Thursday, August 22, 2013
With Spa comes alluring Dosoo
The beauty industry in Ghana has grown in leaps and bounds in the last decade, yet there is still more room for improvement. Ama Amankwah Baafi writes
Just like any other service industry, the wellness and beauty industry in Ghana thrives on standards and education. That is what a beauty therapist, Mrs Dzigbordi K. Dosoo is advocating for.
Mrs Dosoo, who runs a spa is advocating for a high ethical standards in the industry and already, her effort is yielding results, she said.
She told the GRAPHIC BUSINESS in Accra that, “We have been advocating for a while and we have been seeing some changes and expect it to get better and better.”
She started in 1997, when there were very few players in the industry. Today, many individuals have ventured into the business in micro, small, medium and large ways and are making an impact in communities all over the country with their services.
The Chief Executive Officer and Founder of Allure Africa Group, emphasised that image was indeed everything and that one is judged first by his or her appearance, behaviour and communication. Therefore, it is important for people to invest their resources into making it the best way possible.
She prefers to be referred to as a lifestyle coach, talk show host, entrepreneur, and chief business consultant and said it took faith in God, passion, risk taking experience and education, to become one.
HER MOTIVATION
Her passion, experiences and entrepreneurial spirit combined serves as the source of her motivation. Being an entrepreneur, the drive to do something unconventional was what initially led her to her chosen path after being in banking and finance for 10 years.
“I realised it was time for me to prioritise my life’s direction by aligning my passion with my career. My experiences of being a wellness, image, lifestyle and business expert, I realised my story could influence others to also be well on the inside and out, and make them look and feel good,” she said.
Generally, seeing people well put together in appearance, behaviour, and communication fascinated her and those that were not, provoked her to help them make a change in their lives. This passion to see people transform their lives took over and the entrepreneur in her took the leap.
HOW SHE STARTED ALLURE
Allure started as a two-person salon in a living room in Osu. She chose to start that way realising that the concept of Spa was nonexistent at that time. Gradually, she grew with it, educated her clients until they were ready for the Spa concept.
Eventually, through her grandmother she acquired a shop in Adabraka in Accra where she began Hair Solutions in 1998. She employed six staff with hair care, nail care and barbering. Within four months it transformed into a sole proprietorship shop and another shop opened in Labone in 1999.
“Our client’s wanted more than just hair services. The salon industry in Ghana was evolving to embrace beauty therapy so we offered hair in Adabraka and beauty therapy in Labone. With the new branch came a new inspiration and a new name ALLURE. In 2006 we then established Ghana’s first Day Spa, with Global
Standards Allure Spa in the City,” she recalled.
Allure Africa is an award winning Lifestyle Group with its Headquarters in Accra, and an office in Washington DC in the USA. Its brands are Allure Spa In the City- Day Spa which focuses on wellness and grooming services and Allure Sales and Distribution Company which focuses on product distribution and beauty and spa resource.
Allure College is focused on education and training in wellness and beauty image. She disclosed Allure had always been perceived as a luxury brand, because of the global standards of excellence it delivers across all brands. Allure delivers premium services to all clients and is able to meet the needs of all budgets.
Allure has trained hundreds of people who are professionals in different fields of endeavours, entrepreneurs, and intrapreneurs within the Allure System.
ALLURE’S ACHIEVEMENTS
Those that stand out to them are the ones that make impact and touch the lives of people such as its Iyaba Conference where over 1500 participants were trained in beauty and wellness for free, raised money for Cancer, or give public school girls hygiene training in the rural areas. “For us our success stories are when we make an impact and transform lives. It makes us proud,” she said.
Mrs Dosoo has been recognised as the CIMG Marketing Woman of the Year 2009, Global Leaders award for Entrepreneurship 2010, and recently voted as the only female and No. 7 Most Respected CEO in Ghana 2012.
She is also the Chairperson of the Spa Association of Africa. Allure’s awards include West African Hospitality Award and Winner of the International Star Awards for Leadership in Quality in the Gold Category.
She is inspired to continue what she is doing because it affects impacts and transform lives. “My calling is to inspire, inform and impact lives and I’m doing just that through my coaching, speaking, TV Show and brand businesses,” she said.
She has no regrets at all venturing into the wellness sector because that is how God intended it to be. She said, “We have accelerated through the natural stages of growth very quickly. And it has been both exciting and satisfying to watch Allure Africa mature. We are now a fully-fledged premier Lifestyle Group; spreading its wings all over the African industry. Our milestones give us the strength to keep going”.
She said challenges are basically opportunities for businesses to assess their weaknesses and identify their cracks and work on them. Theirs are mainly centred on ensuring that standards match with the client experiences both internally and externally across all Brand Businesses.
Allure deals with them by continuous proactive assessments, filling the cracks and being flexible enough to adapt to the evolving needs of our internal and external clients.
Just like its logo, the butterfly, Allure Africa continues to metamorphosise, and they are excited about the future.
FAMILY BACKGROUND AND HOBBY
She has seven brothers and is the last and only girl. She is married with a daughter. She loves to play and watch tennis, and listens to worship music.
She said the younger generation is blessed with so many opportunities that there is no excuse to fail. She advised they learn from the failures not just the successes of trail blazers, focus on being a positive example, study and serve their way up and follow God’s leading in all things.
To those desiring to be like her, she said “Discover your passion and work at growing and maturing in everything you do, learn a lesson, every day. Develop yourself through experience or education and focus on making the world a better place. Above all, let God direct your path and you would have no regrets”. GB
writer’s email:
ama.baafi@graphic.com.gh
Mining industry facing crises -PwC
The mining industry is facing crises due to rising costs and volatile commodity prices making the industry unattractive for further investment, a Global Mining Leader at PwC has said.
“The mining industry is facing a crisis. But regaining investor confidence depends on how the industry responds to its rising costs, increasingly volatile commodity prices, and other challenges such as resource nationalism,” he said.
A partner at PwC Mr George Kwatia has consequently called for the strict enforcement of the regulations governing the mining industry.
This he said would stem the constant influx of Chinese immigrants in illegal small scale mining in the country.
Mr Kwatia who is also the West Africa Mining leader of PwC said the issues affecting the mining industry in Ghana are not different from those facing the industry globally, adding that revenues of mining companies are plummeting due falling commodity prices; increasing operating costs of mining businesses; and high tax cost as government seeks to introduce additional taxes such as the national stabilisation levy and windfall profit tax in the face of declining gold prices.
“In addition to the rising cost of mining are high electricity and fuel costs, as well as the adverse impact of load shedding and power rationing on mining operations,” Mr Kwatia said at the Ghana launch of the Mine 2013 publication.
The publication, titled “A Confidence Crisis,” is an annual review of global trends in the mining industry that provides analysis on the financial performance and position of the global mining industry as represented by the top 40 mining companies by market capitalisation.
He said mining companies needed to focus on operational efficiency in order to reduce costs and expenditure and an indicator of efficiency.
Mr Kwatia also charged the government to control expenditure widen tax net to cover the informal sectors of the economy as opposed to introducing higher and newer taxes in the industry.
He emphasised that the country needed to ensure that businesses thrive by ensuring that regulations are enforced to create an enabling environment.
“In this way, they would be able to generate the needed profit and then government can have its share and not to turn the scale round and then rather tax. We have relied on gold which is good but if we look at how other countries develop we may have to look at some of our natural resources and reconsider some of the qualities that have to be put in place to ensure that we can maximise these resources for our good,” he said.
The PwC Global Mining Leader, Mr Tim Goldsmith said over the past decade the mining industry has outperformed the broader equity markets, but the trend had recently changed.
He said while stocks fell slightly in 2012, during the first four months of 2013 mining stocks were hammered, falling nearly 20 per cent.
The publications stated that in 2012 the top 40’s production volumes increased by six per cent, but softer commodity prices meant that 2012 revenue of US$731 billion was only the second year in a decade that mining revenue did not increase.
Net profit was down 49 per cent to US$68 billion. Decreased commodity prices, an escalating cost base, and US$ 45 billion in impairment charges hit the bottom line. At only eight per cent, return on capital employed was the lowest it has been for a decade.
Also operating cash flows fell with reduced profits, down 23 per cent to US$137 billion, while investing cash outflows increased 22 per cent to US$169 billion, salvaged by the issuing of US$108 billion in new debt.
In spite of the above, the top 40 increased dividends by nine per cent to US$38 billion , an average yield of 3.7 per cent based on April 30, 2013 share prices. GB
Microfinance association promotes self-regulation
Microfinance companies say they have put in place measures to promote self-regulation. Ama Amankwah Baafi writes
The Ghana Association of Microfinance Companies (GAMC) is hopeful that the Internal Rating System (IRS) it had instituted would enable it test the capacity of its members in complying with the regulatory requirements of the Bank of Ghana.
