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Friday, December 23, 2011

Conversation on Corporate Social Responsibility starts

The Centre for Corporate Responsibility (CCR) of the University of Ghana Business School (UGBS) has held its first Corporate Social Responsibility (CSR) stakeholders workshop under the theme “A Conversation on CSR in Ghana” in Accra.
The CCR was established under a cooperation agreement between the UGBS and the Centre for Cooperation with the Private Sector (CCPS) of the GIZ, South Africa.
Dr. Dan Ofori, Coordinator of the CCR and a Senior Lecturer and Head of the Department of Organisation & HRM of the UGBS, who was the facilitator, affirmed that the Centre’s mission is to create a new generation of business leaders who are knowledgeable and committed to Corporate Social Responsibility by inspiring current and future managers with the passion for responsible corporate leadership.
He explained that the Centre aims to equip managers with the skills and outlook to put sustainability and responsibility at the heart of their operations by integrating Corporate Social Responsibility behaviour within organisations.
Dr. Ofori reiterated that the Centre would execute its mandate through the creation, dissemination, facilitation and application of CSR knowledge for various stakeholder groups in the private, public and non-governmental sectors.
The CCR’s key thematic areas, he noted, include Streamlining Corporate Responsibility into Business Operations, Business and Human Rights, Business and the Environment, Anti-Corruption, Transparency & Business Ethics, Partnerships in Local Supply Chains, Promoting & Hindering Factors for CSR, and CSR Disclosure, Reporting & Audit.


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Abandoned Vessels Overtake Ghana's Coast



The Environmental Protection Agency (EPA) is unhappy with the growing number of abandoned vessels along Ghana’s coast which it noted was degrading the environment.
Some cargo, tanker and fishing vessels, mostly located at Prampram and close to the Tema Habour, have been abandoned.

Young men, who call themselves scavengers, usually rip them into pieces to sell as scrap.

The activities of the youth threaten the lives of the people in community.

A team from EPA that toured Prampram where another vessel, MT Navgator, has recently been spotted was astonished by the level of the illegal activities along the shore.
MT Navgator was seen along the coast close to Prampram in November, and was being ripped into pieces when the EPA served notice for work to stop after the media highlighted the issue.



Moses Adams, a scavenger working on the vessel, told journalists that he was contracted by Integral Marine, a local scarp company which bought the vessel suspected to have been abandoned on the high seas for five years.

He said it was formally at the Dry Dock at the Tema Habour but was moved to Prampram after securing approval from the traditional authority.

DSP Abraham Kwawu, Prampram District Commander, who is ensuring that the EPA order is carried out, disclosed in an interview that all the other vessels were there accidentally as a result of shipwreck with the exception of two vessels.
Journalists were showed a vessel believed to have conveyed Tata buses to Ghana some 25 years ago.

Hudu Issak, who cut and sold almost half of another tanker vessel, MT Biera, said they would need another month to dismantle the whole vessel estimated to generate over GH¢40,000.



A letter dated August 11, 2011 and signed by Captain James Owusu-Koranteng, Habour Master on behalf of the Director of the Tema Port and copied to the Port Security Coordinator, Naval Base Commander and the Ghana Maritime Authority, gave permit to remove the vessels from the Tema anchorage to Prampram.

Irene Heathcote, Director at EPA Accra East Regional office, told CITY & BUSINESS GUIDE that the presence of the vessels threatens the security of the area.

“They are supposed to be at the dry dock. There are social and environmental hazards associated with these activities.”

She said apart from degrading the shores, the scavengers use gas and dynamite to blast the vessels.



Lambert Faabeluon, Director of Manufacturing and Industry Department of the EPA, explained that the sea could be contaminated with alien species.
“If this activity is not stopped we will be opening our doors for others and gradually our shores would be turned into something else...”
Key stakeholders including the Navy, Ghana Maritime Authourity, Ghana Ports and Habour Authority, National Security, EPA would be holding a meeting to discuss the issue today.

Italy Provides Soft Loans For SMEs

The Government of Italy has provided a 22 million Euro facility to support Small and Medium-scale Enterprises (SMEs) under the Ghana Private Sector Development Project (GSPDP).

11 million Euros was disbursed to 29 enterprises between 2004 and 2008.

