on another day?

Leadership as performance promises trouble for the people. And that is what Mr. Odinga’s inauguration represents. It pays a particularly brutal price for ordinary Kenyans. Some may now believe that his performance of leadership may mean actual power. Can the People’s President pass legislation to effect change? Can his inauguration usher in a jobs programme to transform the working challenges Kenyans face?  Do Kenyan women face fresh opportunity and access to corridors of power due to this action? Can the People’s President actually take action on behalf of the people?

Since he can do none of the above, his inauguration – while celebrated and cheered – becomes a recipe for frustration for the very people who may  have cheered him in delusional optimism that he may stand for change they can believe in and benefit from.

The illusion of power is deadly. It is the notion that your action may ignite change, but is actually political impotence.

Mr. Odinga has done to the Kenya people what the NDC has done to the Ghanaian people with the Gitmo 2. He has made some kind of deal that he claims serves the people, but actually ignites fresh questions and leads to suspicion about the basis of such a move and the consequences for the people. This has become about political wrangling between political parties – not the leadership and needs of a people.

Turmoil is bad for business, but devastation always offers opportunity for the unscrupulous. Such has been the history of politics across African nations.

Kenya’s history of the Mau Mau who fought the British in pursuit of their freedom and independence is also instructive. Kenya’s three big ethnic groups of Kikuyu, Luhya and Luo mean unity is a dream deferred. However, just as Kenya united for a necessary independence of a nation, so these huge groups may consider that the interests of a people need not be idealistic wahala, but prompt a momentary lull in tribal political warfare in pursuit of a people focused on peace.

Tribe is to Africa, what race is to America. It is complex, powerful and it informs policy and politics.

Mr. People’s President, this is not what leadership looks like. Become smarter, more strategic, more self-aware and respectful of a governance process. Reject performance, engage practice and honour the people of Kenya.

Let loss be a lesson for a reimagined leadership that gets up, humbled and willing to engage anew.

8 Ways to Avoid Being a Victim of MTN Mobile Money Fraud

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As long as fraudsters see an opportunity to scam or “mugu” people, they will always try to. But you can avoid being defrauded by being a little bit vigilant.

Below are 8 ways you can stay safe when using MTN mobile money.

1. Never give your MTN mobile money PIN to anyone

It is highly advised to never share your PIN (secret number) with anyone and this includes mobile money agents, workers of MTN and your friends.

Mobile money agents and MTN workers are not to ask you for your PIN to initiate any transaction on your behalf. Your PIN is your secret number.

2. Make you PIN harder for people to guess

Just like you do whenever you choose a password for a new email, you should make sure that your PIN is difficult to guess.

When choosing your 4 numbers, it’s best to avoid using the year of your birth, the day and month of birth, repetitive numbers like 1111, 2222 etc. Also avoid common pattern numbers like 1234 or 2018.

Use a PIN that would be difficult for people to guess, but easy to remember. If you currently have a weak PIN, you can change it. Dial the MTN mobile money shortcode *170#, select Wallet and choose Change MM PIN to set a new PIN.

3. Don’t give your phone to mobile money agents

You shouldn’t give your mobile phone to agents to do a transaction on your behalf.

If you give your phone to an agent to initiate a transaction on your behalf, you expose yourself to being defrauded.

Mobile Money Defrauded

Picture credit: Kues1
4. Wait for confirmation

Whenever you make a deposit at any MTN mobile money merchant shop, make sure you receive confirmation text before you leave. Make sure the text received is from MobileMoney.

Be vigilant and watch out for text messages from suspicious phone numbers. Always verify transaction details before withdrawing or transferring money.

5. Count money in front of agent

Always count money withdrawn right in front of agent to make sure it is the exact amount before leaving the place of transaction.

6. Beware of fraudulent text messages and calls

MTN sends mobile money text/info via the name MobileMoney. Don’t trust text messages from suspicious phone numbers regarding your mobile money account. Treat such numbers with suspicion and don’t follow instructions they ask.

Beware of scam calls asking you to send MTN mobile money to their accounts to receive cash prizes or asking for your account details.

Whenever in doubt, don’t hesitate to call MTN customer service number 100.

