Gas Ready By January

By Esther Awuah

Ghana is expected to produce its first gas from the Atuabo Gas Processing Plant by January 2013 after the completion of the first phase of the project by December 2012.

The first phase involves the construction and installation of equipment.

Victor Kofi Sunu-Attah, a Project Development Manager from the Ghana National Gas Company (GNGC), stated this during a presentation to selected journalists at an oil and gas training programme in Accra.

The initial projected feed gas rate from Atuabo will be 150 million standard cubic feet per day (mmscfd).

The project, being undertaken by GNGC and its Chinese contractors Sinopec, includes the construction of associated infrastructure at Atuabo and surrounding communities in the Western region.

The facility will process gas from the Jubilee field into clean fuels and feedstock for the domestic and export markets while promoting the development of the country’s petrochemical industries to eliminate the flaring of gas.

Mr. Sunu-Attah indicated that “GNGC has been given its marching orders by the Ministry of Energy to give the first gas to the Volta River Authority (VRA) by February of the same year (2013).”

He explained that there has to be a pre-commissioning and commissioning of the pipeline. Pre-commissioning is a series of processes carried out on the pipeline before the final product is introduced while commissioning means introducing the gas into the pipeline.

Mr. Sunu-Attah noted that the first phase of the project includes the “completion of storage facilities and an offshore buoy for export of liquefied petroleum gas (LPG) and condensate at Domunli in the Western region.

He said the medium to long-term development and expansion phase of the project includes a network of pipelines from the Floating, Production, Storage and Offloading (FPSO) facility and other reserves from the basin to the gas processing plant.

In the near future, he said GNGC will float shares on the stock market to ensure “wider Ghanaian participation in petroleum activities and economic and social benefits from broadening ownership in the country’s natural resources.”

NCA Lab For Phone Testing Coming

Paarock VanPercy, Director-General of NCA

By Esther Awuah

As part of efforts to improve standards in the telecommunications industry, the National Communications Authority (NCA) is seeking approval and support from the International Telecommunications Union (ITU) to establish a laboratory in the country to test mobile phone devices.

The laboratory has become necessary because of the influx of inferior mobile phone devices which are said to be harmful to the body.

A source at the NCA told CITY & BUSINESS GUIDE that “the authority is unable to detect such inferior phones because it does not have laboratories for testing before they get onto the market.”

The NCA said it asked the ITU to help the authority to build a laboratory which will test not just mobile phones, but all other telecommunication equipment to ensure they meet the standards.

According to the source, progress had been made on the establishment of the lab and the authority would seek final approval during a World Telecoms Assembly (WTA) meeting in November.

“At the WTA to be held in Dubai in November, this year, it is expected that an amendment to the resolution which will give a date to the start of work on the laboratories will be passed.

The source said if a mobile phone is not made with the right materials, it would not be able to handle mobile phone services, including calls and lead to poor services.

“There are certain phones in the system, which are not user friendly and it’s about time we cleared them from the market,” the source emphasized.

Vodafone’s Market Share Drops

By Esther Awuah

Vodafone Ghana has recorded its first subscriber base drop since it started operations the country in 2009.

It maintained its second position but witnessed a 1 percent decline in subscribers in National Communication Authority’s (NCA’s) July mobile subscriber rankings.

The market share statistics indicated that Vodafone lost 61,428 subscribers, representing 20 percent as against 147, 701 subscribers it gained in June which represented 21 percent of the market share.

Its total subscriber base for July was 4,758,272 as against 4,819,700 for June.
Similarly Expresso, which increased its market share from the previous 195,670 in May to 227,396 in June, also experienced a dip of 182,845 in July, representing 1 percent.

MTN had a marginal increase and maintained its position as the market leader with a subscriber base of 10,828,585, representing 46 percent of total market share.

Tigo recorded a marginal increase in the subscriber base, closing at 3,699,185 which represent 15 percent of the market while Airtel’s increased its subscriber base to 3,037,336, representing 13 percent of the total market share.

GLO has consistently increased its subscriber’s base since it entered the Ghanaian telecoms market in May.

Its current subscriber base of 1,152,474 represents five percent of the total market share.

The total cellular mobile and voice subscriber base in Ghana as at July, 2012 stood at 23,658,697 from the previous 23,370,773 in June.

Telcos Lose Millions To Cable Cuts

Kwaku Sakyi-Addo

By Esther Awuah
Kwaku Sakyi-Addo, Chief Executive Officer (CEO) of the Ghana Chamber of Telecommunications, has stated that the first half of 2012 witnessed close to 500 fibre cable cuts across the country.

He said it costs GH¢17,000 on the average to repair the damaged cables.

The fiber optic cables are used by many telecommunications companies to transmit telephone signals, internet communication and cable television signals.

A break in the cables, which is mainly caused by road construction works, causes distraction in network connectivity.

