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ASN secures strategic investor

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. GH?100million to be invested

. Customers to earn T-Bill plus 3 percent interest

ASN Financial Services Limited, a licensed Finance House which has been experiencing challenges in its operations, has secured a strategic investor who is expected to invest over GH?100million in the company.

Directors of the company, B&FT sources say, have submitted their turnaround strategy that details, among others, the composition of a new board, the new shareholding structure and other concrete measures being adopted by the company, to the Central Bank.

Under the turnaround strategy, which has been accepted by the BoG pending approval, the unnamed strategic investor is expected to hold majority stake in the company with Mr. Johannes A. Okutu, the current Chief Executive Officer, the other minority shareholder.

“The strategic investor will invest GH?100million within a one-year period. So currently we are renegotiating our short-term liabilities into medium-term ones.

With all maturing investments as at April 30, 2017, we are speaking to our customers to consider rolling over their principal plus interest earned for another one-year period. If a customer accepts this option, he or she will earn T-bill plus 3 percent profit on his investment,” Mr. Okutu told the B&FT.

He added that: “We are cooperating with the BoG and other institutions. Our offices are opened and we have held meetings with customers to let them know exactly what is going on. Customers can walk into our offices and we will sit with them and deal with all their concerns.”

Mr. Okutu’s comments follow concerns raised by some disgruntled customers of the company, about the lack of information flow about the current happenings within the company and between the BoG and ASN-FSL.

The financial sector in the country has seen a tremendous increase in the number of operators over the last decade. Currently, there are about 34 universal banks, four other international banks with representative offices in Ghana–Citibank N.A, Ghana International Bank Plc, Exim Bank of Korea, and Bank of Beirut.

There are also more than 429 licensed microfinance institutions offering various financial products to the public as at July last year.

According to the BoG’s data, there are 70 Non-Bank Financial Institutions (NBFs). This is made up of 22 Finance Houses; 2 remittance companies; 3 Credit Reference Bureaus; 37 Savings and Loans companies; 2 leasing companies; 3 finance and leasing companies; and one mortgage finance institution.

The number of institutions notwithstanding, there have been calls for the Central Bank to significantly increase the minimum capital requirements of banks and other financial institutions to enable them undertake big-ticket transactions and also be able to pay funds deposited with them when they mature.

While some have proposed an increment from the current GH?120million to GH?200million for universal banks, others believe the minimum capital requirement of all other financial institutions should be adjust upwards to engineer mergers and acquisitions.

Source: Dominick Andoh/thebftonline.com/Ghana

Dutch Development Bank, Access Bank ‘W’ kicks off leadership programme …for women entrepreneurs

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Under the Access Bank flagship women empowerment programme, the ‘W’ Initiative, women entrepreneurs are set to begin an industry first Female Leadership Programme in partnership with FMO, the Dutch Development Bank.

The maiden edition of this one-week leadership journey will bring together female leaders in finance from across the world to work alongside customers and staff of Access Bank in order to drive impact in gender finance.  

Facilitated by one of FMO’s collaborators, the company Better Future, the leadership journey will deeply engage with local female entrepreneurs to gain an understanding of their needs and challenges while supporting the development of Access Bank Ghana’s gender finance platform and business proposition. This will simultaneously help to develop female leaders’ capabilities and build a global peership network of women committed to catalysing gender finance and supporting one another.

The programme will employ a combination of personal engagement with the entrepreneurs, group leadership workshops, one-on-one executive coaching and hands-on cross-organisational strategic project team work that leads to a constructive “pitch” session in which they will receive critical feedback from relevant stakeholders.

Speaking on the support to Access Bank, the Manager Financial Institutions of FMO, Chantal Korteweg said, “We are committed to advancing female leadership and gender equality. With our partner Access Bank, we are proud to be part of this ground-breaking leadership journey. It will help us to better support our clients in empowering women entrepreneurs.”

The Head of Exclusive Banking at Access Bank, Mrs. Matilda Asante-Asiedu added that the Bank has had a long relationship with FMO and the leadership journey programme will further urge the Bank to fulfil the value proposition of the ‘W’ Initiative.

