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Modification of NBSSI to create 10,000 jobs annually-Executive Director

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As part of efforts to create an enabling business environment for the transformation of micro and small enterprises (MSEs), the National Board for Small Scale Industries (NBSSI) has initiated steps to modify its operations.

“The NBSSI is the process of converting all its Business Advisory Centres across the country into Business Resource Centres. The Resource Centres will be one-stop-shops for business development, especially at the district levels,” Kosi Yankey, Executive Director of NBSSI, told the B&FT in an interview.

She said the Board currently has about 173 Business Advisory Centres across the country, and will begin the modification latest by January 2018. The scope of operations for the proposed modified business centres, she noted, will include access to financing, provision of relevant information about business registration, and certification by the Ghana Standards Authority, adding: “This is expected to help create about 10,000 jobs every year”.

“We are looking at bringing on board all stakeholders who matter in business development in every district. We will also ensure active private sector involvement in the development of businesses and enterprises at the community level. It is in line with government’s industrial transformation agenda,” she added.

The Business Resource Centres are also expected to boost NBSSI’s internally generated funds (IGF). The IGF will supplement monies from other strategic partnerships with bodies like the African Development Bank and UNDCF to improve the institution’s financial status, Madam Yankey stated, saying: “This will go a long way to enhance our activities to the benefit of assisting businesses to grow”.

The Board is largely dependent of government subvention, and over the years funding has not been released to the NBSSI as expected. The situation has constrained the Board from delivering effectively on its mandate.

The NBSSI is the apex governmental body for promotion and development of the Micro and Small Enterprises (MSE) sector in Ghana. It was established by an Act of the Parliament in the Third Republic of Ghana (Act 434 of 1981) and operationised in 1985. This was in line with government’s drive to develop potentials of the sector to contribute substantially in reducing the high unemployment rate as well as help growth of the economy.

The objectives of NBSSI include: contributing to the creation of an enabling environment for small-scale enterprise development; contributing to the development of an enterprise culture in Ghana; facilitating MSEs’ access to substantial and high quality Business Development Services for their development; and facilitating access to credit for small enterprises.

Banking sector on a recapitalisation drive

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The central bank of Ghana has announced higher minimum capital requirements for the country’s lenders, in line with implementation of Basel II and III standards. 

On September 10, the Bank of Ghana (BoG) 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 GH¢400m (US$91.6m) by December 31, 2018.

This represents a much bigger jump than previous increases imposed by the regulator over the past decade to strengthen the balance sheets of Ghana’s banks.

In 2008 the BoG lifted the minimum capital requirement from GH¢7m (US$1.6m) to GH¢60m (US$13.7m), giving foreign banks two years and local banks five years to comply with the rule. In 2012 it raised it again to GH¢120m (US$27.5m).

Local banks in need of fresh capital

The new requirements are likely to accelerate consolidation, given the size of the capital increases, which in turn could improve the ability of Ghanaian banks to finance some of the country’s large-scale infrastructure projects.  

“We need deep-pocketed banks to undertake heavy capital-intensive projects; that is why we are increasing the minimum capital requirement to force smaller banks to come together,” Francis Blankson, Head of Financial Stability at the BoG, said at a conference in Accra in March. 

The BoG’s efforts to encourage this have begun to bear fruit. In August 2017 the BoG approved a deal that will see Ghana Commercial Bank (GCB) take over UT Bank and Capital Bank, after they both failed to meet the minimum capital requirement and increase their capital adequacy ratio to 10% of risk-weighted assets. The takeover will see all deposits and selected assets of both banks transferred to GCB, while the remaining assets and liabilities will be realised and settled through a receivership process to be undertaken by PwC.

However, according to Patience Akyianu – managing director of Barclays Ghana, the pace of consolidation could be slower than anticipated.