The IRS is based on 12 key performance benchmarks - capitalisation requirement, legal status, human resource management, products, services and marketing, credit methodology and human resource management are some of the benchmarks.
The Executive Secretary of GAMC, Mr Richard Amaning told the GRAPHIC BUSINESS that some of the members were able to source funds from the traditional banks.
“The regulation helped member companies to identify some major gaps in their operations as a number of them did not have requisite structures in place. Members took the opportunity to re-structure their companies and also increase their capital base,” he said.
He added the regulation had boosted the confidence of members to embark on vigorous savings mobilisation just as the major financial institutions.
GAMC has 580 members nationwide with Greater Accra and Ashanti regions concentrated as their membership is 291 (50 per cent) and 125 (20 per cent) respectively. Out of these numbers, Accra has 122 licensed companies and Kumasi with 45.
The Head of Banking Supervision at the BoG, Mr Franklin Belynye said they were working to speed up the licensing process, in spite of the volume of applications which is over 700.
In pursuance of the provisions of the Non-Bank Financial Institutions Act, 2008 (Act 774) and the Banking Act 2004 (Act 673) as amended by Act 738, the BoG in July 2011 issued the rules and guidelines for the information of the general public and for compliance by all individuals and entities operating in the microfinance sub-sector.
The regulation framework adopted a tier system of regulation depending on whether the institutions are formal, semi-formal or informal in nature.
So far, the GAMC said its major challenges were proposed upward adjustment of paid-up capital which it said could put undue pressure on smaller companies to meet it and the that the regulation had added on more cost to already high operational cost which subsequently affect the interest rates charged by the
companies.
Mr Amaning said the association had introduced a new project, “Operational Software Standardisation Project,” to facilitate members’ ability to report to the regulator timely.
The GAMC has engaged software developers to develop a robust and user friendly microfinance banking software that has the capability to generate operation reports, BoG prudential returns and GAMC’s quarterly reports with ease.
Also, the BoG has instituted an emergency and quarterly meeting platforms with GAMC to enable both parties to discuss emerging issued relating to regulation and compliance.
Microfinance Institutions (MFI) figures as at June 2013 stood at 144 licensed microfinance companies out of 564, two licensed financial non-governmental organisations out of 29, 345 licensed Susu collectors out of 480, and no licensed money lender out 296.
At the 7th meeting of the Ghana Microfinance Forum in Accra, a member of the board of directors of the BoG, Dr David Obu Andah, called for a review of the licensing requirements for MFIs in order to raise standards in the microfinance business.
He said the capacity of the staff of the Banking Supervision Department of the BoG should also be built. GB
Cultivate savings habit-entreprenuers urged
Female entreprenuers in the country have been encouraged to cultivate a proper saving culture by saving in banks as it is one of the best insurance for their finances.
By doing so, it would help them accumulate more funds to expand their businesses and invest in more enterprising ventures. A lecturer at the Koforidua Polytechnic in the Eastern region, Mr Samuel Antwi said enterprising women required appropriate banking services to escape from the low investment–low production–low returns cycle.
“Ghanaian women are known to have a strong entrepreneurial spirit and more than men reinvest the money they make into their families and communities. It is important that they save well their decent profits and plough it back into their business to be able to earn more in the future,” he said at a skill development training programme in Koforidua.
The training was organised by the Christian Mothers Association of Ghana (CMA), a non-governmental Christian women organisation in the Catholic Church which is committed to empowering women, with sponsorship from the Skill Development Fund (SDF), being managed by the Council for Technical and Vocational Education and Training (COTVET).
Mr Antwi urged the women not to allow household duties, illiteracy and sometimes intimidation by some bank staff to deter them from saving in the banks.
In all, the CMA would train 90 of its members from zones; northern, middle and southern zone in prudent financial management, small scale business management, record keeping, banking culture and how to access micro credit.
The first 30 members from the southern zone, comprising, Accra, Cape Coast, Koforidua, Keta / Akatsi, Jasikan and Sekondi-Takoradi Arch-Dioceses, and Donkorkrom Vicariate are being trained in entrepreneurial and management skills in Koforidua, Eastern region.
The two-week training from July 8 to 19, 2013 is on the theme, “Provision of Small Medium Enterprises Development Support Services Leading to Economic Empowerment.”
The Executive Secretary of the CMA, Mother Elizabeth Addai Boateng told the GRAPHIC BUSINESS, the CMA sought funding to refocus on skill training following a need assessment from the diocesan presidents asking the national secretariat to revisit its skill training programme.
The objective she said was to help mothers establish their businesses and run them well. Many of them often take loans to run their businesses and are unable to wean themselves off the loans. But we feel that at a point they should be able to run their businesses with their own money so we thought that we will give them this training to empower them to be able to run their businesses well.
“We expect that through the training they would learn to know their customers, study their needs and how to deal with them and their debtors so they will not run into loses,” she said.
The Business Department of the Bolgatanga Polytechnic designed the eight modules for the prudent financial management training
GB
Fact sheet
- The Christian Mothers Association operates in 18 out of the 19 Dioceses in Ghana and one vicariate
-It has a current active membership of about 35,000 women
- Its core activities include the provision of civic, health, formal and non formal education and teaching of social and moral values, and also supporting the income generating activities of women
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Oil money not efficiently managed – Report - But Finance Minister says it is disingenous
A latest report on the management of oil revenue has faulted some Ghanaians officials of not managing it efficiently. Ama Amankwah Baafi writes
A key finding of the report by the Africa Centre for Energy Policy (ACEP), a local think tank with support from Oxfam, is that Ghana is not deriving value for money from the infrastructure projects funded with oil and gas revenues.
Titled, “The two sides of Ghana – How a good oil revenue law does not stop oil revenues from going down the drain,” the report said most of the projects had been delayed, operated under costly extensions and led to cost over-runs.
It said some of the road infrastructure which are partly funded from oil revenues and are at different stages of completion with a few actually completed are; emergency works on the upgrading of Ho-Adidome and Adaklu Xelekpe-Aduadi road; reconstruction of Navrongo-Tumu road; reconstruction of Asankragwa-Enchi road; emergency rehabilitation works on Dansoman main road in Accra; and reconstruction of Berekum-Sampa road.
“While the projects funded from oil and gas revenues may have long term economic prospects in project communities, the short-term social and economic impacts during the construction phase have been severely limited, as contractors mostly bring workers, food and materials from non-project communities,” the Executive Director of ACEP, Mohammed Amin Adam, said when he gave an overview of the report during the launch in Accra on Wednesday, July 31, 2013.
However, the Minister of Finance, Mr Seth Tekper, told the GRAPHIC BUSINESS on the sidelines of the Institute of Financial and Economic Journalists (IFEJ) / STAR Ghana forum in Accra, that the report was disingenuous because “we were not only funding roads from oil revenues.”
He explained that the oil inlfows could only be used as counterpart funding and that the Petroleum Revenue Management Law clearly spelt out how the oil money should be used.
Mr Terkper stated that expenditures on such capital projects came from various resources and petroleum revenue would not be used exclusively for it, stressing “they should have come to the Ministry of Finance to find out the other sources for the financing of these projects.”
Mr Amin said over the period, there had been widespread breaches of the Petroleum Revenue Management Act, 2011 (Act 815) and application of oil funds to projects which did not deliver value for money.
He said the ability of the Ghana National Petroleum Corporation (GNPC) to manage its share of oil revenues allocated to it had come under serious doubt.
Mr Adam criticised the national oil company for continuing to make huge investments at the risk of low returns, citing that the Corporation’s equity share (stake) dropped from US$132.48 million in 2011 to US$124.63 million in 2012, whereas its investment portfolio rose from US$75.48 million in 2011 to US$106.32 million in 2012.
The report criticised the Minister of Finance (MoF) for having so much discretionary powers which could provide room for politically motivated project selection that could be demonstrated by high political consideration for ‘equity’ at the expense of efficiency and value for money.
It, therefore, recommended that such power be curtailed, stating that discretionary authority was regulated by article 296 of the 1992 Constitution of Ghana, which required that persons exercising discretion apart from a judge must publish by constitutional instrument regulations to govern the exercise of those powers.
The ACEP, therefore, urged the finance minister to comply with the provisions of the Constitution before the presentation of the 2014 Budget and Policy Statement of government to parliament.
Another finding was that in the past two years, allocation of the Annual Budget Funding Amount (ABFA), the percentage of oil revenue dedicated to budget financing to some of the expenditure items did not demonstrate significant allocation efficiency as they were allocated to areas other than social and economic priorities.
But Mr Terkper said GNPC’s allocation and investments into oil production was part of the efforts to maintain Ghana’s direct stake in the upstream petroleum sector to increase the country’s overall benefit from the sector.
The Minister of Finance is expected to announce a new set of priority areas in the 2014 budget for oil revenue spending in accordance with Section 21 of Act 815, having first set priority areas in the 2011 budget.