She added, “We are honoured to be the first choice Bank of FMO in this innovative programme and speaks of the good relationship we have built over the years. Through this programme we are giving our female customers the rear opportunity to receive insight into building sustainable businesses that are also competitive globally”.

Access Bank begun its relationship with FMO in 2014 through a USD 40 million credit facility in conjunction with PROPARCO to support its lending activities to the private sector in the Ghanaian economy.

FMO is the Dutch development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development, and has a 45-year proven track record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 9.8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally. The Access Bank ‘W’ Initiative seeks to inspire, connect and empower women by offering a bundle of tailor made products, services and opportunities to women, ranging from young professionals, women with family and women in business.

Last year, Access Bank’s ‘W’ was recognised as the Most Outstanding Banking Initiative at the 3rd Women in Business and Finance awards. The Bank also launched the Maternal Health Support Scheme (MHSS) to offer women a financial lifeline in accessing various fertility treatments at specialist hospitals in Ghana and around the world.

Source: thebftonline.com/Ghana

Access Bank holds 9TH AGM

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Access Bank (Ghana) Plc has held its 9th Annual General Meeting (AGM) to consider and adopt the Statement of Accounts for the year ended December 31, 2016 at the College of Physicians and Surgeons in Accra.

Addressing shareholders at the meeting, the Board Chairman, Mr. Frank Beecham, highlighted that the Bank’s performance in 2016 reflected the economic challenges of the past three years, as the environment within which it operated was defined by peculiar political and economic uncertainty and the tightening of the fiscal space that had knock-on effects on the banking industry.

He further reiterated that despite the challenging economic conditions in Ghana, the Bank is in a much better position to focus on delivering its objectives and transforming the Bank into a large retail bank that can guarantee exceptional service to its customers.

Mr. Beecham added, “The achievement of our 5-year strategic plan to rank amongst the top tier Banks in Ghana by 2018 is alive. The Bank continues to enjoy and maintain a positive goodwill in the market, a recognition which was recently validated by its successful listing on the Ghana Stock Exchange.”

In 2016, the Bank recorded a reduction in its profits by 44% to GHS44 million, largely arising from loan provisions for outstanding legacy debts from the energy sector.

However, the Bank has remained resilient and demonstrated that its growth prospects were largely on course as earning capacity and customer deposits saw growth. Gross Earnings of the Bank increased by 16% to GHS 487.85 million from the previous year while Customers’ Deposits increased by 16% from GHS1.7 billion to GHS2.01 billion.

On Shareholders’ Funds, it increased by 19% from GHS359 million to GHS429.9 million and the Bank’s Total Assets increased by 11% rising from GHS2.4 billion in 2015 to GHS2.68 billion in 2016.

Speaking on the Bank’s performance, the Managing Director of Access Bank Ghana, Mr. Dolapo Ogundimu noted that, due to the various changes and strides made in 2016, the management of the bank is confident that the Bank is well positioned to deliver greater value to shareholders in 2017 and beyond.

“The continued growth witnessed in our Personal, Business, Commercial and Corporate Banking businesses was as a result of our service led business reorganisation in the past year. With a strengthened capital position, the Access Bank we know today will be able to continue on its path of investing heavily in technology, mobile capabilities and other infrastructure. These capabilities fall in line with the aim of improving our efficiency and serving over 80% of our retail and business customers through modern electronic banking channels in the coming years.” Mr Ogundimu said.

At the end of the meeting, shareholders expressed confidence in the Bank’s performance and adopted the 2016 audited financials as presented by PricewaterhouseCoopers for the period.

Three new appointed Board of Directors, Mr. Kris Ifeanyi Njoku, Mr. Kolawale Ajimoko and Miss Joyce Dimkpa also had the opportunity to interact with the shareholders at the meeting to familiarise themselves.

Over the years, Access Bank has demonstrated a strong commitment to sustainable business practices driving profitable, sustainable growth that is also environmentally responsible and socially relevant. The Bank is also leading the way with investments in key sectors of the economy including telecommunications, energy, oil and gas, manufacturing and agriculture.

