They argue that the inability to implement existing laws have partly accounted for the losses hence must be checked.

The comment comes after the suspension of the Cargo Tracking Notes (CTN) last Friday, February 16, 2018.

Obviously pleased with the decision by the Office of the Vice President to suspend the implementation of the CTN, the businesses maintain that the losses have largely been due to a lax monitoring system at the ports.

Vice President of the Association of Ghana Industries, Humphrey Ayim-Darkeh tells Citi Business News reviewing the customs documentation process to allow cross-checking of information on imports, should correct potential malpractices.

“For instance, if I import a particular consignment of goods and the forwarding agent passes the entry and the description is done by a customs and there is an element of under declaration, we will see it in the portal,” he explained.

Freight Forwarders equally maintain that compelling shippers to comply with standardized format for presenting manifests which describes the weight, volume as well as the stowage plan for a consignment of goods, should reduce under declaration.

The President of the Ghana Institute of Freight Forwarders, Kwabena Ofosu Appiah stated as,

“The shippers provide the manifest but the timing and the format that it takes; it is very crucial because if the consignment gets to the destination before manifest is provided, that could lend itself to a whole lot of discrepancies. But if it is provided from source, then everyone gets to be comfortable with the process.”

It is unclear whether the government bears any judgement debt with the latest development as managers of the platform are yet to comment on the matter.

But Citi Business News understands that there is a crunch meeting on the issue later this week to decide the next action.

For the AGI and the freight forwarders, enforcing international best practices could also improve revenue mobilization going forward.

“Guarding under-invoicing, mis-description of products, dumping and other related issues, we think the Ghana International Trade Commission ought to be inaugurated as that would be one of the institutions to complement the efforts of the AGI in meeting its goal,” Mr. Ayim-Darkeh added.

His counterpart, Kwabena Ofosu Appiah stressed, “I would want to urge the GRA on to tool its staff and make them understand the changing phase in international trade business such as Trade facilitation and its impact.”

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By: Pius Amihere Eduku/citibusinesnews.com/Ghana

The post Opponents of CTN demand strict monitoring at ports appeared first on Citi 97.3 FM - Relevant Radio. Always.

The stakeholders expected at today’s meeting include the Association of Ghana Industries (AGI).

Today’s meeting is among the numerous negotiations to determine the reduction in tariffs for businesses.

This is also in fulfillment of government’s plan to reduce the cost of doing business in Ghana by reducing utility tariffs.

The Minister of Finance, Ken Ofori Atta in his presentation of the 2018 budget stated that the tariffs will go down by 13 percent on the average for industrial users of power.

Speaking to Citi Business News ahead of the meeting, the Deputy Director for Policy and Research at the AGI, John Defor lamented to Citi Business News how the uncompetitive rates have affected businesses operating in Ghana.

“Already, our business barometer has indications that are captured several times that the tariffs are so high. In fact if you take the sub-region, we are not competitive at all; we are being charged 21 cents per kilowatts hour while our peers are taking single digits,” he stated.

Mr. Defor was however hopeful of a positive outcome of today’s meeting in achieving the intended objectives.

“For now we are only waiting for the next review to see whether the indicators will drive down the tariffs… So we are waiting to see what the outcome of the new tariffs will be.”

Meanwhile the AGI wants regulators in the power sector to clamp down on illegal users of electricity in order to reduce the rising operational losses.

The AGI believes this should afford stakeholders the opportunity to reduce the tariff for genuine users.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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They maintain that such allegations could not be possible as they go through strict scrutiny in the clearing process.

The comments come on the back of concerns raised by the Association of Ghana Industries (AGI) over the collapse of major policies should the malpractices at the ports go unresolved.

One key program that the AGI believes the illegality threatens is the one district, one factory.

The President of the AGI, Dr. Yaw Adu Gyamfi announced the plight of the local manufacturers at a media briefing last Thursday, February 1, 2018.

According to him, the issues of under invoicing, under declaration and mis-description have become complex due to reports of custom officials conniving with the perpetrators.

