Sunday, November 9, 2025
Facebook Instagram Linkedin Twitter Youtube
Home Blog Page 4823

Alberta Dosu …how a young lady turned a failing family business around

0

It is said that adversity is a gift. Well, it depends on what you make out of the situation you are confronted with. Alberta is a typical example of a young lady who made the best out of a troubled situation. Just as would be expected of every young graduate, Alberta spent months searching for a job, but to no avail. Frustrated with the situation, she joined her mother in her fashion designing business that was failing. Find how she turned things around as she talks to the B&FT’s Inspiring Start-ups.

Background

Alberta Enyonam Dosu is the first of eight children. She is an old girl of Wesley Grammar Senior High school, after which she proceeded to the Ghana Institute of Journalism where she graduated with a degree in journalism. She then did her national service with the Royal Bank in Accra.

After national service, Alberta spent time roaming from company to company dropping her CV and application for employment, but nothing happened, except failed promises.

Disillusioned and desperate, she decided to act on a piece of advice a former colleague at the bank gave her. What was the advice?

Alberta’s mother, Ms. Rebecca Korley, was a fantastic fashion designer. But she had been out of business for some time due to ill-health. While Alberta was working at the bank, she once wore a nice dress designed by her mother and it caught the eyes of all her colleagues. One of them advised her to take the business up after she was done with national service, as she had learned the skill from her mother but had not decided on pursuing a career out of it.

But young Alberta, at the time, didn’t really buy into that idea because she fancied working in a rather different corporate environment. So, when the jobs were not coming, she decided to go back to her root — sewing.

The dawn of a new era

When she finally made up her mind to revive her mother’s business, she started thinking about branding. She renamed the business Mzbeckyz Fashion. Her former colleague at the bank, Hannah Ayata, was generous to her and loaned her Gh₵1,500 to start up.

The name Mzbeckyz was in honour of her mother Rebecca. Under her mother’s coaching, she started the business at their home in one room.

The first order they worked on was from a friend who placed an order for two dresses. Incidentally, that friend had a huge following on social media and so she posted the dresses on her accounts. As soon as the friend did that, Mzbeckyz’ designs went viral. Orders started flowing in from all angles and have since never stopped. Currently, on average, Mzbeckyz Fashion now produces not less than 100 clothes a month.

Beside the dresses, she has also moved into other pieces of fashion like purses, phone cases, curtains, throw pillows, laptop bags, and comforters, all made with African prints. She is also working on adding dinner wear to her collections.

Alberta’s nice works have earned her a national reputation like no other. She was a participant in a fashion show held in October 2017.

She has also been nominated for the Young Entrepreneurs Award initiated by the Ministry of Youth and Employment, which comes off November 30th, 2017.

Currently, she has employed two other people and is seeking to train more in January.

How she markets her products

As usual, social media cannot be overlooked by businesses, even larger ones, let alone those operating on a small scale. Mzbeckyz Fashion has accounts on social media platforms like Instagram and Facebook stuffed with pictures of her beautiful collections. Through these media, she has been contacted by a lot of customers both far and near.

Again, as the famous designer Ralph Lauren once said: “fashion is not necessarily about the labels, it’s not about the brands, it’s about something else that comes from within you”. Alberta has applied this to herself. She does self-marketing by adorning herself with her brand and this has also attracted new clients to her.

Challenges

As usual, lack of access to finance tops her challenges. With the country’s interest rates hovering around 30 percent, small businesses like hers find it very impossible to use the financial system to expand and grow. So, she relies solely on proceeds from sales to recapitalise.

How education has helped

Remember, the business was first owned by her mother but never reached this height. Alberta attributes the success of the business now partly to education.

“Education has really helped me because during my days in GIJ, I learnt marketing, principles of advertising and entrepreneurship. These courses have really helped me to tailor my business to meet growing trends in the fashion industry. It has also helped me manage my accounts and plan for the future.”

Vision

Alberta has a bigger vison for Mzbeckyz Fashion. She wants to expand beyond Ghana and have physical presence in Europe, America, and other African countries.

How government can help

Albert says government can help by supporting budding businesses with easy access to finance, and providing them a platform, like expos and shows that can expose them to other markets and enhance publicity.

Advice to the youth

Alberta is urging the youth, especially those who have completed school and are job searching, to learn and develop skills that can create employment for them and others.

Beyond the skills, she wants the youth to have a vision for their businesses and work towards that vision with determination and hard work.

Contact Alberta on 0209400005

10 in court for improper disposal of refuse

0

The Abeka Sanitation and Motor Court has prosecuted eight persons for improper disposal of refuse at unauthorized places contrary to section 56 (a) and (b) of Act 851, of the Public Health Act 2012.

The eight who are residents of Okaishie and its environs in the Ashiedu Keteke Sub-metro are Eneka Dokyi, Ebuka Nnora, Matthew Akrofi, Kofi Asare, Robert Goliete, Samuel Odoi, Ishmael Louis, Baba Idrisu, Kwame Akoto, Kwamena Afeleteh and Yaw Tsre.