“Even though the competitive landscape of the sector can change and some degree of consolidation is to be expected, the extent to which this will happen – given the timeframe for compliance and the current levels of capital of some institutions – will not be as widespread as some analysts suggest,” she told OBG.

New, risk-based capital requirements

Several aspects of the Basel II and III accords are already part of Ghana’s regulatory framework, including the full adoption of international financial reporting standards and the concept of risk-based bank supervision.

In line with the principles of the Basel framework, the new capital requirement is risk-based, requiring banks to hold both a minimum capital and a buffer level of capital that reflects the inherent risks of their portfolios.

The BoG, which has been working with the IMF as part of the implementation process for the Basel standards, is expected to play an active role in helping guide banks to meet the new rules. PwC’s 2017 Ghana Banking Survey, which focused on the risk-based minimum regulatory capital regime, found that while the majority of its respondent banks had not yet developed any plan to implement a risk-based system, most had initiated discussions to produce and implement such plans. 

External pressures lead to rise in NPLs

The new regulatory minimums should help further strengthen the country’s lenders’ health, which has historically been relatively well capitalised – although recent external pressures have led to a rise in non-performing loans (NPLs).

The banking sector currently has a high level of solvency, with a capital adequacy ratio of 14.8% in June according to a Financial Stability Report by the BoG. Total sector assets and deposits have also continued to see strong growth, increasing by 32.9% and 32% y-o-y, respectively, to GH¢89.1bn (US$20.4bn) and GH¢55.7bn (US$12.8bn) in July, according to the bank.

However, the BoG noted that the NPL ratio was up 2.2 percentages points in the 12 months to June at 21%, and that total NPLs had risen by 25% to GH¢8bn (US$1.8bn).

The increase in NPLs comes as the country grapples with slow headline growth and a scaling-back of public spending, with government working with the IMF to rein in its budget deficit – which totalled 6.3% of GDP in July.

This Ghana economic update was produced by Oxford Business Group.

UBA shines at 2017 CFO awards •Picks up Best Bank in Risk Management, •Woman of Excellence in Finance

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Mrs. Abiola Bawuah

The pan-African financial institution, United Bank for Africa (Ghana) Limited, has once again been recognised for its achievements in the banking industry.

The bank secured Best Bank, Risk Management for the strong risk management practices built into its business operations, which have protected the institution from numerous emerging threats.

The bank’s Managing Director/Chief Executive Officer, Mrs. Abiola Bawuah, was adjudged Woman of Excellence in Finance as part of the Special Recognition Awards.

Commenting on the award, Mrs. Abiola expressed her delight saying: “It is a special recognition award; it means someone out there was watching my contribution from the corner I find myself. I am encouraged through this recognition to spur-on everyone out there to focus and continue contributing their best to their organisations”.

The Awards ceremony, in its third year, celebrated the achievement, innovation and vision of Chief Finance Officers (CFOs) of listed industries.

It also recognised finance executives, teams and leading finance organisations whose exceptional leadership has elevated the standards of accountability within the business, displayed prowess in managing organisations’ wealth, and reinforced the nation’s economic growth.

UBA Ghana is a subsidiary of UBA Plc, which is one of the leading banking and financial services company on the African continent.

The bank provides services to over 14 million customers globally, through one of the most diverse service channels in sub-Saharan Africa with over 1,000 branches and customer touch-points, and vigorous online and mobile banking platforms.

thebftonline.com l Ghana

 

Stakeholders’ collaboration crucial in fighting cybercrime – GSMA

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Mr. Akinwale Goodluck

There is no one way to tackling cybercrime, but an effective stakeholder collaboration across the board could lead to tangible results, Akinwale Goodluck, Head of sub-Saharan Africa, GSMA, the body that represents the interests of mobile operators worldwide, has said.

“There is no single solution to the risks associated with online activity, and there shouldn’t be a one-size-fits-all approach to cyber security. We believe the key success factor is collaboration.

