...Special company proposed The Securities and Exchange Commission (SEC) is advocating the establishment of an infrastructure development company by Government, with equity participation by international financial institutions, to address the infrastructure gap. “Let’s have an infrastructural development company. If Government accepts and takes the initiative, it can invite international financial institutions to hold equity in it. For example, if we need US$1billion as capital for this company, Government could contribute about 10 or 20 percent then allow those international financial agencies to take up the rest,” Adu Anane Antwi, Director-General, said. “Because of the [Government] debts, the suggestion was that we could set up an infrastructure development company. If it’s infrastructure, we have to do it with long-term loans because it could pay for itself over the long-term. If we had used loans to build Tema Harbour wouldn’t we have finished paying a million times over?” he said. Mr. Antwi was speaking to the B&FT on the sidelines of the annual post-budget forum organised by tax-advisory firm PwC Ghana in Accra. Conservative estimates by the government indicate that the country’s huge infrastructure deficit requires sustained spending of at least US$1.5billion per annum over the next 10 years to address the shortfall. The deficit covers all the main infrastructure areas: roads, energy, water, aviation, housing, and ICT. In the housing sector, for instance, the government estimates that the country needs to build about a million more units to bridge the demand-supply gap. Approximately US$829million has been allocated for infrastructure development in the 2013 budget presented to Parliament last week. The key areas are water resources, works and housing, transport, roads and highways and communications. In the water sector, Government has earmarked projects targetted at improving access to water and sanitation in the Upper West, Upper East, Northern, Brong-Ahafo Central and Western Regions. There is also an allocation of US$5million for the completion and purchase of residential houses for public-sector workers The main fiscal challenge this year is the deficit, which was 12.1 percent of GDP in 2012 -- a level seen as unsustainable for the economy. Mr. Terkper’s 2013 budget promised to narrow the gap to 9 percent of GDP this year, and 8 percent in 2014. Mr. Antwi said an infrastructure development company will ease the burden on the deficit when Government issues bonds, as its liability will only be limited to its share of investment in the company. “Then this company would then be issuing its own bonds because it’s a strong company, owned by the government, IFC and others. When this company comes to the capital market and issues infrastructure bonds to do developments, it will use the money coming from the projects -- such as rents and tolls -- to redeem them,” he said. By Dominick Andoh

By Evans Boah-Mensah The new Study Group on Quality of Service of the World Telecommunications Standardisation Assembly (WTSA) of the International Telecommunications Union (ITU) is scheduled to begin its first meeting tomorrow, which could see the approval of standards to interconnect data across telecom networks. The standards for interconnected packet networks, when approved would allow telecom consumers the chance to make video calls and Multimedia Messaging Service (MMS) as well as other data services to other consumers on a different telecom network. The Chairman of the Study Group on Quality of Service, Kwame Baah-Acheamfour, who is the first African to chair a study-group at the UN’s ICT arm, explained to the B&FT in an interview in Accra ahead of the nine-day meeting said the proposal to standardize the way data is interconnected among telecom operators is one that could change the telecom landscape. “This standard on interconnected packet networks was put forward by Rwanda and it was almost approved in the last Study Group meeting so it is due for approval in our meeting. “What this standard seeks to do is that people are used to voice calls interconnected among the operators. But interconnecting data between operators is virtually non-existent. That is why data like MMS cannot be sent to other subscribers on a different network. “Some people too cannot make video calls across different networks even though on their networks they could do that. “So once this standard comes on stream, people can be technically comfortable that these are acceptable standards and triggers that they can be able to work with and that will make it easier to interconnect data. “That is one of my fancy standards that I would want to see approved at the meeting,” he said. Mr. Baah-Acheamfour, who is also the Principal Manager of Regulatory Administration at the NCA, said standards that would be approved at meeting are recommendations to policy makers and regulators to adopt and enforce in their jurisdiction. He said the new Study Group, which has a four-year mandate will attempt for the first time try and test the standards that will be approved at the meeting to know how it works in an effort to bridge the standardization gap between the operators and