Achieving Low Interest Rate

For almost two years, the Bank of Ghana (BoG), regulator of the banking sector in the country, has been adopting measures to address high interest rates charged by commercial banks but no major achievement has been made so far.

High interest rates charged by banks have been identified as the main factor which makes it difficult for businesses to access loans, and experts believe high interest rates impede the growth of trade.

Last week, Vice President John Dramani Mahama urged commercial banks in the country to reduce their interest rates for trade to flourish and reflect the current economic trends in the country.

The reduction, he explained, would also facilitate rapid economic growth and provide conducive atmosphere for trade, commerce and employment.

As a result of the high rates charged by the commercial banks and other financial institutions, only a few business owners are able to borrow funds from banks.

This development, according to experts, hampers the growth of the economy.

If many companies are able to borrow money from the banks they would expand their businesses and employ more people who would improve their living standards.

The Bank of Ghana determines the policy rate but in the past year and a half interest rates by the commercial banks continue to remain high despite a decline in the monetary policy rate of the central bank. Interest rate spread is the difference between the bank’s earnings from loaned funds and cost of funds

Many individuals, organisations and groups have joined members of the Association of Ghana Industries (AGI) to call for a reduction in the rates.

The latest body to call on government to address the high interest rates charged by government is the Canadian Chamber of Commerce Ghana (CCCG).

At a breakfast meeting, which is the third to be organized by the chamber in Ghana and brought together private sector operators and government officials, various stakeholders appealed to government and the BoG to crack the whip to ensure a reduction in interest rates in the country.

The meeting, which was under the theme: “Ghana’s Real Economic Challenge: Interest Rates,” was geared towards discussing the high interest rate regime in the country and its impact on businesses.
“We are of the firm conviction that if more small businesses are able to access finance or credit at an affordable cost, the gains would be immense,” Alhaji Abdulai Nangtonmah, President of CCCG said.

The chamber, he stated, “sees access to credit as playing a very important fundamental role in building a strong private sector in Ghana in the current competitive global enterprise.”

Millison Narh, Deputy Governor of the BoG, whose speech was read on his behalf by Dr Samuel Ameyaw, Head of Monetary Policy and Economic Analysis Office, confirmed that the Central Bank was aware of the phenomenon.

“We, at the Central Bank, have identified some major challenges in achieving low lending rate regime as the slow transmission mechanism, structural rigidities in the banking sector and the need to intensify financial sector reforms to enhance efficient financial intermediation within the financial markets.”

He noted that the weak financial intermediary role played by the banking industry had reflected in the wide spread between deposit and lending rates.

The Deputy Governor stated that studies conducted by the bank suggest that key impediments to lowering lending rates of commercial banks include high overhead costs, high funding costs and high non-performing loans.

These costs often indicated some inefficiency in the operations in the banking system, which in most instances, is passed onto consumers.

Having identified these structural rigidities, he said, BoG has started encouraging banks to explore the idea of infrastructure sharing to improve efficiency and reduce cost of operations, especially in the delivery of financial products and services.

This is to lead to a reduction in the banks’ lending rates to ensure availability of more funds at reduced costs to entrepreneurs for the growth and expansion of businesses in the country.

He disclosed that the central bank has established a tripartite committee to investigate the determination of base rates in the banking sector to promote a level playing field for setting lending rates and improve transparency and efficiency.

Additionally, he said the bank has put in place a collateral registry including the credit reference bureau, which was expected to reduce information asymmetry in credit allocation in the banking sector and in the long run help lower the risks associated with the increasing non-performing loans in the bank’s portfolio.

“We expect that these measures will induce banking efficiency and reduce intermediation spreads.”

Mr Narh gave the assurance that BoG would intensify its surveillance activities to ensure efficient risk management and good corporate governance structures in the banking sector.
Kofi Bentil, Policy Analyst and Vice President of IMANI Ghana, called on banks to stop the unnecessary search for “best talent” to reduce the cost of borrowing.

Mr. Bentil said charging high interest rates enables banks to make more profits to pay their staff higher salaries and poach talents from other banks.

He called for improvement in statistics to ensure proper planning and forecasting in the banking sectors to regulate the sector.

