Accra, Africa, Barack Obama, Business, Emmanuel Armah-Kofi Buah, European Union, Ghana, Government, Invesments, Kenya, Nigeria, Road Fund, South Africa, Standard Bank, Symbion Power, Uncategorized, United States, US, USA, Volta River Authority

Africa Focused News

REPORT OF MONDAY 07/10/13

By Dario Galluccio

This Blog is sponsored by http://www.reflexecogroup.com

Ghana: Nkrankwanta Area Rural Bank posts growth for 2012

The Nkrankwanta Area Rural Bank in the Dormaa-West District of the BrongAhafo Region last year posted a strong performance despite macro-economic challenges coupled with sluggish growth in the cocoa industry, which is the main economic activity in the operational territories of the Bank. Total assets of the Bank went up from approximately GH¢1.6million in 2011 to about GH¢2.7million in 2012, representing an increase of 68%. The bank’s 2012 investments saw a 67% increase to GH¢1,420,000 from the GH¢850,000 of the previous year. Short-term lending to government investments, especially in Treasury bills, remains the major income source for the bank.

Edmond Joseph Akomian, Chairman of the Board of Directors who announced this during the 4th Annual General Meeting of shareholders, attributed the small growth of the Bank’s profit to the low rate of Treasury bills, increased computerisation of its agencies, and poor performance of the special Akuafo Cheque system.

Kenya: CFC Stanbic Bank partners Aeolus to build wind power plant

Kenya’s CFC Stanbic Bank has partnered Aeolus Kenya (AKL) – a member of the Power Africa initiative led by the United States President Barack Obama- to build a Sh12.9 billion ($150 million) wind power plant in Kinangop, Kenya. The proposed power plant will be the largest wind power generation project to be built in sub-Saharan Africa to date, outside of South Africa. It is expected to come on line in mid-2015.

The wind project has already been registered under the United Nations’ Clean Development Mechanism.

The Kinangop Wind Plant which will provide electricity to approximately 150,000 Kenyan households, will add a further 60MW to Kenya’s 1,672MW national power grid.

According to CfC Stanbic Bank’s East Africa Head of Debt Solutions and Infrastructure Finance, Kwame Parker, “The project is designed to provide a clean source of electricity to Kenya. It will not only contribute to the social and economic development of Kenya, but will also significantly help ease the energy supply deficit that the country is grappling with.”

Ghana: Number 1 priority remains Cocoa

Vice President Paa Kwesi Bekoe Amissah-Arthur says the cocoa sector is still a top priority in government’s medium- to long-term growth plans despite the fortunes of the crop facing difficult times.

Mr. Amissah-Arthur said government remains committed to implementing a broad number of policy measures to support the cocoa sub-sector. These measures, he added, will in the long-term ensure efficiency through streamlining of activities, interventions and programmes and contribute to growth of the sector.

The Vice-President, speaking at this year’s Ghana Cocoa Festival in Accra, said the measures will help consolidate gains the country has made in the sector. He said an increase in local cocoa consumption will serve as a further boost to the sector.

COCOBOD recently announced an agreement with the Netherlands Embassy and three other institutions to stem the huge revenue losses arising out of the black-pod menace. The initiative, which has the Ghana Cocoa Growing Research Association Limited, Mars Incorporated and Mondelez International as partners, will make available over US$400million toward the production of new varieties of cocoa that can withstand the disease.

The crop has been a top foreign exchange earner for the country, grossing some US$2.8billion in export earnings in 2012, making it the third-highest foreign exchange earner after oil and gold.

Ghana: Improved energy will push forward growth

Mr. Emmanuel Armah Kofi Buah, Minister of Energy has said that the vigorous expansion of various energy programmes is to increase power production as well as support the growth and expansion of all the weak sectors of the national economy. He said government is rolling-out the various programmes and projects, particularly in the Western Region, as part of the energy expansion drive — which is geared toward positioning the sector to play the critical role expected for directing Ghana’s effort toward industrialisation.

Speaking at the World Tourism Day at Nkroful in the Ellembelle District of the Western Region, he noted that the country’s oil and gas sector is currently underdeveloped. According to him, the discovery of oil and gas in commercial quantities on the Western Region culminated in an influx of people — the stage is set for integrated tourism development in the region, so that instead of a potential threat from oil and gas activity to our environment, oil and gas activities will be made conducive to our situation and be a blessing to our environment.

Ghana: EU to support agriculture production

The European Union (EU) is to support Ghana to revolutionalise its agricultural production.