Under Section 21(5 & 6), the Minister is mandated to prioritise not more than four areas when submitting a programme of activities for the use of petroleum revenue to ensure the maximisation of impact.
This prioritisation is to be reviewed every three years after the initial prioritisation.
A Senior Policy Manager in charge of Extractive Industries at Oxfam, Mr Ian Gary, said the report demonstrated that Ghana had a lot of work to do to avoid the corrosive and corrupting effects of oil booms seen elsewhere in Africa. GB
writers email:
ama.baafi@graphic.com.gh
Fertliser subsidy under threat
Even before the poor targeting challenge is resolved, the Fertilizer Subsidy Programme (FSP) is facing uncertainties in funding. Ama Amankwah Baafi reports
The sustainability of the Fertiliser Subsidy Programme (FSP) initiated in 2008 to help farmers increase fertiliser usage and productivity is under threat, following uncertainties over financing if the current World Bank support for the programme dries up.
With the support of the World Bank, the government has steadily increased subsidies on fertilisers from a little over 43,000 tonnes at GH¢20 million in 2008 to 173,000 tonnes at GH¢117 million in 2012. A total of 180,000 tonnes is expected to be subsidised this year for farmers.
Although the volumes of fertiliser seem to be rising by the year, they are still insufficient, as more people go into farming with existing farmers using more fertiliser.
The Ministry of Food and Agriculture, which responsible for the implementation, however, does not have its entire budget request to ensure that the fertiliser subsidies are carried out fully.
This is mainly because the dedicated donor funds had not been disbursed, leaving the cost for the whole of last year’s subsidies in arrears.
Only 39 per cent of the MoFA’s budget was approved in the 2013 budget, thus making it difficult to undertake certain programmes.
Thus the budget deficit the government runs has led to perennial shortage of subsidised fertiliser and this is gravely affecting food crop farmers, particularly in the Upper East and Upper West regions of Ghana, according to the Peasant Farmers Association of Ghana (PFAG).
To compound issues, a World Bank facility under which the FSP is being funded would soon end and calls are being made for alternative funding. The bank has announced a shift in focus of its funding for the government.
Each programme funding would be results-based and the World Bank would therefore conduct a sector review before committing funds. The next review is expected next year.
The Deputy Director in charge of Budget at the Ministry of Food and Agriculture, Mr Daniel Ohemeng Boateng, said fertiliser suppliers had not been paid since last year and this may be impacting on supply.
“We want government to set aside a separate fund to manage the FSP if it is to be sustained,” he said at a two-day advocacy programme on the 2013 budget statement and the expectations for 2014 in Accra.
The Institute of Financial and Economic Journalists (IFEJ) organised the forum with support from STAR Ghana, an advocacy grant organisation. It was to afford civil society organisations, stakeholders and the media the opportunity to provide inputs in addressing Ghana’s economic challenges assess the government’s adopted approach in managing challenges and offer suggestions on the way forward for the 2014 fiscal year.
The President of the National Farmers Award Winners Association, Mr Philip Abayori, said if the fertiliser subsidy was having the desired impact then food should have been cheaper, but the situation on the ground was different.
The deviation, he said, could be as a result of poor targeting of the subsidy, as they subsidised products either fell in wrong hands or persons colluded with suppliers to divert the product.
Mr Abayori reiterated calls for the inclusion of farmers who are the targeted beneficiaries of the programme, saying it was unimaginable for policy makers to make and implement policies without consulting the targeted beneficiaries.
“Though there is the FSP, farmers have never attended any meeting on it. Why are we farmers not on the FSP committee. We only hear and buy from suppliers,” he said.
The PFAG has said fertiliser was a key determinant of high crop yields, for that reason, as part of efforts to ensure the country became food secure, farmers’ access to fertilisers should be of interest to all.
It had on several platforms called for certain taxes to be dedicated to improving agricultural productivity, particularly the FSP.
The association said the areas to tax should include three per cent of bank’s profit; a percentage of Value Added Tax (VAT), Communications Services Tax, contributions from lottery revenue and a percentage of oil and gas revenue.
The Programme Coordinator, Ms Victoria Adongo told the GRAPHIC BUSINES in a separate interview that the farmers found it difficult to plant at the appropriate time and complained bitterly.
Due to the artificial shortage by some dealers the subsidised product could sell at a higher price of GH¢60 instead of about GH¢51, whereas in the open market unsubsidised fertiliser such as NPK sells between GH¢68 and GH¢70.
Smuggling across our borders also contributes to the shortage because our neighbours do not subsidise fertiliser and so these unpatriotic citizens get better money from their activities.
This came to light when STAR Ghana sponsored some IFEJ-member journalists to ascertain the impact of budget statements and implementation on communities in the hinterland.
The PFAG has also asked for strict enforcement of the law against smuggling and punishment for persons caught trying to smuggle fertiliser outside the country.
In the 2013 Budget Statement and Economic Policy, the continuous introduction of technology to improve agricultural production remained the main focus of government policy interventions.
These interventions include the adoption of livestock production technologies, agricultural mechanisation, irrigation development, fertiliser subsidy, seed improvement, quality standardisation, and the implementation of modern buffer stock management techniques.
Under the fertiliser and seed subsidy programme in 2012, 300, 000 farmers benefitted from 170,000 metric tonnes (mt) of fertiliser and 20, 000 kg of improved seeds of maize, rice and soyabean.
According to the budget, for the 2013 financial year, the Ministry of Agriculture will continue with its mandate to implement programmes and projects in the Medium Term Agricultural Sector Investment Plan (METASIP).
It said government would also coordinate the procurement and distribution of In addition to the 180, 000 tonnes of subsidised fertiliser expected to be distributed to farmers this year, MoFA also plans to launch a web-based software for the smooth implementation and management of the subsidy. GB
Writer’s email: ama.baafi@graphic.com.gh
Supoort cloth weaving • to contribute to economic growth
The traditional cloth (Kente) weaving industry has made an impact on the cultural and economic sectors of the Ghanaian economy. Ama Amankwah Baafi writes
Kente weaving in Ghana has been an art in transition and has been handed over from generation to generation, gaining popularity in renowned communities in the Volta, Ashanti and Northern Regions.
The art also houses varied ideologies pertaining to the origination; production and marketing of weaved clothing.
Traditional weaving, as practiced by the various communities has unique features which identifies the crafts of the communities and contributes to the cultural, political and socio-economic development of the country.
Weavers and observers of the industry have said that the sector also contributes to tourism awareness, particularly in identifying the major weaving communities in Ghana and their history.
“Therefore, there is the need to give the sector the needed attention to realize its full potential to contribute to the growth of the economy, particularly when it strip-woven cloth has become a cloth for special occasions,” a weaver, Ms Anacleta Duugle, told the GRAPHIC BUSINESS, at Koforidua, during a skill training programme by the Christian Mothers Association (CMA), a non-governmental Christian women organization in the Catholic Church committed to empowering women.
Besides, she said broadloom technology could be introduced to traditional weavers to enable them weave wider strips to speed up the process.
Anacleta is one of the few women who have broken the jinx to enter the kente weaving sector which was previously dominated by men.
She hails from Nandom in the Upper East region but is now staying the Afram Plains, precisely, Maame krobo, where for the past 15 years, she has been
weaving traditional northern cloth for a living.
HER MOTIVATION
Her interest to acquire a vocational skill led her to learn the art of weaving cloth. She has since trained eight people and now has three apprentices.
Her association with the CMA has greatly nurtured her entrepreneurship desire as a woman.
The kente weaving tradition in the north can be said to be unique because of the techniques and high skill employed by the weavers. She said the yarns originally used by Northern weavers were hand spun and dyed locally.
“Unlike industrial spun yarns, dyed hand spun yarns possessed certain features which were significant to the end users. They maintain their bulkiness and handling makes them fluffy. Recently however, there has been the addition of synthetic indigo dye to the natural dye liquor in the dye pits before dyeing commences to increase the colour depth,” she explained.
DESIGN
Unlike the Asante and Ewe weaves which have themes, northern weaves are basically coloured warp stripes mostly in blue, black, white, green and red colours. This attests to the fact that differences exist in terms of the use of colour within a particular region.
Anacleta said mentioned bobbins, shuttle, bobbin winder, shed sticks, spool rack, skein winder, heddle, reed, pulleys, among others as some of the tools she uses. She gets the raw materials from Kumasi and Accra.
The loom (Kore) as known among the Northerners is similar to that of the Asante and the Ewe people. Most of the looms are the immovable types constructed with wood. The looms are constructed by the weavers themselves out of wood cut from the bush.
Anacleta said customers make demand through the selection of the available designs on display and if terms of payment are agreed, she goes ahead to weave the cloth, while some customers also place orders for a particular design to be produced for them.
She has been producing for various groups as well. Production process starts by doing the wobble, hedley, wreath and weaving. She is able to weave two different pieces of cloth depending on the design.
