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Indian companies invest $277m in six Ghana projects

Indian businesses operating in Ghana have altogether invested $277 million in the country, the Calcutta News has reported citing vice president John Mahama, without naming the specific companies and the projects they are investing in.

The Vice President is currently attending the India-Africa Project Partnership Summit in India.

He also told the media in India that an Indian company is setting up a fertilizer producing plant in Ghana to serve the market in the country and for export to India.

The Indian Farmers Fertilizer Cooperative (Iffco) is a multi-state non-profit organization, he said will produce enough to meet Ghana’s fertilizer requirements and export the surplus.

According to the report, Ghana is also wooing Indian investors to fund development of its oil and gas finds and is in discussions with both upstream and downstream companies for projects not just to harness the hydrocarbon assets but also to set up refineries and other industries.

By Emmanuel K. Dogbevi

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Ghana named in 50 new Iraq corruption cases

Investigators looking into more than 50 new cases of corruption in Iraq that are related to the war ravaged country’s reconstruction have found stolen money lodged in accounts around the world including Ghana.

The New York Times reports that in the past six months investigators are scrutinizing large cash transactions made by Americans involved in the nearly $150 billion reconstruction programme.

The report says some of the cases involve people suspected of mailing tens of thousands of dollars to themselves from Iraq. They have also been found to stuff the money into bags and suitcases when leaving Iraq, and in other cases, millions of dollars were moved through wire transfares.

According to the report, some of the suspects used the money to buy BMWs, Humvees and expensive jewelry, or to pay off enormous casino debts.

Some suspects also tried to conceal foreign bank accounts in Ghana, Switzerland, the Netherlands and Britain, investigators said. In other cases, cash was simply found stacked in home safes, it said.

While Ghana was named as one of the countries where some of the stolen money has been lodged no specific details were given.

This development will certainly raise the temperature over the discussion on Ghana’s offshore sector.

A ghanabusinessnews.com report citing the Guardian said Ghana has been warned strongly to be ware of the risks of becoming a tax haven with the establishment of offshore banking in the country.

The Organisation for Economic Co-operation and Development (OECD) which issued the warning is asking the country to ensure that by becoming a tax haven, the country does not fuel corruption and crime in West Africa.

So far the Bank of Ghana has licensed Barclays Bank to operate offshore banking in the country.

By Emmanuel K. Dogbevi

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Ghanaian student helps Nigeria fight fake drugs

Nigeria is one of the countries in the sub-region that suffers from the scourge of fake drugs and several attempts are being made to arrest the situation.

Thanks to a Ghanaian Ph.D student at Dartmouth, Ashifi Gogo, the country is set to arrest the situation and check the slide in sales for most of the country’s pharmaceutical companies.

According to a Wall Street Journal report Gogo’s start-up company Sproxil Inc.,has developed a software for detecting fake pharmaceuticals.

28-year-old Ashifi Gogo had to struggle to overcome the initial lack of confidence of possible investors to eventually get the attention of those who need the product.

Gogo’s woes were compounded further because he mentions Nigeria when he goes looking for funding. Unfortunately, Nigeria’s reputation as an unstable country, politically and a country known for scams did not help.

Thankfully, Sproxil received several small start-up grants and more recently won a $100,000 grant from USAID and Western Union, the report said. It is also supported by a small group of shareholders in Nigeria. The company hasn’t sold its technology to any outside investors, it added.

The report indicates that Sproxil’s technology allows customers to use their mobile phones to check on newly purchased drugs. Using scratch-off labels and ID numbers, customers can send a code via text message to a database in the U.S. to check whether the medicine they purchased is authentic. Nigeria is Africa’s biggest mobile-phone market, with more than 70 million users.

A major pharmaceutical company in Nigeria, Biofem Pharmaceuticals Ltd., is interested in the solution that is at the initial stage of trials.

By Emmanuel K. Dogbevi

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Ghana is first African country to open tourist office in Europe

Ghana has scored a first in tourism. The country is the first African country to open a full scale tourist office in Europe. The Ghana Tourist Board opened the office in the Netherlands in September 2009 according to information copied to ghanabusinessnews.com from the office.

The office known as “Ghana Verkeersbureau” will focus on destination branding of Ghana. It also circulates information on tour operators and tourist destinations to the European consumer and media.

According to the office, the Netherlands was chosen because Dutch travellers are considered trendsetting in the eco travel market.

Tourism is important to Ghana’s economy. A former Minister of Tourism, Mrs. Azumah Mensah was quoted as saying that the sector is the fourth highest foreign exchange earner for Ghana, and the country earned a total of $1.3 billion in 2008.

And being one of the fastest growing sectors in the economy it is expected to grow at an average rate of 4.1 % per annum over the next two decades.

Moreover, Ghana is the third most important tourist destination in West Africa according to Luigi Cabrini, Director, Sustainable Development of Tourism of the World Tourism Organisation (WTO).