At a media interaction to announce the second phase of GSPDP, Tullio Guma, Italian Ambassador to Ghana, said the second approval is as result of the successful implementation of the first facility.

Out of the total amount, he said two million would be used for capacity building activities, encouragement of decentralized corporation by local authorities through technical assistance and other initiatives from Italy.

He said the basis of Italy’s economic development resulted in a high number of Small and Medium Enterprises (SMEs) which over the years had been able to cope with the rapid changing business environment and globalization

“Our expectations are that the Ghana Private sector development facility will replicate to some extent such a development model, especially in view of the challenges of the international financial crisis and liberalization of the market in line with the World Trade Organisation agreement.”



He observed that the GSPDP was characterized by a strong element of ownership and partnership to bring about an increased responsibility of the Ghanaian institutions.

“I am convinced that this programme can ultimately give a small but significant contribution to the efforts of Ghana on its way to reach the Millennium development Goal,”

Joseph Annan, Deputy Minister of Trade and Industry, said government is convinced of the potential of Small and Medium-scale Enterprises (SMEs) to stimulate economic growth as it presently contributes over eighty percent of the country’s Gross domestic product.

However, he noted that the potential of the private sector is hampered by significant challenges relating to access to finance, acquisition and application of appropriative technology, logistics management, human resources capacity building, distribution and marketing.

He appealed to the beneficiaries of the credit facility to adhere to the repayment schedule and work closely with the team of experts managing the funds “in order to make it a successful initiative.

Already, managers of the facility have received over 450 applications from private and financial institutions with 95 companies receiving the green light while 50 are on the waiting list.

They stand to gain loans of between nine and 12 per cent interest rate per anum to be repaid over five to eight years with a grace period of two years.

Eligible companies should have full ownership of their enterprise, operate without military activities, tobacco processing and luxury goods as well as make sure their production activities did not pollute the environment.

Biscuit Importers Cry Over High Taxes

Biscuit and toffee importers are complaining about high taxes imposed on the importation of the products by the country’s revenue collection agencies at the ports.

According to them, the trend would push them out of business if nothing is done about it.

The angry importers revealed that import duties have been increased by over 150 per cent since the beginning of this month, which is negatively affecting their businesses.

Import duty on a 40-footer container has increased two folds since December 1, 2011.

Addressing media practitioners in Accra, spokesperson for the irate traders, Charles Gyam, explained that previously they used to pay between GH¢7000 and GH¢8000 for a 40-footer container but since the beginning of this month, they have had to part with between GH¢2000 and GH¢23,000.

He said as a result of the increase in the import duties, many of them have not been able to clear their goods from the ports.

“We have imported more goods as a result of the impending Christmas but as it is now, many of us have our containers at the ports. We have been unable to clear it,” said Mr Gyam.

On behalf of the group, the spokesperson urged government, to as a matter of urgency, intervene in the matter and ensure that the taxes are reduced.

Giving government a one-week ultimatum to address the problems, he said: “As a matter of urgency, if by the end of next week we do not hear anything from government, we would advise our selves.”

Elizabeth Amoako-Atta, Chief Executive of Lady Ventures, told CITY & BUSINESS GUIDE that she has been importing biscuits for the past five years “but this is the most outrageous duty they have imposed.”

“When I started importing, we used to pay GH¢600. It then increased to GH¢700 and then GH¢8000, a 150 percent increase is too much,” said Mrs Amoako-Atta, who said she has been having sleepless nights since news broke about the increase in taxes.



Effei Adusei, an importer, said that biscuit importers were not consulted before the determination of the new taxes, adding that “at least a notice regarding an impending increase sould have been communicated to us to enable us plan ahead.

“As at now, we have exhausted our overdrafts and bank loans and we are in a fix as to how to find money to pay for this high duty.”

Another importer, Mary Kwapong, hinted that high tariffs would compel traders to evade taxes.

“But we are law abiding citizens and we are willing to pay. Because we know that if people do not pay the right taxes, the state stands to lose the much-needed revenue it requires to undertake development projects.”


Hajia Fati Sule, another importer, stressed that “if government does not reduce the duties, most importers would lose their capital since the stock of goods in the containers cannot cover the new taxes, let alone that of the goods.”