policy makers. “We are going to try for the first time to allow standards approved to be tested and that is something no study group has done before. “People don’t see how the ITU standards are implemented so if there is an ITU standard, people who come to the study group meeting only know of the numbers of the standards. They don’t know what systems it works in. “So we are going to do a trial exhibition for the first time at the ITU on our standards and that will give people in the study group the opportunity to display the standards that they have implemented in their systems, services, terminals and networks so that people will appreciate how the standards work and that will help to bridge the standardisation gap,” he added. Mr. Baah-Acheamfour said several other standards would be approved at the meeting, most of which are being pushed through by telecom operators from Europe, Asia and the Americas. He therefore called on telecom operators on the continent to deepen their participation in the Study group’s work in order to sustain demand for telecom services and also improve on quality of service. “It would have been better, if our operators were part of this study group. They cannot just put their questions to the Group through the NCA. “They should be part of the discussions and deliberations because when we put their question out there; whether or not we get a satisfactory answer, we cannot follow up because we are not the operators and can’t feel how they feel. “Unfortunately, operators in Africa do not participate in the quality of service meetings. But the operators in Europe do. Meanwhile the European operators are the ones who have subsidiaries operating here (in Africa) so there is a disconnect. “The operators in Africa don’t find the quality of service meetings important but the operators in Europe and Americas do. So it is an irony that the two biggest African network providers are not part of the quality of service. “So it is up to them to really get beyond what they are used to and contribute to the work of developing and implementing standardization,” he said.

By Richard Annerquaye ABBEY A joint effort between Ghana’s Forestry Commission and Tropenbos International Ghana, an NGO dedicated to ensuring sustainable forest management, has resulted in a policy that seeks to improve the supply of legal lumber to the domestic market. The policy comes after years of discussion between forest stakeholders to find viable alternatives to the illegal chainsaw milling which accounts for about 84% of domestic lumber needs. The policy, endorsed by all stakeholders including the Ministry of Lands and Natural Resources, aims to eliminate illegal chainsaw operations and to ensure the supply of legal lumber to the domestic market on a sustainable basis. It also seeks to promote good forest governance and provide a framework that facilitates production and trade of legal timber on the domestic market. According to Trobenbos, a key principle of the policy is to provide a “framework for developing and regulating the domestic timber market in anticipation of expansion and growth of the construction and housing industry, while addressing the drivers of illegal chainsaw operations, deforestation and forest degradation”. A statement issued by the NGO added that, “under the policy, strategies to improve the supply of legal timber to meet the over 600,000 cubic metre perannum demand by the domestic market will include developing a framework to stimulate sawmills to supply at least 40% of their production to the domestic market. “Others include promoting artisanal milling as an alternative to the illegal chainsaw milling while creating resource access to artisanal millers through appropriate administrative and legal arrangements.” To eliminate illegal timber production and trade, a wood-tracking system for the domestic market will be implemented and legislation on the ban of chainsaw milling strengthened. Also, a public procurement policy on timber and timber products will be implemented. Stakeholders have high expectations for the policy on the domestic timber market. When successfully implemented, the policy will help meet the rising local demand for lumber and reduce the illegalities associated with the production and trade of timber in Ghana. The policy is also expected to facilitate the modernisation and the retooling of the timber industry as well as promote community-based forest enterprises (including fuel-wood plantations) as alternative livelihoods for forest-fringe communities. This policy on domestic lumber supply has been driven mainly by stakeholders under the European Union-supported Chainsaw Milling Project, which aims at finding sustainable solutions to the problems associated with the production of legal lumber for local timber markets. The project is being carried out by Tropenbos International Ghana in collaboration with the Forestry Research Institute (FRI) of Ghana and the Forestry Commission. It is estimated that government loses over US$18million annually through the activities of illegal chainsaw milling. According to FRI, the loss is nearly twice the annual revenue (stumpage fees) collected by the Forestry Commission.