MARKETING
Strip-woven cloth has now been transformed into bags, shoes, hats, ties, and many other types of apparel, including jewellery. According to Anacleta, marketing is one of the most important aspects of strip weaving in Ghana.
They are sold especially during market days in most weaving communities unlike in the Ashanti Region, where kente is invariably sold at retail shops along the various weaving communities and at the central business centre.
“Interestingly, the prices of the cloth vary depending on who is buying, whether native, Ghanaian or foreigner. Promotion and exhibition of kente cloth are done through cloth festival which is celebrated every two years.
This helps to promote both old and new methods of weaving, and kente cloth is exhibited for younger generation to adapt. Unfortunately, there is nothing like that for our cloth,” she explained.
She also sells her products to tourists who visit the village occasionally and travels to the North to sell.
CHALLENGES
Her major challenge is how to get access to the funds to expand her business.
“Such support should not only come from the government but from other agencies that have the economic interest of women at heart. If this happens we may be able to buy raw materials in bulk and so cut down on transportation, as we are now compelled to travel often,” she said.
At times, she is forced to rely on clients for advance payment to produce. Also, they should be assisted to market their products abroad. She has never participated in any fair or exhibition before, even locally.
ACHIEVEMENTS AND DESIRE
Anacleta has been able to put up a five-bedroom house. When people appreciate her works it makes her proud and feel happy, especially when clients put on her designs and others inquire and follow up to her to also place orders.
While in school, she was committed to her vocation such that she won the first prize after a competition. But for this job, it would have been difficult for her to make a living and cater for her child and other family members after her marriage broke down.
She has plans to sell in Accra and other major cities when she has been able to expand and employ more people.
EDUCATION AND FAMILY BACKGROUND
She attended St Clare Vocation School in Tumu, in the Upper West region and Fioumua Primary and Junior High School at Fioumua in the Nandom, in the Upper East region.
She is the first of six children and has a male child.
Anacleta advised the youth, especially, those in her area who she observed do not like to learn a trade, because they think it is time consuming, to reconsider their decision and endeavour to acquire some vocation skills to be able earn meaningful living. GB
Writer’s email ama.baafi@graphic.com.gh
Friday, July 05, 2013
Climate change puts Ghana's agric at risk
Ghana may be worst hit by the impact of Climate Change (CC) if adequate measures are not adopted to contain the brunt, according to a report by the Environmental Protection Agency.
The report cautioned that the current low yields than projected being experienced in the agric sector had been attributed to the effects of climate change.
It warned that yields in the agric sector are expected to further decrease, which may likely affect the vulnerable and the poor.
The report termed the Policy Advice Series 2 highlights the negative effects of climate change on the agricultural sector in Ghana.
The UN Framework Convention on Climate Change (UNFCCC), in Article 1, defines climate change as: ‘A change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’.
Historical data for Ghana from the year 1961 to 2000 clearly shows a progressive rise in temperature and decrease in annual rainfall. In Ghana, CC is manifested through rising temperatures, declining rainfall totals and increased variability, rising sea levels and high incidence of weather extremes and disasters such as flash floods (Minia et al. 2004).
Agriculture accounts for about one-third of Gross Domestic Product (GDP); 28.3 per cent (2011 est.) and employs more than half of the workforce, mainly small landholders. The sector grew by 2.8 per cent against a target of 5.3 per cent in 2011 (2012 Budget).
Irregular rainfall pattern is a feature of CC with particularly damaging consequences, such as droughts and flood and these are predicted to get worse over time.
According to the EPA Policy Advice Series, which have been developed to enhance understanding and appreciation of CC and disaster risk issues, by policy makers and senior technocrats and to support them to take urgent and needed decisions, agriculture and food security are interrelated and thus, CC induced unsustainable livelihoods will result in negative consequences on food security, poverty, health, education, gender equality and environmental degradation.
Agricultural production’s dependence on rainfall is a significant hindrance to the developments of the sector in Ghana. The use of irrigation to counter the effects of poor rainfall is particularly low across the country.
Agriculture is highly sensitive to temperature and rainfall and yields are plummeting and will continue to do so. Major challenges in the agricultural sector include low crop yields, over dependence on inconsistent rainfall, unsustainable agricultural practices, low knowledge of use technology and sustainable utilisation of the natural resource base, mostly due to poverty levels among farmers.
CC impacts are reduced soil fertility due to changes in precipitation (rainfall) and temperature, rainfall deficits resulting in desertification of grazing pastures and reduced water availability for animals and shifts in agro-ecological zones that are too rapid for trees and farming systems to adapt to.
Others are incidents of pest attacks resulting from an increased temperature, loss of cropland from erosion and desertification, coastal erosion and destruction of valuable coastal agricultural land.
Earlier this month, about 5,200 acres of rice farms in the Ketu-North District of the Volta region were invaded by army worms and caused massive destruction to crops. The farms included 1,200 acre Afife Irrigation Project Farm and another 3,000 acres of rain fed private farms located in the Kpli Valley at Klenomadi. A total of 2,524 farmers risked losing their livelihood but for the timely intervention of the Regional Directorate of Agriculture that commenced spraying to prevent the spread of the army worm invasion in the district.
In 2003 Ghana signed the Maputo Declaration of African countries allocating 10 per cent of national budgetary resources to develop the agricultural sector. The spending on agricultural research and development in Ghana doubled between 2000 and 2008, from GH¢151 billion to GH¢352 billion respectively, but most went towards an increased outlay for salaries (75 to 83 per cent).
All planning in the agricultural sector is aligned with the Food and Agricultural Sector Development Policy (FASDEP 11) which seeks to address the challenges of the agricultural sector.
However, impacts of CC have not been factored in any of the six policy objectives, though agriculture is highly sensitive to temperature and rainfall. For instance, objective one targets production and post harvest losses but does not account for the potential increase in vulnerability of the poor due to the unpredictable climate change conditions.
The EPA Policy Series 2 recommended that more urgently, impacts of CC need to be quickly factored into the sector plan so that additional funding can be sourced for CC adaptation measures in the country.
Nevertheless, government’s outlook for food and agriculture in 2012 as stated in the budget is to expand the Agriculture Subsidy Programme to include liquid fertilizers (bio-fertilizer) and improved seeds. The Ministry will subsidize 165,000 metric tonnes of chemical and liquid fertilizer.
“The National Food Buffer Stock Company will acquire another rice mill with a capacity of about 8.5 metric tonnes per hour, to be located in the Northern Region where rice production has been increasing for the past 3 years. In line with the national policy of stocking food for a better Ghana, at least 10,000 metric tonnes each of maize and milled rice, as well as 1,000 metric tonnes of soya beans will be stocked at all times,” Minister of Finance, Dr. Kwabena Duffuor announced.
Recently, the Minister of Food and Agriculture, Mr Kwesi Ahwoi announced that government had sourced an amount of US$145 million from the World Bank and the United States Agency for the implementation of the Ghana Commercial Agricultural Project (GCAP) to address food security in the country.
He said by the end of the project in 2017, Ghana would be able to produce enough rice to feed itself and also become the bread basket for West African sub-region. GB
Peels for profit
A study on the range of agricultural waste, (cassava and yam) solutions in Ghana has revealed cassava peels can be used as alternative substrate for cultivating quality mushrooms. Samuel Doe Ablordeppey and Ama Amankwah Baafi have been studying the report and write
Unlike the mushrooms that are only collected from the wild in forest regions during the wet season; March-September, cultivated mushrooms are available all year round.
But researchers say the availability of wild mushrooms is being threatened as a result of high rate of bush burning, deforestation and over-exploitation of timber and non-timber forest products in Ghana.
Therefore, the potential use of cassava peels as a supplement (and not a complete replacer) of mushroom cultivation is promising. Mushroom has high nutritive and medicinal value. It is a rich source of proteins, minerals and vitamins.
Gradually, there is a shift from overdependence on consumption of wild mushrooms that are collected to the consumption of cultivated mushrooms in Ghana. This presents enormous opportunities for mushroom growers, subsequently cassava farmers.
The opportunities include; growing demand for value added organic products, especially, in the food services industry like hotels and restaurants; opportunities for public-private partnerships in establishing large mushroom farms and cultivation of mushrooms for export.
There is also a growing health consciousness of consumers; increased processing sites and therefore opportunities exist for bulk volumes of peels at processing concentration sites; and employment generation opportunities.
Again, it will augment government policies and focus on agri-business and entrepreneurial development as engines of economic growth.
The study on the agricultural waste solutions was conducted by the Food Research Institute (FRI) of the Council for Scientific and Industrial Research (CSIR), under the Gains from Losses of Root and Tuber Crops (GRATITUDE) project, in collaboration with the Natural Resources Institute (NRI, UK), to reduce physical and economic losses of yam and cassava.
GRATITUDE, a four-year European Union (EU) funded project in Ghana, Nigeria and Vietnam, also seeks to add value to the tubers by processing them into other forms of finished and preserveable products.
