A MONTHLY MAGAZINE

OCTOBER 2013 / ISSUE 030 GH¢10.00

Massive investments in Aviation heralds a new beginning (pg 38) THINKING OF INVESTING IN AFRICA? pg 28

USA...... $7.00 CFA ZONE..... CFA 2,500 - see how Ogilvy & Mather’s UK...... £5.00 NIGERIA...... N1000 EUROPE...... €5.00 SOUTH AFRICA...... R45 (pg 12) AUSTRALIA...... AS8.50 SOUTHERN AFRICA. R45 Gil Kemami does it

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20... Advertorial GB&F Take a peep into the story of digicraft,ten years into operations General Manager in the market communications Andrew Padi Jnr [email protected] industry in Ghana.

Editor Eric Kwame Amesimeku 23... Health & Fitness [email protected] A perfect guide on how to curb Contributors cravings to control your weight. A. Kapini Ataforizv Martin Luther King

Marketing Manager 26... Banking and Finance Josiah Spio-Garbrah Martin-Luther King walks [email protected] into the thorny field of Interest Deputy Manager, Marketing rates which has now become the Michel Kouassigan object of debate among players in the banking and finance sector. Art-Graphics Manager Come with him,as he delves into Benjamin Tetteh OCTOBER 2013 / ISSUE 030 the issue in toto. Design & Production Front Cover: Gil Kemami Daniel Sackey Yobo MD, Ogilvy & Mather Ghana 28... Investment Circulation & Subscription Bright Yram Yaotse A must-read for every current Jeffrey Dapaah and potential investor in Africa. Contents These excerpts of a report, Editorial Committee Prof. Paul N. Buatsi compiled by the Rand Merchant Prof. Kwame Addo 5... Editor’s Suite Bank of South Africa, serves as a Ms. Johanna Awotwi guide to investing in Africa. Mr. Gaddy Laryea Mr. Ray de Bono Nana Robert Mensah 6... News in Brief Mr. Frederick Alipui 32... Insurance Catch all the news updates from Ms. Dede-Esi Amanor-Wilks Ayuureyisiya Kapini Atafori Nana Spio-Garbrah the shores of Ghana discusses the challenges of Office Location Ghana’s insurance industry in a Ghana Business & Finance 12... Cover (Ogilvy & Mather) new age of oil production and African Business Media the need for a new regulatory House No. 7 Our Cover story looks at Ogilvy framework to reposition the Lamb Street (off Farrar Avenue) & Mather, undoubtedly the Adabraka, Accra industry to properly draw in biggest name in advertising and Ghana the benefits of an expanding branding in Ghana,and the new economy. Mailing Address driver behind the company’s P. O. Box O 772, Osu, Accra, Ghana growth agenda,Gil Kemami. contents continued overleaf Tel: +233 302 240 786 Come with us! Fax: +233 302 240 783 [email protected] 15... Economy Brand Advisor The Monetary Policy Committee of the Bank of Dmax Studios in Malta, EU. Ghana last month maintained (www.dmax.tv) the policy rate of the bank.Find Credits out the reasons behind this GNA myjoyonline Daily Graphic Blommberg move in these excerpts from the Forbes citifmonline bank’s release ghanabusinessnews.com

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OCTOBER 2013 GHANA BUSINESS & FINANCE 3 Letters to the Editor send your letters to the editor at [email protected]

36... Agriculture (Poultry Industry) The Poultry industry in Ghana continues to wobble under strong competition and lack of attention from government.Find out some recommendations proffered by players in the industry to be factored into government’s 2014 Budget Statement. Agriculture (Poultry Industry): 38... Aviation Page 36 Ghana’s aviation industry is on a positive growth trajectory,but 44... Conferences 56... Job Openings managers within the industry Check our conference and Get all the latest openings from are not resting on their oars. events board for all the updates our job page Ayuureyisiya Kapini Atafori of upcoming conferences and looks at the comprehensive plans events around the globe. being put together to address the 57... Book Review needs of the industry. A review of the Ghana Directory 46... Perspectives of Scholarship and Financial Angelina Lazar an Economist Assistance by Gloria Tackie 42... Executive Suite & International Management takes an in-depth look at the Some brilliant Ghanaian oil Consultant writes on the global several scholarship opportunities entrepreneurs led by Eric economy.Such an interesting available for those looking for Amoako Edmonds are doing a piece you cannot miss. assistance to fund their education marvelous work to support the oil and gas industry in Africa. Find out what they are up to. 48... World Outlook 58... Auto Review The World Bank proposes to cut The Discovery 4 by Land Rover costs to strengthen its finances. catches our attention in this Read on for more on for further edition. Read on for more. details.

52... Management This edition’s management page looks at the relevance of corporate values in the job place.A must-read for every corporate decision-maker

54... Microfinance Amidst the risks in the microfinance industry in Ghana,a new company,Proseed Microfinance Ltd. launches onto the market but with a different Executive Suite: approach to doing business.Find Auto Review: Eric Amoako Edmonds out more. Discovery 4 Land Rover Page 42 Page 58

4 GHANA BUSINESS & FINANCE OCTOBER 2013 OCTOBER 2013 No country is immuned isimmuned No country attack ashappenedinKenya. pointoutonefact-thatGhana isill-prepared withinthecountry experts totacklesuchan highly atriskofterror attacksandthosethatare not.Meanwhile, sampledopinionsfrom security is immunedandwe allare potentiallyatrisk!Indeed, there isablurred linebetween countries with asimilarincident,touchwood,shoulditoccuronoursoil.Because intheend,noone countries likeGhana, thequestionthatbegstobeaskedis:How prepared are we todealing Much asasimplerecall ofevents duringthis attacksendschillsdown thespinesofmanyin whole continenttogetherasadangerous placetoinvest! people’,Africans thetagofa‘brute thisterror attackwillsurely beayardstick forlumpingthe isenoughtoearn attackintheforestssuffers, becausejustasonebrutal ofoneAfricanCountry confidence in Kenya, asa peaceful place fordoing business will takea dent. In the end, Africa freely andpatronising intheirownsuchsocio-economiccentres, but thegeneralbusiness country Now betraumatisedandscared living withthisattack,notonlywillcitizens ofthatcountry Westgate, hadbeenathrivingshoppingmallfortheup-endinKenyan society. hitherto, that attack. world forthatmatter. Sadly, Ghana lostoneofitsillustrioussons,Professor Kofi Awoonor in oftheUnitedis notfoundonlyinthenationaldictionary States of Americaorthe Western least six nationalities lost their lives in cold blood, demonstrates clearly that the word ‘Terrorism’ The recent terror attackonthe Kenyan Westgate Mall where over 70innocentciviliansfrom at thrive and standards oflivingimproved. But no,thesituationjustgotmurkier! of governance, aconducive environment wouldhave beencreated forbusinessesto accepting democracy, albeitonecookedintheAfricanpot,asonlyreliable form Terrorism. One wouldhave thoughtthatasthecontinentgraduallygravitatestowards o the myriad of problems plaguing the African Continent has now been added to terrorism Eric KwameAmesimeku Email: [email protected] Tel: 0244985098

GHANA BUSINESS &FINANCE Editor 5

EDITOR’S SUITE NEWS IN BRIEF national grid. to increase thesupplyofpower to the fund three keyprojects oftheauthority proceeds from theissuewillbeusedto Mr. Awotwi also mentionedthatthe we are planning earlynextyear.” We haven’t setafirmtimetable yet but out to the international capital market. added thatthe VRA mightpossibly“go authorized managementtoproceed.” He VRA board hasalready considered and project sothisissomethingthatthe million forourimmediategeneration approval togooutandraise$500 “We’ve already gotten VRA board international market. issue ofthebondtoraisefundson Authority hasgiven approval forthe station recently saidtheboard ofthe withanAccra-based radio an interview Officer ofthe VRA, Kweku Awotwiin In linewiththis,ChiefExecutive projects. and infrastructural to issuebondsfundtheiroperations Electricity CompanyofGhana (ECG) for VRA, Ghana Water Companyand the national bond market committee The latestwasthe recommendation by through thecapitalmarkets. government by raising their own funds providers to reduce their dependency on occasions descendedontheutility other stakeholdershave onseveral Key players inthefinancialsectorand be issuingabond. thatautilityproviderthe country will of will bethefirsttimeinhistory a bondtoraiseabout$500million.This disclosed thatitwillearlynextyear issue The Volta River (VRA)Authority has Million BondNext Year VRA To Issue$500 6 Kweku Awotwi, CEOofthe VRA GHANA BUSINESS &FINANCE

year 2012,withherproduction largelycentred intheBrong AhafoRegion. Ghana produced more nutsinthe than20,000 metrictonnesofrawcashew in theareas suchasbeekeepingandproductionjuice. ofcashew-apple expected togive farmerstheplatformto explore innovative businessprospects to Leverage Profit inEach Sector oftheCashew Industry New Markets,” is The conference,“Value on the theme: Chain and Gains-Focusing on the Potential inAfrica. processing-capacity country tobecomethebiggest metric tonnesofprocessing capacitytoenablethecountry add 25,000metrictonnesofprocessing nuttothecurrent raw cashew 27,000 expected that GhanaMr Osei-Owusu said stakeholders in could the industry Programme (CDP). ofgovernmentvalue-chain andinterventions through Development the Cashew established markets, enoughlocalprocessing capacity, strategic linkagesinthe Mr Osei-Owusu saidthiswasbecausetheywere well-organised, hadwell- farmerstoenablethemexpandtheirbusinesses. cashew Association, calledonfinancialinstitutionstoaugmentaccesscredit tothe Mr Windfred Osei-Owusu, Acting President oftheGhana Industry Cashew additional familyincomeand120jobsinthecommunity. soldinthevillage,1,430dollarswereof rawcashews generatedintheformof States Embassy, saidthe research 1000dollarsworth concludedthatforevery by the West Africa Trade Hub, Madam Alsup,Charge D’Affaires ofthe United Speaking on the Multiplier Effect of Processing Cashew Nut in Africa, a study andassurancetorepatriateenclave instrument profit. businesses tothrive. Theincentives wouldincludetaxholidays,thefree zone that government wouldprovide theappropriate incentives toenabletheir growth andsustainability. He told themore than450conference participants remained topromote committedtoroll outadivestiture industry ofthecashew todevelop thevaluehelp participants chainprocess. MrIddrisu saidgovernment Festivala four-dayCashew andExpo 2013event recently organisedinAccra to Iddrisu,Mr Haruna Minister of Trade andIndustry, saidthisattheopeningof ofthecommodity.export government measure toboostproduction, asanintervention processing and would,next year, industry The cashew receive a stimuluspackagefrom receive stimuluspackage to Cashew industry OCTOBER 2013

NEWS IN BRIEF shareholders maximise returns for Shareholders. Star Assurance clients increased satisfaction, optimised human potential and The company’s missionistooptimise resources in order togive years experienceintheinsuranceindustry. marketers, accountantsandlawyers, mostofthem withover 15 management teamismadeup ofseasonedchartered insurers, reflected of its staff. inThe thecompany’s skills and expertise The company’s capabilityinhandling allclassesofinsuranceis currently thesecondbiggestinsurance companyinthecountry. Assurance hassuccessfullyoperatedfortwenty-eight years and offices inCentral, Upper Westand UpperEast regions. Star Western, Volta and Northern. The company operates contact regions. Theseare Greater Accra, Ashanti,Eastern, Brong-Ahafo, Accra hasninebranchofficesacross seven outofthecountry’s10 where it operates from. The company with its head office in itdoes, includingevenand customerfriendlyineverything Star AssuranceCompanyLimited is unmistakably professional The red andwhitefaçadeofitsheadoffice situatedin Kokomlemle, (0.98%) Fire (11.30%), Marine (5.41%), Aviation (5.24%), and Travel they provided were: Accident (46.10%),Motor (30.97%), premium incomeandthepercentage oftotalpremium income In 2012thetopsixclassesofinsurancethatdelivered themost 2012 award by theChartered Institute ofMarketing Ghana. has earnedthemtheprestigious Insurance Companyoftheyear of GH¢1.4milliontoGH¢4.9million.Thissterlingperformance Investment Income for 2012 grew by 250% over the 2011 figure in 2011toGH¢8.1million2012,representing 119%. The company’s Profit before Taxalso grew from GH¢3.7million million in 2011 to GH¢61.8 million, representing 76% growth. gross premium production. Gross Premium grew from GH¢35.1 significant The growthyear 2012saw very in StarAssurance’s oftheyear2012 CIMGInsuranceCompany awarded Star Assurancerecordssignificantgrowthand institutions includingthree savingsandloanscompanies.This gh-link isanelectronic platform,whichconnects27financial almost 1,000ATMs thatlocalATM card holderscanaccess.The that gh-linkisbecomingthepreferred platformbecauseofthe Sarpong disclosed this to the media in Accra recently. She noted Head ofBusiness Development atGhIPSS, Dei MrsMary 800,000 inJanuary tomore thanGH¢5.9million. first week of while values rose from January more thanGH¢ increased to more than 13,000 compared to about 1,400 in the in themonthofJanuary thisyear. Weekly transactionsalso transactions asattheendofAugust from 7,389transactions customers own banks jumped almost 600 per cent to 49,349 figures indicatethattheuseof ATMs ofbanks otherthan Payment andSettlement Systems (GhIPSS) hasshown. The (ATMs) of other banks, data from the Ghana Interbank More bankcustomersare usingAutomated Teller Machines almost 600percent Gh-link transactionsupby 8 GHANA BUSINESS &FINANCE

Ghana, Agriculture Development Bank andZenith Bank. bank customers are outletsowned by Ecobank, Societe-Generale The datashowed thatthetopmost patronised ATMs by other accessed,” shesaid. a thingofthepast,becausenextavailable ATM canbe people went round in search of their bank’s ATM is becoming use theATMS ofuniversal banksandviceversa. “Theerawhere soon tofollow, indicatesthatcustomersofthesecompaniescan companies suchasEzi, First National, EB-ACCION andothers Mrs. Sarpong explained that the migration of savings and loans and communitybankswillcomeonboard. Visa is also expected to join soon while it is anticipated that rural MasterCardshortly branded electronic cards will also beadded. cards, butofficialsof GhiPSSsaydiscussionshave beenheldand Mastercard in Ghana. The platform currently accepts only local biggest andthemostconvenient platformcompared to Visa and The gh-link connects close to a 1,000 ATMs, making it the of memberbanks. implies thatcustomersofanythesebankscanusetheATMs in theyears. pillarinitsoperations company willcontinuetobean important and Customer satisfactionwhichhasbeenthehallmark ofthe togreater excellence height intheinsuranceindustry take service Mr. Duffuor emphasized that Star Assuranceispositionedto packages toreflect thedynamicneeds ofitscustomers. its existing insurance products aswell asdevelop innovative will continuetoinvest inpeopleandtechnologytoenhance Managing Director, Mr. Kofi Duffuor said, the company Responding tothebusinessoutlookofStar Assurance,The industry Ghana andwasonceadjudgednumberoneintheinsurance Club 100”-alistingofthetop100bluechipcompanies in Star Assurancehasbeenamemberoftheprestigious “Ghana respectively. by insurance industry Total AssetsandGross Premium Income Report, Star Assurancewasrankedsecondinthegeneral In the National Insurance Commission’s (NIC) 2011 Annual customers inparticular. in recent years has been acknowledged and its by the industry industry.The great stridethecompanyhas madeininsurance as one of thebiggest in the consistently beenrecognized this is why Star Assurance has and delivery excellent service insurance products with offering competitive well-managed company, The company is a fast growing, staff. work environment forits as providing a congenial the topmostpriority, aswell making customer satisfaction works toachieve thisby OCTOBER 2013 soon commissionitslateststate ofthe Dr Omane BoamahsaidtheNCAwould the continent. to improve on onthequalityofservice from allover Africa,todeliberateonhow in thetelecommunicationsector experts region forthefirsttimebrought together organised in the West African sub- The five- daymeetingwhichwas the highestinAfrica.” per cent,itisoneof in Ghanaisonly30 penetration internet “...even though Union (ITU)inAccra. of theInternational Telecommunication DevelopmentService Group meeting the openingof30thQuality of engage. Thedirective wasgiven during which mobiletelephoneoperator to guide tosubscriberswhendeciding This, he said,as a woulduseful serve the country. on alltelecommunicationcompaniesin tests (NCA) tointensifyitsqualityservice National CommunicationsAuthority of Communications,hascalledonthe Dr Edward Omane Boamah,Minister NCA urgedtomonitormobileoperators OCTOBER 2013 internet. that more Ghanaians have accessto the made by telecomorganisationstoensure Mr Sakyi-Addo are saidefforts being of thehighestinAfrica. in Ghana is only30 per cent,it is one said even thoughinternetpenetration inthecountry.the bestofservices He ensure thattelecomsubscribersenjoy to putinplacetheneededmeasures to readiness oftelecommunicationoperators Telecommunications, pledged the Officer oftheGhana Chamberof Mr Kweku Sakyi-Addo, Chief Executive quality ofexperience. and to deterioratingqualityofservice measures inresponse topublicoutcry as well asinsistoncompensation providersinvoke penaltiesontheservice obligations, had been compelled to enforcement ofcompliancetolicense ensure consumerprotection aswell asthe He said theNCAinits mandate to devoted toconsumerprotection.” authoritiesareof theregulatory mainly endemic inAfricathattheentire focus sector. “Thisproblemand issopervasive as oneofthemajorchallengesfacing meet theneedsofconsumingpublic to sector toprovide services satisfactory the inabilityoftelecommunications overservices 3Gnetworks. He cited mobile telephonyaswell asinternet monitoringequipmenttoevaluateart term profitability.’’ is alwaysonpricesandshort and development if the obsession a longtermseetransformation can sustainablygrow andover are toohighandnoeconomy rates high;whichmeansprices rate low andmakinglending South, ‘’keepingthesavings According totheMP forKetu more bankingservices…’’ profits andbeabletopatronize businesses andactuallygrow their access to credit to expand their numbers thatactuallycanhave ‘’Banks are constraining the profit. raising pricesinorder tomake outflow ofcredit, butisindirectly are reducing theinflow and banks and financial institutions Mr. Kwetey also added that the Minister. of affordable credit,’’ said the going onthatare really inneed we have hugeeconomicactivities banking sector, atthesametime economy thatisoutsideofthe “We have alargesegmentofour given tobusinessmen. reducing interest ratesonloans by rewarding depositorsandalso more incentives topeoplesave financial institutionstoprovide The Minister urgedbanksand paying forsavings.’’ almost negligibleratethatwe are sector becauseofthelow or their savingsintothebanking not havingan incentive tobring keeping toomanypeoplewhoare we [financial institutions]are savings enoughsotherefore institutions] are notrewarding explained that ‘’We[financial station recently, Mr. Kwetey Speaking onanAccra-based radio savings accounts. depositors, especiallythosewith little ornoattentiontorewarding where financial institutions pay has condemnedthesituation and AlliedInstitutions, Fiifi Kwetey Presidency inchargeofFinancial The Minister ofState atthe - FiifiKwetey savings rates andreward Reduce interest