“It’s important to realise that online safety is a multi-stakeholder issue that can only be successfully tackled through a combination of different measures, and with the participation of different categories of stakeholders,” Mr. Goodluck said in a Q&A, after the recent release of a report on mobile-enabled digital transformation in Ghana by the GSMA.

The economy has been battling the rising menace of electronic fraud, especially among mobile money operators. Despite the security measures put in place by the telcos, cases of customers being defrauded is on the rise – which has led to various calls by industry players to get aggressive with these criminals.

“At the GSMA, we believe that education is the first line of defence where issues of online safety are concerned; so, there is a need for stakeholders involved in the process to dedicate time and resources toward building their own capacity and also educating others and raising awareness.

“Governments and policymakers need to realise that the question of online safety is not one that can be regulated away, or fixed with the deployment of technical solutions.

“So we encourage countries to explore a combination of education and awareness campaigns, policies and procedural tools, industry self-regulatory initiatives and technical solutions, among others, to address issues of cyber security,” Mr. Goodluck added. 

President Nana Addo Dankwa Akufo-Addo, at the recently held Ghana Cyber Security Week, said a national cyber security centre is to be set up in the next few months to liaise with relevant state agencies and the private sector to oversee cyber-security operations in the country.

This, he explained, has become necessary because the national identification system, the digital addressing system, e-payments, digital financial services and the various e-government initiatives in which Ghana is now taking so much pride could be undermined or brought to a halt through cyber crime.

President Akufo-Addo said government is undertaking specific policy and practical interventions – including capacity building, international cooperation, judicial enforcement of cyber-crime legislation, and implementing technical standards and safeguards – to combat the scourge.

The report highlights how the mobile industry and Ghanaian government can work together to support social and economic progress in the country. Ghana is already proactively supporting the SDGs, and has incorporated them into the country’s national development agenda with progress overseen by the President.

Government commitment to the SDGs reflects the fact that while Ghana is a fast-growing economy and has made progress on many fronts, there are development challenges and gaps in access to basic services persist.

Given the large number of people who have access to mobile phones, mobile platforms are uniquely placed to support the SDGs. The industry has connected 67 percent of the population in Ghana; nearly half the population has mobile Internet access, with penetration in Ghana now second-highest in West Africa.

Further, mobile has connected eight million individuals to financial services, supported farmers and provided access to health information, clean energy and more – underscoring the vital role mobile technology can play in supporting sustainable development in Ghana.

However, the report also notes that despite this progress, significant challenges remain; many of which require collaboration between the public and private sectors. For example, there is a gender gap in Ghana of approximately 16 percent in mobile phone ownership and 17 percent in the use of mobile money services; with an even higher gap of 56 percent in using the Internet, with 2.5 million fewer women online than men.

Mobile operators are working to tackle this through programmes like the GSMA Connected Women Commitment initiative, while governments can take steps to address this issue by integrating gender equality targets and key performance indicators into strategies, policies, plans and budgets, involving women and local communities.

By Bernard Yaw Ashiadey l thebftonline.com l Ghana

Expanding infrastructure is our target – Dubai Chamber President & CEO

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Dubai Chamber of Commerce and Industry’s President and Chief Executive Officer, H. E. Hamad Buamim,

The Dubai Chamber of Commerce and Industry’s President and Chief Executive Officer, H. E. Hamad Buamim, says Dubai and the gulf region is strategically positioned do more with Ghana in the area of trade, which is to help government to achieve its target of massive infrastructural development.

According to the President and Chief Executive Office of the Dubai Chamber, investors and the government of Dubai is focused on helping Ghana in particular and other African countries to reach their full potential, by building or providing the needed infrastructure which is basic in transforming a nation.

Speaking to the B&FT in Dubai ahead of the two-day 4th Global Business Forum on Africa, today November 1st-2nd, the Dubai Chamber of Commerce and Industry President and Chief Executive Officer said Dubai is currently better-positioned to help Ghana and other African countries build infrastructure which is key in any country’s development, as it sees Ghana as the entry point into West Africa.