Source: thebftonline.com/Ghana

BOG engages ASN Financial Services over “crisis”

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The Bank of Ghana (BoG) is engaging directors of ASN Financial Services Limited, a licensed Finance House, to find an amicable solution to the troubled indigenous institution.

The company, which specializes in investment services, credit issuance, and mortgage products, is currently struggling to meet the demands of some of its customers for payment of funds invested.

Though industry watchers know about the troubles of the company, the regulator is yet to notify the investing public about the issue and is dealing with the directors of the company on the quiet.

Bernard Otabil, Head of Communication at the BoG, in a response to B&FT’s enquiry about the challenges with company said: “The directors of the company are cooperating with the Central Bank to find an amicable solution to the ASN-FSL issues. We have our call centre where customers can call to register their complaints.”

Disgruntled customers of the company, however, say there is no information flow about the current happenings within the company and between the BoG and ASN-FSL.

Dr. Kobby Mensah, a customer of ASN-FSL told the B&FT that he is struggling to recoup GH¢15,000 invested in the company’s real-estate product and has been completely neglected by the company.

“I have GH¢15, 000 with ASN Financial Services Limited. What wrong did I do? Someone introduced to me a mortgage plan, of course I didn’t go there to put in and turn around my money in a twinkle of an eye to be a millionaire. I don’t believe in that.

I want to move into my own property and I have been thinking of the best way of doing it. I have a land, of course it’s going to take some time. So I thought that their mortgage plan, where you pay some amount of money and then pay monthly, was good for me to secure one of their houses at Amrahia-Akatamanso area.  So I gave them GH¢ 15,000. Later on, due to encroachment on my land, I decided to withdraw my money and start something on my land.  That is where the trouble began. Apparently, the company was collapsing,” Dr. Mensah said.

“Where do I go with ASN-FSL? I don’t know. I know institution that have about GH¢400,000 with the company.” Dr. Mensah lamented and called for an Ombudsman, with legal powers, to mediate between companies and their customers when challenge arises,” he added.

Dr. Mensah’s compliant is one of several ones received by the B&FT complaining of similar issues with the ASN-FSL.

There are about 34 universal banks, four other international banks with representative offices in Ghana–Citibank N.A, Ghana International Bank Plc, Exim Bank of Korea, and Bank of Beirut.

There are also more than 429 licensed microfinance institutions offering various financial products to the public as at July last year.

There are also 70 Non-Bank Financial Institutions (NBFs). This is made up of 22 Finance Houses; 2 remittance companies; 3 Credit Reference Bureaus; 37 Savings and Loans companies; 2 leasing companies; 3 finance and leasing companies; and one mortgage finance institution.

The regulator, when challenges with financial services come up, deal with the directors directly to settle the issue. However, Dr. Mensah believes that the BoG should publish notices of financial institutions in distress to avoid a repeat of the DKM saga.

“Why haven’t the BOG put out a notice that these are the financial institutions struggling? We cannot be taken for granted in sinking our monies into institutions that are struggling. Imagine a poor person who puts their monies in there, what are they supposed to do. Agencies and officials are covering the issue out of the public glare. They are still in town collecting monies,” Dr. Mensah said.

Source: Dominick Andoh/thebftonline.com/Ghana

Sweet potato remains an important food crop-Afriyie Akoto

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Minister for Food and Agriculture, Dr. Owusu Afriyie Akoto has noted that even though sweet potato is not list listed as a food security crop in the Food and Agricultural Sector Development Policy (FASDEP II), a lot of attention is being given to the promotion of the crop to address food and nutrition security.

Sweet potato, he observed, is gaining roots in the agricultural sector owing to the derived benefits in nutrition and income generation.

In a speech read on his behalf at a dissemination workshop to conclude a three-year pilot on sustainable and inclusive market-driven approaches for orange-fleshed sweet potato (OFSP) in three West-African countries- Ghana, Nigeria and Burkina Faso, the Minister noted that in recent times, micronutrient deficiency has been a serious health problem in the country and other sub-Saharan African countries.

