By Basiru ADAM The Association of Ghana Industries’ Business Barometer report for the third quarter of the year indicates that poor power supply is the topmost challenge for business operators in the country. According to respondents to the report, the combined effect of frequent power outages and regular power surges from July to September 2012 has resulted in an increase in the unit cost of production. Poor power supply moved from seventh in the second quarter to first in the third quarter, making it the biggest mover within the period. This development can be attributed to the load-shedding exercise embarked upon by the Electricity Company of Ghana over the last four months, the report said. The depreciation of the cedi and high level of taxation were ranked second and third respectively after poor power supply. The AGI says the power supply situation is “worrying”, calling for government to act on the matter. “The AGI considers interdependence of industry and energy as a necessity if the country is to attain upper middle-income status in the next three years. It is against this back-drop that the Association is urging policymakers to accelerate completion of the Ghana Gas Project to enable us process the country’s gas resources to generate more power.” In terms of the overall perception of business performance, there is a drop in expectation of the Business Community going into the final quarter of 2012. Whilst about 57% of the CEOs interviewed in the second quarter of 2012 (Q2 2012) said they expect the performance of the business environment to improve in quarter three (Q3 2012), only about 52% of the respondents interviewed in Q3 2012 feel the same about quarter four.  â€œThe reasons assigned by the optimists are anticipated improved market, increase in output of labour force, and availability of raw materials. However, those who expect their businesses to perform poorly in Q4 2012 compared to Q3 2012 based their qualms on expected depreciation of the cedi, increase in inflation, and increase in the level of tax-rate.”  AGRICULTURE SECTOR Access to credit and high cost of raw materials maintained first and second positions respectively as the top-two obstacles hindering the growth of the Agriculture sector operators. See Fig. 3 for detailed ranking of the top-ten challenges for the sector.  CONSTRUCTION SECTOR Also, access to credit, delayed payment and unfair award of contracts were identified as the top-three challenges facing the Construction Sector. Lack of contracts, which was ranked third in Q2 2012, dropped to seventh position in Q3 2012 whilst low purchasing power (also ranked third in Q2 2012) did not feature in the top-ten in Q3 2012. However, bureaucracy (which did not feature in Q2 2012) appeared in the top-ten in Q3 2012. MANUFACTURING SECTOR The Manufacturing Sector singled out poor power supply as the most important factor increasing cost of operations of the sector. Depreciation of the cedi and high level of taxation were also ranked second and third respectively. “This development calls for an immediate solution, as all the top-three identified challenges facing the sector could have significant impact on cost of production and hence render local manufacturers less competitive in the last quarter of 2012,” the AGI said.   SERVICE SECTOR Again, poor power supply, depreciation of the cedi and high level of taxation emerged as top-three obstacles to development of the Service Sector.   Overall, low access to credit and cost of credit featured at the fourth and fifth positions respectively. At the tail-end of the table are inflation, low purchasing power and competition from imported goods -- which were ranked eighth, ninth and tenth, respectively.  It is worth noting, the AGI said, that this is the first time since the inception of the AGI Business Barometer Survey that competition from imported goods is being ranked tenth. It is normally ranked at the mid- or upper-end of the table. “This shows how realistic the AGI Business Barometer is, as it always identifies the most pressing challenges facing the business community. This is the reason why challenges such as poor power supply, depreciation of the cedi and inflation have displaced competition from imported goods from the upper-end of the table.”  The AGI BBI measures the level of confidence in the business environment and predicts short-term business trends. It simply expresses the state of the business climate in one number, ranging between +100 and –100. It is calculated from “current” business mood and “expectations” for the future. The third quarter recorded a positive indicator of 19.8, which indicates a drop in business expectation over 2012 Q2 (which recorded an indicator of 26.2). This is an indication that the confidence level of the business community in the business environment has gone down compared to quarter two of 2012. 