7. Don’t click on suspicious links in emails

Avoid clicking on links in emails or texts that look suspicious. Don’t send details of your mobile money account via texts or unencrypted emails. Immediately report suspicious emails to MTN Ghana or your bank.

8. Report any suspicion of a fraudulent person/agent or transaction immediately

You shouldn’t wait too long to report any fraudulent activity. Call MTN on 100 or visit their nearest Customer Service Centre to make the report.

Stay safe, and in the words of MTN Ghana, “Don’t be a MUGU.”

Have you ever fallen victim to mobile money fraud? Share your experience.

Cylinder Recirculation Model to create 4, 500 new jobs

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Alhassan Tampuli
CEO National Petroleum Authority, Alhassan Tampuli,

Implementation of the Cylinder Recirculation Model, which is expected to begin this year, will create an estimated 4,500 new jobs along different levels of the supply chain.

An official statement from the Corporate Affairs Division of the National Petroleum Authority (NPA) said: “Direct job losses are estimated to be about 400 in relation to the estimated number of refilling plants that will be converted to Auto-gas outlets. Direct job creation is however estimated to be over 4,500 in relation to new jobs.

“This does not affect current jobs of LPG Bulk Transporters, LPG Bulk Distribution Companies, and LPG Bulk Storage companies, or the retail outlets that will transition into distribution centres.”

The NPA will also recruit over 200 Safety Auditors throughout the country, while it will resource its newly-established Health Safety, Security and Environment (HSSE) department resulting in more job opportunities. There will be a number of indirect jobs created for installations, maintenance, fabrication and other services, the NPA said.

“In terms of remuneration, the new jobs are expected to even offer better remuneration because we anticipate the demand for LPG to increase – which translates into higher profit margins for the players and thereby results in higher wages,” the statement added.

The NPA revealed that the committee, set up in November last year to facilitate the model’s implementation, has concluded the roadmap for it to be carried out by three sub-committees.

“To facilitate implementation of the roadmap, three sub-committees have been formed to undertake the following activities: develop a new LPG pricing structure; develop a new licence, permit and legal framework; and to develop new Health, Safety, Security and Environment (HSSE) procedures,” the statement read.

The sub-committees have begun work and are expected to conclude by the first quarter of 2018.

Announcement of the Cylinder Recirculation Model, last year, was met with strong opposition from the Liquified Petroleum Gas Marketers (LPGMCs) and the Ghana Liquefied Petroleum Gas Operators Association (GLiPGOA).

There were fears that the new arrangement would lead to job losses and create inconvenience for LPG users. However, the NPA says it has, together with the Ministry of Energy, had a series of engagements with both groups to address concerns and incorporate their feedback into implementing the model.

According to the statement, the Cylinder Recirculation model will be implemented alongside the old model of LPG distribution – with the latter being phased out by the end of the year.

Government, in October 2017, introduced the Cylinder Recirculation Model following a gas explosion at Atomic Junction in Accra, which resulted in the death of 7 people and injuries to 132 others.

Among other stringent measures to ensure safety in the handling of petroleum products, the NPA was issued a directive to implement the Gas Recirculation Model within a year.

Source: Kennedy Aryeetey Tetteh | thebftonline.com | Ghana

Finance Minister must resign over CHRAJ findings –Minority

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The Minority in Parliament has urged the President, [Nana Addo Dankwa Akufo-Addo] to remove Finance Minister, Ken Ofori-Atta from office for breach of the Public Financial Management Act, conflict of interest as cited in the CHRAJ report in relation to the us $2.25 billion bond issuance in 2017.

Addressing a press conference at Parliament House in Accra on Wednesday, Minority Leader, Haruna Iddrisu, stated that based on the willful breaches of Ghanaian law, guidelines and processes in the bond issuance, the Finance Minister has made his continuous stay in office untenable and “we hereby demand his immediate resignation or dismissal and subsequent prosecution”. he said.

The Minority maintain that they will revoke Article 82(1) of the Constitution if the President fails to sack the Finance Minister over the CHRAJ findings.

Article 82(1) of the constitution stipulates: that Parliament may by a resolution supported by the votes of not less than two-third of all the members of Parliament, pass a vote of censure on a Minister of State.