“Paying taxes in Ghana is mandatory yet some criminal minded importers have found cunning ways to evade tax/duties through the connivance with some revenue officials at the ports,” he stated.

Manufacturers lament unfair competition

Commenting on the issue, the CEO of cosmetic firm, FC Group of Companies, Grace Amey Obeng also lamented the unfair pricing compared with imported products.

“Creams that would cost you about 1 cedis to produce in Ghana is being sold out on the market for 1 cedis 50 pesewas and that is impossible considering the cost of production such as packaging, water and electricity…We cannot scale up and compete with the imported products,” she stated.

Another member of the AGI, who is a manufacturer of fruit juice, narrated his story on the impact of the malpractices.

“Almost every supermarket in Ghana has stocked other brands of fruit juices imported into the country which also contain the food concentrates that we have similar ones produced in Ghana. Why then do we not use those that are produced in the country? We are only happy to create jobs for other countries.”

Freight forwarders respond

But reacting to these concerns, the President of the Ghana Institute of Freight Forwarders (GIFF), Kwabena Ofosu Appiah explained that the strict clearing process couldn’t allow such illegalities.

“The Technical Services Bureau does not take the documents that we present hook, line and sinker; this includes the declared intention before it is allowed into the system. We have another crack team of customs officers at the compliance level who have records that have piled up as a result of transactions that have passed through the system.  After all of these you go unto the field and meet another set of customs that is if you are channeled to go through examination,” he told Citi Business News in an interview.

On the specific concern of systems breakdown of the scanner, Mr. Appiah explained as;

“The system that we have on the ground is making it such that goods that are even channeled to the scanner are even reducing; over 76 percent of our operations at the ports is going through the red channel which is physical examination…This goes beyond finding comfort in blaming someone for the challenges at the ports.”

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Importers reject tax evasion claims by AGI appeared first on Citi 97.3 FM - Relevant Radio. Always.

The AGI argues that, the practices at the ports, which have been perpetrated for years, threaten government’s major policies such as the one district, one factory, as well as plans to create an industrialized economy and reduce unemployment levels in the country.

[contextly_sidebar id=”92VZEytpQa5jWHT88dRH4sAPpox8dv13″]Among the concerns raised by the AGI are the under-invoicing and under declaration by importers, ineffective scanning system at the ports among others.

The President of the AGI, Dr. Yaw Adu Gyamfi, also alluded to the decision by some port officials to aid in the crime.

“Paying taxes in Ghana is mandatory, yet some criminal-minded importers have found cunning ways to evade tax/duties through the connivance with some revenue officials at the ports,” he stated.

Some members of the AGI who have been directly affected also say they have been compelled to cut labour size to avert a complete shutdown of their businesses.

The issue is having a heavy toll on the fruit juice sector, electrical cables, tomato paste, canned tuna and Fast Moving Consumer Goods sectors.

GRA Customs misses revenue targets for two years

The AGI cited that, the GRA Customs Division missed its annual revenue target for two consecutive years; 2016 and 2017.

In 2016, the revenue agency was able to collect 10.33 billion cedis out of a target of 10.82 billion cedis.

This represents a collection deficit of 495.84 million cedis or 4.6%.

In the subsequent year (2017), GRA Customs division collected 12.69 billion cedis out of a target of 13.94 billion cedis.

This also represents a collection deficit of 1.25 billion cedis or 9%.

Impact of malpractices on industry

The AGI maintains that, failing to address these outstanding issues confronting manufacturers is likely to worsen the already burdened industrial sub-sector.

The unwarranted impacts range from huge revenue losses to the state, erodes competitiveness of local manufacturing, massive reduction in employment levels as well as the inability of start-ups to survive their first anniversary due to unfair competition.

Meanwhile, over the last four years, the real sector of the economy has witnessed an average growth of 1.8 percent.

This has largely been attributed to the over concentration on the oil sector which has seen significant growth in recent years.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post AGI up in arms over ‘rot’ at ports appeared first on Citi 97.3 FM - Relevant Radio. Always.

