The process, which began some few years ago, stalled due to lack of clarity on the management structure of the Bank.

[contextly_sidebar id=”7OHSVyUQTIvdd7qY6e9xzoDMUSpdeDBJ”]In June 2016, the Bank of Ghana [BoG], granted the GAF a license to operate a savings and loans company.

The company, which is in operation, is known as Services Integrity Savings and Loans Company (SIS&L).

Speaking to military personnel in Takoradi, the Chief of Defence Staff, Lieutenant General O.B Akwa, announced that all outstanding issues with the regulator have now been ironed out, as the GAF prepares to commence business before 2018.

He was speaking to personnel in Takoradi when Defence Minister, Dominic Nitiwul, paid a two-day working visit to the 2 Garrison Unit.

Lieutenant General Akwa assured that, “the interest of all ranks of the Armed Forces will be catered for in this business. As at now, we are satisfied, and at the next Armed Forces Council Meeting, we are going to send our report and when the green light is given before the end of the year, it will start operating.”

“We have changed the governance system to ensure that the High Command is represented adequately to ensure that your interest is also taken care of, and by so saying, we have included the Sergeant Major on the board of this bank,” he added.

He explained that, the decision to have a military High Command on the board of the bank, is aimed at getting the military involved in taking critical decisions.

“If there are any concerns, at least he will be aware, and he will communicate it to us and then back to you,” he said.

He added that the GAF will also employ qualified bankers with banking expertise to help on the board.

“We are getting certified season bankers to be part of the board. So this is a pilot scheme, it’s a bold venture and your interest will never be compromised. We are using the Provident Fund at the moment as our seed capital,” he said.

He disclosed that, the GAF has majority share, hence will be instrumental in directing the affairs of the bank, subject to the rules of the regulator.

“The GAF owns the majority share, which is 75 percent. We have contacted the BoG; BoG has said that by their rules and regulations, we cannot have 100 percent share, because it is part of their laws that it should be diluted for another shareholder to be part of it.”

“A certified group, known as the Zara Group, whose background has been also verified, is for now holding that 25  percent, but it is still possible to dilute that further, so that we get a third shareholder on stream. We have done due diligence over the past eight months because of this concern that you have, and at the moment we are satisfied that you have done what is right.”

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By: citibusinessnews.com/Ghana

The post Military Bank to start operating by end of 2017 appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on the Citi Breakfast Show, Diedra James, said the decision was taken after studying the previous compact  undertaken by the Millennium Challenge Corporation (MCC) in Ghana.

“One of the things we recognised was important is to understand, from the beginning, what the binding constraints to [Ghana’s] economic growth were, she said.

She revealed that once power was identified as the “binding constraint to Ghana’s economic growth, exercises were done to determine the root causes of the problem.”

“Bringing together experts, consumers, businesses and other stakeholders, we kept coming back to the same issue that we need to  focus on addressing some of the challenges in the distribution sector,” she explained.

According to Madam James, the distribution sector affects all aspects of the economy, including how the consumers experience power, and impacts investments in the transmission and the generation of power.

She said that “after talking to several actors in the energy sector,” it was evident that the distribution of power was a key factor in correcting anomalies in the country’s ailing economy.

“Because of the challenges we found, we knew it was important to address that critical link in the chain and that was the Electricity Company of Ghana”

She stated that the distribution of power was, however, not the only factor preventing the “big companies” from investing in the generation sector.

“There’s also fuel. But even with the fuel it is important for fuel suppliers to know that they are going sell to a generator who will be able to sell down the chain and get their money back so they can pay the suppliers.”

Meanwhile, the National Coordinator for the Ghana Compact II, Prof Samuel Sefa-Dedeh, told the host of the Citi Breakfast Show, Bernard Avle, that focusing on power generation had been considered.

He revealed that the original concept that was presented to the MCC intended to establish a “free zone for power generation.”

However, “the resources from the MCC were not large enough to even construct one plant and therefore we had to be strategic,” hence the focus on power distribution instead.

He believes that many people “shy away from” the distribution sector and that “hard decisions must be taken to reform the sector and make it more efficient.”

Ghana signed a Power Compact deal with the United Sates which will  invest up to $498.2 million to support the transformation of Ghana’s electricity sector and stimulate private investment.

The five-year compact has been  designed to create a self-sustaining energy sector in Ghana by reforming laws and regulations needed to transform the country’s power sector.

The Ghana Power Compact is expected to catalyze more than $4 billion in private energy investment and activity from American and global energy firms in the coming years.

By: Edwin Kwakofi/citifmonline.com/Ghana

The post Efficient power distribution will transform economy – MCC appeared first on Citi 97.3 FM - Relevant Radio. Always.