The court presided over by Her Ladyship, Victoria Ghansah fined the eight who pleaded guilty GH₵ 360 each or in default three months’ imprisonment with hard labour and granted the remaining two who pleaded not guilty   bail of GH₵1000 each with one surety and are to reappear on December 7, 2017.

The prosecutor, Miss Delight Dzansi, who presented the case said, all the accused persons were caught and arrested between the hours of  10 pm and  1 am on the 27th and 28th of November 2017 by the Ashiedu Keteke Sub-Metro Sanitation Taskforce.

She said the accused persons who are garbage collectors were arrested at Ghana Commercial Bank (GCB ) Makola branch, Railways, Okaishie, Pasico around Korle Lagoon, and GNTC; thereby causing those places to be unsightly and unhygienic.

Mrs Ghansah cautioned citizens to cultivate the habit of keeping their environment   clean in order to make the city clean.

 

 

Prioritise road construction of farming communities

0

The Ghana Agriculture and Rural Development Journalists Association (GARDJA) has asked the government to consider devoting funds annually for the development of road infrastructure of farming communities, in the country.

They said the government should at least construct 20-kilometers of roads of farming communities, in each year, in addition to devoting the greater part of the annual budget to the agriculture sector among others.

The poor nature of roads leading to many farming districts and communities in the country has to a large extent contributed to post-harvest losses often experienced, every year. The recent closure of the Buipe and Yapei bridges, in the Northern region, for example, is said to have led to the loss of many perishable farms produce being transported to market centers and other parts of the country

But the government has said it is going address the issue of agric roads that continue to affect food production. In its 2018 budget, the sector was allocated about GH¢700 million, as part of the Agricultural Marshall Plan, which is expected to significantly revamp the agric sector.

This is also expected to enable it to lead the effort towards economic transformation. The amount is to be invested in agricultural transformation programmes, construct and refurbish roads linking farms to urban centers and provide storage facilities for farm produce.

Under the plan, some key road projects will be executed in selected food growing areas across the country and create the conditions necessary for attracting private capital, local and international, into large-scale commercial agriculture ventures and agribusinesses.

In a statement ahead of the 33rd Farmers’ Day celebration, in Kumasi, the agric journalists’ advocacy group lauded government’s intention to set up a National Development Bank to purposefully support investment in the agriculture and manufacturing sectors.

“We also acknowledge Government’s policy direction and interventions – planting for food and jobs as well as the Agricultural Infrastructure Warehouses and Markets programme – to serve as incentives to get young people into agriculture and ensure improved production.”

But it is their expectation that the Agriculture Infrastructure and Warehouses and Markets programme will help address the challenges of price volatility and post-harvest losses which they partly attributed to the pressure on farmers to sell their produce immediately after harvesting, where food is in abundance and cheap on the market.

They stated that there is more to be done for the nation to achieve the full value of agriculture, particularly in the area of poultry and livestock. For instance, they contended that the country’s domestic supply of broiler meat is just 10 percent, whiles the remaining 90 percent is imported.

 

 

“Our interaction with poultry and livestock farmers reveals that Ghana cannot boast of any serious dairy production and that all the milk intake, ice creams, and yoghurt are produced from imported milk, despite the existing vast potential in the country.”

They acknowledged that poultry, aquaculture and livestock industry will provide a substantial base for employment and development in if the government shows commitment to the sector.

The statement, therefore, asked for local producers to be assisted to become competitive through the provision of funds which comes with zero to 10 percent interest.

“For us as journalists, we believe that a comprehensive agriculture development programme that will respond to all the sectors of the agriculture industry for positive and sustainable growth is the way forward.

We need to improve livelihoods and ensure food security, eliminate hunger and reduce poverty through agriculture, improve agriculture research, technology dissemination, and adoption, and strengthen capacity for agribusinesses as well as improve access to information on agric strategies and their implementation.”

Whilst doing this they also emphasized the need to promote trade-related capacity building to enhance market access and adopting productivity-enhancing practices in order to achieve set targets.

The statement, which was signed by the President, Mr. Richmond Frimpong and the General Secretary, Mr. Ernest Kofi Adu, congratulated farmers and fishers for their continuous support to food security and contribution to the economy.

Am I Not A Citizen Too?…on affirmative action legislation and women’s empowerment

0

Affirmative Action. Women’s Empowerment. These are two cornerstones of nation building in 21st Century Ghana. Indeed, globally. And yet, we are a nation that continues to debate the merit or danger of the former and offers rhetoric about the latter.

We are at a crossroads. We need to move forward.

The Affirmative Action Bill languishes somewhere. It is not before Parliament. It has existed in multiple forms. It has been debated, dismissed, discussed and derailed. On Monday, I listened as a panel of extraordinary women explored again this Affirmative Action Bill and its implications. The panel’s focus was also women’s empowerment.

The women gathered on the panel were each extraordinary examples of exceptional work. They were Mrs. Angela Dwamena Aboagye, Executive Director The Ark Foundation; Mrs. Konadu Agyemang Rawlings, Founder National Development Party, Founder December 31st Movement and Former First Lady and Professor Ama de-Graft Aikins, Dean of International Programmes at the University of Ghana. Each offered persuasive and powerful arguments regarding the importance of both.