GHANA BUSINESS &FINANCE 9

NEWS IN BRIEF NEWS IN BRIEF Mohinani Group worth Two Thousand US Dollars. hospital inGermany; underajointsponsorshipby Melcom and anelective programmefunding toundertake onattachmenttoa UniversityNkrumah ofScienceand Technology KNUSTreceived Also attheceremony afifth year medicalstudentofthe Kwame in theireducation. Melcom willsettlethebillsforaslongchildren canprogress cheques tocover the full payment of terminal fees for their wards. as aresult oftheAchimota Melcom Building Collapse received In July 2013mothersoftwochildren whosefatherslost theirlives Education, Medical, Blood Donation etc. the Melcom Group hasgiven topeopleinthedefinedareas of set upofthefoundationthere hasbeenanincrease inthesupport aimed atgivingtheGroup’s charitableactivitiesfocus.Since the society, hassetupacharitydivisiontheMelcom Care Foundation The Melcom Group ofCompanies,desirous ofgivingbackto for theneedy support Melcom provides 10 GHANA BUSINESS &FINANCE Accra-Bissau flight ASKY commences

subject toseasonaldemandpressures. withtheimpendinginflows further ofthecocoasyndicationloan expects thatpressures intheforeign exchange markets wouldease Going totheendofyear, forward thecentralbanksaidit Kofi Wampah, Governor ofthe Bank said. foreign exchange market has reduced significantly this year,” Dr 3.2% during the period, the Bank added. “The volatility in the In tradeweighted terms,the real effective rateappreciated by same periodin2012,theBank ofGhana saidlastweek. 2013.This wascompared withadepreciation of18.4%duringthe slower rateof3.9%againstthe USdollar” duringtheperiodin the centralbank,Ghana cedicumulatively “depreciated ata slower paceduringthefirsteight monthsof2013. According to Ghana’s currency, thecedi,lostitsvalue againsttheUSdollaron in eight months of 2013 in eightmonthsof2013 Ghana cedifalls 3.9%invalue Lagos andFreetown. Monrovia, Bamako, Niamey, Abuja, Brazzaville, Abidjan, Libreville, Yaoundé, N’Djamena,Kinshasa, Cotonou, Ouagadougou, Douala, from Accra tothefollowing destination: The airline currently operates flights among countriesonthecontinent. order toencouragetradeandinvestment easyin to makingintra-Africatravel very Bissau route inlinewithitscommitment is committed to developing the Accra- manager oftheairline,saidairline Mr. Worlanyo Afadzinu,country Bissau route onthecontinent. the airlinefirsttooperate Accra- Thursdays and Sundays. Thismakes on operates thetwice-weekly service in LomètoGuinea Bissau. Theairline weekly flights from Accra via its hub ASKY Airlineshascommencedtwice-

OCTOBER 2013

COVER STORY 12 Ogilvy &Mather Ghana - thenew brain behind GHANA BUSINESS &FINANCE

oversee all these, Gilwaschosen. of bigbusinessesinthe country. To media buyingservices foraplethora advertising, publicrelations and provides anall-round branding, Ogilvy &Matherworldwide group & MatherGhana,amemberofthe communications company. Ogilvy Ghana’s biggestmarketing & MatherGhana,undoubtedly, Managing Director (MD)ofOgilvy it.Heis Gil Kemami,the earned smiles intheworldbecausehehas well ,hecanafford allthehaughty passionate aboutwhathedoesand, his smiles.Hesoundsupbeatand calmness, whichheexudeswith he hidestheseunderacloakof you canseetheseriousness;but in Ghana.You canfeeltheenergy; marketing communicationsbusiness expand andentrench hishold inthe thinking ofhisnextmoveonhowto office onawarmfridayafternoon oversized sits inawell-furnished A bubblyfigure inhislate thirties OCTOBER 2013 Ultimately, branding is perhaps most essential because it increases company aspires tosomethinggreater than justbusinessasusual. be reckoned with.Strong branding,indeed,demonstrates thata background and solidifies its reputation as a veritable force to strategy minimizes acompany’s chancesoffadingintothe others perceive you. In addition,aneffective brandmarketing your brandallows you tocontrol—or atleastinfluence—how someone elsewilldoitforit,includingitscompetitors.Defining company that fails to define its brand creates the possibility that a justify theneedforeffective branding.Amongotherthings, markets throw so much resources into branding. Many reasons growth. It isthusless surprising thatcompaniesin the developed interlinked relationship between effective brandingandcompany Most companiesinthedeveloped markets understandthe growth The roleofbrandingincompany Metropolitan Municipal andDistrict Assemblies(MMDAs). i.eAAG,all theplayersmediaowners intheindustry andthe mechanism through whichsynergiescouldbecreated among andcallsfora standards andinstilsanityintotheindustry Advertising AssociationofGhana toenforce (AAG) intrying He acknowledges thetremendous work beingdoneby the the level ofprofessionalism intheindustry”, heintimates. needs somesanitising.“A lotneedstobedoneby wayofraising andbrandinglandscapeisagrowingadvertising market thatstill size-fits-all approach doesnotwork inbusiness. To Gil, Ghana’s tosuitit-theone- operates inanddesignproducts andservices to grow his/her business needs to appreciate the market he/she makes awholelotofbusinesssensethatanyheadwishing its own dynamicsandthusnotwomarkets are thesame.” It thus “business isgood” butisalsoquicktoaddthat“every market has concerned, Gil pointsout that thejourneyhas been good,hinting of Ogilvy &Mather are Ghana anddoingbusinessinthecountry that existintheGhanaian market. Asfarasmanningtheaffairs according toGil, pointsouttheconfidenceandopportunities brandcommunicationsandresearchin advertising, inGhana, Ghanaian market as‘interesting’. The presence ofalltheplayers But theMDofOgilvy &Mather wouldratherdescribethe described as‘developing’, ‘young’ andsometimes‘unsophisticated.’ businessin The brandingandadvertising Ghana hasbeen variously No twomarketsarethesame needs totheirclients,theOgilvy way. and histeamlookssettooffermore strategiccommunications relates tobrandcommunications.Armedwithsuchskillsset,Gil the area ofre-orienting histeaminthewaysofdoingbusinessas value addition totheOgilvy &Mather Ghana outfithasbeenin of “commitment toone’s personalvalues,” Gil’s hetoldGB&F. about whatyou do.” But tothese,mustbeaddedagreat deal route tothe topexcept through hardwork and“beingpassionate to Ghana of2012.For inthelastquarter Gil, there isnosecret Ogilvy &Mather Kenya astheManaging Director untilhismove branding agency, stint.Finally, forashort inJune 2007,hejoined period ofthree years before moving onto8Seconds, adesignand FCB inJohannesburg South Africa,Gil worked diligentlyfora reason tojustifythis.Starting asanAccount Manager forDraft the topcouldbestbedescribedas‘sudden’ butthere mustbea forthelasttenyears. Hishaving worked intheindustry riseto inhischosenfieldofwork, marketingexpertise communications, of Business & Finance, Gil Kemami has garnered a treasure trove of pursuing anMSc.inStrategic Marketing withtheLondonSchool A bilingualmarketing communicationsprofessional currently The Passionate Professional OCTOBER 2013 the conclusionofyour professional relationship. to recognize andremain you, loyal enlistyour services, longafter to theforefront ofconsumers’ minds,makingthemmore likely deploy brand communication strategies will push your business industry, “Brand playsabigrole.” Afully-developed andeffectively Moving ConsumerGoods (FMCGs),manufacturingorservices And so for any company, be it inthetelecommunications, Fast company but also the brand equity of that company”, he says. value acompany, you don’t justvalue thetangibleassetsof Not surprisingly, Gil Kemami you shares inthese beliefs. “When The product mightnotbegood,buteffective brandingsellsit. consumers’ attentionrageson. the chancesthatpeoplewillremember you, even asthebattlefor in theindustry. can domore toensure thatsanityorasemblanceofitisinstalled materials are notaired orrolled out.He believes theassociation for instance,ensuringthatwrong orinappropriate advertising he admitsthatthere isroom forimprovement whenitcomesto, concerned, Gil believes theleadership isdoingagreat jobthough player ismeasuredevery with.Asfarasthework oftheAAG is mediocrity doesnot end up being the benchmark by which to among other things,enforce standards and to ensure that umbrella associationlike theAdvertisers Association ofGhana and operatefreely. But thatiswhythere istheneedforsuchan baked professionals and quacks to masquerade as professionals For adeveloping market likeGhana, there isalwaysroom forhalf- Should AAGcrackthewhip? worldwide. Ogilvy &Mather currently operates in120countries live uptotheOgilvy &Mather worldwidestandard. team, theaward isagoodchallenge tothemasitwillhelp and this,itbelieves willpushittodomore. AndforGil andhis their clientsandpotentialholdthemtothestandards set, & Mather seesitdifferently. Ogilvy & Mather wouldrather that so muchmore Ogilvy wouldbeexpectedofthem goingforward, Again, whereas someawards placeaburden ontheawardees, as gotovalidate Ogilvyfurther &Mather’s way ofdoingthings. recent recognition attheCannesFestival, believes thattheawards of theGroup’scommunications).Gil, whilstbaskingintheglory of creativity andbrand incommunications(designs,advertising International Festival of Creativity, the world’s biggest celebration won by Ogilvy &Mather worldwideattherecent CannesLions Mather Ghana oftherecent shares haulof130Lions intheglory ofalargergroup,host ofawards Aspart foritsefforts. & Ogilvy their various areas ofbusiness,Ogilvy &Mather hasreceived a marketing communicationssolutionstohelpitsclientsexcel in course, forcomingupwithstrategic,innovative andtailor-made it anincrease inmarket share orimproved brandequity. And of chalked by companiesundertheOgilvy &Mather umbrella, be answers to the challenge at hand. This underlies the successes and brandchallengesbefore comingupwithastrategythatbest communication outfitwhichtriestounderstandthebusiness /designoutfitbutratherastrategicbrand not justaadvertising “believes in building brands.” In his words, Ogilvy & Mather is competitors feelinferior, Gil willrathersaythatOgilvy &Mather this claimhook,lineandsinkerbeatinghischesttomake really goodanddifferent from itscompetitors. Well, shyofaccepting its sleeves, Ogilvy & Mather Worldwide must be doing something With plusseveral awards ahostofcompaniesonitsportfolio under The Ogilvy&Matherway

GHANA BUSINESS &FINANCE 13

COVER STORY

recorded someimprovements. In contrast, thegrowth momentum risks persist.Economic activityinadvanced economies has 2. Growth remains subdued, while market volatility and stability global economicgrowth. and the financial markets, more remains to be done to boost coordinated actionhadhelpedtostabilize theworldeconomy actions neededtostrengthen economic recovery. While global on thechallengesfacingworldeconomyandpolicy 1. Global economicpolicydiscoursehascontinuedtocentre Global EconomicDevelopments the outlookforrest oftheyear. over thelasteightmonthsof year endingAugust 2013and the MPC’s assessmentofeconomicdevelopment inthecountry unchanged at16percent.” Below are somemajorhighlights of are balancedandtherefore decidedtokeepthepolicyrate held theviewthatrisksinoutlookforinflationandgrowth who spoketonewsmenatapress conference “TheCommittee According toDr.Kofi Wampah, Governor ofthe Central bank this year citing sometreats toinflationandeconomicgrowth. Policy rate ofthebankat16percentforsecondtime (BoG) attheendofits57thregular meetingmaintainedthe The Monetary Policy Committee(MPC)ofthe Bank of Ghana from areleasepolicy by themonetary committeeoftheBankGhana operating in Ghanaat16percent. GB&Fhereby publishesexcerpts - The Bank ofGhanalastmonthmaintainedthepolicy rate forbanks Highlights ofGhana’s economy OCTOBER 2013 prices continuetoaffectexternal sectorperformance. the domesticeconomyinsecond half, astrends incommodity 5. Theseprojections intheexternalenvironment could impact andgeopoliticaltensions. uncertainties these commoditypricesare subjectto riskfactorssuchasglobal move towards US$2,300 pertonneby theyear end.However, weather conditionsinthemajorproducing countries,asprices prices are expectedtorallyamidconcerns aboutunfavourable to US$1,360perounceby theendof2013.Similarly, cocoa per barrel, whilegoldpricesare projected toinchupslightly markets. On oilprices are theaverage, crude projected atUS$104 4. Commoditypricesremained bearish ontheinternational pressures. markets currencies inrecent monthscouldalsodrive upinflation financing conditionsthathave ledtothesell-offsinemerging by the exchange rate depreciation of recent months. The external inflation is relatively higher, aproblem thathasbeenmagnified movements. In majoremergingmarket economies,however, bycountries, supported a slowdown in commodity price 3. Inflation isexpectedto remain generallystableinadvanced arising from domesticandexternaldevelopments. in emerginganddeveloping markets hasslowed, withchallenges

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ECONOMY ECONOMY it isexpectedthat pressures intheforeign exchange market significantly this year. totheendof Going forward year, 11. The volatility intheforeign exchange market has reduced intheglobalfinancialmarkets.from uncertainties and financialaccounts,risksto theoutlookcontinuetoemanate growth andsignificant improvements inimports inthecapital inflows. Althoughthe overall impacthasbeenmuted by slower commodity pricesinthefirsthalfandaslowdown inportfolio development ontheglobalfront, especiallywithweak affected bythe10. Theexternalsectorwaspartly recent economy. external outlookwithdirect implications forthedomestic in commoditypricescontinuetoposesignificantrisksthe a slowdown inemergingmarkets. Thesetogetherwithtrends recovery inadvanced economiescontinuestobecountered by 9. In summary, globaleconomicconditionsremain mixed as andOutlook Summary prospects inthethird quarter. second quarter, businesses were optimistic about company Although, overall businessconfidenceindexdeclinedinthe index declinedto95.6inAugust from 101.1inJune 2013. lower sentimentsandheightenedinflationexpectationsasthe 8. The Bank of Ghana’s ofconsumerconfidenceshowed survey contributions andimports. activity, offset by contractionsinport was partially SSNIT domestic VAT. Thepositive growth recorded inthese variables sales, DMBscredit totheprivate sector, salesofcementand manufacturingindustrial electricityconsumption,exports, Driving this pace of activity were year-on-year growth of7.1percent. 326.9 inJuly 2012,representing a real CIEAimproved to350.1,from momentum ineconomicactivity. The in July 2013suggestsincreased Index ofEconomic Activity (CIEA) 7. An update of the Bank’s Composite inflation. indicate someeasinginunderlying the Bank’s measures ofcore inflation seasontokick-in.All the upside,probably awaitingtheharvest adjustments maybeending.However, foodpricessurprisedon indication thatthepass-through effectsofearlierpetroleum price after persistentincreases sincethebeginningofyear, an mainly by favourable developments inthenon-foodprices 11.5 percent attheendofAugust. Thisdownturn wasdriven inflation rateto11.8percent in July, inflationfellmarginallyto months ofincrease inheadlineinflation,whichpushedthe 6. Thelatestinflationnumbersshow thataftersixconsecutive Inflation andGrowth Domestic EconomicDevelopments 16 GHANA BUSINESS &FINANCE

poses riskstoinflation.” in commoditypricesalso quarter. Theuncertainty of utilitytariffs inthefourth possibility ofadjustment “There isalsothe percent. and therefore decidedtokeepthepolicyrate unchangedat16 that risks in the outlook for inflation and growth are balanced 15. On thebalanceofrisks,Committee heldtheview sentiments mayalsoposeadownside risktothegrowth outlook. expenditures suchaswagesandsalaries. Softening consumer infavour ofrecurrentand spendingongoodsservices cutbacksindomestic financedcapitalexpenditures budgetary as increased oilproduction. However, thedownside risksinclude developments inCIEAandthecredit stance of DMBsaswell economic activity had picked up, evidence by positive 14. On thegrowth that outlook,theCommitteeobserved range by thefirsthalfof2014. band. Barring anyshocks,inflationcouldmove backtothetarget central pathremains slightlyabove theupperlimitoftarget petroleum prices and transport fares in September. There is remained. In particular, there adjustmentin hasbeenfurther even though inflationhaddeclinedin August, upsiderisk 13. On the outlookforinflation,theCommitteenotedthat the delayinremoval ofutilitysubsidies. indomestic from significant shortfalls revenue collectionsand of theyear revealed thatfiscalpressures stillpersistarisingmainly 12. Theimplementationofthebudgetforfirstseven months demand pressures. syndication loanandMDBSdisbursement,subjecttoseasonal withtheimpendinginflowswould easefurther ofthecocoa has improved at this MPC round, the that althoughtheinflationforecast global inflation.TheCommitteenotes syndicated cocoaloan,andsubdued exchange by market the supported relativeharvest, stabilityintheforeign however bemoderatedby animproved poses riskstoinflation.Thesecould incommoditypricesalso uncertainty quarter.utility tariffsinthefourth The also the possibility of adjustment of OCTOBER 2013