“Unlike wasting, this condition is often difficult to recognise and is thus referred to as Hidden Hunger”, he added.

OFSP is a rich source of dietary vitamin A, a required nutrient that is often deficient, particularly in the diets of under five years of age children and lactating women. Dr. Afriyie Akoto observed that just 100 gramms of OFSP meets the daily vitamin A needs of a young child and that OFSP can significantly reduce vitamin A deficiency among vulnerable populations at the community level.

The nutritional value of OFSP is not widely recognized, so it is not sought after by consumers and marketers. This has held back its potential to contribute to combating vitamin A deficiency, the Minister stated.

He therefore commended the International Potato Center (CIP) and all development partners and donors for the effort and gains chalked through the 3-year pilot “Jumpstarting Orange-Fleshed Sweet potato project in Ghana”.

The Minister noted that during its implementation, Kofi Annan and wife, Nene, took keen interest in the potential of OFSP to contributing to both the health and wealth in the country. He promised government’s support in the dissemination of OFSP and ensure demand to stimulate its production, ensuring profits for producers, and nutritional benefits for the large consumers, including women and children.

Farmers and processors are being sensitized by the Women in Agriculture Directorate of MOFA (WIAD) on the benefits of OFSP to address malnutrition, he added. He promised his Ministry’s strengthening linkages between WIAD and CSIR (Food Research Institute) to diversify the utilisation of sweet potato and MOFA will continue to support CSIR-FRI to develop varied products that meets consumer demand.

Country Manager, CIP, Edward Carey noted that for years, sweet potato was neglected in sub-Saharan Africa as an orphan, bulky and perishable crop. But its importance over the years is growing with Nigeria among the largest producers.

He said globally sweet potato is increasingly recognize as healthy food and demand is growing both for fresh, frozen and as an ingredient. Companies are investing, he noted. He concluded by saying there are large opportunities for scaling sweet potato in Ghana to the benefit of rural and urban, poor and well-to-do.

Source: thebftonline.com/Ghana

6,500 farmers receive free certified seeds

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About 6,480 farmers from six districts in the Northern Region have been provided with free certified seed starter packs at a seed and technology fair held at Sang in the Mion District.

The fair, held on the theme ‘Getting Certified Seeds to Smallholder Farmers’, saw starter packs including maize, rice and soybean certified improved seeds with appropriate fertilizers and inoculum for soy bean presented to the farmers to increase their yields.

The seed and technology fair, an initiative of the Catholic Relief Service (CRS), in collaboration with the International Fertilizer Development Centre (IFDC), the United States Agency for International Development (USAID), Agriculture Technology Transfer (ATT) project and the Ministry of Food and Agriculture (MOFA) is) is to scale up the ATT project in 12 communities in each of the six districts.

The beneficiary districts are Saboba, Tolon, Mion, Chereponi, West Mamprusi and West Gonja districts.

Speaking at the fair, the Country Representative of CRS, Kris H. Ozar, said the aim of the project was to create awareness about the need for farmers to use certified seed and adapt to new farming methods and practices.

He said the initiative, apart from scaling up the use of certified seeds by farmers is also to help increase the incomes of farmers and address the issue of hunger and malnutrition in rural communities.

He reiterated the commitment of the organization in supporting the smallholder farmers to improve their farming activities to increase yields.

The Deputy Chief of Party IFDC/ATT,   Dr. Tara Wood, said the ATT project apart from supporting the seed sector of the country to come out with improved certified seeds for farmers to plant to increase their yields is also helping to address the issue of soil fertility to enable farmers produce health food crops for consumption.

He urged the farmers to adapt new technologies to improve their activities to prevent government form investing in the importation of food crops to feed the nation.

The Northern Regional Director of Agriculture, William Boakye- Acheampong, for his part, commended the ATT project for the support, which, he said, has resulted in the construction of a modern seed laboratory for the Seed Inspectorate Division of the Ministry of Food and Agriculture to ensure that farmers have access to quality certified seeds for planting.