Yvonne Nduom, Executive Chairman of Coconut Groove Hotels, who spoke on behalf of the private sector, called on government to ensure efficient and effective monitoring of the financial sector to prevent commercial banks from making unnecessary profits from borrowers.

However the Ghana National Chamber of Commerce and Industry (GNCCI) noted that controlling interest rate, as was done in the past years, is not the best.

Seth Adjei Baah, President of GNCCI, in an interview appealed to government to help regulate interest rates to sustain the private sector.

He was of the view that government must regulate interest rates instead of controlling them to assist in the development of businesses.

The private sector, he said, intends to partner government in the socio-economic development of the country, adding that private sector operators must be assisted in all aspects.

By Emelia Ennin Abbey

Surviving On Truck Pushing

For the past 10 years, Abdullia Dery has been pushing trucks, collecting scrap metals at Agbogloshie to earn a living.

When he arrived from Lawra in the Sissala district of the Upper West region in 2001, he joined four young men he knew from his hometown who were living at the slum behind the Abgogloshie market.

They introduced him to the truck pushing business which is their mainstay.

Young men usually push a four wheel truck in most parts of Accra, the capital of Ghana.

Their load includes all sorts of items that one can think of from scrap metals to broken televisions sets and food items.

Often dressed in dirty cloths and smelling of sweet with unkempt hair and oily skin, they push a truck made of metal with a flat wooden surface.

The trucks are locally made and according to Abdullia, who dropped out of school at age 9, “Truck pushing is not a bad business, it does not only provide jobs for us but to the people who make the trucks and even the scrap dealers who cannot be in business without us and then people such as market women who want their items moved from one point to the other.”

They travel from Abgogloshie to Mallam and rest for a few minutes under a tree.

“Business is not as good as it used to be when I arrived some years ago” said Abu, expressing dissatisfaction with a new directive from the city authorities.

The Accra Metropolitan Assembly (AMA) has ordered all truck pushers to register with the assembly to obtain a special number plate which would help identify them and restrict their activities to specific areas in the city.

The directive, which takes effect on September 15, 2011, will lead to a total ban of truck pushing on certain streets in Accra under the assembly’s jurisdiction.

Alfred Oko Vanderpuije, Mayor of Accra explained that truck pushers pose a danger to motorists, as well as create inconvenience for pedestrians.
“These trucks are without braking systems, which makes it difficult for the pushers to control the truck when faced with dangerous situations such as negotiating a curve, avoiding a clash with a vehicle or other road users.

“They disrupt normal traffic flow. These truck pushers also put their lives at risk,” said the Mayor, who pleaded with members of the Association of Truck Pushers to corporate with the assembly by not extending their activities to some ceremonial and major streets such as areas near the High Street, 37 Military Hospital, Tetteh Quarshie Interchange, IPS, Airport, Kojo Thompson Road through Kokomlemle to the Avenor traffic lights.

Other areas which are now no go areas for truck pushers include the Labadi Beach Hotel road to the Independence Square, the Danquah, Kwame Nkrumah and Obetsebi-Lamptey circles to the Korle Bu Teaching Hospital.
Other streets also include the Nima Highway through Kao Kudi traffic intersection to Dimples junction, Osu Oxford Street, Roman Ridge round and from Mallam junction to Graphic Road, the National Theatre, Cantonments and other prime residential areas.

However, trucks pushers are permitted to operate in all markets in the city and its environs.

Many have criticized the new directive, describing it as one of the AMA’s nine day wonders.

It would also be difficult to implement the new policy as even though effectively all streets in the metropolis have names most street are not signed.

For instance a person looking for direction to the Old Parliament House would be told to turn right before he or she gets to the blues house near the Circle and it’s often confusing for especially visitors and foreigners to find their way so one wonders how the AMA can clearly mark out the areas which lack precision and specificity.

He stated that sign posts will be mounted in the city to direct truck pushers on streets they can use.

Men would also be dispatched onto these streets to ensure compliance of the directive by the truck pushers. Violators will be arraigned before a special court for prosecution.
So far, a list of the names of 150 truck pushers has been submitted to the Assembly even though the deadline of September 3 has expired.