Glencore agrees to study $3 Billion Congo iron ore mine AFRICA BRIEFS

ECOWAS Bank to understudy BoI on project financing

The leaders of Economic Community of West African States, ECOWAS Bank Glencore Xstrata Plc (GLEN), the global commodity trader and metals producer run by for Investment and Development, billionaire Ivan Glasenberg, has agreed to proceed with a study into an iron ore mine in EBID, Togo, are to understudy the Republic of Congo that may cost as much as $3 billion. The assessment, with partner Nigeria’s Bank of Industry’s success Zanaga Iron Ore Co., “is now being advanced on the basis of a staged development, on project financing. substantially reducing the initial capital requirement and including the potential for initial production using existing infrastructure,” Switzerland-based Glencore said in a The group said it intends to replicate statement. the success of BoI on project financing in member countries after the study. The development cost is now estimated at $2.5 billion to $3 billion, down from $7.4 Speaking during a visit to BoI’s billion, Zanaga said in a presentation on its website. Glencore’s Glasenberg has led a call headquarters in Lagos, the Operations for an industry-wide crackdown on over-spending on new mines, which he blames for Director, EBID, Mr. Isaac Olagunju, a glut of some raw materials that has trimmed prices and profits for producers. said EBID also plans to go into alliance with BoI to finance projects The revised agreement between Glencore and Zanaga “should increase the likelihood for ECOWAS member states on of project finance,” London-based Liberum Capital Ltd. analyst Richard Knights wrote completion of the study. today in a note. “The company now has a materially more palatable project for potential investors and debt providers given its lower and more efficient capex number.” He noted that BoI was at the forefront of the establishment of ADFI, and as Glencore owns a stake of 50 percent plus one share in the project and Zanaga the rest. such remained a strong member that An examination of the proposed development is due to be completed in the second has been playing leading advocacy quarter of next year, with a decision on investment following that. The mine may initially role towards the growth of Africa as produce as much as 14 million metric tons of iron ore a year, Zanaga said. The previous a whole. Olagunju further explained plan was for a mine producing 30 million tons a year. that Nigeria and BoI remained a major market for other Development and Finance Institutions, especially as it relates to poor country products and cross border integration, maintaining South Africa’s ‘famous brands’ buys stake that these are critical areas where development banks in Africa can key in Nigerian fast food business into. years through licence and franchise He said beyond project financing, agreements, and is part of its strategy to there was also the need for EBID to expand further into Africa. collaborate with BoI in development, cross border project and SMEs Stuck with slower growth at home, South financing alongside staff development African companies are increasingly training strategies. looking to fast-growing Sub-Saharan In response, the General Manager, South African fast-food restaurant markets. UAC Restaurants has 165 Operations, BoI, Mr. Joseph operator Famous Brands has disclosed franchised restaurants in Nigeria, with Babatunde, while thanking the that it would buy 49 percent of the 57 of those in Lagos. That includes visiting team for considering it restaurant arm of UAC of Nigeria Plc the popular Mr Bigg’s brand, Famous worthy to undertake a study tour of to bolster its presence in Africa’s most Brands said. BoI, assured that the bank would look populous country. Famous Brands said into the request for a funding pact to the cash deal for an undisclosed amount Famous Brands operates the Steers and boost infrastructure growth in the gives it a wider footprint in Nigeria, Wimpy fast-food restaurants in South West African sub-region. where it has operated for the past 11 Africa.

18 GHANA BUSINESS & FINANCE OCTOBER 2013 the laboratory would save theUgandathe laboratory Lokerissaidto takeallopportunities. sector insteadofwaitingforforeigners inthenascentoilandgas opportunities local investors totakeadvantage of Tullow Oil. Minister Lokerischallenged from theoilexplorationcompany an event witnessedby several officials during multimillion dollarlaboratory Peter Lokeriscommissioned the Uganda’s stateministerforminerals Hailemariam Desalegn andby AU the letter signed by AU Chairperson occasions by itsown judges,” read has beendrawntothisaspectontwo natural justice. The court’s attention the effectoferoding theprincipleson several procedural requirements having “In addition,theprosecution hasignored the cases. referral applicationbefore commencing shouldfirstdeterminethe that thecourt earlier inSeptember, theAU argued to theUnited Nations Security Council In aletterwrittentotheICCandcopied constitutional responsibilities. would liketo attend owing totheir allowed tochoosewhichsessions they AU alsowantsthetwoKenyan leaders back homeisheard anddetermined.The application to have the cases brought Joshua arap Sang stopped until its his Deputy William Ruto and journalist cases againstPresident Kenyatta, Uhuru International (ICC) Criminal Court The African Union (AU) now wantsthe leeway -AU Kenyan leaders Halt ICCcases, give OCTOBER oil and gas experts Samiroil andgasexperts Mayas andSaeed Hamid. between localtycoon Godfrey andtwoDubai-based Kirumira the brainchildofIcon Industrial Ltd,ajointventure Services is of oilandgas,hasbeensetupinKampala.Thelaboratory aswellreservoirs, asdeterminingthequality andquantity inEastAfricatotestoilandgasbearing The firstlaboratory laboratory Uganda getsoiltesting 2013 trained Ugandan oilandgasexperts. will employ foreign andrecently experts and invested insettingupthelaboratory saidthatUS$3millionhasbeen Kirumira now testtheirsamplesfrom Uganda. countries inoilandgasexplorationcan South America.Also,otherEastAfrican in mainlyArabcountriesaswell as sending oilsamplesabroad fortesting government oftimeandmoneyspent determined. all thesessionsbefore theappealwas forced theDeputy President toattend arguing thatthejudgesshouldnothave allowing Ruto sessions toattendpart Prosecutor Fatou Bensouda against an appealthathasbeenfiled by ICC made The letterfurther reference to should notproceed.” and clearlyresponded to,thecases until therequest oftheAU isconsidered Union withnooptionbuttoaskthat Dlamini-Zuma. “Thisleaves theAfrican Commission Chairperson Nkosazana Basin. following exploration intheLake Albert amountingto3.5billionbarrels,reserves Uganda confirmedcommercial oil in thenexttwoyears. Thiscomesafter which targetstoemploy 5,000Ugandans invested inIcon Industrial Ltd Services work; andatotalUS$20millionwillbe He hasbegun saidthatthelaboratory requirements,” arguedtheAU. in thecontextofitsown constitutional itmustdoso cooperating withthecourt, reiterated itscommitmenttocontinue Kenya“While has always cooperated and goes on. of theProsecutor’s appeal,” the letter its decisionpendingthedetermination shouldhavegrounds upheld the court to attendonlysomesessions.On these permittedhim on whichbasisthecourt President’s constitutional responsibilities had takencognisanceoftheDeputy “The Trial Chamberinitsearlierdecision

GHANA BUSINESS &FINANCE 19

AFRICA BRIEFS ADVERTORIAL - KwakuDanso-Misa –CEO/Creative Director, Digicraft the dream.” to societyand thankingGodforliving standing outfrom therest, givingback building ateam,providing solutions, the odds,deviatingfrom thenorm, God, believinginyourself,challenging “It startswithadream, commitmentto and buildingbrands 10 years inspiring creativity The BlueRevolution 20 GHANA BUSINESS &FINANCE

Ad ms ipraty grow - importantly businesses most - And • • Alterproduct perceptions ofpeople • Develop and create brands in the minds • Inspire creativity A revolution to: REVOLUTION –Digicraft. HE STARTS THE BLUE BIG masterpieceofart? unique, andbelieves hecancreate one his drive is strong enough, his gift is and knows completed hisnationalservice What doesayoung mandowhenhe’s sway himfrom thisgift or economics? He resists attempt every to pursue thefieldofbusinessadministration butisheavilyinfluencedto drawn toart What doesayoung mandowhenheisso gift given toafew. right then,thatwhathehasisaspecial secret hekeepstohimself. He recognizes his mindit’s abeautifulexperienceand on awallandthecloudsinsky?In sees imagesinpatternsonthefloor, cracks What doesayoung 3year olddowhenhe OCTOBER 2013 currently has three subsidiaries: Brandline, It’s been 10 challenging and wonderful Numedia and Pictograph. years. These trials and triumphs have made me a better man for those I hold digicraft is considered to be amongst dear as ‘friends and family’ - and even the top 10 agencies in the country and those I don’t. Since our inception, I’ve have over the years worked for clients witnessed employees enter our doors which include GIHOC Distilleries, and leave - transformed. I see people Ghana AIDS Commission, Guaranty grow more appreciative of who they are, Trust Bank, Intercontinental Bank confident, expressive, creative and willing now Access Bank, Ghana Commercial to challenge themselves. That’s the magic ADVERTORIAL Bank, UT Bank, MIDA, TF Financial of digicraft. It is a collective understanding, services, Accent Financial Services, South that what makes us different, comes from African Airways, Enterprise Group God and whatever He channels through (Insurance, Life, Trustees, Properties), us is more functional than fancy. digicraft Kasapreko, TextGhana, Blackwell Realty has provided products, services and Development, Stanford SEED, Imperial educational training for so many over the Homes and many more. years. Today we have students from Legon, Central University, Methodist University, They have formed strategic partnerships KNUST, the Polytechnics and an SSS with their clients based on Mutual Trust, graduate learning the trade of branding Competence and Common Goals which and marketing. Unemployment is a is evident in the number of years they major problem in the country; the best have been servicing these valued clients. we can do is help in our own unique way. The Blue Revolution continues. We The General Manager, Marketing are willing and ready to take up the Director and a Director at the company, challenges of this New Age, one that Mr. Kwasi Danso-Misa , who has played defines competition in a global setting a pivotal role in the company’s growth and not just a local one. We will spread since its inception believes hard work, our wings wider and totally consolidate dedication and teamwork has been key to our gains or equity we have as a brand and the growth of the company. He explains MOVE FORWARD to new markets and that their strategy has always been aligned new challenges beyond the boundaries of with the thinking of their client and their Ghana. consumers. In effect, he explains simplicity and effectiveness in communication; as This revolution offers a different kind of well as quick turnaround time is what thinking… It is saying to ourselves… we separates digicraft from the rest. “If you are capable of anything and everything we need it done creatively and before time, commit to. At digicraft we interpret fear call digicraft!” as motivation to seek perfection”.

“We owe a lot to our clients. They give us In his office is a picture of his late father the opportunity to showcase our talents Mr. Kwame Danso-Misa (Barima Abiam After 10 years, digicraft, born out of pure and now we have evolved to payback the Kokroko, Akyempemhene of Akyem passion and talent by its founder and trust they placed in us.” Abuakwa), who he draws so much CEO, Kwaku T. Danso-Misa, with the inspiration from. “He’s no more with us. support of his family, is one of the leading The attainment of this level of recognition My brothers and I who work together advertising and marketing agencies in the and 10 years in such a competitive have achieved because of him. We thank country. industry did not come on a silver platter. him and our dear mother Ms. Angela It is as a result of cognisance combination Lassey dearly for their love, guidance and digicraft was registered under the of sound management practices coupled protection. God Bless us all.” Companies Act of 1963 in 2003 to operate with excellent professional competence business in Advertising and Marketing and hard work. digicraft is blessed with Communications. It was incorporated in a team of talented individuals with the same year and commenced business diverse backgrounds that allow for the on the 23rd September 2003 at King incorporation of many points-of-view Solomon Junction in Dansoman. A that are applied in novel ways to address community it has served so well through marketing challenges. This coupled with continuous training and employment of innovation and creativity is certainly the its youth. hallmark of the successes that have been chalked so far. The team is guided by the A ranking member of the Ghana principles of stringent adherence to the Advertisers Association, digicraft Ltd corporate policies, ideals and aspiration has since strived to attain recognition streamlined by its Directors. as a fore runner in the industry. It is for this reason that it has over the years, The CEO, parts with these words: had the opportunity to serve a number “The Blue Revolution has evolved! Today, of prominent clientele by providing competition is for space in people’s solutions to their corporate needs in the minds. It’s about creating something areas of Branding, Marketing, Advertising, that is memorable, sustainable, coherent, Kwaku Danso-Misa Design Services, Public Relations and flexible and ultimately adds value. CEO / Creative Director, Digicraft Corporate Communications. digicraft

OCTOBER 2013 GHANA BUSINESS & FINANCE 21 www.digicraftgh.com

TENTH ANNIVERSARY

THE BLUE REVOLUTION 10 Years, Inspiring Creativity And Building Brands A decade ago we dreamt of inspiring creativity and altering perceptions. With God, your support and partnership our dream continues to be a reality and yours evolves through our eyes

THANK YOU FOR BELIEVING AND SHARING IN OUR VISION

Print Craft Curb cravings to control your weight

Cravings are strong yearnings for specific foods, usually those with high sugar or high fat content. Unlike the normal hunger that we experience between meals on a daily basis, cravings are triggered by emotions, situations, or pleasant associations. They are linked to our mind’s reward HEALTH & FITNESS HEALTH system and often these associations stem back to childhood, holidays, enticing smells, or social situations. Indulging a craving can trigger a diet- destroying binge. When you eat a food you long for, your brain releases dopamine (a natural chemical linked to pleasure) making this mind-body connection an inevitable reality to deal with. In fact, many of us soothe feelings of stress, depression or boredom through “emotional eating” which provides a fleeting sense of comfort associated with specific foods. Understanding the power of cravings and controlling them is crucial to keeping your body toned. Caving in to a craving once in awhile- the problem is that if you do it one time, you’re much more likely to swing by again. Much processed junk food has chemicals and hormones that make it addictive and those who frequently eat fast food and products with high fructose are more likely to pack on the weight.

Strategies To Combat Cravings

Don’t Go To The Grocery it’s really quite the opposite. Make Exercise Shop Hungry sure to have you have a balance of Any kind of exercise will helps You will overspend and buy poor- protein and complex carbohydrates you release endorphins, improve nutrient products your body neither to sustain you through a bracing your mood and help you combat wants nor needs. No matter how workout and morning tasks. your cravings, especially if you strong your willpower is, shopping can schedule your workout at the while hungry will just set you up Keep Unhealthy Food specific times that your cravings for self-sabotage, so make sure to Choices Out of Your House occur. Logging in some time on have a healthy, small snack before Why sabotage yourself? It is the the treadmill or cross trainer while you shop. Be smart and implement common law of nature - once listening to music or watching TV a food shopping strategy. Make a list something is in your sight, you will distract you from fixating on and stick to it. Designate one day want it! How many times have you the food you crave. a week as your shopping and food triggered your own food craving by preparation day. By developing this keeping that candy bar in your desk Relieve Stress ritual, you become more organized drawer or that batch of cookies in Media and marketing has and disciplined. your kitchen? It’s only natural to programmed people to turn to food want a bite when you see it. As as their outlet whenever they become Always Eat Breakfast the saying goes - out of sight, out stressed. By discovering alternative Your mum was right when she of mind! Keep fruits, vegetables, ways to relieve your stress, you said that breakfast was the most and other healthy staples in your will soon be able to channel your important meal of the day. Always surroundings. stressors into something positive. make sure to eat within the first Try taking a brisk ten minute walk 2 hours after rising in order to Eat Regularly the next time that your nerves get jumpstart your metabolism and By eating 4-5 small meals per day rattled. You may also want to try burn more calories throughout the you will keep your metabolism & incorporating yoga or dancing into day. People think that they are saving blood sugar levels in check and keep your routine at least once a week. calories when they skip breakfast but your cravings at ease.

I hope these tips help you next time you confront an inevitable Cybex (GH) limited is the official dealer and provider of food craving. These cravings will inevitably occur, but you do not Cybex premium commercial fitness equipment. Content have to obey them. Keep intact with good nutrition and sound featured in the GB&F is meant to inspire healthy living eating habits! and wellness and should not be taken as medical advice. For medical advice please consult a doctor.