While industry has wholly welcomed the move, some industry analysts have cautioned against the outstanding debts facing institutions involved in the supply of gas.

Citi Business News spoke to a couple of players involved in the sector and their perspectives have been backed with strong arguments which suggest possible ways that the government could use to ensure maximum benefit of its intended program.

President Akufo Addo first mentioned the reduction at the Commissioning of the Twyford ceramics factory at Shama over the weekend.

Per the reduction, businesses would buy a million British Thermal Units of gas at 6 dollars 50 cents, down from the 8 dollars 84 cents.

This also translates into some 26 percent reduction.

For industry, this is pleasant news as it will ultimately reduce the cost of power hence their operational costs.

The CEO of the Association of Ghana Industries (AGI), Seth Twum Akwaboah said,

“The reduction is good for businesses and it has positive impact on the cost of electricity and therefore reducing the cost of production and we consider that to be important for businesses and I also like the President’s emphasis on industrial consumers.”

But the Executive Director of KITE, Ishmael Egyekumhene and the Vice Chairman of the Public Interest and Accountability Committee (PIAC), Kwame Jantuah share divergent views on the immediate benefits of the move.

Mr. Egyekumhene explained possible reasons for the reduction as, “There is a foundation volume of gas that the Jubilee partners give to the government at no cost but in the build-up, GNPC actually charges Ghana Gas for the gas supplied.”

Mr Jantuah believes otherwise as he argues that, “It sounds like the government is trying as much as possible to satisfy Ghanaians through words but the government needs to be clear and explain to the people that for certain reasons, they will be able to reduce gas rates by a certain percentage.”

VRA indebted to Ghana Gas

According to the semi-annual report of the Public Interest and Accountability Committee, for 2017, VRA owed Ghana Gas to the tune of 107.18 million dollars with interest.

Ghana Gas in turn also owed GNPC to the tune of 132.03 million dollars.

A situation analysts believe requires pragmatic solution to turnaround the fortunes of the companies.

Regarding the use of the energy bond to settle the debts, Mr. Ishmael Egyekumhene and Kwame Jantuah had these to say.

“The debt that VRA is owing to Ghana Gas, those debts must be cleared because the country would have to pay the loans that it secured to build the gas processing plant,” Mr. Egyekumhene stated.

The PIAC Vice Chairman also maintained, “Let’s make sure that we pay these debts once and for all so that everybody knows the state of the companies involved. I am not too happy with the fact that we are playing yo-yo with tariffs. We cannot do that at all!”

Meanwhile, the AGI is optimistic that the affected institutions should put in place mechanisms to absorb them from any potential shock due to the reduction.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Industry divided over reduced cost of gas appeared first on Citi 97.3 FM - Relevant Radio. Always.

NDC Member of Parliament for Ningo Prampram, Sam George, said the meeting will see the minority assess the country’s economy and proffer solutions to the government.

He said, “we are Ghanaians and we know of expectations of what the government should be telling us. We know what the economic situation of this country is today. We are putting all of this out so that it will aid the government in ensuring that as a country we have a more realistic budget that appeals to the needs of our constituents.”

“This is supposed to be seen as a novelty where the minority seeks to highlight the challenges that we see in the economy and go as far as proffer some solutions and policy alternatives hopeful that the government will be listening enough and caring enough to take on board in good faith, the suggestions that we will be making,” he added.

The 2018 budget, which is the second to be read by the Akufo-Addo government, is expected to focus largely on job creation.

The President last week hinted of a reduction in the cost of electricity to be captured in the budget.

Whilst addressing the Association of Ghana Industries Awards (AGI) dinner on Saturday night, President Akufo Addo said, “I’m glad that businesses are no longer burdened by the erratic power supply that wrecked our nation in recent years. Dumsor, thank God, appears now to be the thing of an unlamented past. Another of the stars of the government, the Energy Minister, Boakye Agyarko, is to be commended for the sterling work he’s been doing so far on this matter,” the President said.