He urged the farmers to also take advantage of the government’s subsidize fertilizer programme to increase their production.

He said, MOFA through the USAID project has received numerous trainings programmes from the USIAD projects to enhance agriculture productivity in the country.

He stressed that the project has also provided a number of motor bikes to motivate the activities of MoFA to improve its work towards achieving sustainable development.

Some of the farmers at the fair expressed their appreciation to the CRS, the USAID ATT project for the support and said it would go a long way to enhance their farming activities and improve their incomes.

They pledged to adapt to the new certified seeds should there be an improvement in this years farming activities.

Source: thebftonline.com/Ghana

USAID-ADVANCE trains key agric actors to “arrest” Fall Army Worm invasion

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The United States Agency for International Development (USAID) funded Agricultural Development and Value Chain Enhancement (ADVANCE) has held capacity training for some selected farmers and agricultural extension agencies on the monitoring and scouting of the Fall Army Worm (FAW) in Tamale of the Northern.

The USAID Feed the Future Agricultural Development and Value Chain Enhancement (ADVANCE) project and the Farmer to Farmer Program aimed at educating the beneficiaries on measures to take after detecting the invasion of the worm on their farms that affected agricultural production in last farming season.

The training was part of a series of activities earmarked by USAID ADVANCE in cooperation with the Ministry of Food and Agriculture (MoFA) and Plant Protection and Regulatory Services Directorate (PPRSD) to establish and maintain a national army worm monitoring and alerting system, starting in May 2017.

The participants were therefore also updated on the FAW situation in Western Africa, how to set up and maintain traps with pheromone, scout maize fields for FAW infestation, apply appropriate insecticides using FAW action thresholds and their rotation to avoid development of resistance.

The fall army worm (Spodopterafrugiperda) originated from Central and South America and was first identified in West Africa in January 2016. The pest is the larval form of the fall armyworm moth, and has indiscriminate appetite for consuming more than 100 different plant species, including cereals like maize as well as leafy crops.

The recent invasion of the armyworm in Ghana gives cause for concerns because it also devours plants’ reproductive parts and could eat through the maize cob, resulting in significant crop loss.

In July of 2016, the fall armyworm surfaced in northern Ghana and BrongAhafo Region, and thereby infested maize farms in the area that poses a major threat to food security and agricultural trade in Ghana as a whole.

The USAID ACDI/VOCA Farmer to Farmer Volunteer Professor Emeritus of the Oregon State University, Dan Mc’Grath, stressed the need for the farmers to collaborate with the extension agents to identify the worms and combat them to prevent post harvest loses.

He noted that the over spraying of the farm lands with uncertified chemicals also affect production hence the need for the farmers to use the certified chemicals and fertilizers to increase yields.

He urged the farmers to begin scouting of army worm infestation when the maize plants are small till the harvesting season to ensure value for money.

The Northern Regional Director of PPRS, Mr Akai Christopher, noted that the region is ready to fight the worms but logistical constraint is hampering activities.

He therefore appealed for funds to execute the projects to fight the worms to ensure increase yields of the farmers’ productions.

He stressed that the plant for food project cannot be achieved if the army worms are not cleared from the farms and therefore need for effective control of the pest in production and harvesting.
“We will liaise with the Extension agents to educate the farmers on the measures to put in place anytime they detect the worms on their fields” he added.

The Technical Director of ADVANCE, Allan Pineda, said ADVANCE is committed towards increasing food security, reducing stunting and poverty in the Northern Ghana.

“To increase productivity, we work with smallholder farmers through trainings on demo sites and perform activities to make agric inputs more available, and many others,” he added.

The yields of smallholder farmers’ beneficiaries of the project, he stressed, is about 85% higher than that of the national average in maize which  double in rice and 83% more in soybean for about 118,000 beneficiaries.

He said the ADVANCE organised Farm Clinics to address pest and disease related problems with local experts.

According to him the invasion of the worm on the farms in Ghana led to the search for entomologist with experience in Fall Army worm (FAW) and ants to educate farmers and extension agents on best agricultural practices.