We are not all persuaded that Affirmative Action is necessary, and some resist the very notion of women’s empowerment. Others offer it as rhetoric that easily attracts applause, but beyond well phrased sentences and an enthusiastic articulation of love of mothers, aunties, grandmothers and other important women in their own lives, they offer little else.

It is time for new narratives. Power concedes nothing without a demand.  The nature of this demand is where we must now stand, explore and engage.

Arguments are often made that Affirmative Action is ‘preferential’ or ‘special treatment’ for women.

If we acknowledge that society discriminates in multiple ways against women – and there is ample evidence from scholars, civic organizations, global bodies like the UN and others that it does – then ending discrimination cannot possibly equate to ‘preferential’ or ‘special’ treatment.

Such language is dangerous and inaccurate. It suggests that women are asking for something extra, different – something they have not earned and do not deserve. Affirmative action is about justice. Justice is about equality. Equality is about nation building. And nation building is a national project that requires all of our participation – men and women.

We cannot keep debating the contribution of women to national development, political or organizational leadership. It is past time debating an issue that history has already answered in multiple ways. Women’s contribution to the founding of this nation and to its progress is clear. However, it is too often hidden in the pages of unwritten, untold history. In this 60th year of our independence, we still do not have a full telling of those who significantly contributed to this nation’s founding – women and men.  In other words, a whole history reveals this nation’s independence was the collective work of a people – of men and women, not of a person nor of a Big Six. These histories – oral and written – where men with pens and mics articulate and argue over all male founders but ignore the reality that all nations are built by people and not a person.

We have been here too many times.  Cyclical arguments resolve nothing; they merely make us dizzy with inaction.

It is not that panels or symposiums or summits are not valuable – but we must shape new narrative, create and articulate fresh argument, build towards the critical mass and organized activism that turns the Affirmative Action Bill into a moving piece of legislative action that ultimately becomes the law of this land.

Resistance is inevitable. It will not dissipate. Its voice will be loud. Its voices will reach desperately for mics and pens to issue clarion calls of imminent power stealing by hungry, desperate women. The voices of progress must be smarter – not just louder.  They must permeate all areas where persuasion can be turned into action. They must reach into multiple corridors of power – soft, political, organizational, educational.

I do not suggest this is easy. Progress never has been. There are those who remind us of the uproar when the now Government, then Opposition touted its political affirmative action policy. That uproar ended in it crashing to the ground, it died – momentarily.  Failure can be instructive, not simply a defeat. How does a nation turn failure into a lesson to move differently with the goal of success the next time?

I am encouraged by the Ministry for Gender, Children and Social Protection launching a December campaign that uses the ‘HeForShe’ UN global initiative to engage boys and men to contribute to pushing this Affirmative Action Legislation. That is an exciting development – and it is being done in partnership with the UNDP.  This is fighting smarter.

What else would it take for the Affirmative Action Bill to be placed before Parliament so it can make its way into our lives as law? Why don’t the women organizers – whose skills are regularly sought for organizing – make a grand bargain that represents their best interests? If you want us to organize, pass the Bill, elevate the numbers of women in Parliament and stop paying lip-service to an already established history of women’s crucial participation and leadership in nation building.

And then there are those – many – who caution patience.

When Ghana’s Independence Movement galvanized momentum and demanded freedom now, the British colonizers cautioned patience. When Martin Luther King in America – standing on the shoulders of a movement of men and women – demanded civil rights and legislation recognizing the humanity and rights of African Americans, an American government cautioned patience.

Patience is the weapon of those seeking protection of their privilege and denial of justice. In Ghana’s case, patience is the weapon of some men – and indeed some women – simply unconvinced of women’s significance in positions of leadership, or fighting to protect a status quo.

That is to be expected. But society should not heed their counsel for patience.

There are critics who never contribute. They can tell you all that is wrong, why it is wrong, who made it wrong – but resolution is not their work. That is not leadership.  Leadership is problem solving that benefits people, citizens.

Am I not a citizen too? I am certainly part of the 52% of Ghana.

Am I not a contributor to a nation? Do I – do we – not deserve to be beneficiaries of that which we have helped create? Must I – must we – be written out of history again and again to satisfy corrupted notions of nation’s foundations? Will you ever recognize my right to lead? Must I always be required to seek your permission?

We are in the midst of 16 Days of Activism – the United Nations initiative – that encourages the world to engage in some activity to eliminate violence against women.

These are inter-connected issues. Poverty, violence, privilege, unempowered women, male dominated political and organizational leadership – these are part of a pipeline that hinders progress. There are men for whom power in a woman’s hands equals devastating threat. If we suggest that all must be slowed down to engage such men, no progress will ever occur.

The fact of maleness does not especially equip you to excel or lead. The fact of femaleness does not especially equip you to submit or follow. Culture teaches both. So, evolving culture can teach us all new things. Unlearning is part of evolutionary culture.

Shared power is sexy.

The beauty of women in leadership is the recognition that more than one kind of leadership is necessary for progress that serves all. That has always been the case.

Leadership is something women do in multiple ways all over this country.