Abdullah Abdul Raman, Chairman of the Grater Accra Scrap Dealer, says his group has no problem with the new policy by the AMA though he believes it is a stern measure to regulate the activities of truck pushers.

He pleaded with the AMA to be flexible with the implementation of the law and educate truck pushers and the public.

Banning Used Fridges: Can Ghana Save Energy

It is amazing how Ghanaians and people in the developing world use items their counterparts in the advanced world discard.

On daily basis, many used items ranging from cloths to furniture flood the Ghanaian market where naive buyers readily topple over each other just to grab an item and part with their hard-earned monies.

Not so long ago, the importation of second-hand panties and other underwear was banned.

Recently the mass importation of used electronic gadgets such as fridges, air-conditions, television sets, radio sets, water heaters, microwave, electric cookers, pressing irons, commuters, washing machines, rice cookers and blenders has attracted the attention of authorities in the energy sector.

Worried about the current trend, the Energy Commission, regulator of the Energy sector, initiated plans to ban the importation of some of these used electronic appliances which are said to consume more electricity than new ones.

The commission explained that though the process to ban the importation of used electronic gadget would be gradual with effect from January, 2013, used refrigerators and air- conditioners would be banned completely from entering the market.

Next in line would be used television (TV) sets and electric irons which would be completely banned in the country.

David Yaw Donkoh, in an interview, said he has been importing second-hand electronic gadgets for the past 10 years and now owns four shops through out the country.

“It is a good business. Not anyone can afford a new gadget which is usually expensive and not durable. Most Ghanaians want quality appliances which they would not spend so much on,” said Mr. Donkoh from one of his shops along the Lapze-Kwashieman road in Accra.

Since news about the proposed ban on importation of fridges and air-conditions broke out, Mr. Donkoh says he has been having sleepless nights.

“I have been thinking about what would happen to my business.”

Bowing his head down as he sits in a sophisticated chair in his shop, he noted “If I do not take care I will go out of business. I must think of selling new items. It will not be easy but everybody will be forced to buy new gadgets since there would be no used ones on the market.”

Dr. Alfred Ofosu Ahenkorah, Executive Secretary of Energy Commission, explained that some used TV sets with standby mode consume about 10 watts of electricity which is a drain on the country’s energy.

“We, at Energy Commission, together with other stakeholders in the energy sector want Ghana to be free from electronic waste,” he said.

The measures, he explained, would help the nation save energy, noting that “Ghana will not be a dumping ground for second-hand electronic products.”

One of the core functions of the Energy Commission, as stated in Act 541, is to promote energy efficiency.

In line with its mandate, the commission has instituted the energy efficiency and conservation month to be celebrated every year in September.

This year, to address economic and climate change challenge, the commission aims to create the necessary awareness as well as sensitize the public on how to efficiently use energy.

The commission has also called on Parliament to give it more authority to sanction people who import cheap electronic products into the country.

In line with this, the commission has kicked start the implementation of standards and labeling of refrigerating appliances and air-conditioners which when properly enforced would save the country over $100 million and about $52million respectively every year.

The labeled products are expected to promote standards, as it would prescribe minimum energy performance of products.

A special taskforce, constituted by the Energy Commission, will from next month embark on an exercise to confiscate used refrigerators from the market.

Sherry Ayittey, Minister of Environment, Science and Technology, said the measure is part of government’s efforts to address global warming and climate change in the country.

She mentioned that the two-year moratorium placed on the Energy Commission’s regulations, 2008 (LI 1932) which prohibited the importation of used refrigeration equipment effective January 1, 2011 to December 31, 2012 was in view of petitions and concerns raised by dealers in the trade.

During this period, she said plans were put in place to register and license all traders and importers of used refrigeration equipment after which import quotas would be issued to some selected importers to bring them into the country in controlled quantities until December 31, 2012 when they would be completely banned.

Nonetheless, “We would ensure that the market is not flooded by new inefficient refrigerators after the ban on the importation of the used ones.”

Kofi Agyarko, Principal Programme Officer of Energy Commission, said a research has revealed that obsolete or used gadgets consume more energy.