OCTOBER 2013 GHANA BUSINESS & FINANCE 23

BANKING & FINANCE analysts say. private sector, thecountry’s highbankrateslogicallyevincesacausefor concern, where accesstocredit playsaveryimportantfundamentalrole inbuildingastrong second onlytoBrazilglobally. Andgiventhecurrent competitiveglobaleconomy with thehighestinterest ratespread andthehighestlendingratesinAfrica;and, corruption. ThedevelopmentputsGhanaintheunenviablepositionascountry the secondfastestwaytowealthandeasymoneyinGhana,nextonlypolitical loaned chargedinterests of30percentminimum,commercial bankingisarguably interests depositsnormallyattractingearned ofaslow7percentand With By Martin-Luther C.King - inspiteofBankGhanadirectives Interest ratesstilltoohigh, 26 (APR). The APR is the true rate banks(APR). andThe non-bank APR financial is the true according totheBank ofGhana April AnnualPercentage Rate and chargesanannualrateof28.67 percentonconsumercredit, annual average interest rates of 3.95 per cent on depositor’s funds Banks suchasStandard Chartered Bank (Stanchart) Ghana pays of theeconomy. sector from thisimportant enormous economicgainsaccruable GHANA BUSINESS &FINANCE at an affordable cost, denying the country oftheat an affordable cost,denyingthecountry more smallbusinesseswere unabletoaccesscredit Canadian ChamberofCommerce Ghana (CCCG), ccording toAbudulai Nantogmah, President ofthe

on depositsat 4.60 percentbutchargesa27.30 percenton Ghana Commercial Bank (GCB)peggeditsaverage interest borrowing cost with a baserate of 24.95per cent. State-owned interest ondepositsbutrecorded ahighof 35.96 percenton The Bank ofAfrica ontheother handpaysthehighestrate of deposits at4.88percentandcharging32.36onconsumercredit. closely ontheheelsofStanchart withanaverage interest paidon interest paidby banksondepositsofsavers. Barclays Bank follows levied by banks.Average interest paidondepositsistheaverage costofborrowingthe true andincludes chargesandcommissions institutions chargethepubliconloansandadvances. It reflects Millison Narh , First Deputy Governor, Bank ofGhana OCTOBER 2013 consumer credit. Another state-owned bank, the National disciplinary measures that should deliver optimum operational Investment Bank, paid 8.93 per cent interest on deposits but efficiency. charged a 35.0 per cent on loans. Fifteen of the 27 banks in the country pay an average interest on deposit of between 9.0 More specifically, banks need to stop the unnecessary competition to 11.5 per cent with SG-SSB having the lowest base rate of in search of so-called best talent to reduce the cost of borrowing 17.28 per cent. to businesses since charging high interest rates is closely linked to their need to make more profits which will enable them to Base rates for lending are typically used by banks in their dealings sustain payment of ridiculously high salaries, as well as be able with high net worth clients. Therefore, advances to new clientele to continue poaching staff members of their competitors. and other risk-prone customers are made on higher interest rate terms. Ironically, the Bank of Ghana (BoG), had recently In addition, the urgent establishment of the collateral registry and announced a new base rate of 16 per cent down from 18 per the credit reference bureaus will reduce information asymmetry BANKING & FINANCE cent. BoG is also encouraging commercial banks to explore the in credit allocation in the banking sector, and in the long-run idea of sharing infrastructure to reduce help lower the risks associated with operational costs, and improve efficiency increasing non-performing loans in in the delivery of financial products and “More specifically, the banks’ portfolio, analysts say. services. “This is to eventually lead to a banks need to stop the reduction in the banks’ lending rates to Political risks, including those related ensure availability of more funds and at unnecessary competition to policy uncertainties, corruption, reduced costs to entrepreneurs for the in search of so-called and lack of institutional protection growth and expansion of businesses in for investments and private property the country”, says Millison Narh, first best talent to reduce should also be minimized in order to deputy governor of BoG. the cost of borrowing to improve investor-confidence and trust.

BoG is also intensifying its surveillance businesses...” Reducing interest rates will require activities to ensure efficient risk addressing some structural weaknesses management and good corporate in the banking industry. Despite governance structures in the banking sector. A new formula the fast growth of the industry, competition remains low, an had become necessary because the current system had not been indication that size alone may not be sufficient in generating able to bring about uniformity in the determination of interest competition. Primary among the structural weaknesses is the rates and transparency in the regime, said the central bank. One domination of the industry by the Ghana Commercial Bank of the shortfalls in the old formula was banks’ lending below (GCB) along with the National Investment Bank (NIB) and the base rate, thereby bringing distortions into the regime, a Agricultural Development Bank (ADB) which does not operate situation which undermined the central bank’s policy rate which independently and efficiently. It is as if over 30 per cent of the is supposed to influence the behaviour of interest rates in the banking industry is not contributing to the expected competition banking industry. and efficiency.

But despite the directive from the central bank, commercial banks have rather responded sluggishly, reinforcing concerns about the stifling effect on the economy of the huge spread between the interest rates on funds paid by the commercial banks to clients’ deposits and interest charges on loans by the banks. To make matters worse, even those who know the implications of the trend still feel compelled to accept the banks’ terms because of their dire need for cash.

Still, however, commercial banks in the country can lead the way in stemming this dangerous trend. Primarily, the banking sector need to quickly wean itself of the ‘lethargy effect’ currently afflicting the industry, whereby a combination of low competition within banks and individual banks’ high operational costs, including administrative costs, the costs associated with inadequate financial infrastructure, and the high costs of administering numerous small deposits and borrowers Similarly, since moral suasion by the BoG had failed before who lack sufficient identity and credit reference, conspire to now, the Central bank needs to introduce a mandatory interest ensure that the interest rates keep sky-rocketing. rate cap, initially in the region of 10 per cent, that should be reviewable after a year or two; but with the banks still retaining a Indeed, together with slow transmission mechanism, structural measure of freedom to continue to set the levels of their lending rigidities and the need to intensify financial sector reforms to and deposit rates. And, since deposits represent banks’ principal enhance efficient financial intermediation within the financial source of funds for lending, imposing a limited mark-up of markets already identified, banks also need to look inward lending rates over deposit rates by the Central bank should not by voluntarily adopting and effectively implementing fiscal be out of order.

OCTOBER 2013 GHANA BUSINESS & FINANCE 27 INVESTMENT 28 GHANA BUSINESS &FINANCE

considerations considerations Sub-Saharan Sub-Saharan business in business in to doing to doing Africa OCTOBER 2013 regulator,” saysthe report. structure and requirements, whilestillsatisfyingthelocal changesinamannerthat best suitstheircorporate regulatory their contact with regulators to ensure that they comply with “Companies shouldtherefore beproactive aboutmanaging requirements. investments inimproving theirtradingplatformsandcompliance including thoseinKenya andNigeria are makingsignificant advantages ofsuchalistingunclear, someofthe largerexchanges, of liquidityinmanythesemarkets canmakethecommercial stockexchanges. RMBnotedthatwhilethe historic lack country pressure to list on local exchanges as regulators seek to develop in- Large internationalcompaniesinAfricaare underincreasing 4. Locallisting requirements and notsolelyonshareholding,” advisesRMB. ensure thateconomicreturns are basedonfundingcontribution overlocal partners time,withstructured fundingsolutionsthat of ensure participation equitableeconomicsandthemeaningful projects. “The transaction islikelytoneed tobestructured to often unabletoraiserequired fundsespeciallyincapitalintensive ownership. Thechallengethoughisthatlocalshareholders are typically require aminimumpercentage oflocalshareholder are intheprocess ofadoptingcitizen empowerment laws,which The notesthatmanyAfricancountries have adopted or report 3. Localownershiprequirements introductions.”and facilitatenecessary market tounderstandlocalculture, thebusinessenvironment entrantinthe canhelpanew the business.“Therightpartner relationships andislikelytohave alonger-terminvolvement in critical when theis localrelied partner upon to drive local inmosttransactions,itisespecially While thisisimportant 2. Choosingtherightlocalpartners areparties achieved,” saysthereport. as pricing,canhelptoensure thattheultimateobjectives ofboth timelines andappropriate mechanismstodealwithissuessuch a clearpathtocontrol fortheincomingshareholder, indicating be structured onaphased-inbasis.“An upfront agreement on acquire outrightcontrol. M&Atransactionsshouldtherefore or controlled, makingitdifficultforaforeign shareholder to The notesthat many businesses in Africa arereport family owned 1. Achievingcontrol from thereport whichliststenkeyconsiderationsfordoingbusinessinAfrica. on thewealthofopportunitiesoffered bythecontinent,”saysreport. We publishhere excerpts the likelihoodofsuccessandenableinvestorstobettermanagetheirprocesses soastocapitalise together withcorrectly assessinginvestmentopportunitiesfrom theoutset,cangreatly enhance Saharan Africa.“Understandingthevariouschallengesofdoingbusinessinsub-SaharanAfrica, Where toInvestinAfricareport inwhichitidentified10keyconsiderationsforinvestingsub- rise from 2011.SouthAfricanbasedRandMerchant Bank(RMB)recently released its2013/14 value ofM&Atransactionsinvolvingsub-SaharanAfricatargetsreached US$25bnin2012,an18% on growth opportunitiesandmitigateagainsttheserisks.According toThomsonReuters,the potential investors.Mergersandacquisitions(M&A)are ontheriseasinvestorsseektocapitalise with politicalinstability, corruption,regulations andpoorinfrastructureamong causingconcern Despite numerous opportunities,therisksandchallengesofdoingbusinessinAfricaremain high and be comfortable withtheultimatejurisdictionofcontract. and becomfortable system andenforceability ofcontractsintherelevant jurisdiction to have adetailedunderstandingofthestrength ofthelegal makes theduediligenceprocess difficult.RMB advisesinvestors investor expectations.Thislackofinformation,the says, report complete andreliable of financialinformationcanfallshort unlisted companies,whichmeansthataccesstovalid, accurate, Generally, there islimitedfinancialdisclosure, bothforlistedand 6. Financialdisclosure andduediligence expectations andunderstandingrealistic, achievable outcomes. advises investors toputinenoughtimediscussinggrowth valuation expectation gapsthatneedtobemanaged.RMB growth Thisisoftenlikelyto opportunities. result insignificant and international investors’ risk and perceptions of country RMB notedthatthere isoftenadisconnectbetween local 5. Valuation considerations markets.” eminent advisorsare thatcanunlockatransactionintherelevant to establishwhothepre-Africa inthepastanditisimportant well forcompaniesimplementingtransactions insub-Saharan “A combination of and trusted resident advisors has worked on-the-ground presence are vitalfornavigatinglocal nuances. with advisors they know local knowledge and trust, and an The explainsthatwhilefirmstypically report prefer towork 10. Choose therightadvisors the effectofchangesinmarket conditions. flexibilitytominimise with maximumpricingandstructuring RMB alsonotesthattransactionsshouldideallybedesigned 9. Timing accordingly. understand these requirements upfront and price for them developing insub-Saharan Africa.Investors shouldtherefore RMB explainsthatatrend ofrestricting staffrationalisationis 8. Staffconsiderations transaction. andregulatorsbusiness partners thatmayneed toapprove the of themajorstakeholdersinvolved inthetransaction,both ought tohave anunderstandingofthepoliticalassociation potential effectonthetransactiontimetable.RMBsaysinvestors events suchaselectionsandunderstandtheir of noteworthy According tomaintainawareness tothereport, itisimportant 7. Understandingthepoliticalenvironment

INVESTMENT SNAPSHOTS FROM THE AFRICA HOSPITALITY SHOW

1 PHOTO GALLERY

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30 GHANA BUSINESS & FINANCE OCTOBER 2013 8 9 PHOTO GALLERY

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1. Herbert Acquaye, president of Ghana Hoteliers Association and Nii Okwei Kinka Dowuona VI, Osu Mantse entering the venue after cutting the tape 2. Yaw Duah, event coordinator making a speech 3. Dignitaries at the high table and invitees at the hall 4. Cross section of the guests 5. Exhibitors of the hospitality industry exhibiting product and services at the event 6. Dignitaries patronizing one of the exhibitor’s stands 7. Aerial view of exhibitors 8. Turkish Airlines exhibiting their services 9. GB&F, media partner exhibiting at the event 10. Other exhibitors

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PROSEED MICROFINANCE LAUNCH

41 42 4 3

4 1. Cross-section of some of the dedicated staff who drive the company 2. Mr Philip Sintim Amoah, Chairman of ProSeed Microfinance making his Speech. 3. Cutting the tape to open the head office branch 4. Mrs Ruth Amoah-Koomson Co-founder, shareholder and CEO/MD of ProSeed Microfinance addressing the gathering 5. ProSeed staff assisting the client in account opening 6. Mrs Ruth Amoah- Koomson addressing the invited guests at the banking hall.

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OCTOBER 2013 GHANA BUSINESS & FINANCE 31 INSURANCE growth ofinsurance. regulatory frameworknew is a necessity for facilitating the The outlookforthenextfive saya yearsisbright,but experts the globalfinancialcrisis,states the report. improved economicdevelopment, following in thenation’s frameworkand regulatory The growth a waspartly result ofchanges 27.0% duringitsreview from 2008to 2012. premium value, recording aCAGR of grew intermsofwritten insurance industry com. According tothe report, theGhanaian United States-based group, ReportsnReports. to 2017,’ andreleased wasundertaken by a country’s insurancetogrow. of Americare-emphasises therole ofastrong regulatory frameworkinmakingthe insurance industryshouldbeshakenoff. Arecent report from theUnitedStates regulationsAny doubtsaboutthecapabilityofmodern-age torevolutionise Ghana’s By Ayuureyisiya KapiniAtafori to revolutioniseinsurance frameworkrequired New regulatory 32 GHANA BUSINESS &FINANCE Trends andOpportunities in report, ‘The Ghana, Insurance industry Key of Compound Annual Growth Rate (CAGR). The wouldgrow insurance industry atarateof20.4% rare market research report reveals thatGhana’s

insurance policy” population holdany of thecountry’s industry... only5% of theinsurance “Despite the growth policy’, excluding, theNational Health Insurance Scheme. that only5%ofthecountry’s population holdany‘insurance Despite the growth of the insurance industry, Mr. Davor states overfactors are theindustry theforecast expectedtosupport CAGRs of38.1%and24.4%duringthereview period.These accident andhealthinsurancesegmentswhichgrew atrespective growth byIndustry the lifeandpersonal supported wasfurther average rateofabout32percent.” past five years beengrowing atanannual Western Regional capital,that:“It hasinthe Insurance, says in oil-city Takoradi, the Davor, former Acting Commissioner of Agency (GNA)report, Mr. Simon Nerro market. According toarecent Ghana News figures paintafarmore boominginsurance growth projection isprospective. But other period: 2012−2017.The20.4%CAGR cont’d onpg34 OCTOBER 2013

He is regretful that access to insurance services in Ghana is limited, especially among the low income-earning population. He says the reason for the low patronage of insurance services in the country is due to lack of knowledge about insurance products and services. He notes that lack of confidence and trust in the In Oil & Gas applications, insurance companies due to negative media exposure concerning