One of the key focuses of GRATITUDE which is on the theme, “Reducing Post-Harvest Losses for Increased Security”, is improved utilisation of wastes (peels, liquid waste) to produce products for human consumption such as snacks, production of mushrooms and improved animal feed.
Although there are different types of substrates available for mushroom cultivation in Ghana, the use of sawdust is the most popular but has several limitations, including unavailability due to rapid deforestation, inaccessibility, high cost of transporting sawdust from wood processing sites and longer periods of composting.
Cassava (Manihot esculenta) is cultivated in all the agro-ecological zones in Ghana due to its tolerance to pests and disease and resilient to harsh climatic conditions.
Total production of cassava was estimated at 14.3, 13.5 and 12.2 million tonnes in 2011, 2010 and 2009 respectively. Over 90 per cent of farmers in Ghana cultivate cassava, a major staple food in Ghana with per capita consumption of approximately 153 kilogrammes per annum (MoFA-SRID 2011).
About 50 per cent of cassava that is produced is utilised fresh while the rest are processed into various products including gari (25 per cent), agbelima (18 per cent) and kokonte (five per cent) and (one per cent) industrial purpose (Adjekum, 2006 and Onumah et al., 2008).
Yam production estimates for 2009, 2010 and 2011 were 5.7, 5.96 and 5.85 million tonnes respectively. Its production is concentrated in the Brong Ahafo and the Northern Regions. Last year, Ghana exported approximately 27,000 metric tonnes of yam (MoFA-SRID, 2012).
The GRATITUDE study primarily, focuses on where waste are generated along the value chain (transportation and storage) and the ability to collect in large quantities from the processing points, either at the household level, village level or factory / industrial level. Insignificant proportion of peels generated at processing level are utilised for animal feed.
The survey findings show that over 90 per cent of the peels generated were either burnt or just left unattended to at dumping sites. Extraction of starch from liquid waste was limited.
In the case of yams, wastes are mostly generated at the consumption (households, chopbars and food vendors) levels since yam processing is very limited, only done by few small and medium enterprises (SMEs).
Yam peels constitute about 14 per cent of the volumes of yams consumed in Ghana and approximately, five per cent of volumes of yams traded go waste. However, the study proved bulking of yam waste at the household level will involve a lot of work; therefore, it makes economic sense to concentrate effort now on the potential use of cassava waste (particularly peels).
It recommended that cassava peels could be composited before using for the cultivation of mushrooms and even after the production of mushrooms, the spent substrate, which is rich in nutrients can be used for the preparation of animal feed (poultry and small ruminants) and bio-fertilizers for crop cultivation (Chang 1997).
Mushrooms thus have the capacity to convert nutritionally valueless substances into high protein foods (Hafiz et al 2003). Form the study four different methods of mushroom cultivation in Ghana were identified; (i) traditional method (ii) the high bed method (iii) the low bed method and (iv)the plastic bag method.
Currently number of mushroom growers in Ghana is estimated at 2500 and they are mostly concentrated in Greater Accra (close to 50 per cent), Brong Ahafo, Ashanti, Eastern, Volta, Western and the Central Regions of Ghana. Mushroom growers in Ghana can be categorised into micro, small and medium (highly commercial) scale growers.
Some of the growers produce and sell fresh mushrooms only, others sell both fresh mushrooms and compost bags while others sell fresh, dried as well as value added mushroom products.
In Ghana, mushrooms for food may be cooked fresh after harvesting, dried before utilising for food preparations and milled mushroom used for shito. At least 50 per cent of Ghanaian households consume mushroom (Apetorgbor et al., (2005).
The same study showed that approximately 41 per cent consume mushrooms due to the taste, 20 per cent due to availability and 12 per cent for medicinal purposes.
Other consumers use mushrooms as delicacies in soups and stews. Some mushroom growers indicated exportation of their products to other neighbouring countries but these are quite informal and not captured in the Ghana trade statistics. GB
Friday, June 28, 2013
MTN launches cloud services
MOBILE Telecommunications Company, MTN Ghana, has launched cloud services to help small and medium enterprises (SMEs) to cut down on the cost of information technology (IT) software and hardware.
MTN is the first mobile network operator in Africa to launch the cloud service brokerage model which is expected to improve productivity and efficiency of businesses.
Cloud computing is one of the new innovations in the IT world and it involves the delivery of hosted services over the Internet, enabling users to access services anywhere and at any time.
The service centralises remote access to data and applications where a third party, in this case, MTN, acts as the single point of contact for customers.
This allows companies to focus on their core businesses instead of concentrating on infrastructure costs.
It also allows businesses to come out with information processing requirements of the average organisation in terms of secure data management, fire wall protection and some application to remove the infrastructure that allows functioning just as the user.
In effect, it is the delivery of hosted service over the Internet or any secured virtual private network (VPN).
The Chief Executive of the MTN Ghana, Mr Michael Ikpoki, said at the launch in Accra that the introduction of the cloud services marked an important milestone in the life of MTN Business, a division in the company.
The MTN Business was launched in 2011 to provide information, communication and technology (ICT) solutions for SMEs and other corporate institutions in the country.
Mr Ikpoki said out of six markets – Cameroon, Nigeria, Uganda, Cote d’Ivoire and South Africa – selected by the MTN Group, Ghana was the first country to launch the service in West Africa.
“Cloud services constitute a recent innovation in the IT space and we are very proud to be leading in this market. With the rapid development in ICT and telecoms sector, driven by strong desire to provide customer experience, there is expectation that technology can do more for SMEs,” Mr Ikpoki said at the event.
He thus called on SMEs and large corporate organisations to invest in new technologies and new solutions to drive growth in their respective businesses.
The Head of Business Solutions at MTN Ghana, Mr Eric Nsarkoh, said the idea of the MTN Cloud was to manage stress aspect of organisations.
“In terms of its uniqueness, there is a lot of flexibility because all you are required to do is to register and you have access. It is as easy as setting up an email address,” he said.
New credit bureau launched
DUN and Bradstreet Credit Bureau Limited, an organisation that will provide comprehensive consumer credit information to customers in the country, has been launched in Accra.
The bureau receives information and processes them for lending and credit institutions to build borrowers’ credit profile and repayment records.
This form of reputational collateral has proven to be as reliable as the usual physical collateral demanded by lenders in support of credit.
Dun and Bradstreet was incorporated in Ghana in June 2008 and awarded a provisional Credit Bureau License from the Bank of Ghana in October 2010. After fulfilling the requirements of a provisional license, it received its final license in February, 2012.
The launch, which makes Dun and Bradstreet the third credit bureau in the country, is expected to increase competition within the Ghanaian credit market by providing credit providers with greater bureau choice and improved transparency for businesses and consumers.
Again, it is expected that as the availability of credit increases, businesses and consumers will enjoy more credit.
The government passed the Credit Reporting Act, 2007 (Act 726) not only to provide the necessary legal and regulatory mechanism for the licensing and operation of credit bureau, but also to protect the public against fraud.
The Minister of Finance and Economic Planning, Mr Seth Tepker, in an address read on his behalf said the services of credit bureau therefore facilitate screening of applicants for credit, leading to cost reduction for the provider and enhances lender’s ability to predict default.
“Rapid growth has direct correlation with an increased risk of low repayment. Credit bureau provides the best mechanism to improving the rate of default and mitigating the threat to the financial system.”
‘Also the demand for consumer credit will increase lending to general increase in demand for goods and services thereby increasing growth in the economy,” he said.
He emphasised the need to promote convergence, integration and development of the entire financial service sector in order to exploit the full potential for effective financial intermediation and sustained growth.
He also announced that the government had developed the second phase of the Financial Sector Strategic Plan (FinSSP 1) that focused on strengthening all sub-sectors of the financial sector, including banking, securities, insurance, pensions and non-bank financial institutions, with implementation planned for next year.
Touted as a global leader in business information reports, the Managing Director of Dun and Bradstreet, Mr Evans Sarpong, said it would from its portfolio of global products and services offer a range of tools to help lenders manage their clients through the entire life cycle and better understand risks involved.
This, he said, included instant notification when changes occurred within a customer portfolio and tools needed to improve the quality of customer data.
“In order to provide responsible access to credit for businesses and consumers, it is important for banks and other credit providers to have access to globally proven alternatives to determine the credit worthiness of potential borrowers,” he said.
The Chief Executive Officer of Dun and Bradstreet, Mr Miguel Llenas, said the experience of credit bureaus in other countries showed that over time, borrowers stood to benefit from faster credit applications processing, faster disbursement of loans, fairer assessment and better adjusted quantum.
He said the organisation’s experience with government and private credit bureaus across the world had facilitated it in building the robust bureau for Ghana.