According to the Minority, the CHRAJ report ruled that the Minister did not comply with section 56(1) of the Public Financial Management Act, 2016 (Act 921). Besides the provisions of the new Act, the CHRAJ position is justified by the fact that the Prospectus and processes used in 2016 should not have been used to support the new categories of bonds.

CHRAJ notes that: “The terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution”.

On the issue of conflict of interest, the Minority indicates that they are surprised the Minister and his surrogates continue to portray complete exoneration by CHRAJ when the Commission found that : “the Finance Minister’s extensive interests in the securities market through shareholding in several companies that operate within the sector, some of whom were contacted by the Bookrunners on this particular bond, always  raises the potential for conflict of interests”.

Background

CHRAJ in December, 2017 cleared Ofori-Atta of the allegations of conflict of interest in the issuance of the bond, but found him guilty of some  infractions in the process.

This followed a petition to the Commission by Brogya Genfi, a known member of the opposition National Democratic Congress [NDC].

Among the 21-point findings in its decision, CHRAJ observed that Primary Dealers also doubled up as Bookrunners/Transaction advisors and that dual role gave them an undue advantage.

It also observed that the “Respondent is either a director, former director or shareholder, or beneficial owner, of several companies whose objects relate to the securities market sector. The companies include Databank and EGL. As such, Respondent’s interests in the growth and well-being of those companies, have the potential to conflict with the interests of the state in relation to the securities market such as the issuance of bonds.

It stated that “The Respondent has business partners and associates related to the securities industry where, according to the Respondent, he has been working for over thirty years. These business partners and associates include partners in Databank, Enterprise Group Limited, Ventures and Acquisitions Limited, as well as Keli Gadzekpo, Trevor Trefgarne and Angela Ofori Atta, also Respondent’s spouse.”

Gov’t likely to hedge oil imports as prices rebound -source

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  • Brent reaches highest in five years
  • Ghana averagely imports more oil that it exports

Ghana will likely hedge its oil imports under a new risk management strategy to keep fiscal consolidation on track as global crude prices recover, a finance ministry source told Reuters on Monday.

Brent crude futures hit $71 a barrel last week before easing to $69.88 on Monday, but prices were still on track for their strongest start to the year in five years.

The West African country has largely been a net crude importer, except last year when oil exports exceeded imports by around $990 million, according to central bank data.

While future price recovery was partially good news for Ghana’s oil exports, the government fears it could also derail price stability and spike fuel-related expenditures.

The major commodity exporter operates a deregulated consumer fuel pricing mechanism after the government reluctantly scrapped subsidies in 2015 under a deal with the International Monetary Fund (IMF).

“It’s a challenge and we are working on a comprehensive oil risk management strategy to ensure we remain on track … Buying some call options is most likely,” the source said, suggesting plans to hedge using futures contracts.

The holder of a call option has the discretion to assume a long position in crude futures at the strike price. Contracts are available for trading at derivative markets such as the New York Mercantile Exchange.

After cumulatively easing its benchmark policy rate by 550 basis points last year, the central bank last week held the rate at 20 percent, citing emerging inflation pressures as global prices recover.

Ghana, which also exports cocoa and gold, is in its final year of a $918 million credit deal with the IMF to reduce budget deficit, public debt, inflation and stabilize its volatile local currency.

B&FT’s Richard A. Abbey wins “Best in ICT” reporting at IFEJ-Flamingo Awards

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Richard Annerquaye Abbey (right) receiving his award

B&FT’s Online Editor, Richard Annerquaye Abbey, has been adjudged the Best in Information Communication Technology reporting at the Flamingo Awards, organised by the Institute of Financial and Economic Journalism (IFEJ).

Mr. Abbey was recognised for his article that raised questions on why the Bank of Ghana sidestepped the Ghana Interbank Payment and Settlement Systems GhIPSS), its own subsidiary, and awarded to a third party a contract in respect of the project that is supposed to integrate all payment systems in the country.

Following the B&FT’s exposé, the contract, worth about a billion dollars, was iced by the central bank, with Vice-President Mahamud Bawumia directing that GhIPSS be given the mandate to develop the interoperability platform.