INSURANCE productivity goals are as payment of claims is a serious challenge. Mr. Davor, however, states that the Ghanaian insurance industry is very competitive challenging as the conditions. So in terms of premium income. much depends on how well your engines stand up to these He says despite the growth of the industry, the low patronage challenges. raises questions about the legal, economic and regulatory frameworks in the country. The National Insurance Commission (NIC) will have to address these especial regulatory challenges Whether you’re drilling or with international-best-practice policies that set professional, transporting product, Cat® gas and moral and ethical standards for the insurance business. The NIC diesel engines deliver superior is tasked to protect consumers and ensure the integrity of the performance and efficiency – with insurance market. The Insurance Act, 2006 (Act 724) provides unparalleled reliability. the regulatory environment by empowering and granting Kwesi Amissah-Arthur, Vice President of Ghana adequate powers to the Commission. Act 724 ensures a strong For the power your operations regulatory framework for the industry. After the operation of depend on, we offer Cat diesel and the Act, experts say a new law is necessary generator set (from 10Kva to to strengthen the regulatory capacity of Africa‘s insurance The practices encompass licensing and 17000Kva) registration; on-and off-site monitoring the NIC in order to instil confidence in insurance; and thus promote rapid growth. market contributed and surveillance; and regulatory bodies. With Miss Lydia Lariba Bawa, a thorough- less than 2.0% of The regulatory framework is fraught with Mantrac, the sole authorized dealer bred, seasoned insurer and lawyer at the the world’s total hurdles. According to a GNA feature for Cat products in Ghana written by Andy Fosu headlined, ‘A move helm of the NIC, there is no better time insurance premiums specializes in power solutions for than now for the regulator to rise up to the towards proper regulatory system in the the oil and gas industry to help your expectations of operators and clients. in 2011 and 2012. Insurance industry?’ the “apparent past business operate at maximum weak regulatory framework governing The insurance industry’s growth is predicated on the pivotal role insurance practice” was one of the challenges efficiency. Through our local of a flexible but firm regulatory scheme for guiding, policing, Mr. Ebenezer Allotey, Managing Director of Prime Insurance branches in Accra, punishing and cleansing the industry. Effective regulation of the Company Limited, identifies. Mr. Gordon Akwowora Wiru, Kumasi,Takoradi & Tarkwa insurance trade ensures financial stability. According to experts, Legal and Compliance Manager of the Ghana Reinsurance we provide you with unparalleled Company Limited, says “Contemporary thinking and practice regulation is intended to promote effective and efficient capital product support to meet all your mobilisation and allocation in a sound and safe environment in amongst the world’s economic giants as well as the World Bank, order to stimulate economic growth. Regulatory governance, is to strengthen the regulatory capacity of independent bodies repair and service needs. the capacity of regulatory institutions to make decisions without such as the NIC to ensure sanity in their areas of operation interference and to formulate and implement policies, and instead of allowing direct governmental regulation.” www.mantracghana.com enforce sound laws, was one of the four main standards that an International Monetary Fund (IMF) study identified as capable But the government recognizes the paramount role of the of engineering financial stability. According to the IMF study, regulatory system. At the second Life Insurance conference regulatory governance needs principles such as the objectives of organized by the Ghana Insurance Association (GIA) in Accra regulation, independence and adequate resources, enforcement last June, Vice President Kwesi Amissah-Arthur said government of powers, clarity and transparency of regulatory process, and would continue to provide effective and efficient legal and external participation as in the use of auditors. regulatory environment to ensure a thriving financial sector, including insurance. He stated that Africa‘s insurance market The other standard is regulatory practices, the practical application contributed less than 2.0% of the world’s total insurance of a prudential framework which consists of the rules, directives premiums in 2011 and 2012. and regulatory requirements, set up the structure to govern the operations of the insurance companies. The practices refer to “A viable and vibrant insurance sector is, therefore, a prerequisite techniques and mechanisms for supervising and monitoring. for sustainable socio-economic development of all nations,” says Mantrac Ghana Ltd. Regulatory practices involves group-wide supervision, Veep Amissah-Arthur. Then, Mr. Kwame-Gazo Agbenyadzie, Head Office Branches Takoradi Tarkwa Ring Road West Kumasi Cape Coast Road Bankyim-Tarkwa monitoring and on-site inspection, reporting to supervisors, co- the president of the GIA, urges government to fast-track the North Industrial Area Harper Road P.O. Box 3000 P.O. Box 386 P.O. Box 200 operation and information sharing, confidentiality, licensing, draft Bill on insurance into law to enhance the operations of the Accra-North P.O. Box 5207 Adum – Kumasi Phone: 233-31-2023450, Phone: 233-31-2320706, ownership transfer, and corporate control and qualifications. industry, pledging the association’s commitment to reforms. Phone : 233-30-2213720 Phone: 233-32-2023161, 2024213, 2022900 2320708 Fax: 233-30-2221950 2025276, 2031166, 2031170 Fax: 233-31-2023457 Fax: 233-31-2320709 www.mantracghana.com Fax: 233-32-2025277 © 2013 Caterpillar All Rights Reserved. CAT, CATERPILLAR, their respective logos, "Caterpillar Yellow," the "Power Edge" trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. 34 GHANA BUSINESS & FINANCE OCTOBER 2013 In Oil & Gas applications, productivity goals are as challenging as the conditions. So much depends on how well your engines stand up to these challenges.

Whether you’re drilling or transporting product, Cat® gas and diesel engines deliver superior performance and efficiency – with unparalleled reliability. For the power your operations depend on, we offer Cat diesel and generator set (from 10Kva to 17000Kva)

Mantrac, the sole authorized dealer for Cat products in Ghana specializes in power solutions for the oil and gas industry to help your business operate at maximum efficiency. Through our local branches in Accra, Kumasi,Takoradi & Tarkwa we provide you with unparalleled product support to meet all your repair and service needs.

www.mantracghana.com

Mantrac Ghana Ltd. Head Office Branches Takoradi Tarkwa Ring Road West Kumasi Cape Coast Road Bankyim-Tarkwa North Industrial Area Harper Road P.O. Box 3000 P.O. Box 386 P.O. Box 200 Accra-North P.O. Box 5207 Adum – Kumasi Phone: 233-31-2023450, Phone: 233-31-2320706, Phone : 233-30-2213720 Phone: 233-32-2023161, 2024213, 2022900 2320708 Fax: 233-30-2221950 2025276, 2031166, 2031170 Fax: 233-31-2023457 Fax: 233-31-2320709 www.mantracghana.com Fax: 233-32-2025277 © 2013 Caterpillar All Rights Reserved. CAT, CATERPILLAR, their respective logos, "Caterpillar Yellow," the "Power Edge" trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. AGRICULTURE 36 GHANA BUSINESS &FINANCE

Battle forSurvival Ghana’s poultryindustrycontinuestostruggle competition from theircolleaguefarmersinthe for survival thanks largely to a lack of attention for survivalthankslargelytoalack of attention Poultry Industry Poultry Industry developed economies.Thecountry currently imports anestimated200,000MTof frozen to the industry by government andstrong to theindustrybygovernment - laysinthe2014 What As Ghana’s chicken products annually. Budget forit? By Albert Kodjoe OCTOBER 2013 OCTOBER the market foreggs. averaging below 20peryear perpersoninGhana torevitalise improve thecurrent percapitalow consumptionofeggs could befedthree eggsperweek. Thesepolicydirections will high schools (boarding schools) whereby at least each student the improvement ofschoolmenusforgovernment senior pupils. Theyalsoexpectthe2014budgettosimilarlybegin to the menu to improve the health and nutrition of the improved cashallocationcanfacilitatetheadditionofeggs reasonable upward adjustments in subsequent years. This in2014withsubsequent pupil perdaytoatleast60pesewas School Feeding Program from thecurrent per 40pesewas increaseperiod andimportantly thecashallocation tothe 1.6 million pupils to double that figure over a three-year increasing thecoverage oftheprogramme from thecurrent enhancement oftheGhana SchoolFeeding programme by Mr. Kokroh also saidthe2014budgetmustfocuson practice. learning andadoptingtherightpoultry by productionofficers isvitalforincreasinglocally poultry effectively. Improving theratiooffarmersto veterinary farmers moremade mobile to to poultry deliver services technicians)willbeappropriately resourcedveterinary and atthedistrictlevel whereparticularly extensionofficers (i.e. DirectorateServices ofFood oftheMinistry andAgriculture, Fund, improvement inthecapacityof Veterinary of theNational Poultry Council,aPoultry Development farmers.ByGhanaian poultry this,theyexpectthecreation production sustainableandprofitable for to makepoultry by introducing policymeasuresindustry whichwillbegin budget tocreate aconducive environment by forthepoultry According toMr. Kokroh, theassociationexpects2014 Expectation from2014Budget couldbegrave. industry a totalcollapseofthepoultry inGhana. Theeconomicconsequencesof industry poultry coming years if no measures are put in place to rescue the is in crisis and the situation could get worse in the industry (GNAPF), Mr. Quame A.Kokroh, itwasrevealed thatthe of theGhana National AssociationofPoultry Farmers and Finance Magazine (GB&F)withtheExecutive Secretary In conductedby anexclusivetheGhana Business interview EU’s totalfrozen chickenthatgoestoAfrica. EU, USAandBrazil. Ghana almostone-third imports ofthe wereUS$200 million,andthemajorsources ofimport the substantially in2010toover 200,000tonnesvalued at generous subsidies forproduction.This figure jumped into thecountry, mostlyfrom theEUwhere farmersreceive In 2002,more than26,000tonnesofchickenwasimported Unfair CompetitionandAdvantage will out-compete the imported ones on account of freshness, oneson accountoffreshness, will out-competetheimported competition. If thisisdone,thelocallyproduced chicken chickenmeattothelocallyproduced ones forfair imported introducing highertariffsthatwillequalize the priceof Mr. Kokroh also implored government to consider along theproduction lineinFrance. farmers, itwouldalsoresult intheloss ofabout50,000jobs 2013) becausetheyfearthatbesidesrevenue losses tothe scrap suchsubsidies(Ref. WATT Poultry Sept. E-news, 12, engaged withthestatetore-negotiate theEU’s decisionto are farmersandexporters seriously example,where poultry than thelocallyproduced chicken.He citedtheFrench frozentheir abilitytoexport chickentoGhana farcheaper from theirgovernments, whichsignificantlycontributesto enjoy end subsidiesatboththeproduction andexport products toGhanaHe ofpoultry saidthattheexporters Protect LocalPoultry Farmers 2013 political leaderstowalkthetalk.” policies are implemented.In hiswords “It istimeforour iftheright industry believes there is hope forthepoultry funding canbebudgetedforbackedby legislation.He priorities right.If thepoliciesare inplace,thenthe appropriate Mr. Ken stated Quartey that government must set its Economies ofScalekicktotheimpactcostsproduction. inscaling-upproduction toapointwhere would alsosupport control and management.If properly operated, this system operators to deliver is thebest option for administrative where smaller professional operatorswouldsupport Out-grower schemetoenhancegrowth. Such ascheme, According toMr. Quartey, hehasbeenadvocating foran the socio-economicdevelopment ofthecountry. wasnotinapositiontoexploititsfullpotentialfor industry is indeed,goingthrough challengingtimesandassuchthe in Ghana industry corroborated the claim that the poultry inGhana,who alsospoketoGB&F industry in thepoultry Mr. Kenneth Quartey, theM.DofSydals,another player Walk theTalk 5%-10%. at1.0%ofCIFandlevyfrozen at imports chickenimports has suggested that government input should levy all poultry Development Fund, Mr. Kokroh indicatesthattheGNAPF entrants.Regardingnew sources offundsforthePoultry operatorsand industry capacity buildingforexistingpoultry for thefinancingof research anddevelopment, trainingand storage, andmarketing. Thefundwouldalsobeessential in downstream operationslikeprocessing, packaging, value chain – specifically,links in the poultry investments improvements aswellinvestments asnew incriticalmissing in terms of expansions, modernization and technology industry,would helpintherecapitalisation ofthepoultry The Development Poultry Fund, on the other hand, Development Fund. value chain. Importantly it will manage the proposed Poultry production, aswell asproper linkages ofthewholepoultry between research anddevelopment and commercial In addition,itwillprovide aplatformforgoodinterface standards. industry monitoring ofpoultry also coordinate thedevelopment, implementationand andgovernment.main linkbetween theindustry It will It development fulcrum. policy andindustry willbethe it isparamountasthebodywillbenationalpoultry On thecreation ofaNational Poultry Council,hebelieves annually, growth assumingnofurther inannualproduction. billion whilelabourincomescouldtotalGh¢11.50 million incomes thatthebirds couldgenerateisaboutGh¢1.15 which can create at least 57,000 direct jobs. Farm gate of 1.3kgthistranslatestoapproximately 115millionbirds, annually, thatgives 150,000MT. At adressed bird weight of theestimated200,000MTfrozen chickenimports assistant). If local farmers are able to recapture even 60% 2,000 birds generateatleastonedirect job(farmhand/ predominant practiceofdeeplitterfarminginGhana, every In specificterms,Mr. Kokroh opinesthat,becauseofthe generation. substantial economicbenefitsinjobscreation andincome Broiler production willalsoberevived withitsconsequential good taste,andquality(lower fatcontent),headds.

GHANA BUSINESS &FINANCE 37

AGRICULTURE AVIATION airlines. by five2012. KIAisserved domesticand29scheduledinternational throughput of KIA in 2011 was 1,585,602, increasing to 2,500,000 in year was600,000,whileitrecorded 2.5millionin2012.Passenger 15 in2000to422012. Total passengerthroughput intheformer The statisticsis relatively encouragingasthetotalcarriersjumpedfrom competitive in West Africa,withanaverage growth of10%perannum. Ghana’s isoneofthefastestgrowing aviationindustry andmost document dated13thAugust. the Minister for Transport, madethisknown inanofficial13-page facilitate thegrowth oftheaviationsub-sector. MrsDzifaAkuAttivor, framework inorder lawsandregulations toformulatenew thatwill To achieveisreviewing theaviationregulatory thisgoal,theMinistry By Ayuureyisiya KapiniAtafori plan toaddressaviationneeds Comprehensive airtransport 38 Mrs DzifaAkuAttivor, Mininster for Transport GHANA BUSINESS &FINANCE in arapidlychangingandcompetitive industry. aviation needs taking into account international best practices systemplantoaddressintegrated airtransport Ghana’s of he Ministry Transport ispreparing acomprehensive and

The KIA Phase II Rehabilitation Project, about47%completed, passengers. will ultimatelyprovide 13aerobridges tofacilitatetheboarding of the remodeling oftheentire terminalbuildingtoeasetraffic.This Architectural designsarefacilities attheairport. beingconsidered for period. Theplanisaimedatfacilitatingthedevelopment ofphysical with amasterplanthatconsiderstheairport’s growth over a20-year the country’s inAccra, onlyinternationalAirport theKIA,comesin infrastructure.”on airport Thisiswhere theGACL, themanagersof “requires an ambitious development to cope with the heavy demand Such agrowth, according totheGhana CompanyLtd.(GACL), Airport Home and Marina Market. Other world-class facilities are in Ghana, namelyHoliday Inn hotel, Silver Star Tower, Una now hassomeofthebesthotelsandofficeaccommodation to the best gateway West African sub-region. The city complex city complextohelptheKIAachieve its vision ofbecomingthe City The Airport Project isdesigned asaminiature commercial GATA complexbuildingisabout80% complete. Training Academy (GATA). ofa seven-storey Theconstruction air traffic simulator has also been installed at the Ghana Aviation destroyed by theAlliedAirplanecrashin2012.Amulti-purpose (ILS) attheKIAiscomplete.TheILS replaced theoldone installation of an ultra-modern Instrument Landing System the rapiddevelopment oftheaviationinfrastructure. The Commitment(APSC)byService thegovernment willfacilitate According toMrsAttivor, therelease of100%AirlinePassenger three awards inthesameyear. Director of the GACL, Mrs Doreen Owusu Fianko, garnered bodies withfourawards in2012,whiletheerstwhileManaging KIA beinguncompleted,ithasbeenrecognized by international lighting systemis40%complete.Even withsomefacilitiesatthe about 48%complete.Theprovision ofaeronautical ground complete whiletheinstallationandextensionoffuelmainsare Additionally, thereconstruction ofthetaxiwayisalmost55% system attheKIAterminalis70%complete. The installationofadditionalbaggagehandlingandscreening of additionalstoragetanksforaviationfuelis80%complete. wide-bodied aircraft, isabout86%complete.Theconstruction ofthesouthernapron for which encompassestheconstruction facilities. Thecurrent statusofwork oftheexpansionproject, also includesaproposed andplannedlandside airsideview OCTOBER 2013 being constructed. The complex also has restaurants, car parks, shopping malls, banks and more. The Perishable Cargo Center (PCC) is a modern extension of FLIGHT the KIA. It is an intervention under the Millennium Challenge Compact. The PCC provides handling and temporary storage SCHEDULES of perishable produce like fruits and vegetables for export. It AVIATION is about 1,200 meters square with a storage and cold room of Airline Service AC Origin GMT 200 meters square. The facility has a packing area of 350 meters square and work room of 600 meters square. Its throughput is Code No. TYPE expected to increase by a minimum of 5% annually from the SUNDAY current 20,000 metric tons. The facility is currently managed by Air Ghana Perishable Cargo Center on concession. Ethiopian Airways ET 508 767 Addis Ababa 11:25 The Transport Minister said other projects being implemented in Air Namibia SW 701 319 Windhoek 17:20 the aviation sub-sector include the establishment of a National Delta Airlines DL 026/7 767 New York/ 10:55/ Airline through a public-private partnership (PPP) arrangement; Robertsfield 20:25 Cotonou/ and the development of new international airport in the Dangbe Starbow S9 205/4 BAE146 Abidjan 16:30 West District. The aviation managers are working to restore Ghana to the Federal Aviation Authority (FAA) category one MONDAY classification. Ethiopian Airways ET 508 767 Addis Ababa 11:25

Cotonou/ Starbow S9 205/4 BAE146 Abidjan 16:30 TUESDAY

Ethiopian Airways ET 508 767 Addis Ababa 11:25 New York/ 10:55/ Delta Airlines DL 026/7 767 Robertsfield 20:25 Cotonou/ Starbow S9 205/4 BAE146 Abidjan 16:30 WEDNESDAY

Ethiopian Airways ET 508 767 Addis Ababa 11:25

New York/ 10:55/ Delta Airlines DL 026/7 767 Robertsfield 20:25 THURSDAY

Ethiopian Airways ET 508 767 Addis Ababa 11:25

New York/ 10:55/ Delta Airlines DL 026/7 767 Robertsfield 20:25 a section of the Airport City project Cotonou/ Starbow S9 205/4 BAE146 Abidjan 16:30

FRIDAY

She stated that the rehabilitation of the regional airports was on Ethiopian Airways ET 508 767 Addis Ababa 11:25 course. The runway of the Kumasi Airport is being rehabilitated and extended from 1,981 meters to 2,500 meters. The asphaltic Air Namibia SW 701 319 Windhoek 17:20 overlay of the runway project is 25% complete. Further, an ultra- New York/ 10:55/ modern ILS is being installed at the Kumasi Airport to help the Delta Airlines DL 026/7 767 Robertsfield 20:25 safe landing of aircraft, especially when visibility is poor. The Starbow S9 205/4 BAE146 Cotonou/ 16:30 upgrading of the Tamale Airport into an international airport Abidjan to supplement the KIA is ongoing. The agreement for Phase I SATURDAY of the Tamale Airport project intended to upgrade the runway, apron and air-ground lighting system has been signed. “A master Ethiopian Airways ET 508 767 Addis Ababa 11:25 plan would be completed and funds sought for the Phase II of Delta Airlines DL 026/7 767 New York/ 10:55/ the Tamale Airport upgrade,” Mrs Attivor explained. Robertsfield 20:25 The GACL plans to locate a new commercial airport for Takoradi South African Airways at Princess Town. Currently, the Takoradi Airforce Base serves (Accra to Johannesburg) as the airport for flights to the Western Region. The base has witnessed an increase in air traffic, following the commercial DAYS TIME (departure) Arrival production of oil in the region. Mrs Owusu Fianko told an Accra-based radio station recently that government is talking Monday 22: 30 pm 6:30 am with some strategic investors for a PPP agreement to build the Tuesday 22: 30 pm 6:30 am airport. “We have developed a conceptual design for the airport so we are working on it. We are talking to prospective investors Wednesday 22: 30 pm 6:30 am but if we get to a stage where we are not making headway, we Thursday 22: 30 pm 6:30 am will have to mobilize funds on our own.” Friday 22: 30 pm 6:30 am The airstrips in the other regions, especially in the Upper East Saturday 22: 30 pm 6:30 am and Upper West regions, are scheduled to be upgraded. With Sunday 22: 30 pm 6:30 am the completion of the KIA project, the internationalization of the Tamale Airport, upgrading of the regional airports and construction of new airports and airstrips, a new era of aero- Source: http://www.ghanaairports.com.gh/FlightSchedules.htm activities will dawn in Ghana.