Mr Dacian Ciolos, EU Commissioner for Agriculture and Rural Development, who made this known in Accra, said the support would be in the form of financial and technical interventions.

“Agriculture is not only an economic issue, but also a social issue and this calls for the support,” he said. Stressing that the EU would take Ghana’s agricultural development objectives into consideration.

Dr Yemi Akinbamijo, Manager of Forum for Agricultural Research in Africa (FARA) said the partnership between EU and Ghana, which is under negotiation would take place from 2014- 2020. He said, it is a period for the promotion of agriculture and security.

Dr Akinbamijo said : agriculture would provide greater help to reduce poverty if done properly; pointing out that production, trading, finance, as well as infrastructure, education, science and technology and regional integration; are the seven pillars of FARA, which would be used to develop Ghana.

Africa: Standard Bank, Platinum Circle partner to provide business support

Standard Bank DRC, a member of Standard Bank Group, has agreed a strategic partnership with Platinum Circle – a Singapore-based business group – that will place Africa on the agenda of corporations, governments and intergovernmental organizations involved in the Future Global 100 (FG100) Initiative.

Launched in 2011 by Platinum Circle, the Initiative is a global program that shapes the future of the global economy, national markets, business and industries through the collective input of leaders from business, governments and intergovernmental organizations, gathering over 700 all-encompassing leaders to chart the Future Global Agenda.

Standard Bank will be working closely with Platinum Circle to anchor the FG100 Initiative in Africa and spearhead the Inaugural Africa Meeting in 2014, bringing top African leaders together with members of Platinum Circle worldwide including those in Singapore.

The strategic partnership between Standard Bank and Platinum Circle will pave the way for implementing the FG100 Initiative into Africa, by serving as an important forward- looking reference for foreign business and government leaders regarding Africa’s economic outlook and operating environment.

Ghana: GIPC investment drive gets results

Ghana’s energy challenges will soon witness a massive improvement as United States Energy Company Symbion power commits to construct a 450 megawatts of power in Ghana.

A memorandum to that effect has already been signed between Ghana and Symbion power. The realization of this agreement came to light after months of negotiation between Symbion and the Ghana Investment Promotion Center, whose chief executive, Mawuena Trebah, led.

Under the letter of Intent signed by the energy minister, Emmanuel Kofi Buah, and the chief executive officer of Symbion Power, Paul Hinks; Symbion power proposed to finance the establishment of a 450 megawatts combined cycle energy facility to meet the need of an expanded energy facility in Ghana. The Volta River Authority on its part on behalf of Ghana is expected to give prompt and fair consideration to the Symbion proposal within the requirements of the country’s laws and policy.

Ghana: Oil production hits 115,000 barrels daily

Daily oil production hit 115,000 barrels per day in June 2013, significantly higher than the projected average for the year, the African Center for Energy Policy (ACEP) report on Government Compliance with the Oil Revenue Management Act in the 2013 budget has revealed. Total oil revenue of GH¢1.15 billion also far exceeded the projected target by GH¢362.3 million.

The report urged government to initiate discussions with Sabre Oil and Gas to recover the capital gains tax from the sale of its stake in offshore blocks.

It also indicted the 2013 budget for failing to capture capital gains tax as one of the revenue streams. It added “the Petroleum Income Tax Law should be harmonized with the Internal Revenue Act.”

Released by the Executive Director of ACEP Mohammed Amin Adam, the report also said the projected transfers to the Ghana Petroleum Holding Fund will be exceeded when the data on petroleum is released.

Ghana: Government commits GH¢350 million towards road sector

Government has since June released GH¢ 350 million for the road sub-sector out of the GH¢ 706 million allocated in the 2013 budget. Alhaji Amin Amidu Sulemani, Minister of Roads and Highways, said the Ministry has also improved upon revenue generation into the Road Fund for maintenance works. The total fund accrued from January to June was GH¢ 126 million, an increase of GH¢ 9 million over the amount recorded during the same period in 2012.

Alhaji Sulemani, who made this known during the inauguration of the Progressive Road Contractors Association (PROCA), urged members as well as the Association of Road Contractors to unite for the growth of the industry.

Mrs Joana Adjei, National President of PROCA promised to run an open door policy as well as an all inclusive administration to make the association stronger. She said the new administration would help revive the training programmes of the Association.

Mrs Adjei said majority of contractors are suffering as a result of delayed payment for work done. Mr Michael Aidoo, the outgoing President of PROCA advised the new executives to take criticism in good faith.

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