He noted that the development was greatly affecting the business of telecom operators, as well as their subscribers.

Mr. Sakyi-Addo, who stated this in an interview with CITY & BUSINESS GUIDE after the Chambers Second Knowledge Forum on fibre cuts in Accra, indicated that apart from the high cost of repair, there is also reputational damage to the operator because of the subscriber’s inability to access the network.

He said “indeed fibre cut is not just about how it affects the industry, but the inconvenience that subscribers go through when they are unable to access the network.”

The forum, which was on the theme, ‘Cable cuts: How they hurt subscribers and the Telecoms Industry,’ attracted stakeholders in the telecom sector, the Ghana Highway Authority (GHA) and other road funding agencies.

Mr. Sakyi-Addo noted that the forum highlighted challenges of the industry and also enabled subscribers to understand that “those days when several hours calls and text messages do not go through they will understand that there has to be a decent reason for that to happen. Moreover, it was also to make clear the fact that it is not in the interest of any network operator to deny its subscribers access to its network.”

He appealed to telecom companies to ensure that they properly mark areas where cables are located for easy identification by road constructors and other pedestrians.

He added that “the Chamber and telcos are working with the road agencies to collaborate with them in coming out with appropriate suggestions to relocate some of the cables in the event of a new road construction or rehabilitation.”

He noted that to further address the problem, operators must collaborate to share trenches so that multiple cables would be laid in the same trench.

There were presentations from Larry Arthur, Acting Chief Technical Officer, Tigo Ghana and Musah Yayah, a representative from GHA, who stressed the need for consumers to play the watchdog role in ensuring that fibre cables are protected from thieves who sometimes cut the cable to sell.

‘Foreign Investors Not Saviours’

Tetteh Hormeku

By Esther Awuah
Despite government’s efforts to attract more foreign investors, they do not hold the key to the country’s economic transformation, Tetteh Hormeku of Third World Network has pointed out.

He noted that most often foreign investors are given preferential treatment to the detriment of domestic operators, but they do not perform as expected.

He said “over the past 30 years economic policies in our country have been driven by the interest of foreign investors rather than domestic operators.

“This is because of the perception that only the foreign investor has the salvation of the economy at heart which is not true.”

He told BUSINESS GUIDE in Accra that the prioritization of foreign investors over their domestic counterparts had led to distortions in the country’s economic policies which in turn would adversely affect Ghanaians.

“Instead of creating tax incentives for domestic operators some foreign investors rather enjoy this benefit and take undue advantage of it to rob the nation.

“For example, expatriates in the mining sector come and enjoy the tax holiday offered to them, and when it is about expiring they disappear and come back in new guises so they can always come here and operate for cycles of years without paying taxes,” he emphasised.

He said the non-payment of taxes deprives the government of the essential revenue needed to invest in other areas of the economy.

According to the 4th quarter investment report by the Ghana Promotion Investment Centre, (GIPC), the total value of the country’s Foreign Direct Investment, FDI inflows increased by 500 percent in 2011.

It stated that over 500 new projects registered in the country in 2011 were estimated at a total value of $7 billion dollars, which is equivalent to GHC11 billion. This is expected to create over 8,351 jobs this year.

However Mr. Hormeku was of view that despite the contribution made by foreign investors, government needs to make conscious efforts to liberalize trade by removing tariffs on a lot of exported goods.

“The so-called foreign investors enjoy massive incentives and subsidies in their countries that allow them to produce not only competitively, but cheaply, and in addition enjoy lower tariffs when they come to Ghana. How then can our local exporters compete with that,” he questioned.

He called on government to encourage and support the growth of local industries by creating subsidies and incentives.

Traders Threaten Protest Over Taxes

By Esther Awuah
Traders in the informal sector have threatened to stop paying taxes to protest against government’s failure to effectively utilize the taxes.

According to Juliana Afari, National Co-ordinator of Streetnet Ghana Alliance, even though traders have always tried to honour their tax obligations, they hardly benefit from any developmental initiatives.

She said “traders contribute a lot to national development through the taxes they pay, but not much is done in terms of developing the markets.

“If you go to the markets now, sanitation facilities are virtually non-existent, no fire extinguishers or basic first aid materials.”

Ms Afari disclosed this during the re-launch of the Economic Justice Network (EJN) Ghana in Accra.

EJN is a national platform of civil society organizations devoted to equitable national economic development. It is made up of trade unions, farmers’ organizations, associations from industry and services, professional groups, women’s rights, equality organizations, faith-based organizations, students and youth organizations and Non-Governmental Organizations (NGOs).

The EJN is involved in a series of campaigns on trade liberalization, income and livelihood to re-orient economic growth drivers towards domestic and regional sources, priorities production, income and employment–led growth and promote inclusive growth through equitable re-distribution of production capacities.