By Bernard Yaw ASHIADEY The Chief Executive Officer of communications outfit Strategic Communications Africa, Esther Amba Numaba Cobbah, has said a lack of proper communication tools can slow down the pace of development. She noted that through her over-20 years of experience in the field, there has always been need for proper communication in everything. “Through it all, my conviction about the value of communication for both attaining developmental objectives as well as supporting corporate success has been reinforced.” Mrs. Cobbah was speaking at a business forum dubbed “This is my Story” under the topic “Entrepreneurship -- A Matter of Skill of Hand and Integrity of Heart” in Accra, organised by the Business Council for Africa, Ghana. She cited several personal experiences to back her claim that communication is crucial to development and progress. The Stratcomm CEO said she was able to convince engineering-minded people of the essential need for communication when she set up a brand-new Public Affairs Department at the Ghana National Petroleum Corporation (GNPC). “It was challenging to be able to demonstrate to the oil companies and my own colleagues that the way to handle, for instance, fishermen engaging in their livelihood at sea when you need them to move away from the path of a vessel acquiring data was not by just calling in the Navy to chase them away, but rather by communicating with them and gaining their cooperation for a mutual co-existence between the traditional fishing industry and the emerging oil industry. “It must be said that when this communication approach proved so successful, the oil companies were thrilled and gained greater confidence in the investment climate in Ghana. They were quick to applaud these culturally sensitive approaches in their annual reports,” she said. She added that proactive community relations and public education about the petroleum industry, including education for schoolchildren, were important features of the Department’s work. “The aim was to increase public knowledge of the oil industry and to draw Ghanaians into its opportunities as the mandate of the Corporation required.” She added that in establishing Stratcomm, “We have been at pains to ensure the framework for effective corporate governance. We have a Board of Directors that has been an exemplary source of inspiration and direction, through their regular reviews of our performance and their calls for accountability on the part of all our management and staff.”                                                                                                                         

By Patrick PAINTSIL The Precious Mineral Marketing Company (PMMC) has signed a €4.5million contract with Russian-based Geo Professional Services Limited for the construction of an ultra-modern gold refinery in Accra. The facility, which is expected to be operational by mid-2013, will give the company the capacity to refine 700,000 tonnes of gold for export yearly while enhancing the pricing of gold for small-scale miners in the country. The joint venture will also put to an end to the company’s quest for a fully-fledged gold refinery to purify and increase the worth of gold produced in the country -- which has proven futile over the years. “The necessary financing as well as permits have been secured. We have placed orders for machinery and other equipment and all due diligence has been carried out,” Board Chairman Mr. Kwabena Kyereh said to media at the signing of a Memorandum of Understanding (MoU) between the two companies to formalise the project. Mr. Kyereh said the project affirms management’s resolve to add value to the company’s products while increasing revenue to the country, as well as increasing the lot of artisanal miners in the chain of operations as it impacts on their socio-economic circumstances. He said PMMC has come far on this objective with the setting up of a diamond-cutting and polishing plant, which currently produces 200 carats of polished diamonds per month for jewellery production. “Last year alone, the company exported an approximated volume of 453,000 ounces of gold procured from small-scale miners; but our revenues and profits were adversely affected because the gold was unrefined and subjected to market fluctuations,” he noted. He asked the project team to put in their best to ensure that the refinery is completed within schedule as they jointly move to add value to gold production in the country. Messrs Geo Professional Services Limited is a reputable company that has been involved in numerous gold ventures across the world. Mr. Ramazan Kafarov, Chief Executive Officer of the company, assured that his team will put in their best to ensure that the project meets its timeline. “This is a strong partnership, and I can affirm that my company has all the facilities to ensure speedy completion. We will do our best to put up the best gold refinery in the country and Africa as a whole,” he assured.

The Association of Chartered Certified Accountants (ACCA) President, Professor Barry Cooper, will be visiting Ghana and will make several stops, including engaging with some of Ghana’s key employers such as Unilever, Deloitte and the Ghana Stock Exchange. The visit will play an important role in enhancing employer and key stakeholder engagement by emphasising their importance as partners to ACCA, sharing the organisation’s vision as well as depth of work on Research and Insights. Speaking about his visit, Prof Cooper said: “It is my hope that my visit to Ghana will bring forth an increased commitment from family-employers in working with ACCA as the preferred partner in building their finance capability and leveraging on each other’s brand.” He continued: “I can only hope that my presence within the country will give further assurance to ACCA members and students about their associations’ commitment to Ghana, as well as an opportunity to promote the theme of ‘partnership’ with our important stakeholders. They need to feel that they can work with us and that various avenues exist for collaborations.” The visit will also provide an occasion for ACCA to showcase its brand as an international body with a core value of working for the public good.  ACCA hopes to make known to the general public all that it does to support the accountancy profession, and highlight key messages on commitment to driving the agenda on public value and interest at all times.