Most of these used electronic gadgets have been identified as the main cause of fire outbreaks in homes and industries as a result of the high amount of energy they consume and frequent power outages experienced in the country in recent times.

Hannah Immere, a single mother of two, told this paper that she bought her fridge from a second-hand dealer.

“It was very cheap. I have been using it for the past six years and it has never broken done,” said Ms Immere.

She said she has seen dealers off loading used electronic appliances from trucks.

“Some of them are very old. But the sellers refurbished the old and worn out fridges by spraying them and replacing some of the parts to make it look as if they have been slightly used even though they may have outlived the manufactures date,” she observed.

However, Mr. Ayarko advised the public not to consider the beauty of an electric gadget but its energy efficiency ratings. The rating helps buyers to know the amount of current a gadget consumes.

Victor Owusu, Public Affairs Officer, said a resource centre would be established to test the capacity of all new electric gadgets imported into the country to make sure that they have note been used.

There would be swoops to rid the market of such goods.

Cocoa Farmers Discuss Sector Challenges

Dr Duffuor in a hand shake with some farmers

Over 200 representatives of cocoa farmers groups across the country have gathered to discuss challenges in the sector as part of efforts to improve production.

Though Ghana Cocoa Board (COCOBOD) has announced that attainment of one million tonnes cocoa production target ahead of the 2012 year, there are still pertinent issues which the farmers and other stakeholders think need to be addressed.

In line with this, COCOBOD in partnership with Sustainable Tree Crop Programme (STCP) of the International Institute of Tropical Agriculture with support from the European Unioin has organized a two-day Cocoa Farmers’ Forum at the Kofi Annan ICT Center in Accra.

Themed, “Cocoa Farmers: Contributing towards policy formulation and implementation,” the forum would also create the platform for cocoa farmers to provide inputs into policy formulation.

What makes the forum unique, according to the organizer, is the opportunity to discuss the pertinent challenges with respect to cocoa production as perceived by the farmers to come out with proposed farmer-led actions to address these challenges and how the cocoa value chain can be improved and sustained.

The programme, which is being organized under the Cocoa Sector Support Program Phase II (CSS II) funded by the European Union and implemented jointly by the COCOBOD and
the Sustainable Tree Crops Program of the International Institute of Tropical Agriculture
who have initiated different interventions including facilitating community level self organization of farmers.

The forum, which is the second of its kind, will also facilitate the integration of cocoa farmer groups and associations into sector policy discussions and formulation and also create a nation awareness especially among cocoa farmers to be part of decision-making towards achieving national production target, as well as enlighten policy makers on farmers’ perspectives on needed actions for improved productivity.

The first forum organized last year in the Ashanti region hosted 48 cocoa farmers,
representing 15 districts from Western, Ashanti and Brong Ahafo regions as well as
representatives of stakeholders including COCOBOD and the Cocoa Swollen Shoot Virus
Disease Control Unit.

Based on the outcome of the first forum, there was community level engagement of farmers under the Cocoa Sector Support Programme with participation from the leadership of the community farmer groups as well as representatives of the Ghana Cocoa Coffee Sheanut Farmers Association and this year’s forum is expected to build on this initiative.

Isaac Gyamfi, Country Manager for the Sustainable Tree Crops Program International Institute of Tropical Agric was excited about the programme and said the approach will help to gradually develop the culture of making cocoa farmers and their groups more responsible and less dependent on state efforts and rather perceive state support for the cocoa sector as complimentary.

He expressed his outfit’s commitment to continue to partner with farmers in various
programmes to seek innovative farmer-led actions that impact policies on cocoa for increased cocoa production to impact the income and livelihoods of cocoa farmers and their families.

Sustainable Tree Crop Programme is a public-private partnership and innovative platform that seeks to generate growth in rural income among tree crop farmers in an environmentally and socially responsible manner in West and Central Africa.

The programme is managed by the International Institute of Tropical Agriculture and
provides a framework for collaboration between farmers, the global cocoa industry, local
private sector, national governments, Non-Governmental Organisations (NGOs), research institutes, and development investors.

By Emelia Ennin Abbey

Ahwoi Suggests Water, Sanitation Sector Merger

A PROPOSAL has been made for Ghana to consider merging the water, sanitation and hygiene sectors to be handled by a single institution.