Friday, April 19, 2013
Mothers Microfinance rescues women from credit crunch
What began as a credit scheme 13 years ago has now transformed into a microfinance company. Ama Amankwah Baafi reports
Until now, the Christian Mothers Association Credit Scheme (CHRISMACS) was the financial wing of the Christian Mothers Association (CMA), a non-governmental Christian women organisation in the Catholic Church and was committed to empowering women.
It registered as a subsidiary of the mother organisation, targeted to grow into becoming CMA group of companies and operated under the supervision of the Department of Social Welfare and also under the umbrella organisation of Association for Financial NGOS.
Subsequently, by a Bank of Ghana (BoG) regulation of the activities in the microfinance sub-sector, CHRISMACS now known as the Mothers Microfinance Company Limited (MOMFIN) opted to operate under Tier 2, as part of its vision to become a mothers’ bank. By the regulation it has now moved from a financial (NGO) to microfinance.
The Programmes Manager of MOMFIN, Mr Edward Onyameba Boafo told the GRAPHIC BUSINESS that because of the vision that the mothers had for their economic empowerment programme, they deemed it more prudent to be a microfinance company than to remain where they were.
Now MOMFIN is mandated to mobilise savings, give loans, take collateral and register with the treasury at the BoG and does all these under the supervision of the BoG. It is also under the Ghana Association for Microfinance Companies.
“In the past, we gave out small loans but we are now strong enough to give bigger loans and to collect them back. Our main idea is to give regular and easy access to credit for all enterprising women in Ghana,” Mr Boafo explained.
STRATEGY
Numerous baseline surveys the group conducted gave an idea of how to engage the women and help them. A sponsorship from the BUSAC Fund enabled MOMFIN to research into the challenges facing enterprising women in their businesses.
It emerged the challenge of access to credit dominated and so through the NGO, MOMFIN trained such women to effectively manage credit, add value to whatever they produce, while it adopted a ‘know your client strategy’ to get closer to them.
MOMFIN took into consideration the available commodity in each area, put the women in groups and gave them loans which they are able to pay back.
Mr Boafo said “invariably the most outstanding hallmark has been that those who were down and had nothing can now justify that indeed the programme has brought life into their homes. Most of them who are single parents are now able to send their children to school and livelihoods have improved generally.”
IMPACT
Access to credit remains an issue to women in enterprises and that is what MOMFIN says it has worked at and continues to work on. Unlike other microfinance institutions, MOMFIN boasts of a regular and quality service. Even after a loan cycle ends clients are guaranteed a second amount which may be bigger.
“Everybody who has been with us will tell you the benefit that has come to them. People are flooding our office as a result. Some have gone through and now they tell us that they want to work with their own savings and they want to work with the capital that has,” he said.
MOMFIN is still among the least when it comes to interest charge. The ultimate among the CMA is that because of its holistic approach to women’s development in Ghana, the moment they go through economic empowerment, automatically they are also engaged for their civic rights to enable them take part in decision-making and political positions.
The oldest partner of the CMA has been the Konrad-Adinauer Stiftung (KAS) that has as part of its social development agenda, encouraged them to move beyond prayers and credit union activities to support in the delivery of civic rights, while KAS gave them resources to engage women, especially at the district level.
MOMFIN’S ASSOCIATION WITH EED
Church Development Service (Evangelischer Entwicklungsdienst - EED) is an association of the Protestant Churches in Germany. By means of financial contributions, personnel involvement, scholarships and consultancy services EED supports the development work of churches, Christian and secular organisations.
Therefore, for the CMA’s economic empowerment programme through MOMFIN, EED has been its main partner for the past nine years. However, since it set off on the path of sustainability, it has asked the EDD to show them how to “fish” and not give them fish.
CLIENTELE
The clientele base has increased from 5,000 to over 10,000 with 17 branches nationwide, except the three northern regions. It employs 46 full staff and six casuals.
“There is no MFI that has been formidable as ours. The structure is solid and we have engaged professionals to run affairs. We believe with support of the board we will be able to economically empower women in Ghana,” Mr Boafo said.
About five per cent of MOMFIN’s clientele are men and are marching the challenge very well, but then its focus is women and so cannot give higher amount to the men.
CHALLENGES
The management of MOMFIN welcomed the directive to mobilize savings and never envisaged the challenges it is facing. Unlike the Christian mothers who due to the faith and cohesion and group work pay back loans, ‘outside’ clients are different and put up tricks to avoid repayment.
Therefore, it does due diligence before it gives out loans though it is in to help women it is careful as to who to lend to.
EXISTING PRODUCTS
Formerly because it was a financial NGO it could only do compulsory savings, which acted as cash collateral for loan.
Other group products include the Mothers Product for enterprising mothers (members of the CMA), Semanhyia which moved them to another level where money was given to individuals in groups, Emuye (the sweetness of the pudding lies in the eating), through which they created jobs for other women and the small and medium enterprise product.
NEW PRODUCTS
Its Department for Monitoring and Evaluation after a research end of last year came out with new products.
These include Ketewa biaransua (little drops of water makes a mighty ocean). MOMFIN always pegs its rate up to three per cent over that of BoG’s baseline rate; Core savings account which within 24 hours a client can get his / her money back; Peykinkran a core account like the normal commercial bank interest given to them at BoG baseline rate; Hyehyeehye (a core savings account) which is an investment of a sort which gives two per cent on the treasury bill interest rate.
Some of MOMFIN’s loan products are Gyae suu, a funeral products that has brought a lot of people who are not Catholics on board; Menso metwi bi (car loan); Prosperity account mostly for wholesalers engaged in imports who make orders outside while MOMFIN’s contact person follows up to ensure that quality is not compromised. MOMFIN said within the shortest possible time these wholesalers see their margin and are able to pay back their money.
HOW MOMFIN STANDS OUT
Mr Boafo said anyone who wants to grow his / her business must come to MOMFIN. “Wherever every commercial bank or MFI ends that is where we start from. We believe in negotiation so whatever you have to invest we sit down with you, talk it over and do proper documentation so always the customer is gaining. Everybody must come to us for us loan because our conditionality is flexible,” he added.
Even when a person takes a loan from MOMFIN and passes away leaving outstanding amount, there is a package that caters for that and so MOMFIN does not demand from the family. Indeed, it makes a donation to the family.
Also, each client is given the chance to bring at most two relations on board such that if anything happens MOMFIN can show love.
FUTURE
It hopes establish branches in the three northern regions soon. By the year 2016, MOMFIN hopes to be a fully fledged savings and loans company and is working fervently to achieve this.
Until now, the Christian Mothers Association Credit Scheme (CHRISMACS) was the financial wing of the Christian Mothers Association (CMA), a non-governmental Christian women organisation in the Catholic Church and was committed to empowering women.
It registered as a subsidiary of the mother organisation, targeted to grow into becoming CMA group of companies and operated under the supervision of the Department of Social Welfare and also under the umbrella organisation of Association for Financial NGOS.
Subsequently, by a Bank of Ghana (BoG) regulation of the activities in the microfinance sub-sector, CHRISMACS now known as the Mothers Microfinance Company Limited (MOMFIN) opted to operate under Tier 2, as part of its vision to become a mothers’ bank. By the regulation it has now moved from a financial (NGO) to microfinance.
The Programmes Manager of MOMFIN, Mr Edward Onyameba Boafo told the GRAPHIC BUSINESS that because of the vision that the mothers had for their economic empowerment programme, they deemed it more prudent to be a microfinance company than to remain where they were.
Now MOMFIN is mandated to mobilise savings, give loans, take collateral and register with the treasury at the BoG and does all these under the supervision of the BoG. It is also under the Ghana Association for Microfinance Companies.
“In the past, we gave out small loans but we are now strong enough to give bigger loans and to collect them back. Our main idea is to give regular and easy access to credit for all enterprising women in Ghana,” Mr Boafo explained.
STRATEGY
Numerous baseline surveys the group conducted gave an idea of how to engage the women and help them. A sponsorship from the BUSAC Fund enabled MOMFIN to research into the challenges facing enterprising women in their businesses.
It emerged the challenge of access to credit dominated and so through the NGO, MOMFIN trained such women to effectively manage credit, add value to whatever they produce, while it adopted a ‘know your client strategy’ to get closer to them.
MOMFIN took into consideration the available commodity in each area, put the women in groups and gave them loans which they are able to pay back.
Mr Boafo said “invariably the most outstanding hallmark has been that those who were down and had nothing can now justify that indeed the programme has brought life into their homes. Most of them who are single parents are now able to send their children to school and livelihoods have improved generally.”
IMPACT
Access to credit remains an issue to women in enterprises and that is what MOMFIN says it has worked at and continues to work on. Unlike other microfinance institutions, MOMFIN boasts of a regular and quality service. Even after a loan cycle ends clients are guaranteed a second amount which may be bigger.
“Everybody who has been with us will tell you the benefit that has come to them. People are flooding our office as a result. Some have gone through and now they tell us that they want to work with their own savings and they want to work with the capital that has,” he said.