She stated that biscuit importers would have no option than to pass the cost to consumers. Biscuits and toffees are sold on the open market for GH5p. “These are for children and we can not deny them their candies and sweets.”

Financial Solution For Scrap Dealers

The problems encountered by scrap dealers in accessing funding to expand their businesses would be a thing of the past with the launch of the Solid Waste Business project in Accra.




Solid Waste Business (SOWBIZ) project is being carried out by the African Aurora Business Network in collaboration with CHF International and the Ga Mashie Center For Educational and Environmental Development (GACEED).

The project aims to provide financial literacy training and assist over 200 scrap dealers to access credit from financial institutions.

SOWBIZ would also lead to the creation 425 intermediaries in the value chain who deal with ferrous metal or e-waste.

To kick-start the project, a team from Africa Aurora Business Network and the other partners last week organized a health and safety training programme for 400 young scrap dealers and 50 association leaders at Galaway, near the Agbogbloshie market in Accra.

Chief Awal Salifu, Chairman of the Ghana Scrap Dealers Youth Association, Accra branch, said they have a total membership of over 2000 who collect and buy pure iron, cast iron, steel and other metals from households and organisations.

“Our work involves a lot of hazards as we can easily sustain cuts from the metals and this will easily lead to tetanus.”

On daily basis, he said they supply about thousand tonnes of scrap to steel companies operating in various parts of the country for the production of iron rod.

However, he noted that the scrap dealers are faced with the challenge of accessing funds from the various commercial banks.

“Many of us try to go to the banks hoping to get business financing but because most of the banks do not understand the recycled scrap metal business well and do not have the right solutions for the industry.

Furthermore, getting bank financing in Ghana is difficult since most financial institutions demand collateral before accessing a loan.

Mr Awal explained that the scrap dealers require a substantial amount of money to buy the metal and other waste from the original owners and also spend money in conveying the scrap to their collection points.

They were later assured by the First Allied Savings and Loans Limited of the much needed financial assistance.




Maureen Odoi, Programmes Coordinator of Africa Aurora Business Network told CITY & BUSINESS GUIDE in an interview that the scrap dealers contributed to the economic development of the country.

“These unskilled people collect specific waste metal which they break, bulk and sell. It is one organized system and they are producing a useful resource which would have become waste without their efforts.”

“They are doing a good job, they are uninformed as they operate without much knowledge and they must be regulated and trained as well as encouraged to form associations, she said.

Thursday, December 22, 2011

Biscuit Importers Cry Over High Taxes



Biscuit and toffee importers are complaining about high taxes imposed on the importation of the products by the country’s revenue collection agencies at the ports.

According to them, the trend would push them out of business if nothing is done about it.

The angry importers revealed that import duties have been increased by over 150 per cent since the beginning of this month, which is negatively affecting their businesses.

Import duty on a 40-footer container has increased two folds since December 1, 2011.

Addressing media practitioners in Accra, spokesperson for the irate traders, Charles Gyam, explained that previously they used to pay between GH¢7000 and GH¢8000 for a 40-footer container but since the beginning of this month, they have had to part with between GH¢2000 and GH¢23,000.

He said as a result of the increase in the import duties, many of them have not been able to clear their goods from the ports.

“We have imported more goods as a result of the impending Christmas but as it is now, many of us have our containers at the ports. We have been unable to clear it,” said Mr Gyam.

On behalf of the group, the spokesperson urged government, to as a matter of urgency, intervene in the matter and ensure that the taxes are reduced.

Giving government a one-week ultimatum to address the problems, he said: “As a matter of urgency, if by the end of next week we do not hear anything from government, we would advise our selves.”

Elizabeth Amoako-Atta, Chief Executive of Lady Ventures, told CITY & BUSINESS GUIDE that she has been importing biscuits for the past five years “but this is the most outrageous duty they have imposed.”

“When I started importing, we used to pay GH¢600. It then increased to GH¢700 and then GH¢8000, a 150 percent increase is too much,” said Mrs Amoako-Atta, who said she has been having sleepless nights since news broke about the increase in taxes.

Effei Adusei, an importer, said that biscuit importers were not consulted before the determination of the new taxes, adding that “at least a notice regarding an impending increase sould have been communicated to us to enable us plan ahead.