Prof. Kwamena Ahwoi, a local governance expert who made the proposal explained that water, sanitation and environmental hygiene are closely related therefore it would be best if they were treated as a single sector.

“The common thread running through them is water. Lack of or too little water causes the sanitation and environmental hygiene problems.”

He consequently noted that it would be necessary to make the Ministry of Water Resources, Works and Housing (MWRWH), the agency responsible for the three sectors.

Making the statement at this year’s Ghana Water Forum themed “Water and Sanitation Services Delivery in a Rapidly Changing Urban Environment,” he called for decentralization of water provision to the Metropolitan, Municipal and District Assemblies (MMDAs).

The management development lecturer asked for the engagement of independent agencies to handle the various aspects of production, transmission and distribution of water.

“Because of the large cost and investment outlays, it is possible to have different agencies or organisations handling the different aspects of water operations,” he said.

Another option for the management of urban water, he mentioned would be to ‘regionalise’ the system where the regional water management systems could be clustered around the production locations and managed by separate bodies.

“That could be another way of breaking the monopoly of the Ghana Water Company Limited over urban water supply, one of the critical issues at the heart of the problem of urban water in Ghana.”

President Mills in a speech read on his behalf by the Minister of Water Resources Works and Housing, Alban Bagbin noted that though the Millennium Development Goals of the UN required that countries like Ghana reach a target of 76 percent for water and 53 percent for sanitation by 2015, government is aiming at 85 percent coverage.

He urged all MMCEs to implement the relevant bye-laws to ensure that all households had access to appropriate sanitation facilities to address the deplorable sanitation problem that nation faces.

Samuel Appenteng of the Association of Ghana Industries expressed the readiness of the business community to forge a stronger partnership with government in the provision of accessible water.

By Emelia Ennin Abbey

Furniture Fair Ends In Accra

A one-stop shop to promote the furniture and décor industry has ended in Accra offering visitors access to the latest styles and trends of modern furnishing designs.
The four-day event, organized by XODUS Communications, an events management company, specialized in fairs, theater production and marketing showcase home furniture, office furniture and commercial furniture.
Operators who offer interiors decoration services also displayed their services and employed different strategies such as distributing flyers to attract customers.
Richard Abbey Jnr., Chief Executive officer of XODUS Communications, shortly after the fair, said the event which was the second to be organized by his company was designed to serve as a marketing tool for offering ample business opportunities for players.
The second Furniture and décor fair which was built on the success of last year’s, featured a seminar on project investment where resource persons took exhibitors and the public through project financing options.
Some renowned furniture companies, which participated in the fair, included Simbin’s Furniture, Woodeck Company Limited, Tekua, Nest Furniture Company Limited and Woodjoynts limited.
Others in the décor industry showing off their latest products and seeking business opportunities are KETS DÉCORand Curtains, Design Xpress, Mosaix Interior, Ceiling Professionals Limited and Hortserve Lanscapes Consult.
Ronald Kojo Binder, Chief Executive Officer of Simbin’s Furniture, described last year’s fair as phenomenal as it boosted his company’s business.
“We picked up large customer base and the follow-up was good, we hope it would be bigger this year.”
After seven years of being in the furniture industry, Simbin’s, which generally deals in imported products from the Unites States, has since the last two years commenced the manufacture of local furniture for which 70 per cent are exported.
Audry Forson of Ketura, producers of handcrafted furniture and décor, participated in the maiden fair but was not happy with the outcome.
“We decided to be at this year’s because we can see the organizers have improved on the last fair and so far it’s been good.”
Ketura has been in business for the past ten years and mainly exported its hand-made wood work.
The company that has grown from producing only traditional handicraft pieces to contemporary African furniture and decor and is now a growing business in the Ghanaian economy and now sells some of its products on the domestic market.

By Emelia Ennin

When Gas Stations Run Dry…

Many Ghanaians, especially automobile users, who mostly use gas as their main source of fuel, are facing acute shortage of gas across the country.

Godwin Agbe, a taxi driver with over 12 years experience said “this is the worse time in my life since I started driving.”