Affirmative action seeks to address discrimination not mete out special favours. It recognizes that playing fields are not equal; that the scales have been tipped in the favour of men and thus entire elements of national development are being ignored.

As a nation we cannot keep arguing about the worth, value, contribution of women.  Nations require men and women. They require boys and girls. They always have. We are better together. We go further. We last longer. We climb higher.  Can we acknowledge that nation building is an inter-connected exercise?

Forward ever, together – men and women.

PASS THE AFFIRMATIVE ACTION BILL!

Review of electricity tariffs should be without additional cost – GNCC

0

The Ghana National Chamber of Commerce and Industry (GNCC), has welcomed governments quest to review downwards electricity tariffs by 13% in 2018 but has called for the review to be done without incurring additional costs.

According to the Chamber, though energy remains critical to business operations, its was important that such proposed reviews are done within the legal and acceptable framework which will not cost the nation.

Speaking during the median edition of the Chamber’s Business Awards by the Chamber of Commerce and Industry, the  President, Nana Dr. Appiagyei Dankawoso I, called for a holistic approach to the proposed downward review of electricity tariffs which he admits will ease the cost of doing business in Ghana.

“The 2018 budget prioritises industrialisation, agriculture, and entrepreneurship backed by a robust financial architecture towards consolidating the gains of maintaining fiscal and monetary discipline. We welcome government’s proposed downward review of electricity tariffs in easing the cost of doing business but this should be done without incurring additional costs.”

He further stated that “indeed, energy is critical to business operations and it is our expectation that government will ensure an efficient and competitive energy sector along the various channels of power production, transmission, and distribution characterized by reliable power supply. Where strategically appropriate, diversification and attracting major strategic investors into the sector should be in the best interest of the Ghanaian businesses.”

The Chamber’s President Nana Dr. Dankawoso I, expressed the chambers appreciation of government’s pursuit of business-friendly policies and programmes such as e-business registration system, paperless port system, digital addressing system, mobile interoperability, and the National Identification Scheme.

Commenting on the awards he said 80 nominations were shortlisted and assessed based on the seven criteria of the awards namely: Thought Leadership Engagement, Innovation and Technology, Corporate Social Responsibility, Customer Relationship Management, Annual Turnover, Profit, and Tax Compliance.

The Minister of Trade and Industry, Allan Kyeremanteng in his address commended all award winners for their contribution to the country’s business development, saying government would continue to provide business regulatory environment for the whole continent.

He disclosed that, the Government was working assiduously to improve the country’s ranking on the World Bank Doing Business Index through the establishment of an electronic registry of business regulation and would prevent the situation where individual public servants would determine which regulations applied at what time for business enterprises in the country.

Mr Kyeremanten said his Ministry was committed to establishing a public consultation web portal to allow business ventures to make comments on the type of regulations that affected their businesses for redress.

‘We are also planning to establish business regulatory reform units in all the Metropolitan and District Assemblies to enable the assemblies to make an input on the quality of reforms needed for businesses to thrive,’ he added.

The event which was highly patronized was on the theme; “Enterprises in Transition: Recognising Innovative Businesses in Ghana,” and had President Nana Addo Dankwa Akufo-Addo who graced the occasion as the Guest of Honour.

2016 Chamber Award Winners

Chief Executive Officer of B-BOVID, a Ghanaian agricultural business based in Pretsir in the Ahanta West District of the Western Region, was crowned the Chamber Businessman of the year 2016.

B-BOVID his company was also recognized as the Innovative Agribusiness Company (Primary) of the year 2016.

Mrs Bella Amu, the Director of Traffix Catering Services, won the Chamber Businesswoman of the Year, while Mr. Micheal Bozumbi, the Head of Petrosol Company Limited, won the Young Entrepreneur of the Year.

Chamber Administrator, Mr Wilson Atta Krofah, was awarded for long service, while Dr Kwabena Dufuour won the Young Business in Banking and Finance.

Other winners included Coca Cola Company Limited, Berock Ventures Limited, Tobinco Pharmaceutical Limited, Accra City Hotel, Dalex Finance, Royal Crown Package Limited won the Emerging Business of the Year.

The awards comprised 16 categories including manufacturing, logistics, guest accommodation, banks, mining, oil and gas, and professional services.

The dilemma of the farmer

0

It is here again—Farmers day. A day designated as a national holiday to supposedly honour the country’s hard-working farmers for their invaluable contribution to the economy. This day has been observed since 1988 on every first Friday of December.

This day is supposed to make the ordinary farmer feel proud of his work and what he has contributed to the national economy for a period of one year. But the reality on the ground is that, this day brings untold misery to many farmers around the country, even those selected to be honoured, as successive governments have only paid lip service to their welfare.

In 2014, in the Eastern Region, farmers who were adjudged to be exemplary in their fields were each awarded with ‘two bars of Key Soap, three packets of toilet paper, three bottles of Joy Daddy Bitters and three cutlasses’. Yes, that was the farmer’s package for his contribution to the economy for the entire year.

It is not surprising, therefore, to see that the agriculture sector, which has been touted as the backbone of the economy and employs more than half the workforce, has seen significant retrogression over the years, overtaken by the services sector which is now the main driver of the economy.