OCTOBER 2013 GHANA BUSINESS & FINANCE 39

to be converted to colour

HILLTOP HOTEL Restaurant & Bar

P.O Box 11380, Accra Tel: 0302) 248444 / Email: [email protected] / website: www.maidenhotels.com EXECUTIVE SUITE 42 GHANA BUSINESS &FINANCE Providing Reliable Data for Oil ReliableDatafor Oil Providing - AfricaOilPages.com totherescue

and GasSuppliers with EricAmoakoEdmondsforachatGB&F. opportunity for all. Sebastian Spio-Garbrah ofNewYork, USAsat premise thatatransparent and logicalframework will fosterbusiness the website’s content serves all African countries and operates on a suppliers inGhana,andacross Africa.According tothecompany, AfricaOilPages.com, afree serviceaimedatassisting oilandgas since 2011.Afteryearsofresearch, theircompanyhasreleased savvy energy veteran Yaw Boadi to gradually bridge this gap Young oil entrepreneur Eric Amoako Edmonds joined forces with seeking tochangethat. found theoilandgassectorlikea‘forest’, andsomeGhanaiansare oilcompaniesseekingavenuestoinvestinGhanahave International success, butwithsuchanopportunitycomesalotofhard work. double to250,000barrels a day. Thisestimateisrecipe foreconomic second-biggest economy that expects oil production to more than A recent Bloombergarticle highlightedGhanaasWest Africa’s supplier databasespecificallytailored totheAfricaonshore and people. What I setout to create is the most comprehensive Ghana Business &Finance (GB&F): Thank you forthe offshore market. time GB&F: This website looks complex. very How longdid it takeforyour teamtopullthistogether? tobe allthingsto of theissuetosolve, insteadoftrying Eric AmoakoEdmonds –(EAE): You’re welcome. Thank EAE: About 2years. We didn’t tothemarket wanttorush you forhavingme. with justawebsite, sosometimeswe hadmonthsof The challenge was huge, so we had to first carve acoreThe challengewashuge,so piece we hadtofirstcarve discussions onhow besttopresent theinformation.The technical inputwasamazing; havingabout12people with an average of 20 years of experience in oil and GB&F: Why AfricaOil pages? What sparked the gas askingquestionsandpoking holeshelpedalot.I Africa, and ourfocus was not to beajack-of-all-trades. have alwaysbelieved thatavalue-added ideashouldbe simple, logicalandeven mygrandmother shouldbe idea behindit? able to understand. In this case it is slightly complex EAE: Absolutely. There are across manyopportunities EAE: It wasasimpleideatofill void inAfrica’s oil and gasmarket. Ihave worked ontheinvestor sideof gas? oil and gas companies looking for partners inAfrica, oil andgascompanieslookingforpartners GB&F: Is AfricaOilPages.com onlyforoiland and alsoonthesideofproject procurement groups looking forproduct orequipment.There are some data outthere, butusuallyoflittleuse,andthatis birth totheconcept.Itbirth ispretty straightforward. if you caneven findthem. We identifiedanurgent frustration inmanydead-endresearchesfrustration thatgave need here, specificallyforAfrica,anditisthe OCTOBER 2013 but I am sure my grandmother can at least get the gist of what companies valuable time and money, so we are doing the due we are doing here. diligence and hopefully take the gamble out of Africa’s oil and gas supply chain. GB&F: About you, do you have an engineering background? GB&F: What has been the most surprising part of this EAE: No. Actually far from it. My background is in business product, and is it free to join? and product development for television and other media EAE: I think the fact that useful information is so hard to find platforms. I stumbled into the oil and gas industry years ago was very surprising. In some ways I am not surprised, this idea when I was in business school. I had an excellent opportunity is so important but a complicated process, so I can see why you to learn the industry “ins and outs” in an aggressive company do not find many of these websites for Africa around. For the that was bringing some exciting new technologies to market. I second part of your question, yes it a free service. As a company, have worked with experienced engineers and project managers, Adinkra Energy does other research and consulting work so and had mentors who had decades of experience in the industry this AfricaOilPages.com was never a strategy to make money EXECUTIVE SUITE so that made a big difference. One thing I knew I was good at from users; instead we wanted people to have access to relevant was communicating complex ideas, particularly from a project information. management approach. So overtime, I probably became an engineer by default. GB&F: You talked a lot about local content policy, what is your basic concern here? GB&F: So you threw away a life in broadcasting? EAE: You cannot manufacture petroleum engineers and EAE: Not exactly. I certainly won’t say I threw it away. I like trained contract managers overnight. The idea of transferring to communicate, and I just find different mediums to do what practical skills and technology to citizens is not something I love, obviously some are more technical than others. I think you just make happen. The people in the country have to be I am attracted to any opportunity to solve business problems, engaged, committed to learning and training, and be visionaries that’s how I am wired. I still do some work for television, but themselves. There is the knowledge gap and even an awareness it’s all on the business side. gap, so it will take a careful but aggressive plan to achieve the local content expectations. The encouraging part of this is that GB&F: Do you have experience in other parts of the world the governments are really pushing for them, so it is a good sign. also, or just Africa? EAE: I have had a good oil and gas knowledge in the North Sea GB&F: How about information out on the web? Why not area, South East Asia, and Gulf of Mexico also. Actually the use Google, Bing or any other search engine? idea for Africa Oil pages came from a procurement effort for a EAE: This is a comment we get often, and it’s the easiest to project in Asia. answer. I actually have encouraged users to try other search I was looking for large quantities of potassium chloride, and had engines and appreciate our value for themselves. There are a hard time finding a reputable supplier in that part of the world plenty of data scattered all over the internet, - most are however to match the client’s specifications. After then, I wondered if the unreliable, inaccurate, or at best incomplete. Serious business same issue was the case in Africa, so it started with that simple people don’t have the luxury of running their business with question, but a very critical one. unreliable data, certainly not when there are strict international standards to meet. My point is, Google, Bing, and the rest of GB&F: Doesn’t Africa have anything like this? them don’t care who puts data out there; they really don’t, so EAE: I thought we should, but unfortunately we don’t. At the if that is your “reliable” source, you are on a different planet. very start, we worked with impartial analysts to answer this The advantage with AfricaOilPages.com is, this is an industry same question objectively, and the result was none. Of course that I have researched for years. Yaw Boadi, is very precise and there is some data here and there. There is data scattered all over incredibly logical so we spent the time brainstorming even minor for a handful of countries, but so much is outdated, incorrect, details that users will not see, but we want to be sure it all hangs - or to be candid - just garbage. The real job is someone taking together. We listened to experts who know the industry well; so the time to logically organize data so that it makes sense to we the website solves a real problem, not just dump data online. suppliers, investors and oil and gas companies. The industry is a serious business, and the last thing companies are looking for is GB&F: How can equipment manufacturers and suppliers unreliable data when you need to make procurement decisions. list their companies on Africa Oil Pages? The oil and gas industry is a rather complex landscape, especially EAE: They can write to us at [email protected]. It in Africa, and it will take strategic investments and diligent is free, but we vet the information provided to us, otherwise research to eliminate the clutter and add value to the market. everyone will show up and swear they are in the drilling business. We gather basic demographic information about a company and GB&F: So is your target market African suppliers alone, or use a thorough review process to ensure that the information anyone else? provided is correct and accurate, to the best of our knowledge. EAE: No. It’s a global platform so it benefits more than just African suppliers. Imagine a large national oil company or GB&F: What differentiates Africa Oil Pages from other an international oilfield services company seeking to award online information sources? contracts for different aspects of a project, where will they even EAE: It is our single focus on the supplier-related information for find potential companies to begin evaluating them? That is the African oil and gas industry operations. Our business is helping issue. And it can be anything from selling electrochlorination companies minimize supply chain risks, and having the right units, super duplex pumps, to catering food. What if there was information to do so is critical. I know guys from big information semblance of a level playing field for others to participate? Sure, service firms and newspapers in the US who commend the fact there are many opportunities in Africa, but you will be hard- that we are not trying to do everything, but complement many pressed to find people on the continent who truly know where of their business lines, instead of trying to compete with them. to turn. It’s a forest, so to speak, and our plan is to make it For instance, we do not provide industry news, reservoir analysis, logical to navigate. production and exploration data, and commentary. That was our choice. What we focus on is a business directory service, and we GB&F: What has been the feedback to this point? literally avoid cluttering our site with all that information that EAE: Great reviews. Overwhelming actually. I developed this is not central to what we do. concept with an industry veteran in Ghana, my friend Yaw Boadi who had done a lot of work in the mining sector across Africa, so GB&F: I appreciate you taking the time to talk. I know he knew what scenarios to consider and his insight was critical you have a busy schedule, so thank you. to this effort. This platform was developed on the ability to save EAE: Not a problem. Thank you also.

OCTOBER 2013 GHANA BUSINESS & FINANCE 43 CONFERENCES & EVENTS 001-212-661-0075 Contact: HiAlpha Events on Venue: Movenpick Hotel, Accra Date: facing atthemoment. tocomeoutthechallengesit industry market trends andstrategiestohelpthe platform todiscoverperfect thelatest This conference willalsoprovide the exploration &production intheregion. boosting thepositive effectsofenergy and frameworkbeingimplementedinto an in-depthlookatGovernment policy community. Theprogram willalsotake of theglobaleconomyandinvestor The program isbasedonthecriticaltopic Content Forum Local The GhanaEnergy 44 visit www.forum-americas.org or [email protected] +001416 607-5422, Contact: Neal Poku on Canada. Centre, TorontoConvention Venue:Metro Toronto Date: 30th-31stOctober, 2013 leaders academics andtopbusiness including ministers,diplomats, over athousanddelegates conference thatbringstogether The isapremierForum economic Energy &International Trade. Forum -Economy, Finance, 7th Annual Toronto Global Crossroads - Globalizationata Toronto GlobalForum 21st October, 2013 GHANA BUSINESS &FINANCE

visit www.csg-forum.review-gjsg.com [email protected] Contact: Kelly McJames at Downtown Hotel,Canada Venue:Renaissance Toronto Date: 4th-6thNovember, 2013 systems, marketing, E-commerce, management, managementinformation management/logistics, operations economics, management,supplychain areas ofaccounting, finance, investment, researchers andpractitionersfrom all aimstobringtogetherThis forum Forum Economic &Governance Strategies, Managerial The 14thCorporate visit www.smi-online.co.uk [email protected] or Contact: Andrew Gibbons at Venue: London,United Kingdom Date: markets,project financeandlaw. advancements, marineandaviation current project updates,technological pre conference workshop aimsatcovering and theglobe.Thetwodayevent and representatives from across theindustry information packed agenda with aims toprovide attendeeswithan The 16th Annual GTL 2013 Conference Gas toLiquids 29th -30thOctober, 2013 Contact: Gloria (+233302-240786) Date: 20thNovember, 2013 Venue: Best Western Hotel, Accra (FDIs) intoGhana. creating the right atmosphere to drive Foreign Direct Investments and strategize This onthewayforward. year’s event focuseson and deliberateonthechallengesfacingcountry’s economy both thepublicandprivate sectorsofGhana’s economytomeet creates a single one-of-a-kind platform for decision makers from ofthePresidentparticipation of theRepublic, this conference With theblessingsofGovernment of Ghana andthe full Conference(EOBS) Strategy 2nd GhanaEconomicOutlookAndBusiness 0044-20-86739666 0044-20-86739666 Contact: Ms.Monika Kuzniewska Venue: Date: 23rd -24thOctober, 2013 scanner. of West Africa will be put under thorough related totradeandcommodityfinance treasurers where trade and various issues corporate financedirectors, CFOs and commodity financeheadsanddirectors, arena andperfect fortrade,export Finance Conference isgoingtobethe The West Africa Trade &Commodity Conference Commodity Finance West AfricaTrade and visit www.greenvalleyjournal.orgvisit [email protected] or Contact: Bassey Bassey at All Nations University, Koforidua Venue: SchoolMain Auditorium, Date: 6th-7thNovember, 2013 of theThird World Sustainable Development andProspect theme “The Academic Investment for and Cultural Network under the International Conference onScientific Network in ScientificandCultural International Conference Movenpick Hotel, Accra OCTOBER 2013 Mission:

Fueltrade’s Mission is to be the leading bulk distributor of refined petroleum products in Ghana and the West African Sub region.

Vision:

Our vision is to be the most profitable and the most efficiently run bulk distribution company in Ghana with developed infrastructural base and a customer focused attitude to business that ensures effective and efficient distribution of refined petroleum products within Ghana and the West African Sub region.

Contact Us:

No. 10 Motorway Extension P.O. Box CT 1307, Accra - Ghana Tel: +233 21 772 909 / 10 Fax: +233 21 772 544 E-mail [email protected] www.fueltradeghana.com PERSPECTIVES actually, American,jungle! . tunnel inthisAfrican…mmm…. sunlight attheendofthisdark, winding and resolve tosee ourwaythrough tothe guide ordirection today?Letusdiscuss diametrically opposedmaze withno eclectic,way through thisuncharted, do inyour own situationtofind your So where doyou standandwhatcanyou ever brighterfuture! newest, unforeseen possibilitiesfor an andthe waysandmeanstosurface, new opportunities, hope,new finding new are rising like a phoenix from the ashes, stark contrast, developing economies of theirsecurityandsustainability!In foundation living, andshakingthevery savings, diminishingtheirstandards of people’s livelihoods, uprooting their already dismal situation, annihilating snowball andescalate,exacerbatingthe multiple, simultaneous variables continue toplaythemselves outas Part IofII much less, warns oforhedgesagainst! much less,warns “undeveloped” nationinhistory!Andyet,virtuallynoonespeaksaboutoradmits this, basic utilitybills(ifindeed,theystillhaveahome)!Americaisfastbecoming the first they realize theycannot,anymore, buyfoodforthemselvesortheirfamiliespay angry peoplebesidethemselves,druggedout,losingallsemblanceoftolerance as Gerald Celente,theworld’s mostaccuratetrends forecasting expert,andamyriadof confidence; acrimewavelikeneverbefore poisedonlytokeeprising,according to record homelosses,amassiveconsumercatastrophe duetoarecord drop inconsumer forever tothedevelopingeconomies; there isagrowing underclass inthemillionsdueto incomes lowerthanadecadeago,meaning,real wagesare down,andjobsare lost high; theworststockmarketlossessinceGreat Depression; medianhousehold better said,“nightmare”, so here itgoes:bankseizures andforeclosures atanall-time . And…..we’re back!Let usrecap whattheAmericandream actuallylooks like ..… develop –notdestroyyou! Let theglobaleconomiccrisis 46 GHANA BUSINESS &FINANCE as more dramatic losses of thedayinAmerica are becoming the order marches andcivilunrest as riots,taxrevolts, job

you ready? .Let’s go! faith andabsoluteself-confidence! Are intellect, spiritualfoundation, veritable will needareal backboneandstrong gold platedcompass!But forthis,you with your own monogramengraved your own courseonyour own roadmap where you are out theskipper tochart inyourunfolding future, newly territory big picture in order to map out a new intrinsically andholisticallyassessthe act uponit! What you neednow remain incontrol ofit-muchless,to possess your own mind,andbe confident enoughandboldto it isjustthatyou are notvigilantenough, oblivious andunconsciousofthefacts; it isnotlikeyou are totallyunaware, investments insheerutterdisbelief!So, own savingsorgapingatyour dwindling yourselves through your whileperusing issue; far and wide, focusing on this or that pundits, economistsandfinancialgurus gleaning insights here and there from You have read amyriadofreports, & Act Uniquely Customize Your OwnBlueprint but you have also felt the pinch isto and shun the malarkey being force-fed to to force-fed and shunthemalarkey being this)! Rightnow: own it,dealwithit upcoming issue,Iwillqualifyand prove is beingdevalued andtrashed(inan The U.S.dollar, we mustbrazenly admit About face! get themstraight thistimearound! . of ourselves! But firstthefacts,andletus analytical skillsetsforourselves infavour employingstart some real, powerhouse spiraling incentrifugally;andwe must and programmed we vortex cortex are the bugsandcobwebs from ourcerebral ever taintedanalyses! We mustshakeout andlistentotheir theirnewscasts to view spectacles, through whichtheywantus us out, anymore, their free rose-colored disavowing CNN,forinstance,todish our programmed, trancedoutstates, act! We mustcatapultourselves outof plan wiselyforthefuture, andbravely the dots,andforesee theoutcome, we will inevitablyerr. We must connect decision-making prowess! Otherwise, clear claritybefore we embark onany information and to possess crystal tohave fullandaccurate it isnecessary In situation,myfriends, anyandevery