The domestic gas users also move from one gas station to the other with their containers, popularly referred to as ‘cylinder’-probably because of the shape, but they are met with the ‘No Gas’ sign.

Jonathan Baidoo, who works at the Anyaa gas station in the Ga East Municipality was seen relaxing in a chair on Wednesday afternoon at a time when every employee is expected to be busy at work.

He said “we have always been the last resort for people when gas run out of the system but now we have not had any supply for three weeks.”

At another gas station, customers had lined up with their empty cylinders hoping to get the product while others have taken the phone numbers of the attendants.

“I receive phone calls from all sorts of people but I keep telling them to call the next day. I am not sure when we will get supply but we are in constant contact with the delivers.”

At the Odogornor gas station, Sarah Mobi said, “The supply has been erratic, we run out shortly after getting a supply because of the shortage and then we come to square one and we have no idea when the next one will come.

After failing to report at her workplace for two consecutive days, Sarah decided to buy two gas containers for her family which depend on gas for cooking, heating food and sometimes lighting.

She is however happy the shortage has not caused an increase in prices at the gas stations.

“I have always feared that a gas shortage would cause a jump in the prices but I am glad it is not occurring here in Ghana. The institutions responsible for the regular and frequent supply of this essential good must resolve this problem once and for all.”

The supply interruptions are becoming more frequent and increasingly difficult to manage but government says it is putting in place a comprehensive programme to solve the problem.

The various agencies responsible for gas importation, storage and delivery say the shortage can be attributed to the rise in the usage and demand of consumers especially the increasing usage of the product by commercial taxi drivers.

Experts have however called for the opening of separate terminals for commercial users who would have to pay more money than domestic users.

Taxi drivers have reacted sharply to the proposal for separate gas terminals to distinguish between domestic and commercial users.

Bright Koomson, a taxi driver who had to abandon his vehicle at Odorkor to carry his empty cylinder to Burma Camp said, “The proposal will not solve the problem.”

With his shirts drenched in sweat, Mr. Koomson explained that he converted from the use of petrol to gas after a friend told him it was more affordable “but my sweat can tell you that I am losing more than I have bargained for.”

The father of two used to fill his fuel tank with GH¢20 worth of diesel before setting out for work every day “but with the gas shortage I spend less than GH¢10 and it made life a bit easy for me.”

The National Petroleum Authority (NPA) noted that the constant shortage of LPG is as a result of the lack of adequate storage facilities.

Data available at the Ministry of Energy show that the nation needs 1,000 metric cubic tons of gas to meet its daily consumption.

According to the National Petroleum Authority, the Tema Oil Refinery (TOR), which is the only LPG production facility in the country, produces just a fraction of the daily consumption.

Part of the problem has been blamed on the nation’s inability to establish a gas processing plant after it discovered oil in commercial quantities.

It is indeed sad that after several months of drilling oil from the Jubilee oilfield, which have 600 million barrels of proven reserves and a potential for about 1.5 billion barrels of oil, the nation continues to flare the associated gas.

Apart from the waste and loss in revenue, the emission of dangerous chemicals into the atmosphere, could pose serious health problems to Ghanaians and also contribute to global warming.

That is why some people have called for the immediate construction of a national gas processing plant to make gas a major source of energy in Ghana

However, Alex Mould, Chief Executive Officer (CEO) of NPA, indicated that the recent shortage of LPG on the market is as a result of improper distribution of the product.

“The NPA is going to be very strict on distributors to ensure that they obey the rules and regulations so that we will be able to alleviate some of the problems Ghanaians are facing.”

After touring TOR with some journalists to acquaint himself with the LPG situation at the refinery, Mr. Mould explained that Tema Oil Refinery (TOR) has tanks that can take 6,500 metric tonnes while the refinery can only produce 250 tonnes a day.

The NPA boss revealed that his outfit was considering how the jetty, the pipe lines and the tanks at TOR could be expanded, adding that it was also planning to build another storage depot outside Tema since the jetty at Tema is the only one in the country.

The Public Relations Officer (PRO) at NPA, Yaro Kasambata is optimistic the frequent gas shortages could be minimized, if not eliminated, if the storage and distribution of LPG is decentralized.

