Germany to Partner Ghana in Agricultural Development

The German Ambassador to Ghana, His Excellency Christoph Retzlaff, has met with Ghana's Minister of Food and Agriculture, Hon. Dr. Owusu Afriyie Akoto, to dicusss ways the German Government can contribute towards the growth and development of the sector.

The two parties discussed amongst other things, how the European powerhouse can partner the private sector in order to support the development of Ghana's agriculture.

His Excellency Christoph Retzlaff, who announced this when he paid a courtesy call on the Agric Minister at his office last Friday, observed that there are great potentials in the country's agricultural sector which when tapped will inure to the utmost benefits of all Ghanaians.

He said Germany will readily support Ghana's agriculture particularly in partnership with the private sector to improve its growth and development.


Read Also: 66% of Rice Consumed in Ghana Imported

The German Ambassador to Ghana therefore commended the Agric Minister for his zeal and commitment towards his duty.

He therefore requested that the Ministry furnishes him with government's plans and proposals towards revamping the agricultural sector so that his government can adequately contribute.

On his part, the Food and Agriculture Minister welcomed the idea and expressed government of Ghana's readiness to partner Germany in the development of the agric sector.

He said the government under the leadership of His Excellency Nana Addo Dankwah Akufo Addo, made a promise to Ghanaians to modernize the agricultural sector and create jobs for the teeming youths, adding that any effort geared towards the the fulfilment of that objectives will be gladly welcomed.

"Our President is passionate about the development of the agric sector and the creation of jobs, we will therefore not hesitate at all in making sure that objective is fulfilled," the minister emphasized.

The Minister had earlier on met with Ambassadors from Canada, Sweden and other developing partners.

Read More

Kenya Airways Celebrates 40 Years in The Skies

Kenya Airways on Sunday January 22, 2017 marked its 40th anniversary since it was incorporated in 1977.

From humble beginnings Kenya Airways has grown to become a leading player in Africa connecting the region to the World and the World to Africa through its hub in Jomo Kenyatta International Airport (JKIA), Nairobi. The airline launched its inaugural flight on 4th of February two weeks after the company was incorporated on 22nd January 1977.

Over the last four decades Kenya Airways has emerged as an important economic drive in Kenya and the region as a whole.

“Today Kenya Airways connects directly from Nairobi to more than 54 destinations in four continents, with a fleet of 36 aircrafts from the initial 4. It has been an interesting journey and we believe our best years are ahead,” said Kenya Airways Managing Director and Chief Executive Mbuvi Ngunze.

He was speaking during the celebrations held at JKIA Terminal 1A with customers and partners. He noted Kenya Airways growth has been characterised by a strategic network expansion focusing on Africa, fleet modernisation, and high quality service among other facets of development.

In addition, Kenya Airways was the first African flag bearer carrier to be privatized, in 1996, a move that saw it listed across East Africa.

The airline has commercial partnerships with various global carriers, including a joint venture with KLM and codeshares with airlines in Europe, Asia and Africa. Through its membership in the Sky Team Alliance, Kenya Airways offers service to 1,057 destinations in more than 177 countries.

Beyond Kenya, Mbuvi cited that the growth and economic transformation of the region and African continent is largely tied to success of Kenya Airways owing to its pivotal role in promoting trade; cultural exchanges, enabling an exchange of ideas as well as promoting peaceful co-existence among people of different beliefs and cultural backgrounds.

He noted the journey was made possible by the tremendous support from staff, guests, partners and shareholders.

“We sincerely thank everyone who have been a part of this journey in the past and today, and look forward to many more years of being the Pride of Africa. Kenya Airways is committed to continue serving the region promoting trade, and offering quality service to our guests,” he said.

As part of the celebrations, Kenya Airways had launched a sales campaign offering customers up to 40% discounts on tickets to various destinations across its network. The offer also includes a special US$ 1977 price for its business class tickets to Europe; Paris, London and Amsterdam.