The importance of investing in the development of human capital, especially the youth for a more prosperous future, has emerged as one of the key campaign issues in this year’s elections. One of the few individuals who has made it his life’s work to develop Ghana’s human capital and prepare the Ghanaian youth for the corporate world, Emmanuel Dei-Tumi, has been honoured as the Goodwill Ambassador for Prosperity by the African Heritage Society in South Africa. It was in recognition of his extraordinary and positive contribution to raising Africa’s corporate flag.  The award was established to celebrate the contribution of individuals whose lifetime accomplishments have helped shape and define the character, personality and brand of Africa. Other individuals who have been honored by the Society include Dr. Kenneth Kaunda, former president of Zambia; Baroness, Lynda Chalker, a former Member of the British Parliament and Minister of State. Dr. Bakili Muluzi, former president of Malawi; and Buhle Mthethwa, leader of South Africa’s foremost Business Chamber. The 2005 Millennium Excellence Award winner (Inspirational Category) was also made a member of the Society and 19th October celebrated as an Appreciation Day in his honor. The African Heritage Society is a pan-African, South Africa-headquartered non-profit organisation whose principal objective is to put Africa and its various interests at the centre of business strategy. In a related development, the Young Professionals Youth Coalition Initiative also honored him as the Young Professionals Role Model in Youth Empowerment and Development. This award was in recognition of his distinguished pioneering role and meritorious service in youth empowerment and development. Mr. Dei-Tumi pioneered the self-improvement industry in Ghana through his flagship organisation, Foundation for Future Leaders International. Under his leadership, the Foundation has since 1995 equipped tens of thousands of young people with leadership, entrepreneurial and career development skills; and shaped attitudes and habits in relation to savings and investment all over the country. Foundation for Future Leaders International is a member of The Future Leaders Group, an indigenous business group dedicated to the development of human capital and financial empowerment.

By Patrick PAINTSIL President of the Ghana Insurers Association (GIA) Mr. Kwame Gazo-Agbenyadzie has called on government to make the workmen’s compensation insurance policy compulsory in order to provide relief for workers in times of disaster and other hazardous occupational occurrences. The call comes amidst the recent spate of disasters wherein workers of the country are met with unexpected tragedies with no insurance to support the victims. In an interview with B&FT, the GIA boss said the association holds the view that workmen’s compensation insurance must be made to bind employers so as to ensure timely and adequate intervention for workers in times of distress. “Most employers in the country do not have insurance policies in place to provide immediate assistance to victimised staff, but only turn to insurers for support when the unexpected happens.” This phenomenon can either be attributed to the ignorance of some employers regarding the existence of a mandatory requirement to secure the safety of workers in the workplace, or irresponsibility on the part of others who wish to take advantage of the lack of a binding law to enforce strict adherence to the policy. “Most employers also do not pay due to financial constraints, which then leaves victimised workers destitute and a burden on their families,” he said. The Workmen’s Compensation Insurance Act of 1987 mandates every employer in the country to provide compensation to any employee who sustains personal injuries by accident in the course of work. It also, among others, binds the employer to foot medical expenses based on the compensation payable after it has been decided by the labour office. Mr. Gazo-Agbenyadzie said as insurers, their priority is to offer protection to life and property -- and called on government to revisit the policy which seeks to offer better working conditions for workers in the country while providing better alternatives for employers. “Payment on a small amount of premium will confer such compensations onto the insurance companies to offer support to affected workers on behalf of the company. This secures the workers at all times while covering the employer against liabilities to staff as defined in the Act.” He said the policy is not restricted to the public-private sector only, but is open to any employer in the informal sector as workers will be motivated to give their best under a secured environment.“Every employer is mandated to provide security to his/her employee. A houseowner can purchase the policy for his driver or servants, and so it is with other informal sectors of the economy.”   By so doing, the country will be making a giant step toward enhancing the security and safety of workers in general. “In some countries like the UK and close neighbour Nigeria, the workmen’s compensation insurance is compulsory. Employers have to display the certificate at their offices for the appropriate authorities to inspect periodically,” he told B&FT.

By Kizito CUDJOE, Kumasi EDMARK International has honoured one of its top distributors in Kumasi with the position of Senior Crown Manager, the second-highest level in its chain of command for distributors in the country. This enviable position went to Ms. Bernice Addo Danquah, one of the top distributors of EDMARK products in Ghana. As part of her promotion, she is entitled to enjoy a car-fund, some monthly bonus, travelling-fund, and house-fund among others. The ceremony, held in Kumasi, brought together some top distributors of EDMARK products from across the country and other members of the distribution fraternity in solidarity of the recognition ceremony, as well as some officials from Stanbic Bank Ghana. EDMARK International, an MLM Company from Malaysia, deals in natural-health products and began its business operations in the country in September 2008. The Company points out that the well-being of consumers and distributors of its products in the Ghanaian market are its topmost priority, and it is committed to providing quality health products to promote good and healthy living in the country.     The Company is said to contribute substantially to the Ghanaian economy by engaging a number of Ghanaian citizenry to distribute its products, through which they earn commission and other rewarding opportunities as per their performance. This worthy opportunity created by EDMARK International is believed to have become a viable and active source of employment for many Ghanaians who hitherto had little or no source of revenue.   An official from EDMARK International indicated that several opportunities have been given to other top distributors of their products in the country as a means of boosting their performance so as to motivate others to join the business. Being able to perform this task, a distributor is said to earn extra income or get to become a business builder through embracing the concept of network marketing.