To put it in a much appreciable perspective, as recently as 2013, agriculture grew in the first and second quarters by 24 and 50.8 percent respectively, with the hope that it will continue in that direction.

But quite poorly, growth took a sharp nose dive into the negatives as it recorded -12.6 and -0.6 in the last two quarters of that year.

The negative growth continued in 2014 until the third quarter when it grew by 28 percent, making it the first time it grew past industry and services since quarter four of 2012. Since then, however, it has never grown past the other two sectors, even though it has moved from the negatives.

In the second quarter of this year, agriculture grew by 3.4 percent whereas industry and services grew by 19.3 and 5.6 percent.

The situation is even more dispiriting when the sector’s contribution to GDP is considered. Apart from the third quarter of 2009 when it became the largest contributor to GDP by recording 41.9 percent, compared to 17.6 and 40.5 percent by industry and services, it has never hit that feat again.

In fact, the last GDP figures released by the Ghana Statistical Service shows that, agriculture contributed 22.6 percent to GDP, whereas industry and services contributed 24.2 and 53.2 percent respectively.

This retrogressive growth has been attributed to a number of factors. Ranked high among them is the age-old canker of nonexistent financing. Many financial institutions consider the sector high-risk, hence, few financial products are adapted to the needs of farmers and private sector agribusiness companies. In fact, most farmers, after years of farming, still operate on small scale basis due to financial constraints.

Another serious challenge of farmers is lack of farming, technical and managerial skills. In this technologically-driven world, most farmers still use traditional and outmoded methods of farming, with cutlasses and hoes, to clear acres of farm lands.

Farmers also continue to harvest manually, rather than use combine harvesters, among others.

Again, inadequate or lack of access to irrigation all year round has bogged down farmers for so long. Modern irrigation systems are absent in many farming communities, leaving farmers to rely on the rainy season, which has become highly unpredictable, these days.

Besides the above challenges, farmers constantly battle post-harvest losses, poor road networks, lack of ready market, and land litigation, just to mention a few.

All the aforementioned challenges have served as a disincentive to farmers and have made the entire agriculture enterprise unattractive to the youth, who are battling unemployment day in day out.

In fact, most young people even detest or dread the idea of becoming farmers, as the living conditions of farmers and their families scare them.

That is not to say that some action has not been taken by successive governments to try and address some of these challenges.

In terms of finance, to lure banks into the sector, the Bank of Ghana, in October 2016, launched the Ghana Incentive-Based Risk Sharing System for Agricultural Lending (GIRSAL), which meant to provide a GH¢100million guarantee for lenders to the agric sector.

The objective of GIRSAL, the BoG said, is to reduce overall risks in agricultural financing to boost agricultural production, productivity and export, with the aim of increasing foreign exchange earnings, supporting import substitution, and promoting economic growth.

However, it is yet to be seen how this intervention will impact the operations of the ordinary farmer and the agriculture sector as a whole.

On the issue of irrigation, in 2010, Cabinet under late President Atta-Mills, approved the National Irrigation Policy and Strategy Measures, aimed at opening up the investment space for intensified and diversified irrigated crop production in Ghana.

Once again, this policy has not seen any significant progress, as farmers continue to rely on nature for irrigation.

Every new government has goodwill. People hope for better conditions under every new government, and the case is not different for the Akufo-Addo-led government, which has given Ghanaians, with its catchy phrases for various forms of intervention, a lot of reason to be hopeful.

The 2018 Budget has unveiled a ‘Marshall Plan for Agriculture (MPA)’, aimed at revamping the country’s abysmally performing agriculture sector to make it the true backbone of the economy.

Some of the initiatives under the plan include registering a total of 500,000 farmers under the flagship Planting for Food and Jobs programme, and also recruiting 2,700 extension agents to support it.

Again, the government intends to distribute 200 tractors and matching implements, and 1,000 power-tillers and walking tractors to enhance agric mechanisation.

To address the challenges of irrigation, the Akufo-Addo government has said it will, in 2018, continue to facilitate and promote double-cropping by constructing 50 small dams and dugouts – making available an additional 147ha of irrigable land for crop production.

To also improve livelihoods of livestock farmers in all ten regions and increase meat production, 2,000 livestock farmers will be supported with 70,000 small ruminants (sheep and goats).

The ministry, according to the 2018 budget, will also support six National Livestock Breeding Stations to produce and distribute 200 crossbred heifers, 1,700 improved pigs, and 100,000 cockerels.

In addition to the aforementioned, the Akufo-Addo Programme for Economic Transformation (AAPET) is expected to establish a GH¢400million fund to de-risk the agriculture and agribusiness sector through sustainable agriculture financing and crop insurance schemes.

The AAPET is aimed at mobilising and leveraging public, private, and public-private partnership investments; modernising and transforming agriculture; and developing major infrastructure projects that support the agricultural zones of the country and industrialisation agenda of government.

It will also support the development of agribusiness start-ups through the establishment of a grant funding facility, and abolish duties on some agricultural produce processing equipment and machinery.