Read More

AfDB President Advocates Improved Finance for Africa

The President of the African Development Bank (AfDB) has called for improved access to financing to accelerate the transformation of African economies.

Mr Akinwumi Adesina said this was likely to improve the quality of life of African populations.

Speaking before African leaders at the Africa-France Summit, which took place in Bamako on January 13- January 14, Mr Adesina said Africa could speed up its economic transformation through the Bank’s five main priorities: “The High 5;” “Light up and power Africa;” “Feed Africa,” “Industrialise Africa,” and “Integrate Africa.”

These five key priorities are aligned with the Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063, as demonstrated by an independent evaluation conducted by the United Nations Development Program (UNDP).

Mr Adesina, however, noted, in a release copied to the Ghana News Agency that the resources needed for Africa’s economic transformation were enormous and that was why the AfDB was poised to launch the Africa Investment Forum designed to create a space where supply and demand could meet.

Advocating  agro-industrialisation and involvement of young people in the sector for the future, he said: "The solution to the migratory crisis is in Africa.”

This was why the Bank launched the "Enable Youth" programme, which would help create 1.5 million jobs in 30 countries, helping to retain young people in Africa.

Mr Adesina also highlighted the need to reduce areas of fragility.

“That is why the Bank launched recently the Forum on Resilience in Africa, which will enable us to achieve the Top Five in 10,000 communities in 1,000 days, with an immediate impact in fragile areas.

"Let's mobilise and make the High Five reality in order to unleash the potential of Africa," he said.

The President of the AfDB thanked donors for their commitment to support the African Renewable Energy Initiative, a joint initiative with the African Union that is now fully operational.

Its aim is to accelerate and increase the enormous potential of Africa in the field of renewable energies.

The European Union has already committed € 3 billion, plus € 6 million from France and € 2 million from Germany.

Read More

National Friday Wear Program Creating Jobs For The Chinese

The Chairman of the Textile Workers Union, Abraham Koomson claims the National Friday wear program has created jobs for Chinese textile manufacturers and not Ghanaian textile industry players.

Speaking to Onua Business News, he said even though the campaign to wear African prints on Fridays has been a success, the objective of creating jobs through the extensive use of local fabrics is yet to be realized.

The National Friday Wear programme is an initiative launched in November 2004 with the aim of projecting a unique Ghanaian identity through the use of local fabric and designs as business wear.

The programme, initiated by the Ministry of Trade during the Kufuor administration, sets aside Fridays for all public officers and the private sector, as much as practicable, to wear locally designed garments produced from locally manufactured fabrics.

It was part of a comprehensive programme to promote made-in-Ghana goods and to revitalise the textile and garments industry. Years down the line, the initiative seems to have been a success as people are seen even on days aside Fridays wearing African clothes to the office.

However, a chunk of the African prints are imported from China, creating employment for the Chinese. Some of the fabrics are also pirated designs from Ghanaian textile manufacturers.

This has become a challenge for the local textile industry with some laying off workers as they are unable to compete with the cheap products being imported and sometimes smuggled into the country.

Commenting on the issue, Mr. Abraham Koomson says most of the smuggled textiles come through unapproved routes at Ghana’s borders, whilst others are taken through the borders with the connivance with some custom officials.

He was however hopeful that the minister designate for Trade and Industry , Alan Kyeremateng will help resolve these challenges.

Read More

Businesses Lament Over 25.5 % Policy Rate

Private sector businesses and economists want the Bank of Ghana to review its stance in pegging the policy rate at 25.5 percent in January 2017.

They argue that the development is less likely to compel commercial banks to adjust their respective rates on loans and advances to customers.

The Monetary Policy Committee of the central bank in its first meeting for 2017 kept the policy rate unchanged at 25.5 percent.

Governor of the Central Bank, Dr. Abdul Nashiru Issahaku cited concerns over inflation outlook and exchange rate volatility.

But reacting to the position, Economist Professor Godfred Bokpin described the Bank of Ghana’s decision as a clear indication of the central bank’s pessimism of the performance of the economy.