In an address, Kofi Asamoah, Secretary General of the Trades Union Congress (TUC) said “rising inequality and economic justice are among the biggest problems in our society and the greatest threat to Ghanaians’ welfare, our democracy and our very future.”

He noted that though Ghana attained 14.4 percent Gross Domestic Product (GDP) growth last year, the most ardent promoters and supporters of the economic policies have admitted that the strong GDP has not translated into adequate job opportunities and improved living conditions for ordinary people.

“Indeed, millions of Ghanaians are forced to eke out a living in precarious employment in the ever-expanding informal economy,” he emphasized.

He indicated that “while majority of Ghanaians bear the brunt of a crumbling cedi and its knock-on devaluation and inflation of domestic consumption, production, incomes and investments, the other side of that coin is the squandering of economic growth by the local and international elites’ orgy of imports fed, tax-avoiding consumption or simply by taking it abroad.”

Mr. Asamoah reiterated the TUC’s commitment towards the attainment of the goal of EJN, which is to work to change the economic order.

Ghana Has Failed – Amoabeng

Prince Kofi Amoabeng

By Esther Awuah
Prince Kofi Amoabeng, Chief Executive Officer (CEO) of UT Bank, says Ghana has failed in spite of the recognition of the country as an emerging economy.

He said “truly from what I have seen in the last 50 years I can truly say that Ghana is a failing state. Businesses are not being helped to flourish because of the lack of structure and infrastructural developments.”

He explained that Ghana’s economy has not been in the best shape in the past 50 years and businesses, which are the backbone of any successful economy, continue to be killed by those who have been at the helm over the years.

Mr. Amoabeng disclosed this while speaking on the topic “challenges facing private sector businesses in Ghana” at a forum held to celebrate the 1st anniversary of The Finder, a private newspaper set up by the former Managing Director of Graphic Communication Limited.

He noted that Ghana has not been able to realize its development potential because there is too much corruption and indiscipline in every sector, particularly the public service.

“Because of the structural breakdown, Ghanaians do not feel accountable to anyone and corruption has taken over every aspect of our economy,” he reiterated.

He said in spite of Ghana’s touted democratic credentials, the type of structures and systems that would make Ghana an economic success had not been delivered.

The UT Bank boss called for practical steps to be taken in order to create the enabling environment for businesses to thrive.

Mohammed Awal, Chief Executive Officer (CEO) of Marble Communications Group, publishes of The Finder, The Weekend Finder and Finder Sports, said the anniversary topic: “Strengthening State Institutions for Private Sector Development” was chosen to highlight the need for the state to play an active role in developing the private sector.

“The state must collaborate with the private sector to encourage development, he said, adding that The Finder was developed to complement journalism in national development and they were committed to producing credible, balance and development-oriented stories.

He announced that the company will next year come out with its business paper and an electronic media house.

Peter Jones, the British High Commissioner to Ghana, said Africa’s private sector had generated an estimated 70 percent of the continent’s output, approximately two-thirds of its investment and 90 percent of employment on the continent.

He added that based on these statistics offered by the African Union (AU), the creation and development of private sector job, is seen as one of the most effective and sustainable strategies for alleviating poverty in Africa.

He said Africa could reduce dependence on foreign aid if the private sector becomes dynamic.

Mr. Jones noted that challenges facing Ghana’s private sector such as high cost of utility, lack of access to information on external markets and inadequate physical infrastructure could be tackled if the sector is given the needed attention.

BoG Targets Illegal ‘Susu’ Operators

By Esther Awuah

The Bank of Ghana (BoG) says it would clamp down on activities of microfinance institutions, popularly called ‘Susu’ that are operating without licenses.

The proliferation of Susu institutions in the country, some of whom are not legally registered, has given regulators cause for concern.

Dr. Yaw Gyimah-Larbi, Head Microfinance Unit at BoG told BUSINESS GUIDE after a press conference by the Ghana Co-operative Susu Collectors’ Association (GCSCA) in Accra that Susu companies operating illegally should brace themselves up for sanctions.

“Any Susu operator without a license will be forced to close down and prosecuted where necessary,” he said.

He said some Susu operators had engaged in fraudulent activities to the detriment of their customers and the country’s economy.

He stated that “the elaborate procedures for licensing in the Susu industry will go a long way to build confidence within the system. Therefore any Susu institution or collector who does not take advantage of the licensing would be forced to shut down.”

He announced that the BoG would from this week give the first batch of licenses to about 55 micro finance institutions and publish their names in the media.

Emmanuel Elvis Abougye – Manuh, National President GCSCA, in a speech read on his behalf said, “Since the publication of the Rules and Guidelines by BoG, the association has conducted a series of sensitization exercises across the country to educate both registered and non-registered Susu operators as well as clients.

“It also initiated the registration of all susu operators in the country.”
The initiative, he said, yielded some positive results as it identified and registered over 450 Susu operators.