“We see infrastructure as one of the big areas to invest in, and it is one of the areas that is going well. As a nation we want to ensure that Ghana and other African countries have better infrastructure, which will open them up for businesses from here to be able to set-up and do business in other parts of the region. We’re going into 2018 and will partner governments to build their infrastructure; and it will interest you to know that there is funding from countries like the UK available to construction firms from Dubai.

“These funds are expected to be used to fund local government infrastructural projects in Africa. This is because most of these foreign governments may have the money but they do not know how to mobilise in Africa, and therefore they depend on us to do that for them. This is a win-win for all the players, as we are able to use our expertise to attract funding from the UK to solve the infrastructural gaps in Ghana and Africa,” Buamim said.

He therefore further stated: “Another thing I will talk about is in the areas of Agriculture and Health. The gulf region imports US$50billion of food – with the biggest being Saudi Arabia, followed by Kuwait. which is almost 10% of all imports of the gulf region.

“There is also a focus on the digital economy, as we have realise that citizens from Dubai will not have a problem investing in something which is technologically based in areas like financial services,” H. E. Hamad Buamim hinted.

The Dubai Chamber of Commerce and Industry represents, supports and protects the interests of Dubai’s business community – doing so by creating a favourable environment; promoting Dubai as an international business hub; and by supporting development business for its members in and outside Dubai.

Commenting on the 4th Global Business Forum on Africa – a Dubai conference on November 1st-2nd, 2017 – Buamim said economies are experiencing robust growth, and described Africa’s rising middle-class and rapid urban growth as two key trends that are creating exciting prospects which companies in the UAE stand to benefit from.

Meanwhile, Chief Executive Officer of the Ghana Investment Promotion Council Yofi Grant has reiterated government’s focus on a Ghana built by Ghanaians for Ghanaians, with mutually beneficial partnerships across the world.

Mr. Grant was of the opinion that investors are given the right view on Ghana, stating that local investors or Ghanaian enterprise must be supported to truly take the commanding heights of the economy, with a bigger focus on value addition and production for Ghana to become the business hub of West Africa.

Global Business Forum

This year’s programme is expected to see participants, including government officials, policymakers, business and finance leaders, and entrepreneurs from across Africa and around the world all converge at Dubai’s Madinat Jumeirah under the theme ‘Next Generation Africa’ and bring together over 1,000 top-level officials from both the public and private sectors – including top-level government and corporate decision-makers, African heads of state, ministers and dignitaries, prominent CEOs, heads of private banks, sovereign wealth funds, private equity firms, government officials, business leaders, and entrepreneurs.

During the event, delegates will explore the potential of leveraging technology to accelerate growth in Africa, and discuss trade and investment opportunities that are opening up across the continent.

Public and private sector stakeholders from African and GCC countries will highlight recent economic trends, and identify mutual areas of cooperation and growth opportunities in key sectors that offer the most potential for foreign companies and investors.

In addition, the high-level forum will examine the role that Africa’s dynamic young entrepreneurs can play in tackling economic and societal challenges, and explore potential for forming long-term partnerships with the aim of filling market gaps and fuelling growth.

2017 Africa Global Business Forum opens in Dubai

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The 2017 Global Business Forum GBF Africa has been opened in Dubai today.

GBF Africa provides a unique opportunity to listen to global thought leaders engage in inspirational, thought-provoking, and future-focused dialogues that shape the future of governments and business.

Speakers for this conference include the Vice President of Ghana H. E. Dr Mahamudu Bawumia and other Heads of state, high ranking officials, Fortune 500 CEOs, alongside other prominent leaders in business and investment from Africa, the Gulf and across the world.

The Global Business Forum on Africa 2017 is built on its legacy as the pivotal destination for business, finance and government leaders to identify opportunities and develop the fast-growing ties between Africa and Dubai.