OCTOBER 2013 Bombay, Whitehall,Linens n’ Things, Talbot’s, Wickes Furniture, Levitz, and asforCache,to namebutafew; Home Depot, Lowe’s, andCircuit City, Disney, Sprint/Nextel, and as or thousands of stores nationwide, such franchises have closedby thehundreds thrived), whileretail outletsandpopular the mostaffluentwhenautoindustry scene (especiallyinDetroit, whichwas parking lotsbeingthecommondrive-by hit hard, withghostmallsandempty real estatesector? Well, this,too,was Now, what aboutthecommercial him see…. turn. at every has becomeatrap, ladenwithpitfalls the innercitiesasAmericanway detention camporwelfare centerwithin turns intosomeprisoncellinaFEMA is justthinkoutsideofthebox before it saying, myfriendsandvalued readers, of your current dismalsituation.AllIam other alternatives andpossibleexitsout This isjustacomparison for you tosee more reasonable ifyou search properly. land! Andifthere are theyare mortgages, or buildthemonyour meagerlypriced speak of;you justpayforthemoutright, oftentimes, there are to nomortgages houses are muchlessexpensive, and lie! In thethird world,ontheotherhand, these numbingfactsasnumbersdonot math tofullygraspthestark reality of today, you tellme?!So, pleasedothe and beneficialisthattosell your home Now, healing how smart,comforting, consummation ofyour homesale! of your devastating lossuponthevery your hands, asyou completethecycle potential buyer totakeyour homeoff you would, inessence,bepayingyour downsized and you’ve been terminated, need tosellitbecauseyour firmhas loses 90% of its value, folks, and you regions! This means thatif your house another 10, 20or even 30% in some plummeted 60%,andwillstilldecline many areas of America, for instance, The residential real estate market in commodities. ones financial markets, butinthetangible have been takennotonlyintheglobal global reader tounderstandthathits fact! Furthermore, Ineed for the savvy significant matter, issueanddefinitive you to by ‘elite’ media pundits on this OCTOBER JC Penney, Macys, Dillard’s, Zales, as well, such as real estate and 2013 He who has eyes to see let Starbucks, for themismore!” are losingwhat those withless lost millions,and millionaires have have lostbillions; “...billionaires with allholybravado, veritable faith the endoftunnel,heading forit keep our eyes riveted on the light at definite sunlightattheendif we only with history point inourplanetary juncture and muchneededturning it isbutadark passageatacritical to theshallow spectator. In actuality, of whatlookslikeacataclysmicend the present, we cansteer ourwayout future, with ourhandonthehelmof them ismore! When we lookintothe those with less are losing what for millionaires have lost millions, and billionaires have lost billions; purposefully beingsteered wrongly; and know foryourselves: peopleare conclusions –astoday, you must see wisdom, fudgedstatisticsandfaulty on deceitfulanalystsfortheirbogus think forourselves inlieuofleaning new decisions forourselves, and we wise and bold, innovative, creative We must, therefore, begin making extremely high! to keepthedemandwayupandprice being stockpiledandhidmeticulously diamonds, where theyare, actually, high,asisthecasewith kept artificially to stave offun-savvyinvestors …oritis low,artificially suchasthegoldmarket, been highlymanipulated,beingforced commodities market. This,too, has Next, let us look at the precious in thesetoughestofeconomictimes! much neededvalue totheirfellow man tooffer branches,leavesnew andfruit gumption, zest andwillpower tosprout smaller players whohave theingenuity, forsame time,anidealopportunity names, butdonotforget:thisis,atthe who know thesehouseholdbrand forthoseofyouthis isshockingnews completely gone out of business! Now, Sharper Image, andothers,thesehave Movie Gallery, Wilson Leather, and dosonow! become theMaster of your own Ship, seamlessly andresolutely! Indeed, a saved soul -toactbravely andboldly, wisdom He irrevocably gave you -as Guide; andutilize thetalents and Creator andProtector, Mentor and flowing; in trust God Almighty, your and white!Get thosecreative juices voice inside; andputitdown inblack gut instincts;listentothatthin,still Rather, stayanchored; follow your you to fall into thinking thatglobalistsare keenfor ourselves intoadoptingthewishful our money issafe.So, letusnotfool take precautionary stepstoensure that Thus, we need to revamp, regroup, and all around usabounds! the ensuing chaos, which seemingly and unflinchingintellectinspiteof Expert Global Trade &HumanRights Commodities Trader, FOREX &Precious Management Consultant, Economist &International Angelina Lazar

GHANA BUSINESS &FINANCE hook, line and sinker! 47

PERSPECTIVES World Bank sees cost-cutting to improve finances in new strategy

The World Bank would cut costs to strengthen its finances under

WORLD OUTLOOK a strategy President Jim Yong Kim wants member countries to endorse next month.

A draft document discussed by the bank’s board earlier in September suggests changes to the bank’s financial model to make it more sustainable, including a “right-sizing exercise” to lower costs and more selective spending on grants. It also recommends the bank better recoup expenses when providing stand-alone services that aren’t attached to loans. U.S. Fed decides to “The overall goal of the initiative is a net reduction in costs while retaining or expanding the capacity to deliver value to World keep bond purchases Bank Group clients,” according to the draft strategy. “This may require some targeted reinvestment.” unchanged World Bank spokesman David Theis said the strategy is “meant to align the entire World Bank Group to achieve the ambitious The U.S. Federal Reserve goals our shareholders endorsed in the spring: to end extreme announced recently that it would poverty by 2030 and boost shared prosperity.” keep its monthly pace of bond purchases unchanged for now to stimulate the economy. The Fed said the U.S. economy has been expanding at a “moderate pace,” but it decided to await more evidence that the recovery will be sustained before adjusting the pace of buying 85 billion U. S. dollars a month in bonds.

“Mortgage rates have risen further and fiscal policy is restraining economic growth,” the Fed said in a statement after a two- day policy meeting, warning that “the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market.”

David Theis, World Bank spokesman The Fed is currently buying 45 billion dollars per month of Treasury debts and 40 billion dollars per month of mortgage- The draft strategy reiterates many ideas announced by Kim, backed securities. Many investors expected the central bank to including creating more of a “solutions” culture that offers clients begin scaling back the quantitative easing by a modest 10 billion a range of proposals based on experience and knowledge staff has dollars to 15 billion dollars in its September meeting. built over the years around the world. It also intends to make the bank and its 15,000 employees quicker to respond and less The Fed said asset purchases are not on a preset course and that risk-averse. decisions about the pace will be contingent on the economic outlook as well as the assessment of the likely efficacy and costs Risk-Taking of such purchases. It reaffirmed its pledge not to raise the federal The bank “needs to focus on smart operational risk-taking while funds rate as long as unemployment rate is 6.5 percent or higher preserving its internationally respected fiduciary, integrity and and the outlook for inflation doesn’t exceed 2.5 percent. safeguards norms,” according to the report. In an updated economic forecast, the Fed lowered the growth At the same time, the draft strategy envisions that social and for 2013 to a 2 percent to 2.3 percent range, down from 2.3 environmental safeguards followed by the different units of the percent to 2.6 percent in its June estimates. The downgrade for bank could be harmonized, so that they could have more joint next year was even sharper as growth for 2014 is projected to projects and operate as a group. The International Finance Corp., stand at 2.9-3.1 percent, down from the previous outlook of the unit that lends to the private sector, has about 5 percent of 3-3.5 percent. joint projects annually. Most policy-makers with 12 out of 17 estimated that the first A later report will further articulate the changes and give a timing rise in federal funds rate from its current near-zero level would for their implementation, according to the document. not come until 2015.

48 GHANA BUSINESS & FINANCE OCTOBER 2013 connecting your world Connecting Your World !

Countries Satellite ServiceS in Sub-Saharan africa: Covered low-coSt vSat broadband internet acceSS, voiP telePhony and Secured connectivity. examples of applications are: • Corporate networks Connectivity • Money transfer (MtC) • Automatic telling Machines (AtM) • virtual Private networks (vPn)

Carlton House Anumansa Street - Osu PMB KA43 Accra - Ghana www.satadsl.net [email protected] • +233-30-2775221 • +233-54-4334946 Fairfax consortium bids $4.7 billion to take BlackBerry WORLD OUTLOOK private

Smartphone maker BlackBerry has agreed to go private in a $4.7 CANADIAN BUFFETT billion deal led by its biggest shareholder, allowing the on-the-go Watsa stepped down from the BlackBerry board of directors in email pioneer to regroup away from public scrutiny after years August, citing a potential conflict of interest, as the company said of falling fortunes and slumping market share. The $9 a share it was exploring a sale. Canada’s Globe and Mail newspaper quoted tentative offer, from a consortium led by property and casualty Watsa as saying that a significant amount of the equity in the deal insurer Fairfax Financial Holdings Ltd, will set a floor for any will come from within the country. The consortium included counteroffers that might emerge for Blackberry, which has been neither strategic players, nor other technology firms, he said. on the block since August. BlackBerry’s recent challenging years have been in stark contrast As an investor, Fairfax Chief Executive Prem Watsa is often to the rapid growth it previously enjoyed. The Z10 touchscreen described as the Canadian Warren Buffett because he also takes device that the company hoped would claw back market share the long view. Blackberry shares peaked above $148 in June 2008 from the iPhone thudded badly at launch in January, and it has when the company’s devices were still the top choice for bankers, lost ground even in emerging markets where it had carved out an politicians and lawyers. “I would think a competing buyout offer important role. is quite unlikely,” said Elvis Picardo, strategist at Global Securities in Vancouver. “The miniscule premium, and the muted market In Brazil, locally made iPhones are the first choice for government reaction, is another indication that the market views the odds of workers. “I have never seen a Brazilian government employee using a competing bid as slim.” a BlackBerry,” said one government source. And while some U.S. government agencies still use only the BlackBerry, others allow BlackBerry, based in Waterloo, Ontario, once dominated the devices like iPhones as well. The American Lawyer surveyed 83 market for secure on-your-hip email. But it introduced consumer- of the top 200 U.S. law firms in November 2012 and found that friendly touchscreen smartphones only after it lost the lead to 90 percent of them expected to see a drop-off in the number of Apple Inc’s iPhone and devices using Google Inc’s Android Blackberry devices. operating system. John Sroko, chief information officer at Duane Morris, said that BlackBerry has until November 4, 2013 to seek superior offers, three years ago the firm only offered BlackBerry devices because which the Fairfax group has the right to match. The group is they were deemed most secure. But in recent years, the firm seeking financing from Bank of America Merrill Lynch and BMO has allowed their lawyers to use other devices too. “People like Capital Markets to complete the deal and has until that November Blackberry for the keyboard and email,” he said. “The switch was 4, 2013 deadline to conduct its due diligence. caused by a better browsing experience and the apps.” A BlackBerry statement did not name members of the consortium, NOBODY ELSE although many in the financial community see Canada’s deep- Donald Yacktman, president and founder of Yacktman Asset pocketed and influential pension funds as likely participants. “We Management which holds something under 1 percent of need to be careful given disclosure constraints, but we can say BlackBerry according to Thomson Reuters data, said he does that we are focused on a strong Canadian solution,” said Fairfax not expect a counteroffer to emerge.”This is pretty much Plan B. spokesman Paul Rivett. They’ve clearly not hit the targets,” he said.

The pension funds, with assets around the world, traditionally The company warned it would report revenue on the sale of just take a long-term view in their investment decisions. Officials at 3.7 million of its phones for the entire second quarter, and write the biggest funds either did not reply to requests for comment, down almost $1 billion. By contrast, Apple sold 9 million iPhone said they had no information or declined to comment. “We never 5s and iPhone 5c models in three days after their launch. discuss whether or not we plan to enter into any investment,” said Deborah Allan, spokeswoman for Ontario Teachers’ Pension Plan.

50 GHANA BUSINESS & FINANCE OCTOBER 2013

MANAGEMENT values relevant. are very those questions, let’s see why corporate done to correct it? Before we answer Why, then, isitso?Andwhatcanbe become more ofafaçadethantruth. values anddisplaythemsincetheyhave tocouchthoselofty not even necessary Hence, somemayconcludethatit’s standards ornotisanotherquestion. corporate organizationslive uptothose definitely are! However, astowhether relevant? Well, to answer: “Yes”, they to address: Are corporatevalues really This hasledtothequestion we want home about. business with!” Yet, theexperience invariably is nothing towrite this companyreally extolshighvalues.Theymustbegreat todo toes). Atfirstglance,theimpression onemighthaveis,“Wow, (I don’t want to continue else I would be stepping on many more most importantguest”;“We are here toserve”;andseveralothers In ads,someofthesevaluesare highlighted:“Thecustomerisour and visionstatementsofthecompany. very laudablevalues,andthesesupposedlyinfluencethemission plaque beautifullydesigned.Onthisare usuallyinscribed In thereception area ofmost,ifnotalllargeorganizations is a By Julius Caesar-Tokoli are theyreallyrelevant? Corporate Values - 52 GHANA BUSINESS &FINANCE

of core values.” statement orinthecompany’s statement are usually summarized in the mission and shareholders.partners, Core values as itsrelationship withitscustomers, organization’s internalconduct aswell philosophies orprinciplesthatguidean defines corporate values as“Theoperating in life”. Thus BusinessDictionary.com one’s judgmentofwhatisimportant as “Principles orstandards ofbehaviour; Values isdefinedintheOxford Dictionary relevance Corporate Values—their