Many commentators have hailed the plans as being truly transformational in their spirit. But whether they will be implemented, as they should, to bring about the real transformation the agriculture sector needs, and make the Farmers Day, really, a day of honour to the country’s hard-working farmers, remains to be seen. Time, as the adage goes, will tell.

Premix arrangement needs a complete overhauling – COPEC

0
Mr. Hassan Tampuli, Chief Executive Officer, National Petroleum Authority (NPA)

The Council of the Chamber of Petroleum Consumers (COPEC) says the country’s premix arrangement needs a complete review and a complete overhauling.

According to the Council, the current system in practice is simply prone to such corrupt diversions and retrading.

It argues that premix fuel has become a lucrative business for those in the supply chain because of the difference in real market price and how much it is subsidized.

The Council’s statement follows recent reports that over 200 trucks of premix fuel were diverted.

According to the Council, this leaves it “wondering whether indeed there is any effective tracking system in place as has been variously suggested by authorities all this while with the very recent one being a further assurance from the sector Minister of banning of individuals from any further loading of contaminated products except for BOST using BRVs fitted with tracking devices.”

The Council, therefore, wants “the National Petroleum Authority (NPA) to step up efforts at eliminating the excesses in this current premix arrangement that only serve as a cash cow for the handlers of the system.”

“We further call for an immediate audit of all the liftings done within the period in question and if possible extend beyond the current year to unearth all possible diversion conduits and punish same immediately,” it added.

Below is COPEC’s statement

Premix diversion: Halt the talk and punish the crooks damaging our engines 

The news of the diversions of over 200 trucks of pre-mix products meant for the engines of the fishermen in our fishing communities across the country is one that leaves most consumers of petroleum products in the country much more anxious about the sort of products they are being served at some pumps in the country.

Premix fuel is a subsidised product that attracts lower charges than the traditional white petroleum products of petrol and diesel, premix is a blend of pms or petrol to a portion of auto lubricants to achieve the needed viscosity for the engines of fishing boats and vessels.

The idea behind blending to achieve premix at subsidised market rates lower than pump prices of the two white products has primarily been to augment fishing activities in the country but seem no longer useful from the way the programme has been handled over the period.

A blend of 25 litres of pms or petrol and a litre of auto lubricants is often applied to achieve the needed viscosity.

This product can, however, be easily reblended back to pms if the right volumes of petrol is added to the subsidised premix meant for fishing.

It thus comes to us as no surprise that those who know the alternate value and use of the premix product will use every means necessary to divert the products for higher resale value at certain fuel stations who agree to compromise.

The news of the diversions whose end point we unable to determine as of this day and time indeed poses a danger to the engines of the unsuspecting public who buy fuel from some of the compromised outlets.

It is our belief that the whole premix arrangement needs a complete review and a complete overhauling, the current system in practice is simply prone for such corrupt diversions and retrading as the difference in real market price and how much we subsidise for, makes for a lucrative business for those in the supply chain.

The issue of the whereabouts of the over 200 trucks of diverted pre-mix further leaves us wondering whether indeed there is any effective tracking system in place as has been variously suggested by authorities all this while with the very recent one being a further assurance from the sector Minister of banning of individuals from any further loading of contaminated products except for BOST using BRVs fitted with tracking devices.

One wonders why after over 3 years of introducing tracking systems in the petroleum downstream the country is still having challenges telling when and where products loaded for specific destinations eventually ended at and further enforces our long-held suspicions that marked and bad products not meant for our engines still find its way to some pumps without any effective checks and tracking in place.

We call on the National Petroleum Authority to step up efforts at eliminating the excesses in this current premix arrangement that only serve as a cash cow for the handlers of the system.

We further call for an immediate audit of all the liftings done within the period in question and if possible extend beyond the current year to unearth all possible diversion conduits and punish same immediately.

Signed

Duncan Amoah

Executive Secretary

Copec Ghana

GhIPSS initiatives complement digitisation drive

0
Archie Hesse, CEO, GhIPSS

Government’s drive to digitise the economy will be effectively complemented by the various payment initiatives the Ghana Interbank Payment and Settlement Systems (GhIPSS) has rolled out.  This will ensure that the country derives the full benefit of a digital economy.

GhIPSS, since 2007 has been deploying a number of electronic payment channels, which addresses the payment aspect of a digital economic agenda.

A number of initiatives are being taken by the government, including going paperless at the country’s port, and planning a similar programme with the health system among several other sectors. A digital address and a national identification system have also been launched. These various initiatives will ensure that technology is utilised to facilitate various activities, which will also bring about convenience and efficiency in the way things are done in the country.

Speaking in an interview, Mr. Archie Hesse, Chief Executive Officer of GhIPSS said a lot is being done to align the various payment initiatives such that the public can have the full complement of an electronic system, where they can complete documents and make payment online. He gave the hint that one such efforts will be up and running soon.

Experts say the cost and time spent undertaking basic business-related transactions such as registration, payment of duties, levies and fees is impacting adversely on the Ghanaian business climate. However, this situation could change drastically when the various digitisation programmes are completed.