MOMFIN is still among the least when it comes to interest charge. The ultimate among the CMA is that because of its holistic approach to women’s development in Ghana, the moment they go through economic empowerment, automatically they are also engaged for their civic rights to enable them take part in decision-making and political positions.
The oldest partner of the CMA has been the Konrad-Adinauer Stiftung (KAS) that has as part of its social development agenda, encouraged them to move beyond prayers and credit union activities to support in the delivery of civic rights, while KAS gave them resources to engage women, especially at the district level.
MOMFIN’S ASSOCIATION WITH EED
Church Development Service (Evangelischer Entwicklungsdienst - EED) is an association of the Protestant Churches in Germany. By means of financial contributions, personnel involvement, scholarships and consultancy services EED supports the development work of churches, Christian and secular organisations.
Therefore, for the CMA’s economic empowerment programme through MOMFIN, EED has been its main partner for the past nine years. However, since it set off on the path of sustainability, it has asked the EDD to show them how to “fish” and not give them fish.
CLIENTELE
The clientele base has increased from 5,000 to over 10,000 with 17 branches nationwide, except the three northern regions. It employs 46 full staff and six casuals.
“There is no MFI that has been formidable as ours. The structure is solid and we have engaged professionals to run affairs. We believe with support of the board we will be able to economically empower women in Ghana,” Mr Boafo said.
About five per cent of MOMFIN’s clientele are men and are marching the challenge very well, but then its focus is women and so cannot give higher amount to the men.
CHALLENGES
The management of MOMFIN welcomed the directive to mobilize savings and never envisaged the challenges it is facing. Unlike the Christian mothers who due to the faith and cohesion and group work pay back loans, ‘outside’ clients are different and put up tricks to avoid repayment.
Therefore, it does due diligence before it gives out loans though it is in to help women it is careful as to who to lend to.
EXISTING PRODUCTS
Formerly because it was a financial NGO it could only do compulsory savings, which acted as cash collateral for loan.
Other group products include the Mothers Product for enterprising mothers (members of the CMA), Semanhyia which moved them to another level where money was given to individuals in groups, Emuye (the sweetness of the pudding lies in the eating), through which they created jobs for other women and the small and medium enterprise product.
NEW PRODUCTS
Its Department for Monitoring and Evaluation after a research end of last year came out with new products.
These include Ketewa biaransua (little drops of water makes a mighty ocean). MOMFIN always pegs its rate up to three per cent over that of BoG’s baseline rate; Core savings account which within 24 hours a client can get his / her money back; Peykinkran a core account like the normal commercial bank interest given to them at BoG baseline rate; Hyehyeehye (a core savings account) which is an investment of a sort which gives two per cent on the treasury bill interest rate.
Some of MOMFIN’s loan products are Gyae suu, a funeral products that has brought a lot of people who are not Catholics on board; Menso metwi bi (car loan); Prosperity account mostly for wholesalers engaged in imports who make orders outside while MOMFIN’s contact person follows up to ensure that quality is not compromised. MOMFIN said within the shortest possible time these wholesalers see their margin and are able to pay back their money.
HOW MOMFIN STANDS OUT
Mr Boafo said anyone who wants to grow his / her business must come to MOMFIN. “Wherever every commercial bank or MFI ends that is where we start from. We believe in negotiation so whatever you have to invest we sit down with you, talk it over and do proper documentation so always the customer is gaining. Everybody must come to us for us loan because our conditionality is flexible,” he added.
Even when a person takes a loan from MOMFIN and passes away leaving outstanding amount, there is a package that caters for that and so MOMFIN does not demand from the family. Indeed, it makes a donation to the family.
Also, each client is given the chance to bring at most two relations on board such that if anything happens MOMFIN can show love.
FUTURE
It hopes establish branches in the three northern regions soon. By the year 2016, MOMFIN hopes to be a fully fledged savings and loans company and is working fervently to achieve this.
Youth must take to skills training - Nsoh Amoah
THE passion to be self-employed attracted him to the art of basket weaving. Today, Mr David Nsoh Amoah, Managing Director of Dasoa Company Limited has a market worldwide for his products. Ama Amankwah Baafi reports
WEAVING has been a traditional skill of the people of Bolgatanga in the Upper East region for years.
Popularly known as Bolga baskets, on both the local and international markets, these baskets are exclusively woven by the indigenous people of Bolgatanga.
Bolgatanga literally means soft soil, rocky land.
Little wonder that at the age of 23 Mr Amoah began dealing in straw baskets, shuttling between Accra and Takoradi in the Western region to ply his trade.
He began weaving baskets for a living in 1975 after completing secondary school form four. His company, known as Dasoa Company Limited is headquartered in Bolgatanga and with a branch in Lashibi, near Tema.
At that time, he started with a capital of four hundred cedis (now GH₵40). Initially, he transacted business with Takoradi British Society and later determined to look for markets outside for his products.
Consequently, he registered with the Ghana Export Promotion Authority (GEPA) in 1991 and went through the export school, where he was taught how he can make it through his business and how to look for markets.
“In fact, the export school was helpful. I recall my first participation in an exhibition was in Germany, through the support of the GEPA. Then I began marketing in Burkina Lome (Togo). I have establised markets in Germany, United States of America, Japan, Australia, France and Italy through the exhibition of my products,” he told the GRAPHIC BUSINESS.
Unlike other entrepreneurs who explore the African market, before going to Europe, he thought there was no big market for handicrafts in Africa and therefore conconcentrated on countries outside the continent.
However, he acknowledged that the market for handicrafts in Africa was picking up, though on a very low profile. Now, he has expanded by adding other products namely drums, fans, hats, musical instruments (xylophone), household items (tables, stools, etc), oware (local game), Ashanti dolls and other decorative items.
SOUCING FOR RAW MATERIALS
The straw is the main raw material used. It is obtained from a tropical grass locally known as elephant grass (its technical name is “veta vera”). The grass grows along the banks of rivers, streams and swampy areas. The straw is harvested wet, then sun-dried, and becomes ready to go through the weaving process.
Unfortunately, Mr Amoah said basket weavers like him are compelled to travel to Kumasi to either harvest the straw themselves or buy it from the open market because they are now extinct in Bolgatanga, as people have farmed along the banks of rivers.
Weaving process begins by splitting the straw into two halves by biting every single piece in the middle at one end with the teeth to open it into two. The split straw is wrapped together in a wet sack to keep it wet and prevent it from breaking during the twisting process. The split piece of straw is then twisted by rolling the two halves together. Traditionally, this is done on the weaver's thigh. However, today, a piece of bathroom sandal is tied against the thigh for the rolling process.
Different lengths and thickness are best used for different parts of the basket. The weaver carefully selects the appropriate straw for the different parts of the basket. He said the ability of the weaver to select the most appropriate straw goes a long way towards the outcome of a good basket.
If there is need to apply dye, a pot of water is brought to boil and the dye is added. The straw is then submersed into the solution and pressed down. The actual weaving process starts with the base of the basket. Once the body of the basket is completed, the rim is added.
Trimming involves the cutting off the remaining ends of the straw on the body of the basket (both in and outside of the basket). “We design and add colours that will suit each season; spring, winter,” he said.
Dasoa Company employs over 100 permanent staff and also employs contract staff when it gets big orders.
HOW GHANAIAN PRODUCTS FARE OUTSIDE
Mr Amoah recognised finishing is an issue to most Ghanaian entrepreneurs. Particularly, when they take orders beyond their production capacity and try to deliver at all cost. “You see sometimes you take on other people to work and since they are not conscious about finishing, you need to be vigilant or else they will mess you up,” he said.
Sadly, the weaving industry he said was threatened by cheap products from Vietnam and Philippines, and as a result reduced patronage. “In the 1990s it was so good in Germany. A customer could take about 100,000 baskets from me a year, but now it is USA which takes over 50,000 baskets a year,” he lamented.
Thankfully, ours is the original or natural straw so patronage it has picked up.
ACHIEVEMENT
Mr Amoah has made it in life through the business and says has no regrets. Yet, he still wants to grow it big so that others may also benefit from it. He has several assets, is also a registered contractor and has invested in other sectors.
He has also trained about eight people who are well established now. Mr Amoah is happy to be associated with a tradition from his ancestry and also makes an effort to bring young people in.
Since its inception, Dasoa Company has received about 10 different awards, from both local and international institutions. Just last year the company received a silver award at the 22nd National Awards for Export Achievement.
His major challenge includes securing markets and how to get bigger support to expand the business. Though, the Export Development and Agricultural Investment Fund (EDAIF) come in handy, the process to accessing the facility is cumbersome. He appealed to government to organise soft loans for such entrepreneurs, as they also contribute to the growth of the economy.
FUTURE PLANS
In the next five years, Mr Amoah hopes to see Dasoa Company involved in other projects that would expand the company and get more buyers in countries he is not established.
When he is not weaving baskets he loves to dance to highlife music, watch films and surf the Internet.