By Basiru ADAM Even as businesses grapple with external difficulties like high interest rates and lack of power, which they have little control over, they need to pay a lot more attention to improving their internal processes, the Executive Secretary of the Association of Ghana Industries (AGI) Seth Twum-Akwaboah, has said. By improving their internal processes, businesses will develop the “shock-absorbers” that enable them to withstand the myriad challenges in the business environment, Mr. Akwaboah told the B&FT on the sidelines of a training workshop for AGI members on the Kaizen Concept of business improvement. “If you look at the business environment today, there are a lot of challenges: challenges of power, challenges of interest rates, challenges regarding imports and so on. But these are external problems which you individually cannot solve. As a company, you do not have control over these factors. “So our position has always been that, while advocating for improvement of the business environment with regard to these external factors, the internal structures must also improve; companies must prepare themselves to surmount some of these challenges, and basically that is why we have partnered the Kaizen Institute to introduce this concept,” he said. The Kaizen Concept is said to have originated from Japan after World War Two, and is a concept for continuous improvement of internal processes in companies. Kaizen, Japanese for "improvement" or "change for the better", refers to philosophies or practices that focus upon continuous improvement of processes in manufacturing, engineering, and business management. It is said to have been applied in healthcare, psychotherapy, life-coaching, government, banking, and other industries. When used in the business-sense and applied to the workplace, Kaizen refers to activities that continually improve all functions, and involve all employees from the CEO to assembly-line workers. It also applies to processes such as purchasing and logistics that cross organisational boundaries into the supply-chain. By improving standardised activities and processes, Kaizen aims to eliminate waste. In an interview with B&FT, Lead Consultant from the Kaizen Institute of India, Vinod Grover, said a successful roll-out of the concept in any organisation begins with commitment from top-management toward continuous improvement of staff and processes. “The first sign of success in an organisation is when the leadership embraces this methodology and starts changing the way they treat employees. Respect for employees is an extremely powerful part of the Kaizen philosophy; and when the leaders provide them with the resources, the stability and training, they will be able to do their jobs successfully,” he said. “So it starts from commitment from top-level management, and our founder [Masaaki Imai] says that there are three secrets to success. The first is top-management commitment, the second is top-management commitment and the third is top-management commitment,” he added. Mr. Twum-Akwaboah of the AGI said after introducing the concept, the consultants will be available to provide direct support to companies to implement it. Local consultants, he added, have been identified to imbibe the concept and pass it on so that consultants do not always have to come from outside to coach. “So it is a continuous process; it is not a one-off event. It is going to continue and we will continue to engage our members on it.”

By Bernard yaw ASHIADEY Africa is the last bastion for business globally, and over the next few years will prove its potential as a stable, lucrative continent for international commerce, says Ken Allen, Chief Executive Officer of global express and logistics provider DHL Express. Allen is in sub-Saharan Africa to visit countries including Zambia, Kenya, Ethiopia and South Africa as the operator continues to expand into the continent and spread its already vast footprint into far-flung rural areas. He will also attend DHL’s internal employee celebration in Livingstone, Zambia, an event that acknowledges the company’s “superstars” from over 60 countries. Allen’s visit follows the March 5 announcement by Deutsche Post DHL that the DHL Express division made an EBIT (earnings before interest and taxes) contribution of €1.11 billion in 2012, a 21 percent improvement over 2011. Allen is upbeat about commerce in Africa and eager to use a proven global business approach to further entrench DHL on the continent, spurring trade and connecting markets to increase the continent’s global competitiveness. “Much has been said around Africa’s potential and, while it currently only contributes 3 percent of global GDP, it is still the fastest-growing continent. We have seen positive economic indicators from countries across sub-Saharan Africa -- Nigeria, Côte d’Ivoire, Ghana, Kenya, Mozambique and Uganda, to name a few -- and I believe we will continue to see Africa improve its standing on the international business stage. “The major challenge for Africa and primarily for us as logistics operators is to improve infrastructure -- whether this is road infrastructure or air capacity. “Current road conditions are responsible for approximately 40 percent of transport costs in coastal countries and 60 percent in landlocked countries, and we know that transport costs can make up 50 to 75 percent of the actual retail price of goods in countries such as Malawi, Rwanda and Uganda. “We are currently transporting over 80 percent of our cargo by air, which can be between three and nine times more expensive than road or rail. For Africa to become competitive, this situation needs urgent review, with a strong focus on the development of transport infrastructure.” He added that his focus for the next few years will be continuing to motivate and engage employees in both Africa and abroad. “We have seen the culture of DHL Express reformed and reshaped through employee engagement and training, and the financial turnaround of the business is a testament to this. Putting your human capital at the centre of your company leads not only to great service, but loyal customers and unparalleled business returns.”