Source: Samuel Sam/thebftonline.com/Ghana

Weak agro-chemical control life-threatening – CropLife

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The absence of strong regulations on the importation and use of agro-chemicals poses a threat to human life and food security, CropLife Africa Middle East (AME), a regional federation representing the plant science industry and a network of national associations in 30 countries in Africa and the Middle East, has said.

According to CropLife, inadequate knowledge about products, inefficient import controls leading to the entry of illegal products and poor quality agricultural inputs into agriculture markets, could undermine efforts at mitigating against risk of pesticide.

Speaking at its West and Central Africa annual hub and regulatory workshop, held in Accra, William Kottey, President of CropLife Ghana, said, “the situation has led and will continue to lead to threats to human health and the environment, among many other dangers.”

Held under the theme: “Promoting the Spray Service Providers (SSPs) concept as a component of pesticide risk mitigation,” the workshop sought to find ways to increase education and farmers’ knowledge on the rightful use of pesticides, as well as to promote its use.

William Kottey explained that the situation has contributed to farmers not achieving the expected yield and, more importantly, loss of income.

He added that governmen’st newly introduced ‘Planting for Food and Jobs campaign’ is in line with the association’s vision and called for closer collaboration of all stakeholders.

Mr. Kottey further pledged his outfit’s support for the initiative, saying: “CropLife Ghana would, at this point, want to associate itself with the recently introduced ‘Planting for Food and Jobs campaign’ by the Ministry of Food and Agriculture.  The aim to improve productivity of Ghanaian farmers once they have better access to quality agricultural inputs.”

Mr. Klottey stated that members of CropLife are into supply of various inputs along the agriculture value chain, which the government could use to promote the development of the sector.

The Deputy Minister of Agriculture, George Oduro, in his keynote address, called on the private sector to collaborate with the ministry to provide regular training for extension officers and farmers.

The minister hinted that his outfit is in discussion with the Ministry of Finance to abolish the 5% import tax on agricultural inputs.

“I must add that it is in our interest that this tax is waived to enable your companies import more inputs for the benefit of the farmers and the ‘Planting for Food and Jobs Programme initiated by the government in 2017.”

CropLife Africa, Middle East, is a member of CropLife International, an international nonprofit organisation established in 2002. It is legally independent but also maintains a strong link with the global crop life network.

As at the end of 2016 the association consisted of ten company members, 24 national associations and one professional organisation engaged in the promotion of biotechnology solutions in African.

Source: thebftonline.com/Ghana

Women empowerment accelerates economic growth – Canadian High Commissioner

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Reducing barriers to women’s economic empowerment is the fastest way to accelerate economic growth, especially in the Ghanaian context where a large number of women are engaged in key activities like agriculture, Heather Cameron, Canadian High Commissioner to Ghana, has observed.

She said, addressing the constraints to women’s economic empowerment is necessary for lasting, inclusive and sustainable economic growth, adding that it is therefore imperative to tackle the challenges undermining the capabilities of women in agriculture,  such as access to inputs and extension services in order to transform them from ‘low-paid informal labourers to successful farm and business owners.’

“Despite women making up more than half of the agricultural labour force, only 2% of female headed households currently receive extension services. There is a huge opportunity to increase the number of female agricultural extension agents and reach more women. This is simply smart economics, with many positive multiplier effects on the economy,” she stated.

Madam Cameron noted the Canadian government’s case study in the country alludes to the fact with that the right type of interventions, significant progress can be made in the agriculture sector.

She said: “We’ve mobilized over 23,000 female farmers in Upper West Region to grow soybean –and have seen their yields increase by 380% per acre since the start of the project. Programming in maize has increased yields by 250% per acre and groundnuts by 500% per acre. We’ve seen incomes rise and hunger and nutrition gaps fall.”

The Canadian Envoy made these remarks in a speech read for her at the national launch of government’s flagship ‘Planting for Food and Jobs’ campaign at Goaso in the Brong Ahafo Region.  The initiative is aimed at ‘revolutionizing’ agriculture to increase productivity and create about 750,000 jobs.