He said the youth need to find the art or craft that really interests them. “Sometimes it takes a while. Not everything comes in youth. Find good teachers and books if you can. They always need to work hard and not rush,” he advised.
He has adopted five children whom he has put through school from his area and also contributes immensely to BONABOTO, a non-political, non-religious development-oriented association of people who have the interest of seeing to the holistic development Bolgatanga, Bongo and Talensi-Nabdam districts of the Upper-East Region.
Mr Amoah hails from Zaare in the Upper East Region and married to Grace Amoah, a teacher (formerly a weaver), with whom they have five children. He schooled in Katole Middle School in Zaare in 1970.
WEAVING has been a traditional skill of the people of Bolgatanga in the Upper East region for years.
Popularly known as Bolga baskets, on both the local and international markets, these baskets are exclusively woven by the indigenous people of Bolgatanga.
Bolgatanga literally means soft soil, rocky land.
Little wonder that at the age of 23 Mr Amoah began dealing in straw baskets, shuttling between Accra and Takoradi in the Western region to ply his trade.
He began weaving baskets for a living in 1975 after completing secondary school form four. His company, known as Dasoa Company Limited is headquartered in Bolgatanga and with a branch in Lashibi, near Tema.
At that time, he started with a capital of four hundred cedis (now GH₵40). Initially, he transacted business with Takoradi British Society and later determined to look for markets outside for his products.
Consequently, he registered with the Ghana Export Promotion Authority (GEPA) in 1991 and went through the export school, where he was taught how he can make it through his business and how to look for markets.
“In fact, the export school was helpful. I recall my first participation in an exhibition was in Germany, through the support of the GEPA. Then I began marketing in Burkina Lome (Togo). I have establised markets in Germany, United States of America, Japan, Australia, France and Italy through the exhibition of my products,” he told the GRAPHIC BUSINESS.
Unlike other entrepreneurs who explore the African market, before going to Europe, he thought there was no big market for handicrafts in Africa and therefore conconcentrated on countries outside the continent.
However, he acknowledged that the market for handicrafts in Africa was picking up, though on a very low profile. Now, he has expanded by adding other products namely drums, fans, hats, musical instruments (xylophone), household items (tables, stools, etc), oware (local game), Ashanti dolls and other decorative items.
SOUCING FOR RAW MATERIALS
The straw is the main raw material used. It is obtained from a tropical grass locally known as elephant grass (its technical name is “veta vera”). The grass grows along the banks of rivers, streams and swampy areas. The straw is harvested wet, then sun-dried, and becomes ready to go through the weaving process.
Unfortunately, Mr Amoah said basket weavers like him are compelled to travel to Kumasi to either harvest the straw themselves or buy it from the open market because they are now extinct in Bolgatanga, as people have farmed along the banks of rivers.
Weaving process begins by splitting the straw into two halves by biting every single piece in the middle at one end with the teeth to open it into two. The split straw is wrapped together in a wet sack to keep it wet and prevent it from breaking during the twisting process. The split piece of straw is then twisted by rolling the two halves together. Traditionally, this is done on the weaver's thigh. However, today, a piece of bathroom sandal is tied against the thigh for the rolling process.
Different lengths and thickness are best used for different parts of the basket. The weaver carefully selects the appropriate straw for the different parts of the basket. He said the ability of the weaver to select the most appropriate straw goes a long way towards the outcome of a good basket.
If there is need to apply dye, a pot of water is brought to boil and the dye is added. The straw is then submersed into the solution and pressed down. The actual weaving process starts with the base of the basket. Once the body of the basket is completed, the rim is added.
Trimming involves the cutting off the remaining ends of the straw on the body of the basket (both in and outside of the basket). “We design and add colours that will suit each season; spring, winter,” he said.
Dasoa Company employs over 100 permanent staff and also employs contract staff when it gets big orders.
HOW GHANAIAN PRODUCTS FARE OUTSIDE
Mr Amoah recognised finishing is an issue to most Ghanaian entrepreneurs. Particularly, when they take orders beyond their production capacity and try to deliver at all cost. “You see sometimes you take on other people to work and since they are not conscious about finishing, you need to be vigilant or else they will mess you up,” he said.
Sadly, the weaving industry he said was threatened by cheap products from Vietnam and Philippines, and as a result reduced patronage. “In the 1990s it was so good in Germany. A customer could take about 100,000 baskets from me a year, but now it is USA which takes over 50,000 baskets a year,” he lamented.
Thankfully, ours is the original or natural straw so patronage it has picked up.
ACHIEVEMENT
Mr Amoah has made it in life through the business and says has no regrets. Yet, he still wants to grow it big so that others may also benefit from it. He has several assets, is also a registered contractor and has invested in other sectors.
He has also trained about eight people who are well established now. Mr Amoah is happy to be associated with a tradition from his ancestry and also makes an effort to bring young people in.
Since its inception, Dasoa Company has received about 10 different awards, from both local and international institutions. Just last year the company received a silver award at the 22nd National Awards for Export Achievement.
His major challenge includes securing markets and how to get bigger support to expand the business. Though, the Export Development and Agricultural Investment Fund (EDAIF) come in handy, the process to accessing the facility is cumbersome. He appealed to government to organise soft loans for such entrepreneurs, as they also contribute to the growth of the economy.
FUTURE PLANS
In the next five years, Mr Amoah hopes to see Dasoa Company involved in other projects that would expand the company and get more buyers in countries he is not established.
When he is not weaving baskets he loves to dance to highlife music, watch films and surf the Internet.
He said the youth need to find the art or craft that really interests them. “Sometimes it takes a while. Not everything comes in youth. Find good teachers and books if you can. They always need to work hard and not rush,” he advised.
He has adopted five children whom he has put through school from his area and also contributes immensely to BONABOTO, a non-political, non-religious development-oriented association of people who have the interest of seeing to the holistic development Bolgatanga, Bongo and Talensi-Nabdam districts of the Upper-East Region.
Mr Amoah hails from Zaare in the Upper East Region and married to Grace Amoah, a teacher (formerly a weaver), with whom they have five children. He schooled in Katole Middle School in Zaare in 1970.
Water and sanitation project for Accra
The World Bank is to finance a sanitation and water project for Accra which is expected to bring a transformational access to safe water and improved sanitation service delivery. Ama Amankwah Baafi reports
The US$150 million Greater Accra Metropolitan Area (GAMA) project to be implemented this year with emphasis on how to improve access to sanitation water service delivery to low income communities, the World Bank said.
The Sector Leader for Sustainable Development at the World Bank Ghana Office, Mr Waqar Haider, disclosed this at a consultative forum with a section of the media in Accra on the bank’s new strategy on Ghana, the “Country Partnership Strategy”.
Mr Haider said water and sanitation were areas that the bank was extremely concerned about, particularly with the inability of the Ghana Water Company Limited (GWCL) to make profit, a situation which had made it difficult for the company to reinvest in expansion and improvement in service delivery.
Yet, he recalled, attempts to reform the company, which brought in management contract among others initiatives, had just not yielded the desired results, though water as a basic necessity for everyday life, businesses and commercial ventures.
“Water and sanitation in Ghana presents an extremely dysmal situation so we are trying to move away from the convention of financing assets of GWCL to a results-based arrangement. We are now starting with GAMA project where 31 municipalities in and around Accra will be provided with access to water and sanitation services,” he explained.
Mr Haider said the bank would basically focus attention on low income communities through transparent and documentation process.
“This project will go the board on May 30, 2013 and it is another way of trying to basically crack the nut,” he said.
On assertion that institutions in the sector lack capacity to implement policies, he said, the bank was in the scheme of things going at the grassroots level, basically at the local government level and engage the community and useful bodies at the local government level.
He admitted that clearly there was capacity gap also at that level but at least in terms of ownership of the project, there was a much stronger one. Therefore, the project will build capacity within the implementing institutions.
He added that the project was also intended to move from approaches centred on Accra, saying “We did have GWCL basically responsible for water provision in the country but had limitation, so we are basically trying to work with local governments, while at the time enhancing their capacity,” he added.
The 2013 Budget statement reported that under the Water and Sanitation Component of the Local Services Delivery and Governance Programme (LSDGP), 404 new boreholes were constructed and fitted with hand pumps last year, 65 boreholes rehabilitated and fitted with new hand pumps, two piped schemes rehabilitated while 40 rainwater harvesting schemes were completed.
Also eight piped schemes based on ground water were completed and feasibility studies completed for two additional ground-water based piped schemes.
According to the budget, extending surface based piped schemes to 37 communities in the Greater Accra Region was 80 per cent complete, while 156 institutional latrines as well as 24 Ferro tanks were completed.
In 2013, the budget expects a revision in the national water policy document to incorporate new ideas, while it leads the development of rain water harvesting strategy to guide the water sector and water-related actors in the promotion of rainwater harvesting as a supplement to water service delivery. GB
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