“Furthermore, the government is moving to set in motion the process for the review of electricity tariffs and in the budget to be read by the brilliant Minister of Finance, Ken Ofori-Atta on Wednesday, I’m sure we will hear some good news in this regard.”

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By: Jonas Nyabor/citifmonline.com/Ghana

The post Minority to assess economy ahead of 2018 budget appeared first on Citi 97.3 FM - Relevant Radio. Always.

In particular, the Association recognised the company’s efforts at helping build the capacity of local businesses and promoting the procurement of goods and services from indigenous suppliers.

Newmont Ghana has been at the forefront of encouraging local procurement since it commenced business in 2006.

The company ensures that Ghanaian-owned companies are considered for contracts through fair and transparent processes, and holds capacity building programmes for local businesses in its Ahafo and Akyem host communities. This makes it possible for local companies to provide business support to the mines and other businesses across Ghana.

The AGI also lauded Newmont Ghana for advancing extensive community development programmes in its Ahafo host communities through the Newmont Ahafo Development Foundation.

“Hiring and sourcing locally is an integral part of our operations at Newmont and we are happy that our various local content initiatives are achieving the right results,” said George Brakoh, Newmont Ghana’s Regional Manager, Local Business.

In 2007, the Ahafo mine collaborated with the International Finance Corporation (IFC) to establish an intervention known as the Ahafo Linkages Programme (ALP) to support the development of local businesses as potential suppliers and providers of goods and services to the mine. The programme was also aimed at supporting the development of local non-mining businesses to develop a diversified local economy outside the mining sector.

“So far, we have awarded contracts to about 500 local businesses within our host communities through the ALP and other programmes, with two of the companies, Alexiboam Company Ltd and Sarfpok Ltd, going on to receive industry recognition for their work with us,” Mr. Brakoh added.

The Ahafo Linkages Programme (ALP) has been recognized by the World Business Council on Sustainable Development (WBCSD) as Best Practice SME Linkages/Sustainability Project.

According to Mr. Brakoh, Newmont Ghana is playing a leading role in the development of a long-term national sustainable policy and supplier development programme for the mining industry to help promote sourcing from local businesses within the mining industry and beyond.

“We are working with the Ghana Chamber of mines to support local businesses within the mining sector and ensure that a significant portion of the industry’s procurement is sourced from indigenous companies. Already, we are making strides in this regard and the future can only be brighter,” he concluded.

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Source: Newmont Ghana

The post Newmont Ghana honoured for commitment to local content development appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Minority in parliament criticized government for not investing in critical sectors of the economy in the expenditure of the Appropriation Bill.

The Appropriation Bill which was approved by parliament in line with constitutional requirement to provide funds for an incoming government for the first three months after an election allocated about 164 million to Goods and Services, while Capital Expenditure was also allocated 1.2 billion cedis

The Minority also criticized government for allocating GHS1,889,870,741 for  Interest Payment of loans, while Tax Refunds, and Grants, represented GHS151,078,450 and GHS2,368676114 respectively.

But speaking to Citi Business News, the President of the AGI James Asare-Adjei stated that the move will serve it purpose until a new government presents a full budget.

“I think this is a stop gap measure it is not a full budget for a year and as the constitution allows, you see that because of the possibility of a new government or even if it’s a continuing government that gap or preparatory work of getting your ministers in place there should be that sort of arrangement over a three month period to get that budget in place,” he noted.

He was of the view that since the action was a constitutional requirement, and has a relatively short term hence, will provide  any administration an opportunity to put in place a full budget and policy direction after the three months.

“It’s an interim sort of financial arrangement and I think that as the full budget for 2017 is rolled out some of these things would be looked at and  industry will make inputs to that effect,” he stressed.

He stated that the AGI will make adequate input into the budget of 2017 when the time comes to drive the interest of industries.

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By: Lawrence Segbefia/citibusinessnesnews.com/Ghana

The post Appropriation Bill will serve interim purpose- AGI appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is intended to satisfy the financial needs of Small and Medium Enterprises (SMEs) within the savanna ecological zone.