By Kizito CUDJOE, Kumasi The high incidence of illegal chainsaw milling and other illegal logging and legal harvest accounts for the drastic reduction of Ghana’s forest cover, which currently stands at 1.6 million hectares from 8 million hectors at the beginning of the 90’s, B&FT has learnt. The current rate of deforestation in the country is calculated to be about 65,000 hectares per annum -- of which one of the major causes is known to be illegal chainsaw milling. The activities of illegal chainsaw operators have become a serious threat to sustenance of the country’s forest, which if not tackled with the seriousness that it deserves could spell doom for the country. In spite of several attempts over the years to address this menace, it still remains a serious governance issue; and without finding any viable solution to, it will be difficult to implement any sound sustainable forest management. According to available data, illegal chainsaw milling alone accounts for over 84% of local lumber supply with an estimated volume of 497,000 cubic metres and market value of GH¢279million (US$200million). The annual cut of illegal chainsaw milling is projected to be about 1.7 million cubic metres (m³), and together with other illegal logging and harvesting amounts to 3.7 million cubic metres (m³) -- almost a double the official annual allowable cut of 2 million cubic metres (m³). The enterprise is believed to employ about 130,000 people and provides livelihood support for about 650,000 people across the country. Due to inadequate enforcement of the ban on illegal chainsaw operations, the enterprise is said to have also contributed to the emergence of forest-based enterprises like carpentry shops, wood villages/markets, and charcoal production. The Government of Ghana in 2008 signed the Voluntary Partnership Agreement (VPA) with the European Union (EU) to govern trade in timber products. The conditions under the VPA mandated that only legally produced timber should be exported to the EU market. This agreement also included the supply of legal lumber to the local market, which currently is made up of 84% illegal chainsaw timber. It is in accordance with this that the Forestry Commission and Tropenbos International Ghana have indicated having developed a new policy that seeks to improve the supply of legal lumber to the domestic market through a collaborative effort between the two bodies. Addressing the activities of chainsaw operations in the country has long been one of the major challenges faced by the Forestry Commission and other agencies set up to curb the menace. This latest development, which has received endorsement from the Ministry of Lands Natural Resources and other stakeholders, not only targets eliminating illegal chainsaw operations but also seeks to ensure a supply of legal lumber to the domestic market on sustainable basis. It also seeks to promote good forest governance and provide a framework that facilitates production and trade of legal timber on the domestic market. The underlying principle of the policy is to provide a framework for developing and regulating the domestic timber market -- in anticipation of expansion and growth of the construction and housing industry -- while addressing the drivers of illegal chainsaw operations, deforestation and forest degradation. Under the policy, strategies to improve the supply of legal timber to meet the over 600,000 cubic per annum demanded by the domestic market will include developing a framework that encourages sawmills to supply at least 40% of their production to the domestic market. Others include promoting artisanal milling as an alternative to the illegal chainsaw milling, while creating resource access to artisanal millers through appropriate administrative and legal arrangements. To eliminate illegal timber production and trade, a wood-tracking system for the domestic market will be implemented and legislation on the ban of chainsaw milling strengthened. Moreover, a public procurement policy on timber products will be implemented. This was made public in a media encounter with Tropenbos International-Ghana on securing legal domestic lumber supply through multi-stakeholder dialogue. Stakeholders are said to have high expectations for the policy on the domestic timber market. When successfully implemented, the policy will help meet the rising local demand for lumber and also reduce the illegalities associated with the production and trade of timber in Ghana. The policy is also expected to facilitate the modernisation and retooling of the timber industry, as well as promote community-based forest enterprises as alternative livelihoods for forest fringe communities. This new policy on domestic lumber supply has been driven mainly by stakeholders under the European Union-supported Chainsaw Project that aims at finding sustainable solutions to the problems associated with production of legal lumber for local timber markets. The project is being carried out by Tropenbos International-Ghana, in collaboration with the Forestry Research Institute of Ghana and the Forestry Commission.