Due diligence was conducted on the registered members and 246 were recommended to BoG for licensing.

He also urged all unregistered and unlicensed operators to regularize their activities with the Association as soon as possible to avoid arrest and prosecution.

Mr. Abougye-Manuh noted that the Association will issue identification cards to all licensed operators.

“Again in an effort to standardize their operations, we will introduce uniform documentation materials in the form of passbooks to the collectors to be issued to their clients. This will sensitize the clients on credible and trustworthy operators to lodge their funds with,” he added.

He emphasized that flouting any of such provisions will
warrant various sanctions and penalties depending on the offense.

rlg Partners Microsoft

By Esther Awuah

In line with its vision to increase its presence in West African countries by the end of the year, rlg Communications, Africa’s leading indigenous Information Communication Technology (ICT) assembling company, has signed a partnership agreement with the world’s largest software and computer programmer, Microsoft in Accra.

The partnership, which will allow rlg laptops and computers to leverage the huge global market held by Microsoft, will also offer value to the Ghanaian market and make the Microsoft windows more affordable.

Though both rlg and Microsoft are silent on the actual figures, the deal is said to worth millions of dollars.

The Country Manager of Microsoft Anglophone West Africa, Emmanuel Onyeje, told a news conference in Accra that Microsoft places a lot of premium on the rlg partnership, a relationship he described as international.

“The partnership we have entered with rlg is an international relationship because the windows brand is at the heart of both Microsoft and rlg,” he said.

He stated that the partnership is necessary because of the impact Microsoft had in the market environment, coupled with the innovative products from rlg, which could help increase productivity and make e-governance more efficient.

Mr. Onyeje said Ghana’s education sector stands to benefit greatly from the new partnership because of on-going projects by rlg and the Ministries of Education and Science and Technology to offer laptops to schools and teachers.

He said the deal positions rlg to compete aggressively on the international market.
He indicated that the partnership would provide the country with genuine software in protecting property and intellectual rights from criminals, adding that Microsoft would soon launch Window 8 globally.

He expressed gratitude to the management of rlg for the partnership and expressed the hope that it would open opportunities for the country’s market share to grow.

The Chief Executive Officer (CEO) of rlg, Roland Agambire expressed delight at the deal, which he said go a long way to enable rlg continue its leadership role in the Information Communication Technology (ICT) sector.

He indicated that the partnership would increase Microsoft’s market share in the West African Sub-region, as rlg distributes computers using Microsoft’s software.

He said rlg quality assurance would increase because of its partnership with Microsoft and that the company will soon commence work on a multi-million dollar ICT assembling plant, which would employ about 30,000 youth.

Mr. Agambire announced that most of rlg’s MGS1 laptops would come with in-built modems that require only SIM card to browse.

Phone Dealers Take Over Circle Pavements

By Esther Awuah

The sale of mobile phones and accessories by hawkers on the pavements around the Kwame Nkrumah Circle in Accra appears to have intensified.

Initially, the activities of these traders who sell their wares on trays and tables, was centred at the Tip Toe Lane and the former Vodafone head office area but they have extended their activities to the newly-constructed over-pass and the pavements that lead to Obra Spot.

When CITY& BUSINESS GUIDE visited Kwame Nkrumah Circle yesterday, business was booming as buyers bargained for the best deals.

In an interview with this paper, a shop owner, Steven Aboagye of JIC'5 Phones, said the activities of the hawkers had affected his business for the past four years.

He explained that “most of the phones and accessories that are being sold by these boys are not of good quality and since most people do not know the difference between a quality phone and an inferior one, they would prefer to buy from the boys since theirs are cheaper.”

These boys do not stay at one location so tracing them becomes a problem in the event where the phone develops a problem.

He therefore advised buyers to purchase phones from recognized shops so they could easily change the phones in an event of a problem.

Another mobile phone dealer, Isaac Osei Wusu also attested to the fact that his business was collapsing because of the activities of the phone hawkers.

He stated that “the situation is becoming very worrying, as most of these dealers are also pilferers. Most of the phones they sell are stolen ones, so they can afford to sell them at reduced prices.”

He therefore called on the police to remove them from the pavements since they were operating without permits.

However, Michael Ampomaa, who displayed five phones on a tray, said he was introduced to the trade by a friend.

He expressed the hope he would establish his own shop in future.

Michael, who makes an average sale of GH¢300, noted that he gets most of his genuine and brand new supplies from a friend who buys them from China.

Asked why phones sold on pavements were less expensive as compared to those in the shops, Michael stated that the phones are sold on a “reduce to clear” basis, which attracts more patrons.

There have been several raids by the police and Accra Metropolitan Assembly (AMA) to remove these hawkers from the pavements, but they resurface the next day to engage in the business.

Michael however appealed to the law enforcement agencies to be lenient in dealing with them.