She commended the government for the visionary step to help transform the economy through agriculture, saying “Canada has long understood the significant role that agriculture plays in Ghana. In fact, it is one of the important things we have in common: knowing this, for over two decades, Canada has been an unwavering supporter of Ghanaian farmers.”

“We share the government of Ghana’s vision of agriculture as an engine for economic growth in the country, for ensuring domestic food security and for meeting nutrition needs. We also want Ghanaian farmers to be growing domestic food for the population, while creating jobs and increasing revenues,” the Canadian High Commissioner added.

To this end, the Canadian has already voted 125 million Canadian dollars to support the implementation of the ‘Planting for Food and Jobs’ campaign.

Source: Edward Adjei Frimpong l thebftonline.com l Ghana

Côte d’Ivoire joins the growing list of ATI’s new member countries

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Côte d’Ivoire’s membership in ATI is seen as an integral part of the government’s strategy to attract more investments and to diversify the economy through increased trade and investment opportunities

The African Trade Insurance Agency (ATI) has announced  that Côte d’Ivoire has joined a growing list of African countries who are members of the institution.

ATI is a multilateral investment insurer whose specialised investment and commercial risk insurance products are expected to help attract up to USD2 billion worth of inward investments and trade into the country, and to potentially help lower its sovereign borrowing costs by up to 1% annually.

The pan-African institution now insures investments equal to approximately 0.6 to 1.4 percent of GDP annually in a majority of its member states and includes support of strategic deals such as cover on African Development Bank’s USD159 million loan to fund Ethiopian Airline’s fleet expansion. Côte d’Ivoire’s membership in ATI is seen as an integral part of the government’s strategy to attract more investments and to diversify the economy through increased trade and investment opportunities.

“Our country membership in ATI will contribute to creating the economic conditions that will enable us to reach emerging country status by 2020,” commented Mr Adama Kone, Minister of Economic and Finance of Côte d’Ivoire.

Côte d’Ivoire becomes the third country to join ATI in the last six months following Ethiopia and Zimbabwe, which became members in late 2016. Rapid membership growth, particularly in significant African economies, is core to ATI’s medium-term plan to broaden its reach and impact and to better distribute risk across more countries in Africa.

ATI’s membership push is supported by the African Development Bank (AfDB), which to date has provided a combined USD30 million in soft loans for the membership subscription of Ethiopia, Côte d’Ivoire and Zimbabwe as well as an increase in the capital subscription of Benin. Reflecting its catalytic role in African economies, ATI expects to leverage Côte d’Ivoire’s initial share capital investment by up to 60 times in terms of supported investments into the country on an annual basis, as ATI does in other member states..

In the next two years, ATI will continue to target other ECOWAS and large African economies for membership. Increased membership by these countries elevates ATI’s impact in Africa’s economic development, where the company increasingly participates in priority projects targeting sectors such as energy, water, road and rail construction and rehabilitation, building construction, agriculture and telecommunications.

ATI provides medium to long term credit risk mitigation products to support investors, banks, businesses, governments and government agencies in Africa. For banks for instance, ATI offers protection against non-payment risks that allow lenders to expand their loan portfolios. For governments, ATI’s products can be used as a substitute for guarantees, which helps sovereigns to lower their debt ceiling.

“ATI’s entry into the Ivorian market is a real leverage for us to attract more foreign investments and to boost trade both regionally and internationally,” notes Mr. Guy M’Bengue, CEO of Côte d’Ivoire’s Export Promotion Agency (APEX-CI) and a Board member of the Private Sector Employer’s Association (CGECI).

“Our focus this year and beyond continues to be membership growth, particularly in West Africa. We see this region as an important part of our pan African mandate and Côte d’Ivoire is poised to be an important West African market for ATI’s products. In partnership with other international players, ATI is now in a position to support strategic projects in West African member states in order to benefit the region,” notes George Otieno, ATI’s Chief Executive Officer.

Source: thebftonline.com l Ghana

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