Dr. Bawumia later revealed that it would cost just about US$4million for GhIPSS to develop the platform, which is expected to be launched by the first quarter of this year.

Other awardees

Felix Klutse of the Business Day newspaper was adjudged the overall Best Business and Financial Journalist having won two other categories, Best in Finance Reporting and Best in the Business of Health.

Other winners on the night included Rebecca Awuah of Ghana Television, who won the Best in Tourism Reporting.

Jessica Acheampong of the Daily Graphic won the Best in Extractive Reporting whilst the Best in Development Reporting went to Kwabena Adu Koranteng of the New Crusading Guide Newspaper.

The Ghana National Petroleum Corporation supported the awards ceremony, and its General Manager of Sustainability, Dr. Kwame Baah-Nuakoh, pledged the company’s continuous support for business and economic reporting.

He said GNPC was willing to collaborate with IFEJ to develop business and economic journalism.

Dr. Maxwell Opoku Afari, the First Deputy Governor of the Bank of Ghana, said the importance of Financial Reporting could not be overlooked as it played a critical role in informing and educating stakeholders on new trends for socio-economic development.

Rayborn Bulley, President of IFEJ, said the quality of stories presented for the awards improved and this made it difficult for the panel to determine the winners of the various categories.

He expressed gratitude to sponsors and major stakeholders for the continuous support in empowering financial and economic journalists through IFEJ.

Cocobod eyes Chinese market

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Infograpgh by Alistair Kuuku Arthur-Don

Ghana Cocoa Board (Cocobod) is vigorously exploring prospects in the Chinese market for the country’s premium cocoa products, for which reason meetings have been ongoing between the two sides.

Cocobod also plans to make a good showing at the maiden China International Import Exposition to be held in Shanghai from November 5, 2018 to November 10, 2018.

“A team from the Cocobod has already met officials at the Chinese Embassy; we have, again, met in Accra and our officers have started putting things together and it is because Cocobod wants to enter and explore the huge Chinese market for the cocoa products,” Noah Kwesi Amenyah, Cocobod’s Public Affairs Manager, told the B&FT.

“We want to send into that market value added cocoa products and not just raw beans; it will be good for us to get the Chinese public to know that Ghana’s cocoa is the best and it has a lot of nutritional and health benefits and therefore they have to patronise it,” he said.

Although China’s individual chocolate consumption is considered still low, less than 5% of what major lovers munch in the west, market research firm Ebrun reports that the market for chocolate in China is expected to grow in value to 40 billion yuan (US$6.2 billion) by 2020.

Ghana’s main export destinations are the Netherlands, with a market share of 12.88%, France 11.6% and USA 10.9%.

France and USA grew significantly during 2012-2016. Exports to France, especially, reached high growth rates. With an average annual growth of +23% over 2012-2016, the country became the second largest Ghanaian export destination.

Exports to Spain and Belgium remained quite stable during 2012-2016, with export values between US$5-40 million.

Total exports of cocoa products from Ghana amounted US$542 million in 2016.

Exports to the Dutch market dropped from US$205 million in 2012 to only US$70 million in 2016, a decrease of-24% on average per year.

Ghana’s exports to China, on the other hand, is dominated by traditional or primary exports, such as unprocessed cocoa, raw metals, wood products, and petroleum oils, which account for 96 per cent of exports to the Asian nation, statistics from the Ministry of Trade show.

China International Import Expo

The China International Exposition is expected to attract over 100 countries and regions with various products. It is also expected that thousands of enterprises from these countries will attend the event, bringing up to a million commodities and services to the Chinese market.

China is therefore inviting Ghanaian manufacturers to enter its vast market to exhibit their products and to take advantage of the opportunity.

At a joint media briefing, Mr. Chai Zhijing, Economic and Commercial Counselor at the Chinese Embassy, explained that the exhibition is an opportunity for local business owners to woo foreign investors into Ghana.

He said: “At the moment, as far as biological trade is concerned, Ghana is one of our top 10 trading partners in Africa.

But at the moment, Ghana’s trade with China is in a deficit. So, that means that Ghana buys more from China than it exports,” Mr.Zhijing said.