Presently, all banks are connected to the national payment system managed by GhIPSS making interbank transactions almost seamless. With the introduction of the GhIPSS Instant Pay (GIP) and other electronic payment options, it should not be too difficult in the near future, for members of the public to be able to pay government institutions electronically, without having to step a foot at the offices of such departments.

Mr. Hesse who agrees that Ghana has a robust payment system to support electronic payments of statutory fees, levies and taxes, said the move is the current focus of GhIPSS. He is hopeful GhIPSS will be able to support a number of organisations both public and private to be able to receive payments electronically. This, he explained falls within the mandate of GhIPSS to migrate Ghana into an electronic community.

We can’t do without FDIs —Yofi Grant

0

There is the need to balance the debate around whether the country should rely more on local investment or foreign direct investment, especially as indigenous companies do not have the requisite financial muscle to drive socio-economic growth, CEO of the Ghana Investment Promotion Centre (GIPC), Yofi Grant, has stated.

“We cannot grow the economy on our own and government does not have much to spend. That is why we need to rely on and/or increase foreign direct investments.

Local content/participation is good but it’s about how you apply it and at what point you need to do it,” he said at a business meeting on the theme: “Foreign Direct Investments; Making Ghana a Preferred Option in Africa”, organised by the Institute of Directors (IoD) in Accra.

FDIs into the Ghanaian economy average between US$2.5 billion and US$3 billion annually, according to figures from the country’s investments promoter.

Against a US$5 billion FDI target this year, a total of US$4.4 billion has been realised as at the end of September; only US$600 million shy of the target, with fourth quarter statistics yet to be captured.

The GIPC boss argued that FDIs remain a critical tool for economic development and for that matter having the public and private sectors working together will result in economic gains.

He said it will be proper to give foreign investors the leeway to pick their partners, and not have it imposed on them, because investors want an environment that will grow their money and yield the needed results.

“How about getting foreign investors to find their own partners and binding them to procure all tax-based raw materials locally?” he said.

For Ghanaian businesses, he said: “There could be alternative ways of growing Ghanaian capital, including granting them incentives that will make them more competitive.”

The bi-monthly business meeting of the Institute of Directors, Ghana, brings together seasoned personalities to brainstorm desirable corporate governance practices that should be embraced by the government to boost the country’s public and private sectors.

President of the institute, Dr. Fredrick Ofosu Darko, highlighted the need for a strong corporate governance structure that will entice investors.

“We can only make Ghana the preferred destination for FDIs if businesses pay attention to good corporate governance,” he said.

Banks can lose local ownership

0

The future of banks that are majority owned by domestic private interest in Ghana can be challenged in the not distant future due to the strict application of the Basel II and III standards.

Research on local ownership of banks as against foreign ownership across Africa showed Cote D’Ivoire, Nigeria and South Africa as the only countries whose banks are owned by majority domestic investors.

Cote D’Ivoire had 100% local ownership, 80% by Nigerians and 76% locals owned assets of banks in South Africa. In Ethiopia state owned banks predominate and in Mozambique, Republic of Congo foreign owned subsidiaries hold the most assets.

Between 1992 and 2006, the local ownership of Banks in Ghana averaged 61% but that figure has fallen to an average of 48% between 2007 and 2016.  In 2003 the local ownership was about 60% to 40% foreign ownership.

This fell to 54% local ownership to 46% foreign ownership by 2006 and further to 44% local ownership to 56% foreign ownership by 2011. It, however, averaged 46% for local ownership and 54% foreign ownership in the past six years.

This figure has dropped to 21% local ownership in Ghanaian banks for 2017 as published by the Africa Report No. 93 edition.

Although the deregulation of the financial sector resulted in an increase in the number of foreign banks, it can also be seen that generally, the increase in the minimum capital requirement for banks has guaranteed the survival of the foreign banks than local ones.

The Bank of Ghana, on September 10, introduced the Internal Capital Adequacy Assessment Process (ICAAP) under the Basel II framework. The ICAAP will require banks to more than treble their minimum capital to GHS400 by December 31, 2018.

This is the fourth time in about 15 years the BoG has increased the minimum capital requirement for banks, with the current increase being the second highest.

Early is 2003, BoG directed all banks to increase the minimum capital to GHS7million by the end of 2006.

In 2008 the bank lifted the minimum capital requirement from GHS7million to GHS60m giving foreign banks two years and local banks five years to comply with the rule. In 2012 it again raised it to GHS120 million, mostly on the reason of the expansion of the economy.

The Bank of Ghana announced that all banks must increase their minimum capital to GH¢400 million by December 2018. This is to increase the capital base of the banks as it is important for ensuring financial sector stability. It will also make it possible for banks to reduce cost through economies of scale leading to reduced borrowing cost.

Also, banks with large capital can easily diversify their investments to avoid being vulnerable, should some sectors of the economy take a turn for the worse. Aside this, large banks can easily be supervised by the regulator than many small banks.

On the other hand, the possibility that some banks, especially the local ones, are unlikely to meet the new capital requirement, presents the potential for increased concentration and decreased competition. This can erode the expected gains from the implementation of the new policy.

Strong indigenous financial institutions are integral to the development of every economy. It is believed that local banks have their survival tied closely to the growth of the local economy, hence a stronger commitment to help the country grow, unlike the foreign ones that make profits and often repatriate them to their mother companies and in many cases putting pressure on the local currency.