Speaking at the AGI’s 2016 Annual General Meeting in Tamale, Chairman of the Northern Regional chapter, Osman Sahanoon Kulandi renewed the two institutions commitment to boost SMEs in the SADA zone.

This agenda, he explained would focus on projects and programmes relevant to the private sector operating within the savannah ecological zone.

Osman Kulandi said the partnership would strengthen the private sector and by extension address the bottleneck to the area’s developmental goals attainment.

He stated that the AGI-SADA partnership would serve as a catalyst to awareness creation on the pros and cons of collaborative projects and programmes in the SADA zone.

A representative of the SADA Chief Executive Officer, Francis Ashong-Katai disclosed SADA’s survey on businesses operating in the zone.

He anticipated that the findings would reposition SADA to engage with key policy makers whose input could help address some of the identified challenges.

As SADA’S Coordinator of Private Sector and Investment, Ashong-Katai said the authority is to engage entrepreneurs within the Savannah Ecological zone to brainstorm on key issues of mutual concern.

President of the Association of Ghana Industries, James Asare-Adjei in a speech read on his behalf outlined challenges associated with SMEs and cited accessibility to credit facilities as a major one.

He bemoaned the high interest rates, deplorable road network and the difficulty in securing business operational permits among others.

James Asare-Adjei thereby appealed to loans lending financial institutions to reduce their interest rates.

This in his estimation will enable trustworthy Small and Medium Enterprises easily have access to loan facilities.

“This is a sure way of helping our local industries to be more competitive. I also wish to appeal to our development partners and the numerous NGOs in this region to partner and collaborate with AGI in moving forward its industrial and development agenda.”

The Northern Regional chapter of the AGI’s Annual General Meeting evaluated its achievements and challenges.

It also offered the participants the opportunity to re-strategise going forward.

The AGI is a voluntary business association with over 1,200 members comprising Small, Medium and Large scale manufacturing and services industries in agro-processing, agri-business, pharmaceuticals, electronics and electrical, telecommunications, information technology, transport, construction, textiles, garments and leather, banking and advertising.

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By: Abdul Karim Naatogmah/citifmonline.com/Ghana

The post AGI, SADA deepen partnership appeared first on Citi 97.3 FM - Relevant Radio. Always.

In his view, the current legislation is obsolete and does not meet modern demands of businesses.

Dr. Kludjeson further bemoaned the inadequacies of laws which protect industries as some decisions regarding high interests, are difficult to adjust.

The former AGI boss was speaking at a forum involving members of the AGI  and the 2016 Presidential candidate of the New Patriotic Party, Nana Addo Danquah Akuffo Addo.

“We don’t have the law that protects the industry or industrialists or entrepreneurs in this country…Please let us go back and see how we can factor this in. it is not late to do so,” he said.

The forum which focused on outlining the opposition party’s commitment to build capacity of local businesses if voted into power, also engaged the businesses on major challenges impeding their growth and development.

Dr. Kludjeson was also confident that a review of the current companies’ code will re-inforce government’s control in ensuring that the central bank creates an environment for a reduced interest rates.

“On issues bordering on interest rates, the Bank of Ghana Governor, the President of Ghana and the Finance Minister cannot even control the banks to reduce their interest rates. The law does not allow them, so how are we going to get the interest rate to go down?” he queried.

AGI wants policy rate reduced

Kofi Kludjeson’s remarks follow some agitations by the Association of Ghana Industries impressing on the central bank to reduce the policy rate and assist businesses to thrive.

The Chief Executive Officer of the AGI, Seth Twum Akwaboah stated that a reduction would have been much appreciated.

“Maintaining the policy rate at 26 percent means that cost of credit will not come down but now considering the stability achieved since the beginning of the year, businesses were expecting a bit of reduction to give us some comfort because by reducing it, it is very likely that our cost of credit will also come down.”

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post Former AGI boss bemoans obsolete Companies’ Code appeared first on Citi 97.3 FM - Relevant Radio. Always.