“I think that looking at the stance that the MPC has taken over the last couple of months, it is not surprising because they seem to be a bit more pessimistic about the economy than the other data seem to suggest and for which reason they have decided to keep the policy rate at 25.5%.” he said.

According to him, prevailing economic conditions such as a drop in inflation should have prompted a drop in the policy rate to ease cost of accessing credit by businesses.

“Ideally, if they had reduced it even marginally, it would have been consistent with what we are observing. But I think that with the new government and the goodwill, I want to believe that we are better positioned to be able to contain the threat of inflation better than we have seen in the time past and therefore the inflation expectation would not be that high.”

Meanwhile the Private Enterprise Federation has insisted that the rate is still high.

The CEO of the Federation, Nana Osei Bonsu explains that the figure must be reviewed downwards to support private sector growth.

“For the policy rate, I think it is misguided; uncalled for and it should be reviewed in prudent manner where it allows private sector to get the liquidity to do their investments.”

Read More

Ghana Will Re-negotiate IMF Deal – Osafo-Maafo

senior minister Osafo Maafo

Senior Minister Designate Yaw Osafo -Maafo has stated that the new government will re- negotiate  Ghana’s deal with the International Monetary Fund (IMF).

”Now the IMF program will certainly be reviewed and there are two main reasons why the IMF program must be reviewed I have already hinted to one of the bosses of the IMF. Now President Nana Akufo-Addo came out with a manifesto and in that manifesto he needs fiscal space to move it.

The current program literally squeezes all the fiscal space out and therefore from the point of view of the program of the NPP, the IMF program must be reviewed”.

Ghana in 2015 signed onto a 918 million dollar extended credit facility program with the fund.

Ghana has so far received a total of about US$464.6 million as disbursements from the IMF. The latest was on September 28, 2016.

The program aims to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending.

The deal which was not approved by Parliament has been heavily criticized by the new government, raising concerns that it will be reviewed under their tenure.

Calls for the renegotiation of the deal however has attracted mixed reactions from economists.

While some have welcomed the move others say it is needless.

Economist with the Institute of Fiscal Studies (IFS) Dr Adu Sarkodie for example believes that  the new government must restructure the deal to grow the economy.

“We must renegotiate certain parts of the IMF deal. One of the items that have contributed to the slow effectiveness of the program is that they have front loaded the policies and programs and have kept the money.

So in other words I go into a deal with you, I expect you to take certain good steps before I hand you the money but it has not been the case in the previous IMF programs.”

He added, “So I think that this time round the IMF should rather front load the money.

They should frontload about 70% of the remaining 50% for us to stabilize because the macroeconomic stability is the most important thing.”

While an economist at the University of Ghana Business School, Dr. Lord Mensah has stated that renegotiating the deal is not needed because the IMF programme is yet to mature and the deal must be allowed to mature before any changes could be made to it.

“Personally, I don’t think it is something that we need to consider — we have to allow it to roll, let’s realise its maturity, when it comes to the IMF and its allied agencies, it is not the government that goes into negotiation, but it is the country. The government which was voted by the people, always in such case, represents the country; so a new administration does not mean that the agreement has to be cancelled.”

But speaking to Law makers during his vetting as Senior Minister Yaw Osafo -Marfo said the new government will not abrogate the deal but will re-negotiate it to fit into its targets and objectives.

”Now the IMF program works along achieving targets and the targets set between the government and the IMF, so far most of the targets have been missed therefore whether we even ask for it or not the IMF will themselves want the program reviewed, because if we talked about ensuring that your growth end of the year is 5.3% and your growth end of the year is 3.3% its way out.

If we want to talk about deficit being not more than 5% and everybody thought deficit was about 5% ……figures I’m seeing from Bank of Ghana deficit is getting between 8 and 9% then it is enough for the IMF itself to request for a review because you can’t go on when you haven’t met the targets, going on with what .

Therefore the program will certainly be reviewed from two angles from the targets angle and from our own need to factor in our manifesto and objective in governance”. Mr Osafo -Marfo stated.

Read More