Additionally, local banks are prone to turn deposits into loans, especially for small scale enterprises, compared to big foreign banks that are likely to prefer to take minimum risk.

This can be deduced from the Bank of Ghana’s latest statistics on interest rates. Analysis of the figures shows that the first five highest base rate in the banking industry are offered by local banks whilst the first five lowest are offered by foreign banks.

This partly reflects the risks associated with their advances. Therefore, the private sector, which is dominated by small scale industries, will be the worst affected should the local banks fail to meet the new minimum capital requirement, leading to licenses withdrawals.

Most of the 17 local banks are likely to struggle to achieve the new minimum requirement because of their current financial position.

GCB Bank, CAL Bank, Fidelity Bank and ADB Bank, with significant income surplus, are however likely to meet the deadline because their stated capital exceed the GH¢120 million, according to their half year financial statement for 2017.

Seven of them are new entrants with GH¢ 120million but their income surplus position cannot support them adequately, hence they could lose their licenses.

This could further reduce the proportion of banks owned locally and their market share. The locally owned banks control less than 21% of the banking industry’s assets.

In other African countries such as Cote d’Ivoire, Nigeria, South Africa and Senegal, however, majority of the locally owned banks control 100%, 80%, 76% and 63% of the industry’s total assets respectively.

In the United Kingdom (UK), for instance, the National Westminster (NatWest) Bank and Lloyds Bank, which are all local banks, are considered to be those driving growth, while the Deutche Bank and Commerzbank AG are doing same in Germany.

Last year, NatWest launched a £1billion small business fund to help entrepreneurs start up. Also, as part of assisting Britain Prosper Plan, the Lloyds Bank committed to offer £4 billion in funding support to the manufacturing sector in four years to December 2017.

Which local bank is in the position to do these in Ghana? Which one is being groomed to be like the likes of Lloyds Bank? Why should BoG treat all banks in the same manner, knowing fully well that with the exception of the banks mentioned above, all the other local banks are likely to miss the deadline?

In 2007, for example, local banks were treated differently from the foreign banks in terms of the deadline for meeting the requirement. Majority of the foreign owned banks had two years while majority of the locally owned ones had five years to meet the deadline. The result was that all the banks were able to meet the deadline. When all the banks were treated in the same manner in 2012, some banks, especially the local ones, were still not able to meet the GH¢120 million requirement.

This is why the central bank, together with government, needs to do more for the local banks to ensure that they meet the requirement in order to continue to provide the financial services needed to achieve the economic and socio-political goals of the country.

It is no secret that the financial position of the local banks is poor and needs assistance from both government and the Bank of Ghana, if they are to survive. Therefore, government should have a programme, well-structured and aimed at bailing out the local banks.

This has been done in many countries. Using the UK, again, as an example; in 2008, the government injected about £37billion in three UK banks – Royal Bank of Scotland (RBS), Lloyds TSB and HBOS – to save them from collapse.

In 2016, the Italian government pumped around €6.5 billion into Monte Paschi, the country’s third biggest lender to rescue it. Today, the economies of these countries are benefiting immensely from these banks.

The Bank of Ghana, on its part, should not treat local banks and foreign banks equally in this matter, with the view that they are all operating in the same market. It should recognise that the survival of the local banks depends on its support and regulation while the survival of the foreign ones depends on it and others in other countries.

Therefore, universal treatment for the sector is unfair to the local banks. Like in 2007, the BoG needs to give different timelines to the local banks to afford them more time and opportunity to raise the money needed to meet the requirement.

It should also be firm on the management of these banks to submit their plans towards recapitalisation and ensure that the plans are followed strictly.

Finally, the banks, themselves, should improve on management efficiency to enhance profitability. Those that are listed on the Ghana Stock Exchange should consider floating more shares, if prudent, to increase their equity capital. They should also consider suspending payment of dividend to shareholders and review their investments to avoid losses.

1...4,8224,8234,824...4,899Page 4,823 of 4,899

Recent Posts

Most Popular

Bentsifi’s Tattle: What’ hot & what’s not around town!

DRUMROLL Like you, I blinked, and November came. With rain. And steamy hot afternoons. And uncharacteristic as it is, the rain, though, is welcome, for...

Accra Life: The essential list

ART Fri. Nov. 14 Thru Jan. 2. Art & Soul - Stories we carry. An exhibition on identity, memory, healing & transformation through storytelling. @Dei...

Chris Koney’s column: Attracting investment, the Malaysian story

I am currently in the Malaysian capital, Kuala Lumpur, participating in the Third Country Training Programme (TCTP): Investment Promotion for African Countries, which is...

Employers’ Association holds corporate governance and transparency seminar

The Ghana Employers’ Association (GEA) has held a two-day seminar on good corporate governance and transparency, aimed at contributing to the development of private...

Her Space with Bridget Mensah: The Fraud in the Mirror

There's probably a voice in your head right now as you read this, whispering that you're not good enough; that you don't belong here;...
© The Business & Financial Times. Copyright 2025. All rights reserved.