This year we brainstorm the next phase of growth and development with the founders of Africa’s most innovative businesses, exploring the potential for leveraging technology to accelerate growth across Africa, discuss the power of the emerging private sector and identify the opportunities for financing and partnering with Africa’s most dynamic businesses.

The Vice President of Ghana H. E. Dr Mahamudu Bawumia who will be speaking tomorrow, will be speaking on “Industrailisation – the path to growth” alongside Mahamed Dewji, Chief Executive Officer, METL Group, Tanzania.

 ‘White Stone has not evaded taxes’

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White Stone Frozen Foods Limited has not evaded tax, officials of the Ghana Revenue Authority (GRA) have revealed.

The frozen foods giant has been accused by some of its competitors of evading taxes, but investigations reveal that what has been instituted is a Customs Valuation Agreement.

“it is normal that in some cases some big players based on their ability to meet certain requirements are offered such agreements with regards to their obligations. They still honour their tax obligations under an agreement specified under Section 12 of the Customs Act 891,” an official of the GRA said.

A tax law expert also explained that as part of the international customs practices, the Customs Division of GRA could have an agreement with an importer based on the kind of products being imported and the intention of the importer.

“The importer can either go by the general customs procedure or have a special arrangement with the customs divisions of the GRA. One of such arrangements is what is called Advanced Ruling System as found in Section 12 of the Customs Act 891. It is that system that companies such as White Stone having applied for, through the Commissioner General of CEPS and once they meet the requirements set out, they can be offered the agreement by the GRA,” the expert explained.

An official of the White Stone …also dismissed the report as baseless and indicated that the agreement had persisted even in the previous government’s regime. “The old agreement with the GRA expired in December 2016 and was renewed in October 2017. There is nothing political about this,” he stated.

He blamed some saboteurs of the company seeking to run down a growing Ghanaian company.

 

 

 

 

Rotten chicken not on market

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  • FDA report reveals

A Food and Drugs Authority (FDA) report has debunked that rotten chicken imported into Ghana had been dumped on the market and is on sale at Techiman.

The document indicates that 266 cartons of imported chicken were safely disposed of when it was realised on arrival in the country that it had gone bad.

Sources close to the FDA and the importing company have confirmed the destruction of the imported chicken.

“It is standard practice that once we notice that imported food has gone bad, we work with the importer to destroy them. Sometimes the packaging of foods is poorly done in the country of origin so along the journey here, they get bad. It is a simple issue that we have dealt with; the importer paid for the destruction of the chicken, and there is a video record of the destruction,” the source explained.

There has been report that imported chicken that had gone bad was being sold on the Ghanaian market.

But a source at the FDA dismissed the report as exaggerated emphasising that what the facts indicate is that 226 cartons of the chicken that went bad were rightly isolated according to the standard procedures and destroyed.

A certificate of safe disposal from the FDA dated 19th October, 2017 stated that “this is to certify that the food and Drugs Authority has supervised the safe disposal of a consignment of Nana Frozen Chicken Back that was sorted out of a consignment belonging to White Stone Frozen Foods Limited as per Section 132 (2) of the Public Health Act, Act 851 of 2012”.

The FDA official who signed the document is Solomon Agampim.

Other documents confirmed that another quantity of imported chicken had been seized by the FDA and cannot be sold until the FDA has revoked the detention.

The notice of detention under the authority of Solomon Agampim of the FDA stated that the products had been seized “pending further regulatory action” further strengthening the position that they had not been put on the market.

NPA urges Nigeria to reduce sulphur content in fuel

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

The National Petroleum Authority (NPA) is urging its Nigerian counterpart to reduce the sulphur content in its diesel fuel to about 50parts per million (ppm).

Nigeria is currently doing 3,000ppm of sulphur content, which is considered to be toxic fuel.