“So, I think this Import Expo will be a very good opportunity for Ghana to show its potential – what it can offer to the Chinese consumers,” he added.

Deputy Trades Minister, Carlos Ahenkorah, confirmed government’s commitment to supporting local manufacturers and business owners in this regard, adding that the ministry is considering a proposal to acquire a pavilion in China to aid Ghanaian exhibitors.

“We want to take advantage of the early bird offer and have a whole pavilion to ourselves outside the individual enterprises that are going to have their own,” he said.

“If our request is accepted; if our one-month moratorium is given, I can assure you that within the month of February we would be able to affirm our commitment to take a pavilion for Ghana in the expo,” he stated.

Over the past decade, China’s annual growth rate of retail sales have stayed above 10%. While Chinese consumers are now starting to value quality over price, imported goods are gaining popularity.

In the past, importing market was dominated by large overseas companies. Nowadays, small and medium-sized businesses are selling huge amounts of products into China via new channels, such as shopping agents, supermarkets, and E-commerce.

China’s food and agricultural imports keep growing in recent years. In 2016, total import of food reached US$50 billion, and import of agricultural products were more than $110 billion.

Trips system by GCNet process GH¢15.7bn domestic tax in 2017

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The tax revenue collection mobilised by the Ghana Revenue Authority’s (GRA) domestic division and processed through the Ghana Community Network Systems Limited’s (GCNet) Total Revenue Integrated Processing System (trips) in 2017 has hit ¢16 billion.

This is according to figures available to thebftonline.com from the systems operator (GCNet) and it represents a 32% increase over the same period in 2016.

In the past four years, the Total Revenue Integrated Processing System (trips) which was deployed by GCNet, suggests that, the domestic tax collection in the country has seen a sustained increase from ¢3 billion that was recorded in 2014, to almost ¢9 billion in 2015 and to almost ¢12 billion in 2016.

It is also worth pointing out that, the increase in tax collection through trips contributing to the overall domestic tax revenue has been achieved with the further deployment of more than 45 new offices by the Ghana Revenue Authority (GRA) in 2017 bringing the total number of Live Offices now using the Total Revenue Integrated Processing System to 59.

The trips, is software for tax administration under the e-Government project headed by the Ministry of Communication under the auspices of the Ministry of Finance which seeks to streamline and bring transparency to the business operations of the GRA Domestic Tax Revenue Division (DTRD).

December 2017 recorded the highest monthly revenue collection of ¢2.6billion in trips, followed by the second highest of ¢1.7billion in Sept 2017.

This can be compared to the same period in 2016 when ¢1.5billion and ¢1.1billion were mobilised respectively.

Data available also indicates that monthly collection was over the ¢1billion threshold in ten months of the year with February and May being slightly lower.

The operationalisation of 59 out of 69 tax offices represents a nationwide presence, which has facilitated enhanced coverage in terms of the tax net, enabling greater revenue mobilisation.

The nationwide roll-out is a landmark achievement for the GRA and the country marking the first time that Ghana has had a nationwide computerised tax system.

The expanded roll out of trips, across all offices of the Domestic Tax Revenue Division of the Ghana Revenue Authority nationwide, will enhance revenue mobilisation efforts in 2018, helping to meet national development needs.

The deployment of trips is part of the bigger e-Government solution developed and deployed concurrently for the Ghana Revenue Authority and the Registrar General’s Department in 2011 by Ghana Community Network Services Limited (GCNet), with a self-service portal that provides online services to Citizens.

The system supports a full range of tax Administration functions including: Registration, Returns Processing, Automated Compliance, Collections, Taxpayer Accounting, Revenue Accounting, Refunds, Risk Management, Case Management, Audit, Objections and Appeals.

GCNet is a Public-Private Partnership that was incorporated on November 13, 2000. Its shareholders are Ghana Revenue Authority (GRA), Ghana Shippers Authority (GSA), Ecobank Ghana Limited (EBG), Ghana Commercial Bank (GCB) and Societe Generale de Surveillance (SGS) of Switzerland.

The company, an Innovator and Leader in the Provision of e-Solutions to Governments, has developed and deployed Ghana’s Single Window Platform for Processing Trade Transactions and Customs Clearances.

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