“As at now, we have exhausted our overdrafts and bank loans and we are in a fix as to how to find money to pay for this high duty.”

Another importer, Mary Kwapong, hinted that high tariffs would compel traders to evade taxes.

“But we are law abiding citizens and we are willing to pay. Because we know that if people do not pay the right taxes, the state stands to lose the much-needed revenue it requires to undertake development projects.”

Hajia Fati Sule, another importer, stressed that “if government does not reduce the duties, most importers would lose their capital since the stock of goods in the containers cannot cover the new taxes, let alone that of the goods.”

She stated that biscuit importers would have no option than to pass the cost to consumers. Biscuits and toffees are sold on the open market for GH5p. “These are for children and we can not deny them their candies and sweets.”

SSNIT Restructure Investment


The Social Security and National Insurance Trust (SSNIT) has indicated that it will venture into performing investment portfolios to ensure sustainable flow of revenue for the management of the pension scheme.

Since the end of 2010, the Trust has been making high yielding investments and this has led to the sale of companies such as The Trust Bank (TTB) and the offloading of 74 per cent shares in one of its key assets, Wahome Steel to Fujian Chinese Overseas Industrial Group.

“Since 2011 we have programmed ourselves to go into prudent investments and this is what we will be doing in the years ahead,” said Dr. Frank Odoom, Director-General of SSNIT when he interacted with editors of the various media houses in Accra on last Thursday.

Dr. Odoom stated that it has become necessary for SSNIT to bring dynamism into its investment portfolio as the new national pension law poses serious challenges to the SSNIT’s operations.

“Some gab has been created. We need to do better investment to make the scheme as solid as possible,” he said, adding that “what we need is to ensure that the investment yield the right returns to support the scheme.”

The management of SSNIT intends to partner developers in the construction industry in the coming years to build ultra-modern shopping malls in some parts of the country.

“We can see the growing middle class who have an appetite to shop in better malls.”
On housing, Dr Odoom noted that SSNIT intends to change its approach in building, adding, “we will invest but in a different manner.”

He explained that the new housing project will take the form of joint venture “because in the past people think because it’s a SSNIT house then they must have it for free.”
The investment portfolio of SSNIT has always been in the form of a mix asset in four main areas namely, real estate, listed and unlisted equities, fixed income and some economically targeted investments.

Stephen Yeboah, Chief Actuary, speaking on the mechanics of Social Security and the New pension Act 766, said since January 2010 there has been a reduction in the contribution rate from 17.5 per cent to 11 per cent and “this has resulted in a loss of contribution income by 41 per cent.”

The shortfall in contribution, he noted, implies that the Trust would have less capital for investment.

The improvement in life expectancy, he said, means that after retirement “many more pensioners will receive pension for a longer period thereby increasing the huge funding gap.”

Friday, December 2, 2011

Are We Serious About Climate Change?



Barely a month ago, some parts of Accra and its surroundings were submerged by floods for almost two days.

Torrential rainfalls came at a time when Ghanaians were not expecting rains of that magnitude.

People living in flood prone areas are used to the perennial flooding, which occurs during the raining season that starts in April and reaches its peak in June-July every year.

Yet, this year, after the usual floods at the expected period, which resulted in the lost of property and goods worth millions of cedis, the rains hit again suddenly in October.

Official figures indicate that the rainfall that flooded parts of Accra and Tema lasted seven hours as it began on Tuesday night October 25, 2011 at about 20:00 hours and ended at 2:100 hours, and resumed at midnight until 06:00 on Wednesday.

Media reports indicated that 14 deaths were recorded, while, apart from the property lost, thousands of people were displaced and had to take refuge with friends in school blocks and places of worship.

“This is the worst floods we have seen,” said Mary Ago, a cloth seller who lost her shop and all its contents.

With tears in her eyes, Madam Ago narrated how her business capital, which included a loan from a bank, was washed away by the floods.

“Because of the coming Christmas, I ordered for extra goods worth GH¢8,000 and I took delivery of it on Monday, the day before the rains,” she relates. “I packed them in my shop and even made some sales on Tuesday, after which I left in the evening for home as usual.”