The GNA had reported him as saying international tourist arrivals in Ghana for 2007 was 587,000 whiles tourism receipts for the same year amounted to $908 million with an average annual growth rate between 2000–2007 pegged at 5.7 percent.

According to a B&FT report, projected tourists arrivals for 2008 was pegged at 698,069 with receipts in monetary value amounting to US$1.2 million, as against 586,612 arrivals in 2007 amounting to US$1.17 million and one million visitors were targeted for 2009.

The San Francisco based Ethical Traveller included Ghana this year on its select list of 10 developing countries that attract tourists based on ethical values, and the country’s peaceful and progressive democratic practice also makes the country a tourism destination of choice.

Last week the Ghana Tourist Board announced the formation of a tourism police task force to enforce law and order in the tourism sector and protect tourists.

If more focused and result oriented programmes are pursued, the tourism sector in Ghana can become stronger economically.

By Emmanuel K. Dogbevi

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Ghana’s inflation falls to 14.2% in February

Ghana’s inflation continues its downward spiral hitting 14.2% in February from 14.8% in January.

Speaking to the media in Accra Wednesday March 10, 2010, the Director of Economic Statistics at the Ghana Statistical Service, Magnus Ebo Duncan said the drop indicates a 0.55%  drop from the January rate. The drop he said is the lowest in eight months and the lowest in 22 consecutive months.

He indicated that the food sector is the major contributor to the fall with the fruits sub-sector contributing a negative figure, adding however, that prices rose 1.5% in February.

The downward trend in the country’s inflation led to a drastic cut in the policy rate of the central bank. The Bank of Ghana cut its policy rate by 200 basis points from 18% to 16% in February.

Announcing the rate cut, the governor of the Bank of Ghana, Mr. Kwesi Amissah Arthur said the Monetary Policy Committee of the bank took into consideration recovery of the global economy, steady diminishing inflationary pressures and growing business and consumer confidence in the domestic economy.

As inflation continues to fall, further cuts in lending rates are expected.

By Emmanuel K. Dogbevi

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Brew-Butler to build thermal power plant in Zambia

Known in Ghana as a football administrator and businessman, Nana Sam Brew-Butler is taking his business interests to east Africa, and this time he is getting into power generation.

Nana Brew-Butler once served as the chairman of the Ghana Football Association (GFA) and also owns a football club, Ebusua Dwarfs in Ghana.

A story carried by a Zambian publication, the Post says Nana Brew-Butler has expressed interest in setting up a thermal power generation plant in Zambia.

Nana Butler is the Executive Chairman of the energy company, JG Global Gas and Oilfield Services Ltd, which has offices in Nigeria and Ghana.

“I am in Zambia for a few days and I am hoping to have a talk with Zesco and the government on setting up a thermal power generation plant. I know that Zambia mainly generates hydro power but you should think outside the box as a country and explore other ways of generating power like thermal power and liquid fuel,” he was quoted as saying.

Nana Brew-Butler said his company was currently running a US $400 million thermal power plant in Ghana and was ready to set up a plant in Zambia if given a chance, the report indicated.

But ghanabusinessnews.com checks on the Ghana project revealed otherwise. A source close to Nana Brew-Butler told ghanabusinessnews.com that the information carried in the Zambian medium cannot be correct. According to the source, Nana Brew-Butler’s company, Global Solutions Ghana Ltd., has secured permits from the GNPC to build thermal power generation plants in Ghana. The source said Nana Brew-Butler’s company intends to build the power plants in Kpone in the Eastern Region and Bonyire in the Western Region.
By Emmanuel K. Dogbevi

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Ghana will retain 38% of oil revenue – Amoako-Tuffuor

Ghana will retain 38% of the country’s oil revenue, an advisor to the Ministry of Finance and Economic Planning, Dr. Joe Amoako-Tuffuor has said according to a Daily Graphic report of March 6, 2010.

The newspaper citing a presentation he made, indicated that he said Ghana will earn from direct and indirect sources such as royalties, corporate income tax, dividends, additional income tax, surface rental and carried interest.

He was however reported to have said that what is yet to be determined is how the revenue should be paid – either in cash or in kind.

He said revenue inflow has been categorized into two – big spending era and low spending – adding that the big spending era spanned 2011-2018, while the low spending era was expected from 2018 and beyond.

Since the discovery of oil in commercial quantity was announced in Ghana in 2007, most people have focused on how much money Ghana will make. One estimate even says every Ghanaian will get 17 pesewas when the amount is shared among all Ghanaians.

Ghana’s total revenue from the oil and gas find will represent less than five per cent of the country’s Gross Domestic Product (GDP), according to the Energy Minister, Dr Joe Oteng-Adjei, the Daily Graphic reported in its February 21, 2010 issue.