Mr. Tampuli who was speaking in Nigeria, Lagos during the Oil Trading and Logistics Downstream Expo said the move will help West African since the two countries control about 70 percent of fuel consumption in region.

“If we look at a snapshot of current sulphur content across some African countries show that Egypt has the worse with 10,000ppm. Big brother Nigeria has 3000ppm, Tunisia, 3000ppm, Senegal 5000ppm, so Ghana is in good company with South Africa with the East Africa sub-region with 50ppm”.

Mr. Tampuli told participants that Ghana has used stringent measures enforce the regulations and is working to also curb fuel smuggling in the country.

He said the NPA in collaboration with National Security had recently confiscated 15 trucks which were found to be engaging in the said illegal fuel.

“By virtue of NPA’s Act (Act 691), we are not able to use our law to sue them. So we are partnering with Custom Excise and Preventive Service in Ghana to use their law to confiscate all these 15 trucks and we are about to put them on auction,” he said.

“When we are done we will revoke the licenses of all these exporters and we will ban all their Directors from actively participating in the downstream petroleum industry. That is the way we think will bring sanity to the industry in Ghana” he stated.

Also on the panel at the forum were, CEO of the Chamber of Bulk Oil Distributors Mr. Senyo Hosi and Mr. Kweku Agyemang Duah, CEO of the Association of Oil Marketing Companies.

thebftonline.com l Ghana

Energy Commission to ban uncertified electricians

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The Energy Commission is to implement the electrical wiring regulations which will ban uncertified electricians from operating in the country, its Associate Programmes Officer, Stephen Yamoah has said.

“Very soon all electricians would have to be certified by the Energy Commission, go through an examination before you are certified, if you don’t have a certificate you cannot parade yourself as such

The regulations specifically are to ensure only qualified electricians in the country operates as well as monitor how electrical works should be done with right materials are used for electrical wiring,” Mr. Yamoah said.

The Electrical Wiring Regulation 2011 (LI 2008) passed by Parliament in 2012 and came into force on 24th February has three key objectives: Who qualifies to engage in any electrical wiring of properties in Ghana, how wiring is done and the kind of materials used to wire properties in the country.

To enforce this, Mr. Yamoah said, the Commission has tied the exercise to service connections. “In this regard, if a facility is not wired by a Certified Electrical Wiring Professional (CEWP), who will eventually, issue an Installation Completion Certificate, the facility will not be connected to the national grid by the Electricity Company of Ghana”.

An examination syllabus has since been developed in conjunction with the Technical and vocational Education Directorate (TVED) of the Ghana Education Service (GES), a third staged (oral, written and practical) composite certification examination designed to assess practitioners for certification on the basics of the syllabus.

The first examination was conducted in November 2013 by the Technical Examination Unit (TEU) on behalf of the Energy Commission and since then had been conducted in May/June every year in 4 locations across the country.

This had led to the certification of over 5000 electricians nationwide who are referred to as Certified Electrical Wiring Professionals (CEWP) and Certified Electrical Wiring Inspectors (CEWI).

The Energy Commission stated that the commission will from hence declare any facility which is not done by CEWP and inspected by CEWI unsafe for electrical connection hence an introduction of a slogan “No CEWP, No electricity connection”.

All new buildings across the country without wiring certificates will have their power-supply cut off from the national grid.

Mr. Yamoah indicated that the enforcement of the Electrical Wiring Regulation has been gradual but consistent in period of 2013 to 2015 was dedicated to certifying a significant number of practitioners across the country to ensure availability of adequate numbers of CEWP and CEWI with a good spread in the country to serve customers.

He revealed that a mobile App dubbed “Certified Electrician “(available on Google play store) has been introduced which can be used to find contact certified electricians and inspectors by name and location and report malpractices to the Commission if need be.

Mr. Yamoah however stressed that the commission will soon prevent non CEWP and CEWI operate in the country until they get certified by the Commission.

thebftonline.com l Ghana

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