Labour experts estimate that the shortage of gas is costing the nation millions of cedis as a people leave their jobs to search for gas.

However, several people, especially operatives in the charcoal industry, producers and truck drivers, middlemen who buy from the producers and sellers have taken advantage of the situation to make huge profits.

By Emelia Ennin published on the Business Guide website wwww.businessguideghana.com

Dog Business Booms

The craze for exotic breed of man’s best friend, the dog, has become a lucrative business in Ghana in recent times.

Unconfirmed reports indicate that there are over 150 dog breeders engaged in the dog business in Accra alone.

Young boys are seen in traffic intersections with puppies in hands while areas near the Achimota forest, Cantonment, East Legon and Teshie are the main centres for the dog trade.CITY & BUSINESS GUIDE checks revealed that the price for a puppy depending on the breed sells between GH¢500 and GH¢2,000.

“The dog business is a growing one. More people are appreciating the price of a puppy which until recently was compared to the price of a cow when mentioned,” said Robert Nicole, owner of Roni’s Kennel, one of the leading breeders in the country.

Mr Nicole, who had his first set of dogs- a German shepherd and a Rottweiler- in his teens, never thought of keeping dogs for business.“It was more of a hobby,” he said but after he crossed his female dogs with the male dogs of the same breed of a friend, he had seven puppies.

Though he lost five of the puppies, he later sold them for GH¢100 each when they were eight weeks old.For the second time, he had eight puppies of which six survived and then when they were old enough to be weaned off their mother, he sold them.Then he realized his passion for dogs could turn into a profitable business.

Today, Mr. Nicole owns a big kennel with over 36 breeds of dogs ranging from Boerboel, Mastiff of different types such as Miniature Bull Terrier, Neopolitan, and the English Mastiff to the American Pit Bull, Great Dane, Chihuahua and the Japanese Tosu.

Since the dogs need enough space to exercise, they are reared on two plots of land in Dansoman, East Legon, Koforidua and Weija where 12 employees handle the care and sales of the dogs.

The company also makes use of the services of external trainers and private service providers who groom the dogs.

From four outlets in East Legon, Osu, Kasoa and Spintex, the dogs are sold to anybody who loves dogs.

Mr. Nicole’s customers include government officials, former presidents and their wives, expatriates, ministers, entrepreneurs and the general public.

The company also sells to security companies who prefer older dogs and specific breeds such as the Boerboel and the Ridge Buck.

The price for a puppy depending on the breed sells between $200 and $300, Mr Nicole stated.To attract customers, Roni’s Kennel resorts to various marketing strategies including word of mouth such as recommendations from customers to others.

Besides, the CEO also researches constantly to keep trend with the bred in the system.

He advised buyers and potential buyers to make purchases from recognized breeders who would give them quality for their money.

Among other business such as Roni’s Properties and Roni’s Cleaners, the 33-year-old also owns a dog food outlet, which is the main agent of an American and a British company for Ghana and West Africa.

In future, Mr Nicole wants to expand his business to Takoradi in the Western region, Ghana’s oil hub and Kumasi in the Ashanti region.

“I also want to bring in a plant that would manufacture and process dog food,” said the young CEO who also plans to set up a Ghana Kennel Club which would seek to wipe out breeders who are not “doing the right thing.

”More demand is expected from the growing desire of individuals to buy dogs for keep as pets or for safety and the increasing security companies in the country.

But the President of the Private Veterinary Association, Dr Jonathan Amakye-Anim, is worried that some dog breeders keep dogs in terrible conditions and are not following best practices in the business.“They do not keep the pedigree.

They just cross any type of dog,” he said and cautioned dog breeders to register with qualified veterinary officers as well as ensure that vaccination was done by certified vet surgeons.

Dog owners must feed their dogs with the right kind of food, “the sick and energetic dog must not be fed on the same food”, he advised.A dog trainer, B. J. Kofi Cole, who has been taming dogs for years, believes the dog business would get better with more education.

The expert, who can make wild dogs calm and vice versa, said, “There are five commands a dog can obey but I can generate over 500 commands out of this.”By Emelia Ennin posted on www.dailyguideghana.com