In the fiscal year ending June 2012, Compassion International Ghana disbursed a total of GH¢11,042,171 being support from sponsors paid directly to its church partners to take care of the poor and needy children they have registered. This figure is up from GH¢7,210,012 in 2011, an increase of 53.15 percent. Compassion International Ghana, a child-focused and Christ-centred development organisation that commenced operations in the country in 2006, operates in the Greater Accra, Central, Volta and Eastern Regions. The organisation hopes to reach the three northern regions in the next three years.From 2,000 registered children in 2006, Compassion International now has 39,000 poor and needy children registered at Child Development Centres (CDCs) of the 145 Implementing Church Partners (ICPs) as at the end of 2012. They include the Methodist Church, Presbyterian Church, Pentecost Church, Assemblies of God, ICGC, Baptist Church, and Anglican Church among others. Beside the support fund, sponsors also send birthday and families gifts to their sponsored children and their caregivers. In fiscal year 2012, this amount totalled GH¢ 948,913 -- up from GH¢796.607, an increase of 19.10 percent. Complementary Intervention grants are funds disbursed for the provision of infrastructure like water and sanitation, classrooms, kitchens, and for child development centres and heart-surgeries. In fiscal year ending June 2012, Compassion International Ghana provided GH¢1,891,960 toward the provision of these basic needs, up from GH¢1,206,797 in fiscal year 2011, an increase of 53.45 percent. The bulk of this funding went into the provision of water and sanitation in the most deprived communities where Compassion operates. Most health interventions were undertaken with funds from Complementary Interventions. HIV/AIDS interventions received GH¢100,000, while highly vulnerable children interventions received a GH¢60,0000 grant for the provision of nutritional supplements to children with stunted growth and other critical needs. In November 2012, Compassion International Ghana launched the Child survival Programme (CSP) to complement government’s efforts at reducing maternal and child mortality in the country. The CSP is Compassion’s ministry to pregnant women and vulnerable children. Compassion International’s Ghana and West Africa office have staff of 63, while indirect employment at the 145 Implementing churches stands at 648. In all, total payroll (PAYE) paid by the Ghana office to staff and West Africa to the Ghana Revenue Authority as at June 2012 amounted to GH¢357,379 while withholding tax was GH¢30,212.36.

By Edward Adjei Frimpong, Sunyani  The high-skilled manpower required to boost productivity, underpin economic advancement and create opportunities for individuals in the economic development of Ghana is increasingly dwindling -- largely because of insufficient support for Technical and Vocational Education and Training (TVET) in the country, Prof. K.T. Djan-Fordjour, Rector of Sunyani Polytechnic, has observed. He said despite the important role of TVET plays in the economic development, especially in the area of training the requisite workforce for industries, very little has been done by policy-makers to revitalise TVET in Ghana. “It is worrying to see how people who should have known better play down technical and vocational education. For 56 years of nationhood building, apart from Dr. Kwame Nkrumah, the first president of Ghana who took concrete steps to establish many technical institutions, successive governments have not shown commitment in technical and vocational education and training Ghana,” the Sunyani Polytechnic Rector stated. Prof. Djan-Fordjour made these remarks in a speech read for him at the 4th Speech and Prize Giving Day of Twene Amanfo Senior High Technical School in Sunyani. His speech focused on “The Future of Technical and Vocational Education and Training: The Role of Stakeholders”. “The purpose of technical and vocational education training is to develop the minds of people to acquire practical knowledge or skills in industrial and scientific acumen in specific trades, craftsmanship and careers at various levels. But the poor perception that TVET is an option reserved for those unable to achieve the grades to enter into higher grammar education is traditionally limiting the numbers of young people going into TVET.” Prof. Djan-Fordjour stressed the need for the Council for Technical and Vocational Education and Training (COTVET) and its allied agencies to take practical steps to address the issues of negative attitudes and perceptions through programmes to enhance the image of TVET. “Government should be seen to be leading the crusade by investing in infrastructure development, supply of equipment to the existing technical and vocational institutions, creating employment avenues for TVET graduates, and making financial supports available to master craftsmen to set up their own businesses,” he added. He also entreated NGOs and other private organisations such as the Local Enterprises and Skills Development Programme, LESDEP, to focus their attention on building more TVET schools and centres to promote the cause.