With the country’s current GDP at well over $18 billion, Dr Oteng-Adjei said the total revenue to the government and the Ghana National Petroleum Corporation (GNPC) in respect of royalties, income tax and interest payment on oil and gas exploration would be $1 billion per annum, at an average crude oil price of $60 per barrel.

Speaking at a workshop on ‘Good Governance and the Emerging Oil and Gas Industry’ for selected journalists reporting from Parliament, the minister captured the scenario thus, “If we are to share the revenue to the 23 million Ghanaians, each of us will receive about 12 cents per day (17Gp per day)” and wondered whether that could be the panacea for the economic problems of the country.

Others have also said the benefits to the country, will be more in the area of employment to local people, even though, not many Ghanaians have expertise in the oil industry.

By Emmanuel K. Dogbevi

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Ghana’s oil production plans progress as Weatherford Pipeline wins contract

Plans and works towards the commercial production of Ghana’s oil are well on track as another international specialty company, Weatherford Pipeline & Specialty Services Group has won a contract to work on the Jubilee oil field.

According to information in the global oil industry available to ghanabusinessnews.com, Weatherford has been awarded a contract by the French company already working on the Jubilee field for precommissioning and commissioning services on the field.

The information say the contract includes pigging of production, water and gas injection flowlines; hydrostatic testing of the flowlines, riser and jumpers; followed by dewatering of the gas injection system.

During installation and post installation Weatherford will also perform electrical and pressure monitoring and testing of the umbilicals from the floating production, storage, and offloading vessel (FPSO), it added.

Information on Weatherford’s website says the company offers a host of services used throughout the lifecycle of pipelines and process facilities, onshore and offshore.

“Weatherford employs approximately 40,000 employees worldwide, operates in more than 100 countries with 800 service bases and 16 technology development and training facilities,” it says.

The Jubilee field is the largest oil field to be discovered in West Africa in the last 10 to 15 years. According to Tullow Oil, the major stakeholder in the field, it contains 1.8 billion barrels of oil and has 17 wells.

Commercial production of oil is due to start in the latter part of 2010.

By Emmanuel K. Dogbevi

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Ghana calls for Malaysian help in oil and gas sector

Ghana is asking for Malaysian help to develop the country’s nascent oil and gas industry.

The Ghana High Commissioner to Malaysia, Dan Abodakpi is reported by the Malaysian media as saying Malaysia can play an important role in Ghana’s oil and gas industry by assisting in human resource development and providing technical expertise.

He said Ghana could learn from Malaysia’s state-owned oil and gas company Petronas.

Mr. Abodakpi indicated that he has had talks with Petronas officials on ways of building collaboration between Petronas and Ghana’s state-owned oil explorer, the Ghana National Petroleum Corporation (GNPC).

Ghana discovered oil in commercial quantity in June 2007. The country has the largest oil field to be discovered in West Africa in the last 10 to 15 years. The Jubilee oil field according to Tullow Oil, the major stakeholders in the field contains about 1.8 billion barrels of oil and has 17 wells.

Commercial production of oil is expected at the later part of 2010.

By Emmanuel K. Dogbevi

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Ghana government to release GH¢20m next week to pay contractors all arrears

All arrears owed road contractors from the previous administration are expected to be cleared within the next three weeks, Mr Joe Gidisu, Minister of Roads and Highways announced on Thursday.

For starters, government would next week release GH¢20 million from the Road Fund as part payment, and “it should be possible to clear the rest after two weeks”, the Minister said.

Mr Gidisu made the announcement, which was received with thunderous applause, at the sod-cutting ceremony for the re-alignment of the Spintex- Road behind the Shangri- La in Accra by President John Atta Mills.

The 2.6km road project, estimated at a cost of GH¢12.7 million, with finance from the World Bank, is to be carried out by Messrs Ussuya Ghana Limited.

The project, which realigns the Spintex Road around the Accra Shopping Mall behind the Shangri- La Hotel, links the Airport bypass, 100 metres from the existing Polo Court Roundabout.

It includes the construction of a railway bridge to separate the railway line and the road as well as the construction of a service road to the motorway around the Accra Shopping Mall, which shall be the beginning of future service roads along the motorway.

The road shall be a dual carriage way with provision for walkways and streetlights.

Sources close to the Ministry said discussions have been held with the Ministry of Transport, Ghana Railway Authority and Ghana Airport Authority to ensure that minimum disruption occurs to existing transport infrastructure in the area.

The project is expected to reduce congestion significantly around the Tetteh Quarshie Interchange and shall dovetail into other projects within the Accra East Corridor targeted at improving traffic flow and reducing congestion.

Other Roads to be constructed on the Accra East Corridor Project to be financed by the World Bank are the reconstruction of Giffard Road into a dual carriageway, construction of the Spintex Road (Flower Pot) to Burma Camp Junction on the Giffard Road, and the construction of the Maate Tsuru Road (Maate Tsuru-Teshie Link)

Source: GNA

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