of anorganisation. adherence tosociallyacceptablevalues a largeextentaffectednegatively astrict shareholder value maximisationhasto with profits, return oninvestment and That notwithstanding,thefixation development. injection badlyneededforgrowth and value, thecompany maylosesuch capital on investment tomaximize shareholder Hence, unlessthere isadecentreturn uses forthecapitalofshareholder. This is because there are competing legitimate. make profits. Andthatis very is notacharitybutthatitsetupto Basically, we allknow that abusiness shareholder value. Why is that myopic? profit, return on investment and A typical set of goal revolves around organizations are usuallyshort-sighted. Goals thatare setby corporate Myopic Organisational Goals character. Why doesthathappen? to getwhathewantsandshow hisreal the bestguyawomancouldhave; only himself as is akin to a suitor portraying to engageinsomeunderhandeddeals.It governmentcorrupting officialsin order in times of crises, they may end up as acore value goodcitizenship. Yet, For instance,anorganizationmayhave problem. own principlesorstandards there isa But whenitcomestolivingtheir organizations: thevalues are beautiful. them. Andthatisthecasewithmost good values andanotherthingliving values. Yet, it is one thing setting assume that they all espouse laudable as good citizens of society we want to themselves organizationportrays every in societyornature. But sincebasically with acceptedstandards ofbehaviour might have values thatare atvariance necessarily plausible. An organization Suffice tosay, though,that values are not such abusiness. that couldspelldoomforthefuture of internal andexternaloperations.And no values hasnothingtoguidetheir of discussion,anorganisationthathas vein, anindividual orinourcontext there’s nosteeringcontrol. In asimilar sinceastray; even possiblycrushing would bethrown aboutatsea andgo istoaship.rudder ship Arudderless an individual or an organization as a Principles orvalues are theguideto OCTOBER 2013 double standard? on the media to save and invest! Isn’t that would beadvisingtheyouth atforaand organizations spokespersons ofthesevery Yet onthe other corneroftheirlips, So theideais“live tomorrow today!.” the spiritofconsumerism. happy; eagerlypromoting thecankerof gadgets andfurnishingstheycan’t be unless theyacquire ‘new’ certain devices, those that work are made tofeelthat without really havingtowork hard. And people thinkthattheycangetrich disguised aspromotions, makingyoung seek topromote greed through lottery society: Today, largeorganizations fordeveloping management necessary hard work andresponsible financial asThen, thinkaboutsuchvirtues too isanti-social. enterprising andpromising ones.This companies, totheneglectofsmallerbut to give businesstoonlylike-successful sizes, many large organizationstend Furthermore, just as monkeys play by environment? businesses ever develop insuchan satisfaction? Andhow wouldsmaller for thepurposeofmaximizingcustomer improve quality of goods and services can organizationsformcollaborationsto (the baby ofselfishnessandgreed), how are embroiled inheatedcompetitions but componentsintheeconomicsystem societal values is unity and cooperation their advantage. Now, ifoneofthecore policiestowardspolicy makerstoskew major tax-payers, these seek to cajole where there antics,as are nobribery do eachotherin.Sometimes, even large organizationusesuchmeansto Even amongthemselves, competitive oflargeorganizations. survival very competitors andthusathreat tothe coming upbutwhichare viewedas benefit themagainstsmallerbusinesses tend to pursue lobbying for termsthat of political connections and clout In reality, largecorporations,by virtue stability. Yet whatdowe see? respected andpromoted forsystemic way thatsocietalnormsandvalues are institution, itshouldoperateinsucha marital institutionandeducational institutions, economicinstitution, namely politicalinstitutions,religious the mainclassicalinstitutionsofsociety; economic systemisitselfalsoasubsetof oftheeconomicsystem.Sincepart the For instance, business is an integral OCTOBER 2013 Can thesituationbehelped? to workhard.” without really having that theycangetrich young peoplethink promotions, making lottery disguisedas greed through seek topromote organizations “Today, large lacking the courage and fortitude to take totake lacking thecourageandfortitude status quo. Thus corporategovernance is zone byin theircomfort promoting the Large organizations want to continue This isbecause,change difficult. Yet, nothing seems to have changed. would begin redefining their mission. anything togoby, largeorganizations If whathappenedat Wall Street is Pursue Noble Goals situation iseven worse. And where there’s abroken home,the led toalotofdelinquencychallenges. rounded responsible adults.Thishas is neededforthemtobecomewell- complete traininganddisciplinethat Hence, theydonotgettoreceive the of schoolteachersandhouse-keepers. bond. Children are alsoleftinthecare the potentialofbreaking themarital extramarital relationships that have long somespouseshave developed longer hours.The result isthatbefore Parents andspousesare forced towork what ways? is atthebrinkofitsbreaking point.In maximization motives, thefamilysystem pursuit oftheprofit andshareholder the familydeartotheirhearts. Yet, in corporate organizationsshouldhold family system.Thatbeingthecase, directly linkedwiththecollapseof the collapse of the Roman Empire was at thecore. Thushistoriansagree that Too, insociety, itisthefamilythatsits purpose ofprofits! attitudes asfashionable.Allthisforthe promote socially decadentbehaviorand they sponsor, manycorporationstendto Also, insomeoftheiradsandprogrammes (www.soleilvision.com) Consultants Management, Strategy&ICT Partner atSoleilConsults; The AuthorisCEO/Managing society cannotbeoveremphasized! influence ofcorporateorganizationson others insocietytodosame.For the would besettingafineexamplefor with societalvalues andlive them,they to formulatecorporatevalues consistent society isvalues. If theyare thusable acknowledge thatwhatreally holds some amenitiestosociety, theyshould of infrastructure andtheprovision of they contributetothedevelopment system. thatWhile it is noteworthy is the sole responsibility of the political corporations shouldnotthinkthatit to be done to stabilize society. And then,thereCertainly isalotofwork and promotions. branding andmarketing; includingads manifest in corporate communications, stakeholders. They shouldalsobe policies anditsdealingswiththeir They should exude in the company’s goes asfaradecorationinthelobby. Values are uselesswhentheiruseonly position toinculcatetheminemployees. effectively, thentheywouldbein a when managementimbibesthem Besides, since values are to be lived, of goodcorporategovernance. sheet shouldnotbethesoledeterminant Hence, financial figures onthebalance if he did, his ‘gold’ would be useless. shareholder wouldnotexist.Andeven and customers, in that order, the environment, society, humanresources, should acknowledge thatwithoutthe employees andcustomers.Management benefit ofthosestakeholdersas well as and takeactionsthatinure tothe but also society and the environment holistically aboutnotbusinessalone, of managementby thinkingdeeperand they canbegintore-think thefunctions values that theyespouse,thatiswhen the board isable toimbibethevery corporate governance function. When Corporate value formulation is a something canbedone. deeply ingrainedtogoovernight. Yet, desire tobegreedy andselfishistoo on course.Besides, theinherent, crass the shipoforganizationtoremain those drasticmeasures thatwouldsteer

GHANA BUSINESS &FINANCE 53

MANAGEMENT MICROFINANCE onto theGhanaianmarket PROSEED MICROFINANCElaunches 54 and eventually grow intoabankinfive years time. to GHC500,000by closeofyear 2013 operating capital, plans to increase this currently hasover GHC300,000asits banker, revealed thatthecompanywhich Microfinance, whoishimselfaformer Sintim Amoah, the Chairman of Proseed customers ofthecompany, Mr. Philip of Ghana, financialinstitutionsand attendance ofofficials from the Bank Microfinance Ltd.whichwitnessedthe At therecent launchofProseed 2000 customersthatitserves. over 80customersatinception,thecompanycurrently hasover already.Startinginroads into themicrofinance industry withalittle that hasbeenoperatingsinceApril 2013butmakingmassive The newestintown is Proseed Microfinance Limited,acompany get theneededfinancialhelptogrow andexpandtheirbusinesses. being openedforthosebusinessesatthelower endoftheladderto Mrs Ruth Amoah-Koomson CEOofProceed Microfinanance Ltd. GHANA BUSINESS &FINANCE

formal bankingindustry.” Enterprises(SMEs) andthe the SmalltoMediumscale that existsbetweenthosein is atooltobreaking thewall “the Microfinance institution different avenue is it small or big,a community,be of the business daily concern becomes a increasingly access tocredit As theissueof scheme) among others. scheme) amongothers. Account (afixed depositfacility)and Daakyi Nti(a regular savings Abapa Account (whichisadaily‘Susu’ savings facility), Eduapa solutions forthemarket.Proseed currently hasproducts suchas needs ofitsclientsandwillthus designcustomisedloansand Microfinance,revealed thatthecompanyintends toaddress the Eric Okyere,the Business Development Manager ofProseed expand theirbusinesses. help SMEsgetreadily-available andaffordable loanstogrow and thatwill microfinance companiesdesignproducts andservices banking industry.” Againstthisbackdrop, itisimperative that in theSmall toMedium scaleEnterprises(SMEs) andtheformal institution isatooltobreaking thewall thatexistsbetween those assess credit, MrsKoomson intimatedthat“the Microfinance Sharing herbeliefsonthedifficultnatureto ittakesbusinesses will beinformedonwhatisbestforthem”, sheadds. products ofthecompanyandtheirsavingsbenefitssothatthey customers andpotentialadequatelyintheavailable itsclients.”to serve In thisdirection, “Proseed willeducateits qualityandthusseesitselfasacompanycreated believes inservice is graduallytaking shape, Mrs.Koomson opinedthat“Proseed to stayabove which thecompetitioninmicrofinance industry and itsclientsforthatmatter. Askedabouthow Proseed intends ofthecompany in othersuchactsthatwillendangerthefortunes see thecompanyusingitsresources toacquire vehicles andengage gradually” andnottoengage in anyextravagant expensesthat will Mrs. Ruth AmoahKoomson statedthatProseed intendsto“Grow In aquickchatwithGB&F,theManaging Director ofProseed, measures tominimiserisks. the companytakesallnecessary that ensures thatmanagement of through business model a prudential customers’ savingsare well-kept Proseed hasensured adequatelythat do business.It ofthisthat isinview of where theysave theirmoneyor potential customersneedtobewary means that microfinance industry The recent spateoffold-upsinthe OCTOBER 2013 MESHAN ‘13 MESHAN

Tel: 030 702 05 10/20 • Email: [email protected] Loc: Plot # 34, Spintex Rd., Opp. Frema Hse. 1st floor Chair Center Building JOB OPENINGS Deadline: 13thOctober,2013 [email protected] Manager, Contact: Email your CVandcovering lettertotheRecruitment or buildacareer infinancialconsultancy Financial background (Beneficial); andanEagernesstofurther International(Mandatory); work experience(Mandatory); Minimum Qualification: Theapplicantneeds Sales experience Location: Accra to meettheirfinancialneeds. assessing clientneedsandexecuting highlycustomized solutions This role involves sourcing prospective clientsand referrals, FinancialAdvisorAtDeVere Group Contact: Send your [email protected] of travel isexpectedtoberequired ofthisrole. aspart isaplusbutnotmustandfairamount insurance industry role;an MBAdegree, work experienceintheUSorEurope or operational role inthetelecomsspaceormanagementconsulting minimum work experiencewithinanimplementation/ Minimum Qualification: Location: Accra Manager Country Deadline: 12thOctober,2013 to [email protected] Contact: Send resume, asaMicrosoft Word document, pumps; andMust have goodtechnicalknowledge onpumps. seven (7)years’ experienceinmechanicalsales/ salesengineerin Engineering /tradequalificationina related field; Minimumof the following skillsandexperience:BScdegree inMechanical Minimum Qualification: Location: Ghana mining andoil&gasindustry. rewarding career with a fast growing company in the service Specialist withasalesbackground seekingachallenging and This isanexciting foranexperienced opportunity Pump SalesEngineer-PumpSpecialist 56 GHANA BUSINESS &FINANCE The successful candidate must possess Thesuccessfulcandidatemustpossess The applicantmusthave 5 years

Deadline: 7thOctober,2013 Contact: visithttp://www.afdb.org/en/careers/ improvement; of development programs in areas related to business climate experience inthepreparation managementandsupervision preferably aminimumofsix(6)years ofrelevant professional financial economics/economicandmanagement with degree ineconomics/businessmanagement/applied economics/ Minimum Qualification: At leastaMasters Degree or equivalent Location: Ghana other duties investment climateorcorporategovernance inAfrica,among invarious initiativesparticipation aimedatimproving theprivate PrivateDepartments, Sector etc.);Manage Department, Bank in theseareas: (Country (ii)interactwithother departments that regard, s/hewill:(i)provide tothedivision technicalsupport Partnership (PPP) frameworksandcorporategovernance. In in theprivate sector, thebusinessenvironment, Public-Private Be thefocalpointforissuesrelated totheinvestment climate thefollowingincumbent performs dutiesandresponsibilities: Under oftheManager, thesupervision Governance Division, the atAfricanDevelopmentBank PrincipalPrivate SectorDevelopmentSpecialist minedevrecruit.com Word document,[email protected] orvisit:www. Contact: To apply, your pleaseforward resume, asaMicrosoft experience mining environment withaminimumof5years ofsupervisory hydraulic shovel related maintenanceskillspreferably ina a related drillandor fieldplus10 years experiencein rotary oftradesqualificationEngineering /CMRPcertification in Diploma/Bachelor in Mechanical/Electrical certificate Minimum Qualification: Applicant musthave aGraduate Location: Tarkwa safe andreliable ofallmobileequipment performance toensure the scheduled andunscheduledmaintenanceservices The candidatecoordinates themaintenanceteamtodeliver MineMaintenanceAdvisor Deadline: 30thOctober, 2013 Ablade Road, P. O.Box YK 4808,KandaEstate-Accra COVER toThe Registrar, MountCrest University College,12 Two (2)Referees underREGISTERED shouldbeforwarded Contact: Curriculum Vitae, including Names andAddresses to and reporting of budget and financial management information; monitoring; withExperience inthepreparation, monitoring post qualificationexperienceinaccountingmanagementand ACCA orCA(Ghana) oranyequivalent; Four years ofrelevant Minimum Qualification: The applicant must bea holder of Location: Accra will report totheRector through theDeputy Rector. strategic leadershipinrespect ofthefinancesMCU. He/She The key responsibility ofthe Director of Finance istoprovide DirectorofFinanceAtMountcrestUniversityCollege OCTOBER 2013 for Ghanaian studentsatalllevels oftheeducational ladder. reliable sources of funding,inandoutofGhana, foreducation The providesDirectory anin-depthanddetailedcompilation of Financial Assistance. solve thisissue-theGhana Directory ofScholarshipsand Finance magazine,haspublishedabook whichseekstohelp Africa Business Media, publisheroftheGhana Business and aspirations becauseoffundingproblems. fact that many Ghanaians are unable to pursue their educational for educationismusictoanyear. And rightlyso,consideringthe of abook that contains information on sources of ‘free money’ In and hardships, these times of economic crunches the sound Financial AssistancebyGloriaN.O.Tackie. of theGhanaDirectory ofScholarshipsand to school.We present youhere with areview to findallmeansnecessarysendtheirwards of education isontheincrease andparents have a more opportunetimethan now whenthecost Africa BusinessMediacouldnothavecomeat Scholarships andFinancialAssistancebythe The publicationoftheGhanaDirectory of against Affordable and Accessible education. elections focussedprimarilyoneducation-Free coincidence that thecountry’s recent national the nation’s economicwoes.Itwasthusnota education is aspertinent as finding solutions to daunting one.InGhanatheissueoffundingfor demands from thecitizenry, thetaskcouldbea to takecare oftheever-increasing needs and Africa where limitedresources havetobeshared theworldover,government andespeciallyin one of the most difficult challenges for every Funding education, undoubtedly, presents and FinancialAssistance ofScholarships Directory A ReviewoftheGhana for Education’ ‘Free Money OCTOBER 2013

locating andaccessing fundingforeducation. contains informationthatis both valuable andrelevant in the should beconsidered andforme mostwhenjudgingadirectory In conclusion,thequalityofcontentandnot size iswhat directory. precise. Thisiscarriedoutfairly must alsobevery well inthe reflection mustbeatrue ofthatcategory.category Thecategories a gooddirectory. Information thatisplacedunderaparticular Categorization alsocountsintheproduction orcompilationof not listedinthedirectory. assistance. Although, I could mention scholarships a few sources for. And this publication, to a large extent,provides just that be holistic.People should be abletofindwhattheyare looking isthatitshould One ofthemainqualitiesagooddirectory educational ladder. financial assistance tocomplete theireducation or move up the prove immenselyusefulforparents andindividualswhowant The wealth ofinformationprovided will inthedirectory details oftheorganizations. package ,eligibility,mode ofapplication,deadlinesandcontact requirements andconditions.It alsogives detailsoftheaward and organizationsthatfundeducationtheirspecific It alsoprovides acomprehensive categorizationofinstitutions as well asusefultipsonhow toapplyforascholarship. awarding scholarshipsusedby scholarshipboards andcommittees, It gives insightintothegeneralcriteriaforconsiderationin Ghana Directory ofScholarshipsandFinancial Assistance

GHANA BUSINESS &FINANCE 57

BOOK REVIEW DISCOVERY 4 Bold, flexible and astonishingly luxurious AUTO REVIEW

Instantly recognisable as a Land Rover, A focal point of Discovery 4’s interior Discovery 4 features a distinct two bar is the centre console with its integrated, lattice grille and an aerodynamically- flowing design. There is a premium In-Car profiled front bumper with progressive, Entertainment system with a full-colour, contemporary exterior, an attitude that Infotainment Touch-screen as well as gives Discovery 4 a refined, modern supremely comfortable, supportive seats both front and rear. Driver information is presence on-road and off-road. accessed intuitively and is presented in a clear, immediate format, with easy-to-use The new Discovery 4 comes in four menus and graphics and comprehensive DYNAMICS AND BRAKES. Driver- exhilarating, new exterior body colours, functionality. Tough luxury. Discovery focused on-road dynamics.The result is Aintree Green, Firenze Red, Indus 4’s sumptuous, tactile interior provides outstanding, car-like handling that does Silver and Orkney Grey, which join superb levels of craftsmanship and not compromise extreme axle articulation the distinctive Discovery 4 line-up. comfort. Meticulous attention to design and, consequently, the off-road ability of The award-winning Discovery 4 is and detail is without compromise. the vehicle. consistently recognised the world-over by journalists and the motoring media for its class-leading abilities.

There are now significant developments to the Low-Flow injection 155kW (211PS) LR-TDV6 with 8 speed Drive Select transmission with steering wheel mounted Paddle Shift which is able to achieve sub 225g/km CO2 emissions and THE AWARD WINNING TERRAIN improved fuel economy, when compared RESPONSE® SYSTEM is standard on AIR SUSPENSION. Four-corner with the previous engine, delivering a every Discovery 4 and optimises the independent Air Suspension is standard Combined Cycle of 8.5L/100km. Also vehicle set-up for virtually all on-road on every Discovery 4 and features variable available is a second Advanced Sequential or off-road driving situations, with five ride height and electronic cross-linking Turbo Diesel engine, the LR-SDV6, with different settings to suit different terrains for a constant level ride height irrespective of load distribution. Ride height can be an 8 speed Drive Select Transmission and such as grass/gravel/snow, sand, mud and ruts and rock crawl. All diesel vehicles raised up to 125 mm to clear obstacles an increased power output of 188kW now feature a new slider Terrain Response or lowered by 50 mm for easy access and (256PS) as well as CO2 emissions switch and an 8 speed Drive Select with loading. reduced to 230g/km. steering wheel mounted Paddle Shift.

58 GHANA BUSINESS & FINANCE OCTOBER 2013 NOW WE FLY TO SOUTH AFRICA SEVEN DAYS A WEEK.

South African Airways (SAA) has added a seventh frequency between its hub in Johannesburg, South Africa and Accra, Ghana.

SAA OFFERS THE TRAVELLING PUBLIC: • More travel options. • Best connectivity to Southern Hemisphere. • New generation Airbus 330 - 200 with enhanced inflight entertainment. • 2 pieces checked baggage allowance. • Africa’s warmest hospitality on board.

For reservations, contact your favourite travel agent or call SAA on 0302 783676 / 0244 344 583. Visit our office at the 1st floor Millennium Height Building.

Final Ad.indd 1 2013/07/04 7:49 PM