Ghana Oil Company (GOIL) has launched new ranges of lubricants to support engine parts of vehicles, aimed at adding value to its customers. The Managing Director of GOIL, Patrick Kwame Akorli, said the company’s lubricants have high degrees of engine protection against oxidation, rust and corrosion; and they are non-toxic and biodegradable. Among the lubricants specially made to suit all kinds of vehicles are the GOIL Super Taxi, GOIL Power Tro-Tro, GOIL Power 4WD and GOIL Heavy Duty. The MD said: “For automotive lubricants, our offering includes a new range of competitively priced oils aptly named to enable motorists easily and readily select the most appropriate one for their needs. He said despite introduction of the new products, the company continues to market its tried and tested lubes (Diesel Gamma, Motor Oil HD and Super motor oil).He said GOIL supplies fuel for automotive, aviation, bunkering and industrial purposes to retail businesses. “Currently, GOIL supplies Super XP and Diesel XP in place of the normal fuels for all kinds of vehicles to give added value to customers at no extra cost. “Super XP and Diesel XP have water dispensing and cleansing properties which protect your engine and ensure its longevity,” He said GOIL automotive fuels provide excellent acceleration, and gives extra mileage at a low cost in an environmentally friendly manner due to its strong power to significantly lower carbon emissions from vehicles. For aviation and industry, he said GOIL provides transformer oils, heat treatments and industrial lubes for hydraulic systems, turbines, bearings, open and close gears, and industrial transmissions. “Also GOIL has a range of greases that are used for lubricating and protecting mechanical machinery as an alternative to liquid lubricants, particularly when a lack of space or problems connected with dripping makes it difficult to use oil.” Mr. Ahorli said the company out-doored a new logo last year that represents the revamped spirit in the company -- and launched its new re-branded image seeking to improve appeal to customers and stakeholders. He said GOIL has brought dynamism to its operations, re-energised its staff and up-lifted the looks of its retail outlets to meet all the challenges in the energy industry and be the number-one choice of the people.

By Dominick Andoh Government has been urged to revisit and fast-track passage of the Municipal Finance Bill in order to strengthen Metropolitan, Municipal and District Assemblies (MMDAs) and ensure infrastructural development at the grassroots. The bill, which proposes the creation of a Municipal Finance Authority, was laid in Parliament in 2008 to complement the Municipal Finance and Management Initiative (MFMI) of the government at the time. It is currently being reviewed by the National Bond Market Committee (NBMC) to address various challenges that have stalled its passage. “Accra, Tema, Takoradi, and Kumasi are municipalities whose projects can easily pay for themselves; though there is a genuine concern about the management of funds,” Adu Anane Antwi, Director-General of the Securities and Exchange Commission, told the B&FT “But we think that we could pilot it. Just give one or two, or a maximum four, and let them start. I don’t see why if Accra wants to issue bonds to build some shopping mall or market, they would not be able to generate enough funds to pay.” A strong regulatory framework that prevents MMDAs from engaging in multiple borrowing and running into debt -- which will ultimately be passed on to the Central Government -- and the ability of MMDAs to identify and invest in revenue generating projects are the major challenges being addressed. There are currently six Metropolitan, 40 Municipal and 124 District Assemblies within the 10 regions of the country. If they are authorised to raise private funds for infrastructure projects, it would draw investors -- who critically consider the availability of certain amenities before deciding where to locate their businesses -- to their localities.  The NBMC was set up to among others identify constraints in the development of a corporate bond market, and study and recommend legal, institutional and process changes needed to overcome them. The increasing demand on central government's scarce resources has necessitated the need for MMDAs to consider alternate sources of funds for infrastructure projects. Revamping the infrastructure of the hinterlands will take pressure off the capital city and other major regional capitals where companies compete for space due to the relatively good infrastructure available.