Though it rained heavily in the night, little did the single mother of two know that her business would be affected, even though she heard on the radio that some places in Accra had been flooded.

The road from her house in Ablekuma to her shop had been rendered impassible as a result of the heavy rains; the residents in that area had virtually been cut off from the city so she had no option than to stay at home.

However, in the early hours of the next day, as she prepared to use an alternative route, which she had been told was a bit better but longer, she was called by some friends and told her shop, a wooden structure at Awoshie, a suburb of Accra, has been washed away by the floods.

“I cried and rushed to the place a quick as I could,” said Madam Ago, adding that her shop was in the vicinity for the past seven years. “I have never seen anything like this before. The rainfall on Tuesday was too much. I have never seen anything like that before.”

The world is experiencing extreme weather conditions and many natural disasters ranging from floods, storms, tsunamis. Meanwhile, there is a scarcity of water as rivers dry up, rainfall patterns change, and deserts spread.

In Ghana most communities near the coast are experiencing rising sea levels and this is resulting in the loss of land.

People in the forest and savannah zone of the country have not been spared. They have been hit by desertification, draughts, influx of pests and disease among others as a result of rising temperature.

Experts have attributed the trend to climate change, which is caused by human activity that directly or indirectly alters the composition of the global atmosphere.

Activities such as bad farming practices, industrialization, land, air and water pollution, burning of fossil fuel, indiscriminate falling of trees in the forest which serve as a carbon sink as well as other practices have the tendency to gradually heat up the world.

Yaw Oppong-Baodi, chief programme officer of the Energy Resources and Climate Change Unit of the Environmental Protection Agency, stated that climate change issues are real and taking alarming tolls on both human beings and other forms of life.

Climate change, he said, has a great significance for the sustainable development plans of Ghana as it affects the livelihood of the people.

“It should be seen as a developmental issue for the country,” he said.

Since the trend is caused by the release of greenhouse emissions into the atmosphere the world’s leaders have agreed to reduce the emissions. The goal is to get the world keep the global temperature below a 2°C rise.

In line with this, global leaders came up with the United Nations Framework Convention on Climate Change with the objective of stabilizing of greenhouse gas in the atmosphere. Ghana signed the Convention in 1992 and ratified it in 1995.

“At least two degrees centigrade rise in global temperature would potentially decrease water availability, crop yield in Africa by 20-30 per cent and 5-10 per cent respectively and between 20 and 30 million people would be exposed to malaria,” said Joseph Essando Yedu, a scientist at the Energy Commission.

Though developed countries have been identified as the worst polluters, developing countries have been the hardest hit.

Developing countries are battling with too much or too little rains, which raise concern over food security, water shortage, rising temperatures, rising sea levels and land loss, desertification, and diseases, just to mention a few.

“This is putting the survival of the poor at risk, each passing day,” said Sherry Ayitey, Minister of Environment, Science and Technology.

She believes there is the need for the developed countries who have admitted that they should be blamed for climate change to support the vulnerable in developing countries who are suffering as a result of their actions to help minimize the effects.

To reduce vulnerability and impact of climate change people in the developing world have to adapt to new developments and consider alternative livelihoods while they protect the environment. But because they do not have the technology and the financial strength they have to depend on developed countries, which have pledged financial commitments but have not made good their words.

Every year, there is a conference on climate change attended by world leaders, activists; academia and ministers of Environment and the seventeenth session, this year’s would be in Durban, South Africa from November 27 to December 9.

It is expected that this year’s Conference of Parties (COP 17) would come out with concrete commitments and actions to mitigate the effect of climate change.

Ghana would join other African countries to go to the conference with one voice.

Professor Chris Gordon, Director of the Institute of Environment of the University of Ghana, said: “Ghana is good at signing protocols, conventions and rectifying models and so on, but that is not enough.”

He called for concerted action by all the various agencies and government institutions, as well as civil society groups to coordinate programmes and projects relating to climate change mitigation.

“Government needs to be serious about capacity building for climate change. Access to finance go hand-in-hand with capacity building. We can not access the various financing opportunities available for vulnerable countries if we do not have the capacity.”

Yet Daniel Tutu Benefo, senior program officer at the Environmental Protection Agency, thinks: “We must think of homegrown solutions.”